Building, which offset negative news from bank of america and citigroup. Gold and oil also gained groud following the attack in algeria at a natural gas plant. Intel took a revenue hit as earnings topped estimates. And today is the deadline to file caims under the National Mortgage settlement. The number to call and the email address are on your screen. Lets get a peek at the friday trade with john brady of rjobrien. Good morning, and the s p 500 above a fiveyear high, john. Can this last . What could hold it back . I think it is going to continue to last, and the reason is that the asset markets are moving in such a way where investors i think are just at the beginning part of selling bond funds and selling bonds to buy riskier assets in s ps and s p futures. So, for example, consider this at 182 yield on the 10year note, investors are paying about 54 times the coupon they will receive over the next 10 years, where if they go and buy the s p 500, they are paying about 14 times future earnings. So stocks still look cheap to overpriced treasuries. So do you expect that that treasury tumble will continue on as that rotation happens and money goes into stocks . I do. You know, we have division among fed members as it relates to the length and duration of q e number four. Likewise on thursday we saw a big tumble in european Interest Rates as european Interest Rates had to reprice on an ecb that has now moved to the sidelines. So selling in european Interest Rates actually translated into selling into u. S. Interest rates, with the 10your note quickly approaching 195 yield. John, how are you looking into the long weekend and the short trading week that is coming up . I think one has to be careful, specifically because traders dont like to do this, but they have to minimize risk ahead of the long weekend. First, europe is open on monday. European Interest Rate markets have been very volatile. Likewise, we have the situation in mali. It is a small, tiny country in africa, but it can have geopolitical ramifications, and thus wed probably look to see crude oil probably sell a little bit higher on friday here as traders and Portfolio Managers become a little bit more defensive over the long holiday weekend. Especially with that situation in algeria starting to spark up. Good to have you on the show. Have a good trading day and a good weekend. Thanks much, you too. The grounding of boeing 787s is expanding. After the federal Aviation Administration grounded all 787s operated by u. S. Carriers, the faas european counterpart issued the same order. As our cover story shows you, that list is expanding, with a lot of attention focusing on the battery system aboard the aircraft. Polish airlines lot, the First Airline in europe to fly boeings 787 dreamliner and bought ten of them, found its plane grounded in chicago after its innaugural flight from warsaw. Susan witych was booked on the 787s return flight that was cancelled. In its place, the airline will rely on an older 767 aircraft. I think it was a good decision. If there was any problem with the batteries, thats pretty important. It was a good decision. I feel safer. The groundings follow a series of mishaps in the u. S. And japan that include repeated instances of lithiumion batteries aboard the aircraft overheating, causing smoke, and in one case, a fire that took 40 minutes to put out. I think theres reason for concern. Somewhere inspections failed, but i think its too soon to think of a coverup. A variety of subcontractors make the 787. Gs Yuasa Corporation proclaims on its website that it makes the First Lithium battery on a commercial airliner. Thales communications makes the charger. We have dozens of planes out there and batteries are made one month and then the next month, there may be a tiny difference in how that battery is produced. Polish airline lot plans to seek compensation from boeing for lost revenue during the grounding and says it will make delivery of future planes conditional that the problems that have happened so far be eliminated reassuring to some lot passengers. Would you fly the 787 in the future . Yes, no problem. Air india has also grounded its six boeing 787s following a Civil Aviation directive in that country. Carriers in chile and ethiopia followed suit. Boeings 787 helped the manufacturer nudge ahead of airbus in orders during 2012 for the first time in ten years. A big bank is taking a leap into flying. Wells fargo is starting up its own jetleasing company. Originally, the Financial Firm was lending money to customers to buy or lease jets. Now its going to lease out directly. Wells is taking a majority stake in avalon jet charter. Jet leasing is said to be a 100billiona year market. And according to reports, other large banks are likely to follow wells fargos lead. American airlines has a new look. The new silver jets and streamlined logo are meant to look modern and vibrant, and to reflect the change on the inside of the company, according to ceo tom horton. Some unions wanted the bankrupt airline to wait to make changes until after its pending merger with u. S. Airways. The pilots union claims such costs are what sent the airline into bankruptcy. Gold is on the move from new york city to germany. Germanys central bank, bundesbank, will withdraw 300 tons of gold from the new york federal reserve. Germany stored the gold there during the cold war to protect it, and it has stayed there for no extra cost as a backup currency in case of Global Financial crisis. Now, bundesbank has a plan to move a majority of the gold back to germany by 2020. Jack ewing of the International Herald tribune says some believe the move is a sign of conflict between central banks. There are some people that do believe that this is somehow connected to mistrust between the central banks, that the fed in washington has taken a lot of risk by buying from its quantitative easing. The bundesbank is much more conservative. There is this school of thought that says they are bringing the gold back to keep it safe. Ewing says the gold is worth 183 billion u. S. Dollars. Bargain rates continue for mortgages while car loans are looking dirt cheap. Greg mcbride of bankrate. Com, who always has his fingers on the pulse of Interest Rates, joins us via skype this morning. Good morning greg, and lets start with auto loans. Whats the latest . Well angie, they continue to hit record lows, and they are still falling. On the low end, we are seeing rates below 2. 