clashes in ukraine shake up the u.s. markets... in today's cover story.... the new foodie fad that's rising in dough ... plus... what's happening beneath the surface of the latest jobless numbers. and... why the typical hot spots are slipping on the list of best places to retire.. first business starts now! you're watching first business: financial news, analysis, and today's investment ideas. good morning! i'm angela miles. it's monday, may 5th. in today's first look: violence in the ukraine could create volatility in the stock market today.. friday-- the dow and the s&p 500 both touched record highs during the session.. but those gains were erased as the ukraine pushed forward with its first major offensive to regain control.in the end the dow fell 46 points, the nasdaq and s&p declined by 3.gold rushed up $18 dollars in a safe haven play

and oil edged up 52 cents.spring surprise for jobs the latest jobs report shows 288-thousand americans were added to payrolls and the unemployment rated dipped to 6.3% and, warren buffet's berkshire hathaway corportion had an earnings miss, the 6.6% earnings drop is mostly blamed on berkshire's stake in insurance companies. in trader talk this morning, michael gurka of bruinhill partners is here to tell us if the market will be off to the races. good morning to you. >>good morning. >>stocks struggled following that jobs number. what's going on here? >>clearly the market was looking for some type of at least economic rebound off the payroll number from friday. it maybe wasn't as so surprising as far as this better than expected headline number that really no one believes anymoreor the fact that the labor participation rate continues to escalate. i think more importantly what we're starting to see is this premise that

there is that there's a built in premise to the economy right now that things are getting gradually better. just for those reasons earlier last week we saw gdp put a pin in that balloon. that's why we saw such a mixed bag of tricks in the equity market. for those reasons, that's why the market itself is starting to really keep an eye on that 10 year treasury as it got below 260 near the closing bell on friday. >>good to have you on the show. thank you very much michael. >>thank you. oil is in play as the u.s. attempts to de-escalate the conflict between ukraine and russia. president obama with german chancellor angela merkel by his side said friday from the white house .. the u.s. has approved licenses for natural gas exports to europe to make up for a cut off of supply from russia. the president also says if russia chooses to escalate the conflict a new round of sanctions will be aimed at a number of sectors... "the arms sector, the finance sector, in terms of lines of credit for trade, all that have a significant impact on russia"

shares of russia's largest energy company -- gazprom-- have fallen substantially during the last 6 months and are down 4% the past 5 sessions. chuck coppola as the story on how us banks are responding to the conflict. angie, major banks are reducing risk in russia as the conflict continues. bloomberg reports - jp morgan lowered its exposure by 13 percent from 20-13. bank of america cut its risk by 22 percent and citigroup by 9 percent. all 3 banks are monitoring the situation because future sanctions could hurt business lending in russia. citigroup faces more trouble south of the border... federal prosecutors, the sec and mexico's banking commission have launched an extrordinary review into possbile fraud at banamex. the wall street journal reports... the fbi is considering possible criminal violations. it revolves around

citi's $400 million dollar loss at banamex in a business deal with a mexico oil supply company. general motors appears ready to settle more than 300 claims tied to its defective ignition switches. friday a bankruptcy judge told lawyers for the automaker he welcomes avoiding a "monstrous battle". the new york times reports.. g-m has started preliminary talks to settle claims alleging wrongful death or personal injury. the paper also says a there's a possiblity of a compensation fund for victims. the highly anticipated alibaba ipo could move closer to market this week. re-code reports. the filing for the ipo may happen today or tomorrow. the chinese internet stock could become the world's biggest initial public offiering. one report suggest the ipo value could top $20 billion dollar. alibaba's business model is similar to amazon. the stock to watch now is yahoo which is trending higher. .. yahoo has a 24% stake in alibaba. volatility in the stock market is putting pressure on ipo-s.

