Nutriition company shocked wall street, beating the top and bottomline numbers. Shares jumped to nearly 64 in heavy afterhours trading volume. And two tires blew out during the landing of American Airlines jet monday. No one was hurt. Doug rothschild of Performance Trust joins us on this tuesday morning. Good morning, doug, and are you sensing that bonds will be on edge ahead of the fed . Morning, angie. Thanks for having me. Absolutely, all eyes are on the fed this week. Will bernanke have another taper tantrum . And how will the market react to that . So as were looking forward, the fed meets on wednesday, theyre going to release their notes. There will be no press conference, but instead, in their notes, investors are going to be looking for clues that the fed is going to begin tapering their bondbuying program. Thats going to be dependant on what happens in the economy. One thing we do know is that bernanke wants to keep Interest Rates low for a long period of time. Tapering and the movement of Interest Rates are two different things, and the tapering, we expect to get clues from the notes, but we know Interest Rates are going to stay low for quite some time. The other thing youre looking at is the stocks, and the earnings we just came out of. The one thing were seeing from the economy is, theres lots of bottomline improvement, expenses getting better, earnings are a little bit better, but theres not a lot of topline growth. So the fed is looking for the economy to grow before they taper. What about whos buying the bonds . Whats the big money doing verses the Retail Investor . What youve seen is a tremendous outflow out of fixedincome, out of bonds, in june, when bernanke had his little taper tantrum earlier. You have to keep in mind the amount of money that came out of bond funds and bonds was enormous, bigger than anything weve seen since the 90s. And that cash is largely sitting on Bank Balance Sheets in cash. So, theyre not buying bonds, but theyre not necessarily going into stocks, either. Doug, always a pleasure. Thank you. Thanks for having me. The bailout thats biting back the former chief of aig, maurce greenberg, wants bernanke to testify what he knew going into the 182 billion bailout of aig in 2008. Greenberg contends that the rescue came with strings that cost aig shareholders tens of billions of dollars. The judge in greenbergs case agrees, calling bernanke a key government decisionmaker. So do traders such as todd colvin. He knew things no one else knew going into that bankruptcy that when the fed had to kind of step in and overtake. The same goes for when the banks took the 500 billion back in 2008. The fed chairman knew things. Not all those banks needed the money, but he made them take it anyway. Looking ahead, the wall street journal reports janet yellen has come closest to predicting growth, jobs and inflation during the last four years. She remains the favorite to succeed bernanke. Others include larry summers, alan blinder and roger ferguson. Jobs are on the agenda for president obama. Today, the president delivers a speech in chattanooga, tennessee, at an amazon warehouse. Amazon is adding 5,000 fulltime positions at Distribution Centers across the u. S. And 2,000 Customer Service jobs. The president is touring the nation with a series of speechs on the economy and jobs. The Congressional Budget Office predicts canceling the sequester would add nearly one million jobs to the economy in 2014. Senate republican leader Mitch Mcconnell tells reporters the president needs to cut entitlements to get relief from the sequester. Apple is said to be back to investigating labor practice in asia. China labor watch, based in the u. S. , says worker abuses are happening at factories operated by Taiwanese Company pegatron, where iphones are made. Violations reportedly include withholding employee pay and excessive working hours. Apple responds its committed to safe and fair working conditions and is investigating. Pagatron also promised to investigate. Fast food workers in seven cities are protesting this week, hoping to call attention to their low wages. The campaign for a minumum hourly wage of 15 has been garnering momentum since last fall. A coalition of clergy, labor and Community Groups are behind the movement. The average hourly wage at many fast food restaurants is less than 8 an hour. Average ceo pay for top lowwage employers is estimated at 9. 4 million. Iconic Department Store saks fifth avenue is being bought by the hudson bay company. The 2. 9 billion deal means hudson bay will pay 16 per share at a 5 premium. Hudson bay is also the Parent Company of the lord and taylor chain of Department Stores and the Oldest Company in north america. It started in canada in 1670 as a fur trading enterprise. Saks fifth avenue has 42 stores and 66 outlet stores. A merger between two Major Players in the advertsing industry is shaking up the sector. The wall street journal reports ominicom and Publicis Group will together become the leader in the ad industry, creating a 35 billion frim. Both stocks rallied on the news, but investors are less convinced about a deal with perrigo buying irsih drugmaker elan. Perrigo shares tanked more than 8 , while elan bounced 6 . The cash stock deal is reportedly 8. 