After last weeks dive, market losses continued yesterday. The markets open this morning lookin for a little traction. Equities were lower for their first 4 days slide of the year. Strength in technology trimmed nasdaqs losses. Apple was up 1 and a half percent after saying itll start selling 2 new iphones next month. Energy shares were down oil futures fell ending a penny below 107 dollars a barrel. And gold futures, which were up 4 and a half percent last week dropped yesterday. Feels like were in a Holding Pattern . Well, we are. Investors are waiting to see what the fed will do this week. Does ben bernanke have plans to pull back on the qe3 stimulus sooner than later . With the school year beginning, the sequester means nearly 60 thousand low income children cannot enroll in Pre School Programs mostly head start. And 18 thousand head start workers have also had their pay cut. Bond yields, on the rise for months now. Lets talk with doug rothschild. Hes with performance trust. So, whats happening to treasuries . Notes . Bonds . Everything seems to be changing right now as prices fall. Yeah, bill its an interesting time in the market. For one, its a quiet week and a quiet part of the summer as people wind down their summer vacations. So, theres not a lot of action going on but two things we are noting onethe yield curve is historically about as steep as it ever gets. If you look back almost 30 years theres only a couple times in history youve seen the differencethe steepness of the yield curve you see now particularly between the 2s and the 10s. So what is that really telling you . That the markets really watching particularly this week. Though wednesday will be the release of the Federal Reserves minutes from its last meeting to see if theres any signs of language that the tapering program will begin. You think the tapering will probably come a little soonermaybe this fall. Tell us why. I think the likelihood of a taper is much stronger than it was, even just a few weeks ago and theres two reasons onethe numbers are actually a little bit better. While topline growth coming from the most recent earning reports from stocks are not that great, not very compelling you do see the unemployment reports getting better. Weekly jobless claims have had successive weeks of improvement and the last couple of unemployment reports are getting stronger. So there are inklings that the economy might be getting a little better. Thats one. The second is a rumor that im starting to hear circulate that bernanke is really looking out for his own legacy. And what i mean by that is if bernanke tapers befor he leaves office early next year, in other words taking the training wheels off the economy, and the economy takes off and it works hell be known as the guy who started qe3 and then was able to stop it and started the economy going on the right foot. So i think hes looking out a bit for his legacy. He may have a bias to start that tapering program a little earlier than we think. Still a big dice roll as to how markets will react and the overall economy too. Doug rothschild, thanks so much. Thank you. In its ongoing efforts to improve socalled stress tests on big banks, the Federal Reserve isnt yet satisfied. The fed said yesterday that some banks still arent taking into account the possibility of declining home prices when setting the amount of capital on hand. The fed is demanding that banks take into account unique weaknesses and vulnerabilities that apply to a banks particular operations. Emerging markets are emerging as a concern for investors. India is sending worrisome signs to traders , as the rupee loses ground, and stocks falter. The nations government contends that it is not on the brink of financial crisis. Traders like joe cusick say they are tuning into red flags, including runups in commodities like gold, steel, iron and copper. If you start to see those metals start to come under further stress, that is giving a signal that we could have some pullbacks here. Now india is leading the way right now. We havent seen it in the other bric countries, that is brazil, russia or china at this point, theyve still had solid upside moves. But, this could be a signal and we want to keep an eye on it. Meanwhile, officials in china are looking to launch free trade zones, in order to attract more foreign investors. This afternoon al jazeera launches in the united states. Al Jazeera America will carry 14 hours of news every day over the old current tv cable channel which it bought earlier this year for 500 million dollars. Its positioning itself as a source for serious unbiased news. Many feel, however, the qatar based company is biased. There are skeptics even among arab nations. Egypts interim government has shut down al jazeeras offices in cairo after accusing it of threatening stability and national security. The government monitors your phone calls, social networks are selling info about you and retailers are tracking you with cameras signals from your phone. Heres Something Else to challenge your privacy. Returns tracking. The Associated Press reports stores like home depot, jc penny, best buy and others record every time you return something to a store. The data is used to make a return profile for each customer. What do they do with this information . Theyre looking for return fraud which accounts for about 9 billion dollars in losses every year. The tech sector is in a slump. When the s and p 500 was up nearly 20 earlier this month, tech stocks lagged behindup only about half as much as the rest of the index. Our cover story looks at how we got in this trough and when are we expected to climb out. Analysts say the wave of Consumer Electronics that began in 2007 with lines for the first iphone and recently ended with smaller tablets has for now, ridden itself out. I dont think theres anything that i need, nothing that im looking forward to. I have the samsung s4 and i dont need anything else. What analysts didnt expect is how quickly pcs, especially desktop pcs would be replaced by tablets. The market is saturated in anticipation of the next wave, particularly for apple. The tech trough hit Walmart Stores across the us. It blamed disappointing earnings this year on soft results in electronics, media and gaming. And cisco systems, which says business is nowhere near the pace it wants plans to cut 4,000 jobs. So will the next wave be as big as the last one . Will it be google glass eyewear . Ive actually seen it and i cant imagine wearing the little thing. Even if microsofts