on friday business development company ares management opened below its range. shares fell more than 2 percent. biotech firm aldeyra therapeutics also opened below range and traded down 10 percent on friday. "take-and-bake" pizza company papa murphy's opened within range and closed up 5 cents. a couple of ipo-s are expected to trade this week: p-b-f logistics, friday-- ticker symbol p-b-f-x and chinese security company cheetah mobile, thursday, that ticker is: c-m-c-m. financial exchanges are expected to soon be served with subpeonas in connection with high-frequency trading firms. according to a reuters the new york attorney general's office is probing the intercontinental exchange, nasdaq omx, and bats global markets. along with high frequency trading firms. the ag is interested in finding out if high frequency traders receive early information. astrazeneca is rejecting a new bid from pfizer, calling it inadequate. the new offer of $106 billion dollars is larger

than the $100 billion u-s-based pfizer proposed in january. but the british drug firm says the bid "substantially undervalues" the company. if the deal happens in the future, it would be one of the largest-ever foreign takeovers of a british company, and one of the biggest acquisitions in the drug industry. the weekend party is over in omaha for this year's berkshire hathaway shareholder meeting... but the company is working on a new source of energy. berkshire is buying the rest of candadian power transmission provider altalink for $2.9 billion dollars. the deal still needs approval by regulators. it would give berkshire full equity ownership. in the wake of the oil supply disruptions that followed superstorm sandy... the goverment is out with a backup plan. the storm triggered a gasoline shortage. the energy department has created a regional reserve for gasoline. ---one, near new york harbor and the other in new england. each location will store a half-million barrels. it's part of the president's climate action plan. the nation's second largest oil company turned in a disappointing earnings report...chevron earnings declined 27% on slower production of gas and oil.

however, the ceo predicts new oil developments in austrilia, the gulf of mexico and others will boost production 20% by 2017. profits at cvs caremark jumped 18%. still, the pharmacy chain says extreme winter weather and a weaker flu season hurt sales. cvs expects to take a $2 billion dollar hit as it phases out tobacco products by october. but says it won't affect its earnings forecast. a class action lawsuit accuses google of monopolizing the search market...it also claims google has caused smartphone prices to jump by forcing its apps onto android and apple smartphones, not leaving room for competition. google denies the allegations responding: "since android's introduction, greater competition in smartphones has given consumers more choices at lower prices." despite strides in the job market, small businesses face hiring hurdles. a recent survey by allstate finds more than half of small businesses are looking forward to growth in the year ahead. but adding to staff is still a quesiton mark... "what is worriesome is of the

50% that thought they would grow, only half of those are going to staff for that growth so it gets right at the heart of this labor issue in unemployment." that was mike barton of allstate who adds that hiring may be on the backburner as small companies take on other challenges including gaining access to financing. in today's cover story--a culinary entrepreneur in chicago has come up with a new "grab-n- go" breakfast food that's become an instant hit with patrons and on social media. it's the wo-nut. part waffle-- part donut. nearly all profit. 42-year old alex hernandez's business plan had dozens of holes in it. where others saw a waffle, hernandez saw a hole. no one else saw the profits that would follow until he baked, fried, glazed and drizzled them with sour cream icing, pistachios and ginger, and mexican chocolate and sold them for two-25-each. he calls them "wonuts." "it's just a waffle with a hole in it. oh, it's so much more. it's a flavor explosion in your

mouth. it's amazing." this isn't some accident. hernandez graduated from culinary school and managed a high-end chicago restaurant for nine years before opening "the waffle cafe." but the combination of a new dish at a new restaurant opened just two weeks ago and a blogger, who posted mouth-watering photos created more foodie-craze, pastry sensation buzz than hernandez ever imagined. " it's taken on a life of its own. tv interviews, my mother flew to ny because the program "the chew." "ii think it's every business owners' dream. it's what you call, 'world of mouth on steroids.'" hernandez measures the boost in business the buzz has brought this way--before after baking two dozen a day, there'd be one or two leftovers. now, 600 a day aren't enough. he's had to limit purchases from six down to four per customer. a lot of business that underscores the sway possible via social media and smartphones, according to small business consultant, tim

carroll. "word of mouth and recommendatiions of friends are the fastest way small businesses can find preferred partners and i can't imagine doing it without social." hernandez is considering adding a few extra pastry chefs at least on a temporary basis. retail analyst jim dion says it depends if wonuts turn out to be more than a flash in the pan. still to come: a wrinkle in time... why a single week in april could have thrown off the unemployment data. plus...behind the boating industry's efforts to stay afloat.. and...the reveal on the best state to reture is after the break. stick around you will be surprised.' .