7 billion. Analysts are concered about perrigo, a Consumer Healthcare business, buying into a speculative drug business. No letup in drama going into fridays vote by dell shareholders. In an open letter to dells special committee, billionaire investors carl icahn and southwestern Asset Management are demanding changes to the voting method for unaffliated stockholder approval. Founder michael dell wants an amendment that only counts votes with a firm yes or no. Unaffiliateds could count as abstentions against the proposal. Michael dell is offering 13. 75 per share. Ichans deal is up to 18 per share. Boeing is calling on Airlines Worldwide to inspect emergency locator beacons on all of its jets. The locators are built by honeywell and are under scrutiny after a fire broke out on a parked 787 dreamliner july 12th in london. There are up to 1200 jets that need to be checked. The information will be turned over to the faa. Airbus is investigating the beacons but is not requesting a fleetwide inspection. Just in time for the rebound in business travel, entrepreneurs have launched a new website called rocketmiles. Our cover story takes a look at how it brings more smiles per frequent flier mile. Rocketmiles is a hotelbooking website, but for its customers, the draw is how many and how quickly you can acquire frequent flier miles. For example, three nights at the chicago hilton over Labor Day Weekend would earn you 13,500 miles on united. If you stay at the westin, 11,500 frequent flier miles. Our target is the Business Traveler who makes their own bookings and then expenses it to his her cfo. Jay hoffman, a former United Airlines and groupon executive, found a way to merge aspects of both businesses. The company buys frequent flier miles from a growing list of airlines. It uses the miles as rewards for customers who Book Hotel Rooms through rocketmiles website. In Premium Hotel that are also purchased by rocketmiles at a discount, often these are rooms that would go unsold. I could see the Business Traveler doing this, or the leisure traveler who doesnt travel much or have the venues to accrue miles. In its first round of fundraising, rocketmiles raised 2 million in external funding and started with six airlines and hotels in about 30 cities. It just added two more Air France Klm and Abu Dhabibased etihad. Hotels are about to grow from 30 to 300. This has a real nice packaging to it. Hotels with mileage perks, Business Travelers love that. Rocketmiles has competitors. One of them, called pointshound, offers rewards from among nine frequent flier programs for bookings at more than 150,000 hotels in the u. S. And overseas. Bmw is zooming into the electric car market with its new model 13. Its compact size and carbon fiber body are designed to be more city and earth friendly. Its priced at 42,000, which is under the 60,000 Sticker Price on the electric tesla model s. Its bmws attempt to drive in business from the growing electric luxury car market. The combination of Luxury Brands and plugin vehicles is a good one. People buy electric cars in some cases for the same reasons people buy luxury cars, and that is image. Theyre looking to make a statement. That was Joe Wiesenfelder of cars. Com, who tells us bmws move in the market could accelerate sales at tesla. Nissan is expected to announce today a major expansion of its operations in canton, ohio. The plant there already manufactures six vehicles. It had already announced in january that it would add the crossover murano vehicle to that list. In earnings news, hertz rental cars had a banner second quarter, posting more than 120 million in profits. Insurer cna also did well, posting a net income of 194 million, a jump of 17 . Equally impressive was Franklin Resources net income was 552. 3 million in its latest quarter, beating estimates. After several years of declines, customers are more satisfied with their hotel stays. A new report out from jd power and associates says guests are the happiest theyve been in seven years. This comes after years of longterm investments to upgrade facilities. Surveyed guests were particularly happy about interactions with hotel staff. Still to come, with record highs in stocks, average americans could have doubled their money. How to make sure you dont miss the markets next move. And, the spillover from the deepwater disaster why bp is claiming fraud. Plus, how come consumers are coming unglued over an elmers product . Thats next, after this in the know message. Hi, im ben affleck, and many actors have played the part of a u. S. Serviceman in the movies, but for veterans like james crosby and so many other brave men and women, his service and his sacrifice for our country are real. Outside baghdad, a rocket attack blew up my humvee, killing one of my marines and leaving me paralyzed. [ben affleck] when james returned home, he, like many others, was in no condition to cope and advocate for the services he needed. Fortunately, paralyzed veterans of americas trained experts were there to help him so he could concentrate on getting well. For over sixty years, paralyzed