surface tablet doesnt catch on as much as the company known more for software had hoped, microsoft business should see an uptick due to a phase out. Microsoft will end support of windows xp, which will lead people to buy windows 8. And they may upgrade their hardware. Another factor that analysts say explains part of the tech slump both major Gaming Systems are undergoing updates at the essentially the same time. Pension funds and officials from detroit are in the midst of a dispute. Kevin orr, the citys emergency financial manager met with Pension Funds yesterday to determine the pension shortfall. Orr says pensions are underfunded by about three and a half billion dollars. While those funds estimate the shortfall is less, about 600 million dollars. A detroit reporter tells us. The meeting was likely the first of many. This is an ongoing dispute and i dont expect that the differences between the Emergency Managers numbers and the Pension Funds numbers are going to be resolved that lasts a few hours. My suspicion and again this is just a suspicion is that this will be the first of several kinds of these meetings that will take place here in the coming days and weeks. That was kirk pinho, of crains detroit business. The deadline to file challenges to detroits bankruptcy elligability was last night. Pinho says the next battle coming down the pipeline Pension Funds that filed challenges under grounds that pensions are protected under the constitution, and therefore detroit was never eligible for bankruptcy. Super storm sandy may have a Lasting Impact on both new and existing homes in the eastern seaboard hit by the big storm. President obama created the Hurricane Sandy rebuilding task force in december. Its task, to assess whats needed to help people, businesses the region. The report just released recommends 69 policy initiatives. The bottom line communities need to plan for stronger storms from climate change. The report also notes a need for new and existing infrastructure to be strengthened. After 40 years in private hands, remax holdings, one of the largest real estate franchise businesses wants to go public. Yesterday the denver based company filed for an initial Public Offering of up to 100 million dollars. Its another sign of growing health and optimism in the us housing sector. The Company Claims its 92 thousand agents have sold more property in the us and canada than any other for 16 years straight. Its shares will trade on the New York Stock Exchange under the symbol rmax. The company was founded in 1973 by dave and gail liniger who remain in charge. The countrys largest real estate website buys a competitor so it can compete in the new york region. Zillow dot com will pay 50 million for street easy. Zillow is reportedly seeking to expand in order to more effectively compete in the heatingup housing market. More scrutiny for fannie mae and freddie mac. A federal watch dog says the companies are hiding billions of dollars of losses. An internal report from the federal Housing FinanceAgency Points to delinquent home loans as the cause. Fannie and freddie both have up to two years to deal with costs associated with mortgages that are at least 180 days delinquent. The report called this timeframe inordinately long. Linked in the networking website known to more than 230 million professionals is opening its site to College Bound high school students. Students 14 and older will be able to create profiles on the site starting in september. Its also creating university pages. The company envisions these as hubs for prospective and current students as well as alumni. Washington already has the nations highest state minimum wage 9. 19 an hour. In seattle they want to push it to 15 dollars an hour. You remember the demonstrations across the country over this a couple of weeks ago. Low wage workers are pressing for a nationwide strike on august 29th. Seattles city council and candidates running for mayor are saying theyre thinking about doing this. Some businesses say itll put em out of business. Others say putting more money into more hands is just what the economy needs. Still to come corporate criticism. Why a facebook exec is under fire for hiring an unpaid intern . Thats later. First, is american losing its edge in how our schools teach entrepreneurship . Ill talk with a senior lecturer who teaches at mit. First business continues after this. America. Land of the entrepreneur. But is america losing its entrepreneurial edge in how it is being taught . The book, disciplined entrepreneurship is just coming out. It was written by bill aulet senior lecturer at the Mit Sloan School of management and the managing director of the Martin Trust Center for mit entrepreneurship. Wow, what a title you have. You are sort of the walking embodiment of the successful entrepreneur. What is it that has you so worried . What worries me nowtoday, america is at the forefront of entrepreneurship. Actually, teaching it. But the problem is we need to have a scalable solution for entrepreneurship. Currently 20 of the incoming students at Yale University want to become entrepreneurs. The Education System we have today doesnt scale to take 20 of the young population to teach them. We need to come up with new ways to teach them. Let me ask you though entrepreneurshipi always though it was something that you come to this world pre wired. Its all by instinct. Is it something that can be schooled . Thank you bill. Thats a common myth that people have about entrepreneurs. That theres some sort of gene that makes you an entrepreneur. Research is very clear. Its not whether your parents were, its not some sort of personal characteristic. Its about a certain spirit and skill set and you can aqcuire both of those. You have to have the spirit of a pirate and the execution skills of a navy seal. And so, people can get the spirit but we have to teach them the skill set. And we have huge demand right now. Coming out of the recession, there is big demand that more of these people get into the economyget jobs and start working. Absolutely. A study by the Kaufman Foundation showed that over two thirds of the jobs created between 19802005 were created by new companies. And thats only more now. Theyre not created by Large Companies or governments so much so. Theyre created by new companies. Those Big Companies are the ones lobbying for say changes in the Immigration Law but you say that the smaller firms or the startups dont really have a voice in policy. Yeah, i think thats one of the big concerns i