ers. lend me your ears.. could a headphone company help apple get its groove. back??? in today's cover story...a government watchdog takes steps to make buying a home easier... plus... a historically bad investment just made a turnaround... and... how $250 per month or less could buy your child a college education. first business starts now! good morning! i'm angela miles. it's monday may 12th. in today's first look: the dow starts the session.. at the highest. level. ever. the blue chips closed at in record territory friday at 16,583. all three of the major indicies ended the day in in the green. although the nasdaq

recorded it's biggest weekly loss in 4 weeks... gold and oil had a relatively quiet day. the treasury department admits for the first time the goverment has some wiggle room in payments if congress triggers a default crisis. the obama administartion is taking public comments on fracking. radio shack is pulling back on plans to close 11-hundred stores after failing to reach a deal with lenders. and the financial times report allergan is set to reject valeant's take over offer. well it's a monday morning, trading gets under way. bob iaccino of tethys partners joins us now. bob how critical will today's market action be as you are trading here? > > the'll be very critical. the way we saw the market close on friday even though we had a new high in the dow -- a new record high, i think people get a little bit too excited about the word record high or record in front of it. it's not really a material change in the appreciation of the dow or the s&p when we get these record

highs. you need to see movement with volume. we're not seeing that. the way the market traded on friday, you're going to need to see some follow-through today and tomorrow. if we don't get the follow-through then i really don't put a lot of stock in friday's record high in the dow. there actually has to be movement the following week-- that's what we should get today and tomorrow. > > earnings are winding down so what will give you clues? well i think we had a look at the guidance going into next earnings season. this particular earnings season, companies didn't do bad. the vast majority of the s&p p beat, but they beat against a lower bar. i am a believer in the weather snap back. really poor weather in the u.s. kind of closed people up in terms of their spending. i'm seeing an anecdotally in chicago. i believe we will see it in housing, retail sales... we are getting a housing number this week, we're getting industrial production number, so we're going to see some of those numbers pick up i believe, and then cpi at the end of the week i think you will see it show up

in there. at least starting to show up in there. > > what will you be watching for in crude? sometimes that's tied to tensions for instance in ukraine. > > i think what the people need to know is there's two different types of crude that are trading. wti is west texas intermediate crude that symbol is cl. that is u.s. spec crude that is crude that is moved down the pipeline from canada the balkan places like that down into the gulf for refinery. brent crude is where you see russian and ukraine tensions. that's the number where you see it. that spread between brent crude and wti has been widening and that's because of the tensions between russia and ukraine. if that actually escalates and it's not just rhetoric, you'll see that in brent crude first. you won't see it as fast in wti. there's plenty of oil globally. brent crude is where russia can actually have some influence on the supply and price. > > bob, thanks for bringing that to us this morning. > > thank you for having me.

and the beat goes on... financial times recently reported apple is in talks to buy beats electronics for 3.2 billion dollars. rapper dr. dre co-founded the company. the beats business which sells snazzy high quality headphones that are populr with teens and young adults. apple shareholders made some noise friday by selling the stock, which closed down 2 dollars at 585 dollars. "i really don't think there is an actionable trade set-up that is going to come off of this news. you know, we didn't see anything unusual in th options market in apple on friday, you know, so i really think the action was muted." buying beats would be the largest purchase to date for cash rich apple. but tech analyst rob enderle believes the tech giant is better -- off beat. "apple really doesn't need another premium sound brand. they already have two in both apple and itunes. and its hard to picture what they are going to do with beats and dr. dre." if the deal does happen.. dr. dre becomes the world's richest rapper. apple's next big release