veterans of america has worked to ensure that our injured veterans get the medical, housing and auto benefits they have earned. Im so thankful paralyzed veterans of america was there for me. Surely those who sacrificed so much deserve no less. Join me in supporting our paralyzed veterans. Visit pva dot org. A retired School Teacher and woodworker are sticking with their story that krazy glue doesnt work the way it should. According to usa today, the two have filed a lawsuit claming they were fooled by the ad showing a man in a hardhat stuck to a wood beam. The pair noticed on one side of the krazy glue package, it says the glue works on wood, and on the back it says it doesnt. Attorneys for elmers have yet to comment. Three years after the Gulf Oil Spill disaster, officials with bp are questioning settlement payments. The oil giant has pumped out 14 billion to victims of the disaster, but believes claims are getting out of hand. Jackie keenan has that story from florida. Just a few months ago, attorney kevin mclean filed claims against nursing homes. Now its stricltly b. P. Hes one of many lawyers shifting his practice to represent alleged victims of the 2010 Deepwater Horizon Oil spill, and business is booming, with payouts averaging 220,000. Absolutely, theres been a flurry. His opportunism is not isolated. There are currently more than 61,000 claims to bp that are from businesses not related to fishing or wetlands damage nearly double since february. Last year, bp agreed to a settlement that included a simple formula for businesses to use in calculating claims. The result is a freeforall for gulfcoast businesses. Businesses such as dentists, restaurants and even printers far inland are making claims and getting paid with the help of lawyers like mclean. They knew that there would be businesses 40 miles, 100 miles from the coast that would be making claims. They knew that many of those businesses would be unrelated to seafood or tourism, and completely unrelated to the spill. Here in st. Petersburg, the city made a claim to bp for loss of tourism dollars. Its a claim bp sees as legitimate, but the oil giant is fighting back those claims they say are fraudulent. Im thinking that bp lawyers didnt really think this thing through. Dr tim kaye says the agreed settlement was the only option for bp to avoid a trial, which might have been even more costly. But bp is appealing to the courts to investigate the system, and is even appealing to the public, such as in this ad that appeared in the wall street journal. Kaye doesnt see anyhting wrong with what lawyers and businesses are doing. Well, it is ethical in the sense that really this is the tradeoff that bp and the other corporations allowed themselves to get into, in the interest of getting the settlements done quickly. They dont want the litigation going on for years and years. Its not in their best interest, and its not good pr, so if youre paying a few people who probably havent had a just cause, thats probably a price worth paying. So far, bp has spent 14 billion to clean up the gulf, and has paid more than 11 billion to accomodate 300,000 claims. For First Business news, im jackie keenan. Bp is also fighting back with a hotline. The number is 1855 6623728. The oil company is encouraging the public to call with names of businesses making fraudulent claims. Coming up, fear is keeping investors out of stocks. How to keep the faith when stocks drop. And, one traders view on how a big ad Company Merger will affect consumer stocks. Thats next. Im going to pass chemistry, and ill take it from there. Im going to do what makes me happy. Im 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 didnt have a clue. The u. S. Department of education has over 100 billion. And thats 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. Im never giving up on my goals. I will make a difference. Im going to find out how to pay for college. Im going to college. Gov. We continue to hear reports of americans shying away from the stock market out of fear of losing their entire nest egg. But one look at this chart shows the dow alone has more than doubled in the past 5 years, meaning americans lost out on an opportunity to double their savings. We are calling in andrew keene, president of keene on the market, and Alan Knuckman of trading advantage to take the fear out of investing. Good morning, and people do have a right to be scared, but is now a good time for someone who doesnt have a dime in stocks to get involved with the stock market . I dont think its a good time to get involved in the stock market, but if youre currently in the stock market, theres ways of playing options that i can limit my risk involvement. One of my favorite strategies, if i was long stock lets say apples trading 430 i can buy a zerocost collar. In this situation, i could maybe buy january 2014. I buy the 350 puts, i sell the 500 calls, and i do this for zero premium, so im outlaying zero cash for this trade. Ill be stopped on the downside at 350, and i still have all the upside reward up to 500. Alan, why not get in the market . People are calling for 1700 on the s p 500, for instance. Theres always a good