5 for both new and used cars at a number of large banks and Credit Unions as well. What is your advice for car buyers . Do they need to shop around . Absolutely. Shop around, because we do see a tremendous disparity in the marketplace between the low end and the higher end of the range. But then also line up your financing before you go to the dealership. That really lets you have your cake and eat it too, because you can negotiate the price of the car separately, and you are not dependent upon the dealer for financing. Turning now to mortgage rates, there was a record low 3. 31 in november. What can home buyers expect . Mortgage rates are still at very attractive levels. They have run up a little here to start the year, but they pulled back this week, and i think we will see more of that frankly over the course of the next month or so, particularly as this debt ceiling debate really gets heated up. Thanks greg. Thanks angie. Gm is giving its north american factories a billiondollar facelift. The automaker plans to overhaul about 70 of u. S. Auto models. So far, the remodeling includes redesigns for its full size pickup trucks, a new chevy corvette stingray and a cadillac luxury version of the volt plugin electric car. The Kaiser Family foundation is crunching the numbers on medicare. It finds if medicares eligibility age is raised to 67 next year, federal spending drops by 5. 7 billion in 2014. But, Health Insurance payments by other americans rise by 11. 4 billion. Medicare is likely to come up in the debt ceilng debate. President obama has said he is willing to make minor adjustments. House republicans want severe cuts to stop the increase of medicare spending. The employment picture remains mixed around the globe. Many employers in brazil, india, russia, china and the u. S. Expect to add staff in 2013, according to careerbuilder. But europe will feel the pinch of austerity. A third of employers in italy expect to reduce staff this year, and hiring will stay flat in france. The u. K. And germany are slightly more optimistic, predicting a small uptick in job growth. Get out your rulers, subways footlong sub may be just shy of its advertised size. An australian man posted a picture on facebook showing the footlong sub at just 11 inches. The photo sparked controversy worldwide. Subway has not yet responded. Still to come, traders reveal tech stocks to buy as more pc users get unplugged . Traders wire in late in the show. But first, is the end near for your local Hardware Store . Paul eggers reports on big box chain versus independent hardware guys, next. Reports say china is making more of an effort to invest in human capital. The government plans to pour 250 billion a year into education. While the countrys labor market is a skilled manufacturing force, its looking to raise the stakes for its middle class, which has been steadily growing. Reports say corporations like ibm, intel and General Motors are eager to hire graduates from china. Competing against Big Box Stores can be a davidversus goliath experience for small retailers. 30 years ago, hardware chains and independents split sales 50 50. Now, chains dominate. As paul eggers reports, its making survival tough for the little guys. Gracias. Que paso malala jesus davilas Hardware Store, la brocha gorda, has been a neighborhood fixture for some time, operating in a mostly Mexican Community on chicagos south side. The shop has been open for 30 years already. Its been open since 1985. Yolo que paso como estas customers are still coming in, but davila plans to shut the doors in just a couple weeks. After making countless keys and helping out on hundreds of jobs, hes had enough. Let me tell you, i can do it, but im tired already. Longtime Hardware Store owner joe fronaczak can relate. We did work 72 hours a week. Were here until 9 during the week, all day on saturday and til 1 on sunday. Management meant you were here all the time. His shop, also on chicagos south side, closed up this past summer after 60 years as a familyrun business. My hope was that my son would take over the store, but theres not enough future with the cost of insurance and everything. You just cant make it anymore. The unique charm of independent Hardware Stores these shelves were all made out of scrap wood is quickly disappearing from the american landscape. 854 have shut down in the past 5 years according to census data, leaving a little over 12,000 across the country. Competition from fully stocked National Chains has proven too much for some. thats part of the problem with a small Hardware Store. You just have to carry so much inventory. And it can stay on the shelves for 5 years. Were just lucky it doesnt spoil. support from a Strong Customer base did provide a good living for davilas family. How much money do you think youve spent here . While great business throughout the 80s and 90s financed college for fronczaks three kids. They were able to go to school and came out of it with no debt. Overall, fronczak is proud of his success, even if shutting the doors has been a bittersweet experience. It isnt so much the store as it is the people. We got a lot of good letters from people we didnt even know. It was good. It was good. Economists predict growth in the housing sector will bring a boost to Hardware Stores, but for some that might not happen soon enough. Still ahead, will the grounding of the dreamliner cause boeing stock to lose altitude . Traders unplugged is next. Time now for traders unplugged from the floor of the cme group pro traders Alan Knuckman and andrew keene. Happy friday guys round one up and away. Boeings 787 dreamliner is grounded. Whats next for that stock, and will Airline Stocks run into turbulence . Looking at boeing, we have had a decent pullback here, and i think you can use this as an opportunity. I am looking to sell some cashsecured puts to get in at a lower level. Overall, that stock has been trading between 70 and 76 essentially for the year, so it still has a lot more upside potential. Obviously i am going to take the reverse side and say, where theres smoke, theres fire, or maybe where theres fire, theres actually smoke. I think boeing is headed lower. It did have a nice reversal yesterday. It came out the 72. 