will likely be the iphone 6. reports predict that launch could happen in august. the wage debate will continue to be a hot topic this week. chuck coppola has more.. good morning chuck. angie, several states are not only fighting plans to raise the minimum wage... in some states, workers are earnings less than the current rate--. at times substantially less. according to usa today five states -- alabama, louisiana, mississippi, south carolina and tennessee have no minumum. the states of arkansas, georgia, minnesota and wyoming have wages below $7,25 per hour. arkansas busnesses, for example have paid workers a minimum of $6,25 an hour since 2007. while georgia's rate is $5.15. states that have a lower minimum wage are able to avoid the federal minimum in certain circumstances. president obama is pushing to raise the wage to $10.10 an hour. opponents claim a wage hike would encourage layoffs. fast food workers are among those leading the fight for a higher minimum wage and they are planning to take their protests international this week. on may 15th -- the movement plans a nationwide strike. on the same day, workers from dozens of countries on six continents will hold protests.

thousands of the nation's 4 million fast food workers are expected to take part. may 15th was choosen because of the fight for $15 per hour. the movement gained what many would consider an unlikley ally on the matter -- mitt romney. he spoke out in support of a higher minimum wage late last week. president obama drew fire for choosing to speak at a wal-mart store on friday. but, he quickly made clear in his speech that the wal-mart where he spoke, in mountain view, california was not a typical wal-mart. the store is taking part in the chain's efforts to improve energy efficiency. it uses solar panels, l-e-d lighing and updated refrigeration systems. critics called it a mistake for president obama to speak at a business known for perpetuating low wages and discriminating against women and unions. pfizer's plan to buy a london- based competitor and then re- locate its headquarters there is not sitting well with politicians on capitolhill.. lawmakers say pfizer is exploiting loopholes in the u-s tax code to skip out on takes., a bi-partisan group on the hill-- say they will try and stop the move.

but, there is considerable disagremeent on how. the united kingdom has lower corporate taxe rates than the u.s. in today's cover story--richard cordray, director of the consumer financial protection bureau believes it should be mandatory to teach financial literacy in school. and that the federal agency he directs, the cf-pb hopes to make the process of mortgage closings less confusing. the consumer financial protection agency's director, richard cordray told a bank conference in chicago that teaching youngsters about finance is critical. "it should be mandatory that financial literacy be taught in school and that there should be a stand-alone course before high school graduation.. without it, we set them up for financial failure in life." he said financial education should be a relay race--where one generation hands off what they've learned to another. but often it isn't. and some argue that contributed to a gullible public that contributed to the housing bubble. and on the subject of housing, cordray told the group that his agency

is establishing a pilot program to make the often-daunting process of mortgage closings simpler. "we're looking to foster electronic closings, so the buyer doesn't have this huge stack of papers that creates anxiety and makes them go away feeling very uneasy." since it's inception, to protect consumers from fraud after the financial meltdown, roughly 350-thousand complaints about financial institutions have been filed with the cfpb. new york's attorney general is questioning trading practices

at major banks. dow jones reports-- goldman sachs, barclays and credit suisse have been asked for information about dark pools. dark pools are trading systems set up by banks allowing clients to trade large blocks of stock outside of regulated stock exchanges. supporters argue the pools provide liquidity for large trades. the ag is investing if it leaves other investors at an unfair disadvantage. the winklevoss twins hope to take the bitcoin, mainstream. the twins, famous for their legal battle for facebook, hope to list a bitcoin exchange- traded-fund on the nasdaq. it would be the first etf to track a virtual asset. the two are high-profile backers of the virtual currency, which has faced heavy criticism from regulators. in march-- the largest bitcoin exchange in the world, mt gox, lost millions of

dollars in investor money, after a hack attack. the u.s. postal service is delivering a $1.9 billion dollar loss.. it's the 20th loss in 22 quarters. the postal service is not funded by taxpayers-- but is under congressional control. which requires the post office to prefund benefits for retirees.. postal managers want lawmakers to change laws so that upgrades can be made to save money. for the quarter operating income rose 2.3% as the agency cut costs. first class mail volume slipped 4.1% while .. shipping and packaging rose 7.3%. a change in the american wallet. people are carrying less cash. eight in ten americans carry less than 50 dollars in cash on a daily basis. 9% of people don't carry any money on them at all. greg mcbride of bankrate.com says americans are starting to realize that