time to get into the market. Markets are never good or bad, you just have to be positioned correctly. But its all about controlling risk, and i dont think people understand really how to do that. Andrews talking about putting in a floor by buying those puts. You can always protect your positions. Its like buying insurance on your house or your car. You have something of value, you want to protect it. That means you have to control risk. And in this day and age, you dont just buy stock shares and put them in a drawer and hope that things are better in 20 years. You have to have a trading plan. You have to have an exit strategy if things go for you or if they go against you, you have a certain dollar amount you want to risk. Its not allin. Youre not putting all of your money into one trade. You need to diversify and put your monies into different baskets with different time horizons. As alan said im actually going to agree for him for once everything is a risk vs. Reward setup. I look at every situation as a different set up. How much am i willing to risk on this trade . The difference between a good trader or investor and a great trader is, a good trader looks at how much they can make, a great trader or a great investor looks at how much they can lose. If this trade it goes against me, whats the most i can lose . Lets talk about exit strategies, because people do retire at different times, and the baby boomers are going to be retiring all together, and they dont want to get out when the markets down, so what should they do . There are a lot of the exchangetraded funds that you can use to track the market itself or different indexes, so you dont have singlestock risk that you would have. What you want to do is divide your account into, lets say, 20 slices of pie. So if you lose one slice of pie, it goes completely against you, you still have 95 of your account left. Again, i cant talk enough about maybe buying puts as insurance on any of your positions or your portfolio, and have that protection for six months out, or eight months or a year out, so you can sleep at night, and that way you know you have your downside protected, and youve got unlimited upside. Thank you for the 411 guys. Thanks for coming on the show. Well see you later this week. Thank you very much. Thank you. More on the market is just around the corner as trader jared levy joins us for two stock picks ahead of earnings. Chart talk is next. Jared levy of zacks. Com is here for some trash talk. Good morning to you, jared. Always good to have you on the show. Thanks, angie. Youre watching waste management. What do you see in the chart on this one . You know, i think waste managements an interesting story. Weve been talking a lot about how the consumers doing good, and were consuming more, were buying stuff. Well, if youre buying stuff, youre also throwing stuff away, right . Its an economic indicator. Yeah. So you know, with waste management, not only do i like the technicals here its building sort of a nice bullish foundation but i like the fact that the fundamental story is solid, and its also a stock that a lot of people havent been talking about. But logically, it makes sense, as long as all of the other stuff is true, which i believe it is the economy is beginning to do a little bit better, and we should see that reflected in waste management. But are these levels too high . Im pulling up a chart here for one year, and it looks like this has rallied pretty hard. Yeah, it has. But remember, everything has to be put into perspective. When you see a stock thats rallied, you have to think about, a , where its come from, and b , what is it really worth . In other words, what is the company earning . If theyre trading at 10 times earnings which is very, very cheap for the s p even if the stock has rallied 50 , it might still be a buy, and thats why i think we need to keep our eyes here on waste management. I think it still has more upside here. Any other stocks on your radar . You know, im sort of checking out Cracker Barrel. Its actually a stock i bought in one of my Services Last week. Its a stock ive loved since about 70. Its approaching i think 97 here, and Cracker Barrel doesnt report until september, but whats intriguing about Cracker Barrel all the stocks have been having trouble with revenue, and yet Cracker Barrel has seen a 5. 4 increase in revenue due to their big Cracker Barrel sales. But the bottom line is, this stock also, good, strong fundamental and technical trend; and i think this stock could easily clear 100, perhaps get to 105, 106. Thank you, jared, and have a great trading day. Thanks, angie. Thats it for today. Coming up tomorrow, the back story on why hair is becoming a hot commodity in the counterfiet market. From all of us on this tuesday, have a great day, and we hope you will join us tomorrow. The following is a paid presentation for supersmile, brought to you by guthyrenker. None of the testimonials or dentists in this show have been paid to share their opinions. A bright and healthy smile can be your biggest beauty asset. Its one of the first things people notice about you. 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