60 level, which is the 100 and the 150day moving average. It tested that 50day moving average at 74. 03, where i thought it actually would get a little bit of selling pressure, bounce up above 75. However, they do have earnings coming out in january. I actually bought some puts yesterday, some feb. 72. 50 puts, so im going to buy the feb. 72. 50 puts, and were going to sell the 70s against them. Exactly. Looking at the other airlines, you have love, which is southwest airlines, youve got deltaalready had some pretty extended moves, so it may be a little late to chase the airlines, and typically they have been a poor investment over the past years. Expecially with oil pretty high. Round two death of the pc. Smartphones and tablets are pushing down computer sales. What tech stock has staying power . Ebay. I talked about this in my Number One Technology stock for 2013. What did they do . Another good quarter. I think thats four or five straight quarters that ebay has rallied afterward. They have paypal, they are in the smartphone market, they are trying to do with facebook cant do, which is monetize the amount of platform of mobile. That is an oldschool stock that has rebounded as compared to some of the others Hewlett Packard and the ibm selling the computer. So, im not smart enough to pick out an individual tech stock since i am an older investor. So i am just going to look at the qs and look at the nasdaq. The nasdaq as 5 more to go just to make what is that, a razr . I have an iphone, thank you sir. Round three a whale tale. Jamie dimon is now losing money in his salary because of the whale trade. What do you guys think about that . I dont think it really matters if he loses money in his salary if the stock continues to go higher. We actually saw a pullback in banks for the first time this year. The market looks so strong, we saw a pullback yesterday in the banks. Bank of america under the 11. 5 level. We saw citigroup down. Wells fargo sold off on an earnings rally things were up 20 in the banking sector, so a pullback is natural. But the issue here is a 6 billion error, and he still gets paid 11. 5 million. Is he worth it . Is he worth it . If you look at it in perecentage terms, thats 0. 002 of the 6 billion. So hes worth it. So that is quite a catch for that ceo. I like that line, and i want to work for andrew. True or false a u. S. Software developer outsourced his own job so he could take it easy at work. Im going to take the opposite of whatever you say because i saw this i actually read this. Yes, it is true. He outsourced it for 1 5 of the salary. But it didnt mention which company he works for, because that is pretty genius. It was verizon. And the story is being reported. Thanks guys for playing. Thank you. Well be right back. Amerwith a deadly disease. I was one of them. My disease was obesity and after consulting with my doctor, i received the effective treatment i needed. Please join the Obesity Action Coalition to acknowledge obesity as a disease visit obesity action dot org to sign an open letter pledging your support and for more information about how to talk to your doctor about weight loss and treatment options. Together we can make a choice to end obesity now. A Public Service from the Obesity Action Coalition. Dan deming of stutland equities joins us now for chart talk. Good morning dan. Good morning angie. We are taking a look this morning at the volatility index the vix. It is a measure of anxiety in the market over the next 30 days. But the vix has been very low, basically saying there is not a lot of fear in this market. What does that tell you as a trader . You trade the vix all day long. I do angie. Right now we are seeing in the vix complex, you are seeing the vix level very low. It is at historic levels, basically going back pre2006, to those types of levels. So, we are seeing a very low cash symbol. But the thing we are keeping a very close eye on in the vix markets is the futuresthe spread between the futures and cash. And youre seeing february future trading at about a twomonth premium to cash. So you are seeing some vol buying going on down here. We have also seen some repositioning in the vix as far as options orders coming in. We are seeing some vol buyers of like the 20strike and selling a quarterstrike. So basically, are seeing different Market Participants kind of setting up for the potential for a pullback, or at least hedging some of their Downside Risk here by buying vix calls. All right, so they are a little concerned out there. Is there a chance though that the vix could stay low for a while here . If you take a look at a chart, say, of the 20year on the vix, it shows that every time the vix is low for a while, all of a sudden you see these spikeups, and that means that the volatility is high and the s p 500 is probably having a big sell off at that time. That is correct. Right now we made it through one major hurdle at the end of the year. We are kind of in this little bit of a breather pattern. We are seeing the s p push up to these new highs going back to 2007 with the s p closing at 1480 i think yesterday. So, shortterm, this seems like right now all indications are the market is going to be able to hold together, and there are some buyers coming into this market. We are seeing inflows into the market. But ultimately youve got the debt ceiling coming up at the end of february, and we have seen this before angie the market is very cyclical, and weve seen the market get up to these extended levels and this is a pretty extended level, with a big run off of the november lows, where i was kind of seeing, like i said, call buyers in the vix, and kind of, there was an idea or inkling that the market was going to potentially pull back here a little bit over the next month. Good to have you on the show. That is dan deming of stutland equities. Thanks. Thanks angie. Thats it for this week. Coming up next week, how to get a seat in the Business Program room by Warren Buffett and Goldman Sachs that teachs entreprenuers how to go big. From all of us at first business, enjoy the long holiday weekend