carrying cash on you, doesn't always mean you'll spend less. "some people that cash burns a hole in their pocket, and they'll just go through it real fast, others they almost feel a sense of pain everytime they have to shell out the cash. so it's a way to hold their spending in check, relative to say using plastic where they may not feel that same pain." mcbride says being stuck without cash means getting stuck with atm fees... which on average are 4 dollars per transaction. hilton hotels and resorts checked in big money in the first quarter.. the world's largest hotel chain reports profits more than tripled -- as hilton raised room rates on strong demand. the chain predicts business will exceed analyst expecations for the year. the stock rallied about 1 and a half percent friday.. and is up roughly 17% since the ipo last december. trendy styles could give gap earnings a boost. the company reports 1st quarter results next week, but has issued a postive profit forecast. it expects earnings and sales to beat expectations. shares closed up 3

percent friday at 40 dollars. ralph lauren fell short of what wall street was hoping for, sending shares down three dollars friday. it's earnings were solid... but says its growth going forward will be lower. new netflix fans will pay $1 more per month. the online video streaming service raised the price to $9 friday. the $8 fee remains the same for 2 years for millions of users who already with netflix. the company says it needs more money to pay for original programming including its hit "house of cards". still to come: the new high flying stocks as money comes out tech... plus...from hobby to startup..... insights on tapping into your talents and after the break... one of the most overwhelming investments of your life...simplified. that's after this in the know message! real issues they're dealing with

can be awkward and uncomfortable. but when their behavior changes, it's time to act. because if we don't, our families and relationships will suffer. listen to the veterans in your life and show you care. it matters. when you recognize a veteran is in crisis, call the veterans crisis line at 1-800-273-8255 and press "1". paying for college doesn't have to be a terrifying experience... there is a way to send your teen to school for just $250 per month or even less. tony zimmer of assocatied tax advisory group is here to

explain. good morning! > > good morning. > > how dier is this situation with parents trying to save for school? because a lot of parents say they just can't afford it. > > yeah you got that right. the problem with it is that with the economy being where it is, people are just making ends meet and in order to put that money away that seems like an eternity away-- they want to save it for later, but i tell you, you have to have time on your hands. you have to start early and there's a way to get around it. you just have to do some planning. > > fortunately for us, you brought us five easy steps starting with: choose the right vehicle. > > exactly, a lot of times you find people just putting money into savings accounts at 0.001%. that's not going to get you anywhere. > > what do you recommend? > > 529 plans. > > what about the stock market if you're looking at maybe 18 years you start when their babies. > > you can put those stock market items inside a 529 plan which is your best bet because the money grows tax deferred, tax-free in most cases and when you take it out, it's not taxable either. > > you also say start early-- years where that $250 per month starts when a child is 1,2, or 3 start putting a way $250 a month or less and you have a grand amount. > > exactly over time that will accumulate. the guess is right now that a baby just born, if you want to send them to a private institution when they're in college age, it's

going to cost about a half of million dollars-- that's a lot of money. if right now it's hard to save a couple hundred, that half a million dollars is going to be a lot worse. > > you also mentioned don't miss financial aid. do people miss out on financial aid? > > most definitely. most people think they don't qualify. we always recommend applying, to start early. it's usually offered on a first-come, first- served basis. > > and get creative... that's with scholarships. > > yes, scholarships, grants anything like that. they are certainly available and a lot of times individuals feel, well they have to be an a student. my son is not an a student. he doesn't have to be-- just a good student and they are involved in extracurricular activities: dance, play soccer, whatever it may be will give them a big edge in getting into college. > > finally prioritize your retirement because you don't want to take a college fund from your retirement savings. > > unfortunately in about 18 percent of all parents out there, that's their game plan is to take money from their

retirement account. what will happen is very simply they will run out of cash and when you retire you have anywhere from a 15 to 20 years to use that money and if you drain it ahead of time, it's going to hurt. > > thanks, tony for coming by. > > my pleasure. coming up.... a trader who is merging his money with transportation stocks... plus... women are starting more small businesses than ever. how to know when to take a leap of faith to launch your own company. that's next with bill moller!