have about the Immigration Law is that we need a startup visa. And if we dont were going to lose those very people who are in my class who are the people who create the jobs. Canada is making a strong play for them. All they have to do is go to toronto and theyll welcome them with open arms. Very quickly bill, whos hearing this . Are you getting traction with this idea . Yeah, the Kaufman Foundation has been a big supporter of this but were up against big lobbies. Sheryl sandberg is back in the news. You remember herthe coo of facebook. In a bit of a mess again. Lean in thats the name of her book about working women. Its also the name of a nonprofit that aims to fulfill some of the goals of the book including equality in the workplace. And the other day there was a job posting for an internship position for lean inan unpaid position. First we were told it was to be a volunteer but things seem to be changing. Lets talk to kristen prinz. Shes a business attorney who runs the prinz law firm. How did you feel when you first heard this . I felt like as long as theyre abiding by the law and it truly is a volunteer position, its fine. Its a notforprofit. But, its not a volunteer position. This persons doing work. Well, nonforprofits and public entities are actually exempt from the fair labor standards act which is the law that requires businesses to pay their employees at least minimum wage. So that;s where the conflict is. That the person was in fact doing volunteer work and not getting paid. No mattereven if that person knew that going in. Right. Well, the conflict i think in part came from the fact that ms. Sandberg had just recently sold a huge amount of stock and made approximately 91 million and to see that her foundation is going to hire an unpaid intern, the reaction is more political than based in law. So its not a technical violation of the law. Its legitimately taking advantage of that exemption which covers what . Religious entities, Charitable Organizations, and public entities. But private, for profit entities can also take advantage of free interns if they meet certain additional requirements. Its kind of confusing. Do you typically hear people talking about how interns are being used in such a public way . Probably i hear it more so than other people because of my job. But in the media you dont see this as a common issue and i think this really highlights the criticism of ms. Sandberg as a woman. You dont see male coos or ceos being criticized for their Charitable Organizations taking advantage of an exemption. Its actually pretty reasonable for a business or a Charitable Organization to take advantage of Something Like this where you can get volunteer time. The double standardit still exists. Kristen prinz, thanks so much. Thank you bill. Going against the heard in trading preferred shares. Youll learn about it in chart talk next hit a landmine when i came here, i couldnt move. [male announce david was broadsided on the highway. They werent very hopeful that he would survive at all. [male announce their traumatic brain injuries have yet to heal. The way i describe it is youre just afraid. Am i going to start forgetting things . [male announce tbi is as serious as any battlefield injury. Thankfully va has made important advancements in tbi so if you think you or a veteran you know has sustained a brain injury, get screened. We call this segment chart talk, lets talk with matt shapiro with the Investment Advisory firm, mws capital. Matt are we seeing a little panic in the markets right now . Yeah, i thought we were 2013 and investors promise themselves theyre not gonna panic because theyre all in etfs and allocation strategies but thats exactly what they are doing. And theyre panicking especially in dividend and large income shares specifically the preferred stock and the preferred stock etf. Now what is that called . Its not an etf, its a pff . Thats the symbol. Yes, bill. Back a few years ago preferred stocks were kind of a quiet part of the market. A guy might call his broker and say, i want to buy a preferred stock in a mjor bank. And it pays about 6 as a perpetual. Good investment. Especially good for a conservative investor. Over the past couple years of course the rise of these etfs everyone going into these prepackaged, processed investments especially in the income area. And guess what has happened over the past three months . Interest rates have steadily risen and investors are heavily, heavily as a herd selling these income shares and pressing the stocks of these preferred shares down to yields of 7 , which historically is really, really good. Most fixed income over the last 100 years returns about that. So here we are in a panic situation where you can very easily get strong credits in Bank Preferred stocks that yield 7 . Ok. Thats because basically youre going against the herd right now. Exactly. Everyone promised themselves not to panic. Theyd buy these etfs and of course the underlying stocks in them are not owned by anyone anymore. So theyre for sale and theyre easy to pick up and there are these great yields available. Is this happening on the bond side too . It is as well. This has been one of the quickest rate rises weve seen actually in about 50 years. So yesterday, the 10 year bond touched almost 2. 9 and the 30 year about 8. 5 . And lots of corporates and the like are approaching yields that were very good and comfortable in 2006 and 2007. So i think were going to return to these much better yields as soon as investors sort of settle down and accept the fact that these better yields are here to stay and that they can really take them and not be so afraid that theyre gonna suffer losses as rates continue to stay at these levels. Alright matt, have a good day out there today. Thank you. Thats a wrap for us today. Tomorrow. How a plan to create the Worlds Largest airline could impact thousands of flyers. And their perks. We hope youll join us. From all of us at first business, have a great tuesday. 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. Now a paid presentation for meaningful beauty advanced by cindy crawford. With special appearances by debra messing. Valerie bertinelli. Christa miller. And stars from tvs royal pains and the mentalist. Hosted by network Tv CorrespondentKatrina Szish. Brought to you by guthyrenker. Hi, everyone, im beauty and style journalist Katrina Szish on location in beverly hills. In just a few minutes well meet one of the most beautiful women in the world, supermodel cindy crawford. At age 45,