south dakota ranks number one in a roundup of best states to retire. a bankrate survey- finds retirees in colorado, utah, north dakota and wyoming have the highest satisfaction. new york, west virginia, alaska, arkansas and hawaii are listed lower. "there are some people who absolutely need to be near the beach, some people want to be in the cities, there's some people who would love to go to europe. in each of these cases, what we want to tell people is that aside from what your dreams are, think about some of the very basic facts that are out there." according to bank rate- the best states to retire have low cost of living, and tax rates, which is luring retirees away from popular destinations such as arizona and florida. new market highs have investors saving for retirement-- trusting stocks again. aon hewitt says in march --stocks accounted for 67% of assets in

retirement contributions. those allocations hit a low of 56% in march 2009 during the financial crisis when investors pulled money out of the market. recent rallies in the dow and s&p have more individual investors ready to risk going into stocks. strenth in the economy brought a surge in home prices and car sales. now, the tide is turning in the boating industry. jackie keenan reports from florida on why it might not "all" be smooth sailing for potential boat owners. tom and beth amstutz have earned their time in the sun. after putting off retirement for several years they're finally living the life they've been saving and working for. this was the time to retire, to live the dream in florida. and living the dream includes his new baby - a boat. amstutz and many other consumers are finally taking the plunge and buying new power boats. here at boat and motor superstores, they're flying out of the showroom. owner brad kenyon says sales are up more than 15

percent. it's been coming back for a year and a half now it's been on the rebound. according to an industry trade group, sales sunk in 2008 and were sluggish for several years before finally rising again in 2012. what happened was a glut of excess inventory showed up, financing become tighter and more difficult to obtain for buyers, and that really led to what became a 4-year downturn for the industry that was the worst it's ever seen. but sales picking up speed may not last long. the market is strong but the supply is low. when workers got laid off during the recession, the first thing to sell was the boat - or even worse, it got repossesed. so when used boats started

flooding the market, new boats stopped being manufactured. we didn't really build a lot of boats in 2008,2009, 2010, 2011 so there's this real absence of late-model, used boat inventory out there to be had. now buyers have to go new - if they can afford to. if there was more supply the prices would be lower. so more people would be able to afford it. one of the problem with new boats is that the prices are pretty high. and what customers want is a smaller more versatile boat. the sales of boats less than 30 feet are outpacing larger craft by nearly 10 percent. compared to the last decade, dealers are being more careful with credit, and consumers are more thrifty. we found that nice balance of a good quality boat at a reasonable price. for first business news, i'm jackie keenan. jackie tells us business is brisk for boat dealers in the south..while in the north-- the frigid winter and chilly spring are drying up sales. recently , brunswick, the largest maker of power boats-- revised its revenue down 3% for the quarter. coming up.... one trader says the chart looks sickly on a big pharma stock. is it time to take a healthy position... plus ...how easter played a role in the latest round of unemployment numbers... that's next with bill moller!

no threats of a government shut down, no sequester and no polar vortex - the unemployment numbers that came out friday were free and clear of the main influences of late. the american economy clearly gained stream in april - much stronger than the already strong forecast. 288- thousand jobs were added and the unemployment rate dropped to 6.3%. brent schutte is senior investment strategist for bmo global asset management. the numbers make for good headlines. your specialty is to look behind the numbers. what do you see? >>sure. before i talk about what i see i want to just pat myself on the back a touch. i mentioned in 2013, that the economy was going to be accelerating and that employment was going to start growing faster than what it did in 2013 and i got polar vortexed and felt pretty bad. so now it's actually given some validation to the fact that the economy is actually strengthening. you've seen revisions in the prior months and it looks like things are getting better. the important things that i see 3