it's a fact, more women than men are earning degrees in college. they're also starting new businesses at an accelerating rate- and that includes microbusinesses, those with 5 or fewer employees. the women's business development center in chicago is the oldest & largest women's business assistance center in the country. joi lynne ortiz is associate director of the

established business program there. you quote a study that shows nearly half of micro businesses are women owned. how come that's happening? > > well it's because women are out there these days. they're sometimes the sole breadwinners or they're also helping bring income into the home. a lot of these women have hobbies or things that they do at home that bring purpose to them, and they say hey just in case there's another economic downturn or lay off, let me start this business and do something that gives me purpose. > > and yet a third of the women according to that gallup study have to hold a second job. how do they know when to leave that second job for the start up job full-time? > > it's really about following your gut. if you're at a point where you wake up every day and you're going to your nine to five but realistically you'd rather be doing something else or you're at a point where your

business has hit a growth plateau and if you don't go all the way in, then it's never going to grow any more. it's probably time to take that leap of faith. > > i've done other businesses and i've learned that access to capital was and remains a big challenge for women. are there other credit options other than banks if the bank says no i'm not going to loan you money. > > sure in this post recession environment, lending environment everyone isn't your typical loan candidates. so there's some micro lending and a lot people tap into their savings, get loans from business and from family members and friends and also a lot of people sometimes max out their credit cards to make it happen. > > i was looking at the gallup survey that says a lot of women do not invest much time into long-term planning for their businesses and i know you'd feel it's a big mistake. > > that's unfortunate and that's very true. a lot people start this it's just a hobby they say we'll see where it can take me and then they don't think about where the business could be in 5, 10 years or if

maybe something they will quit their full-time job and do until retirement. so when starting that business in your growth plan in your business plan, identify where you want the business to be in 10 to 20 years and continue to position the business so that one day, it could possibly be acquired, sold so that you have a nice little nest egg. > > businesses are serious, treat a business seriously. joi lynne ortiz, thank you so much. > > thank you. thank you bill! just ahead--- airline stocks are picking up investors. trader tips on getting on board and not getting bumped! chart talk is next.

alan knuckman of one stop option joins us now. he's checking the charts on jet blue.

is it up up and away alan?. it looks like it's flying high. it's up 25% since the first of the year so it's in a strong trend, but technically speaking its trading between $8 and $9 since november, so a break out above 9 since it's in 10 which doesn't seem like a lot but that is 20% above where we are right now. > > it is and the reason is we've seen money come out of these high-flying tech stocks and actually go in to some of the airline stocks. so what would be your play? > > airlines have always been a poor investment historically but they figured out a way to monetize what they have-- they're a la carte pricing and they're making money. they have pricing power now for the first time in a long time so if you look at this chart jet blue is trading between $4 and 8 dollars for the last five years so break above $8 targets 12 which is 40 percent higher than where we are right now so i'm looking at an in the money call-- a $7 call for january--

it has a good deal time, its break-even is only 50 cents higher that's where i'm looking to play it as the stock because it is a low dollar stock. > > now where would you like to see the price target on the stock? > > the target for me is $12 in the bigger picture so there's a lot of upside, but again from risk/reward level only a close below eight on a weekly maybe even a monthly basis is going to be damaging in this overall trend. there was a false break to the downside but as long as it stays above 750 it's pretty solid. i really like the reward to risk that jet blue offers and all the airlines for that matter. > > thank you, alan. > > thank you. that's a wrap for today.. coming up tomorrow.. ceo's on the move. an update the growing trend of ceo's being forced out or stepping down in because of scandals. joins on tuesday. from all of us at first business.. we hope you have a great kick off to your week!

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