thingsone, the participation rate came downthat's a concern. two, hourly average earnings were flatthat's a concern that we can talk about. three, government now which is not a concern and is actually a decent thing for short term economic growthgovernment is no longer drawing down workers. so you actually saw government adding to the economy. >>the number of government workers dropped to something like the lowest level in several administrations. >>we've had a big drawdown in government employees for the last couple of years. government has actually subtracted from the common growth in the u.s. now you have it turning around. >>talk a little bit about that participation rate. that is perhaps the main reason that it dropped to 6.3%. >>you mentioned the free of every type of thing that is out there and unfortunately economic data is never free and clear. the easter holiday fell

during the survey week. what the employment number does is they go out and call people and say are you searching for work? if you're not searching for work, you've dropped out of the labor force. that survey week during easter, probably people weren't out looking for work. they may have said no because they were focusing on getting their easter turkey ready. >>some sectors, particularly construction, where there's a huge demand right now for workers. >>one of the things we've talked about is some sort of structural unemployment. meaning that there's some people who aren't coming back into the labor force. that has a big implication for the economy. i guess it ties back into my average hourly earning comments because as there is less labor slack hourly average earnings should go up. you're starting to see that hopefully. it was flat this month but we're thinking we're going to start seeing that in the future. there was an article in the wall street journal on friday that mentioned construction workers and how they are in shortages. it noted that from february 2014 to february 2013 their incomes and wages had gone up 6.3%. so now that's at the front of the economy you may start seeing that filter to the rest of the economy. >>brent schuttethanks so much. >>thank you. still ahead--will pfiz i'm going to pass chemistry, and i'll take it from there.

i'm going to do what makes me happy. i'm going to work hard. be independent. live large. make the most of every opportunity. i knew i wanted to go to college. but figuring out how to pay for it? i didn't have a clue. the u.s. department of education has over $100 billion. and that's a lot of money. to help students pay for college. and the free application? you mean the fafsa. i did it online. it was easy. i'm never giving up on my goals. i will make a difference. i'm going to find out how to pay for college. i'm going to college.gov. pfizer stock has been selling

off into earnings. joining us now is andrew keenepresident of keeneonthemarket.com. he's here to give us a dose of information. good morning. >>good morning angie. how are you? >>i'm doing very well. what do you see in the charts here andrew? >>the chart actually looks like it's breaking down. it got under 31 level. we saw a huge institutional buyer of the september 34 calls. upside call buyers through recent highs at 30.50. if i want to long it i

probably will play through the option market. earnings have been very volatile. we've seen a lot of crazy things going on. i think it's a lot better to play it through the options market than to take a stock position. >>but you are going long? >>i will probably buy the 31 32 call spread if i can get into that around 30 cents. that sets me up at about a 2 ½ to 1 reward to risk setup and since i said the chart does not look that strong, if it does sell off i know my risk and it's already capped through the option market. >>we'll see if that rally happens. let's move on to tesla. earnings coming up this weekhighly anticipated as always. what's your play there? >>tesla is another of these things. these growth stocks are the darlings that everyone wants to buy and every single dip is getting taken to the woodshed. we see it in linkedin, we see it in facebook even. we saw it in twitter. i played

twitter to the shortside. we saw it in pandora as well. i think tesla has a better business model going long term. i think they're going to beat earnings. they have actually performed pretty well on earnings. i think the stock could get up to that $230 level. throughout this bloodbath, it has held well at the $190 level. once again, i will play it through the measured move target of the option market but i think tesla has a chance to get back to 230. >>what would be your price target? >>i think it could get to $230- 250 by the end of the year. unfortunately i wouldn't want to be holding this stock overnight. i get very nervous when i personally hold stocks overnight. that's why i play it through the option market. i'm going to put on an earnings trade just for the catalyst so i have a position on it. it will be a long position but it will expire this friday and then i'll move on to another trade. >>thanks andrew. >>thank you. that's wraps it up for today...coming up this week.. find out how corporations are using strong scents to affect consumer's moods while shopping and even banking.. from all of us at first business.. happy monday!

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