Last week the dow logged its best week since january. Friday the dow rose 75 points, the nasdaq gained 6, and the s p 5. Gold lost more shine and oil closed around 108 per barrel. Fed taper talkthe market will also be on edge this week as the Federal Reserve meets with comments coming from fed chairman ben bernanke. Ulta glams up wall street. After delivering blow out earnings news. Shares of the Cosmetics Company soared 17 . And rising cocoa butter costs are beginng to sweeten chocolate prices. Especially in china where the candy is in high demand. Scott bauer of trading advantage joins us now from the trading floor. This is a big week for traders especially with the fed meeting coming up. It sure is. What do you think is likely to happen . It looks like the market is really pricing in some reduction some reduction in tarp here. Some reduction probably somewhere between 10 to 20 billion a month. If that happens you may see just a little bit of a selloff but then i would think that the market would keep this acceleration keep the momentum going higher. Scott, gold was slammed last week. What do you anticipate this week . Theres even a call that we could see gold at 1,000 per ounce or less. We were seeing a bunch of those calls over the summer and a few months ago when we saw gold dip down below 1200 or 1100. I think weve seen this pullback here in just the fact that were going to see a tapering. 1,000 is kind of out of the realm, at least in the near future. If someone wants to make that call for a year or two down the road thats one thing but theres a lot of hard stops coming in here in the low 1200s in gold. As twitter moves ahead with its ipo plans, are there social media stocks you would buy that could get a bounce . I think you have the camp thats gonna be very cautious about twitter because of what happened with facebook. And then i think you have the camp that says well look at facebookyeah it took a year. It took its hit. It was difficult but look where it is now. So i think that social media is back in play. I think that twitteri think pandora which weve seen last week up 1520 i think those are a couple good ones. Social media is here to stay at least for the short run. Good point. Thank you scott. Thank you angie. Wall street will listen closely for comments related to a taper timeline when the Federal Reserve announces its decision on Interest Rates wednesday. A majority of economists and traders believe the policy makers are ready to pull back on the 85 billion dollar per month purchase of bonds. The quantitative easing is helping to stimuluate the economy by keeping Interest Rates low which is of great concern to money managers. We have to worry because obviously there is a big fire of treasuries, and theyve been keeping an artificial level of Interest Rates, so by having them move away, i think is a good thing. And having them give us a lot of advanced warning is even better. So i dont see them moving anytime soon quickly, but just incrementally. This months federal open Market Committee decision will be followed by a News Conference with fed chair ben bernanke. Congress is running short on time. The government could partially shutdown if Congress Fails to come up with a spending bill by september 30th. Shortly after that lawmakers need to decide if they will raise the nations debt limit or allow the country to default on its loans. White house aides said last week the president is willing to accept a bill that keeps spending at sequester levels for 3 more months but not if it slashes programs that benefit families in need. Republicans signal they want major spending reforms. The fbi is now feeling the effects of the sequester. And its having an impact on the agencys ability to accomplish its mission, according to its new director. James comey remarked that he doesnt think the public knows enough about the fallout from the budget cuts. Comey wants americans to know his agency is losing three thousand positions. And, next year the agency may have to furlough all fbi employees for two weeks. President obama is replacing chief economic adviser Gene Sperling who leaves in january with jeffrey zients. Zientz is filling in as acting budget director. He led a white house push to streamline government. And joined the white house in 2009 as chief performance officer. Some California Workers are getting a pay bump. Californias state assembly and Senate Approved raising the states mimimum wage from 8 to 10 dollars within 3 years. Itll be one of highest rates in the nation surpassing the top paying state, of washington, where workers earn 9 dollars and 19 cents an hour. Its the first minimum wage increase in six years for the golden state. Americans are cautiously spending their money. Retail sales rose. 2 in august, just shy of the. 4 gain economists predicted. Spending was brisk on items such as cars, furniture and electronics. But sales slowed at Home Improvement stores and Clothing Stores 2 Major Airlines are having a rough ride. United is honoring free fares that were accidently available to customers for 15 minutes last week. The fortunate passenger who snagged the deals will only have a pay a few dollars for an Airline Security fee. United blames human error on the snafu. And, dozens of jet blue flights were delayed when a computer glitch limited the airlines ability to dispatch jets. Carnival cruise lines is offering a moneyback guarantee to passengers. Its a way to boost bookings following a series of mishaps on the high seas. If customers are not happy with their vacation they can end their trip early, and get a 110 refund. Transportation expenses will be covered and the guest will get a 100 ship credit. One of the more prominent problems for carnival happened in march when an engine fire stranded passengers on a ship adrift for 5 days. A man on a mission from australia is leading a protest in chicago today to stop mcdonalds from building a restaurant in his town. And hes armed with 50 inflatable kangaroos. Garry muratore lives in an tecoma ,australia, which borders a national park. The town has two thousand residents, but muratore collected nearly 100 thousand petition signatures. Muratore intends to hand the petitions to mcdonalds ceo don thompson. The demonstration is scheduled to happen outside chicagos rock n roll mcdonalds. In a big win for health and environmental advocates, wal mart will stop selling products containing ten hazardous chemicals. It applies to cosmetics, fragrances, household cleaners and personal care products. The nations largest retailer says starting in january it will monitor efforts to clear these chemicals from store shelves. It will also apply the new rule to its own brand of cleaning products and will require suppliers to disclose products containing harsh chemicals. The nfl is fielding brain injury claims from assistant coaches, Network Analysts and front office personnel. More than 90 of the claims are reported by the la times to allege serious head or brain trauma. The nfl is facing a serious problem as a large number of workers seek compensation after being hurt in football incidents. Critics fear players will seek government aid, which hits taxpayers. However, compensation cases are the responsibility of the employer or Insurance Companies and not taxpayers. Fidelity is known as the king of 401k plans. But now some investors are suing over pricey mutual funds. Employees work for several large corporation. Argue in this lawsuit fidelity stocked their company 401k plan with expensive mutual funds when less expensive funds were available. Fidelity manages hundreds of mutual funds from low end to high. A spokesman tells reporters, the lawsuit is totally without merit. In our cover story, the phrase from your rich relative all this will be yours refers lately to a shrinking slice of the pie. The inheritance has inherited some shortcomings thanks to the recession and cutbacks to employee pensions. When i die, my son, all this will be yours. The 1966 movie, the wrong box talked openly about inheritance. Yes, father. But particularly for americans, most discussion of inheritance has gone downhill ever since. We just dont like the thought of money and the death of nana. A study commissioned by financial website interest. Com found only 27 of americans under 60 expect to receive an inheritance. The recession took a big bite of retirement funds. And employer pensions arent what they used to be. Were now on our own. Pensions dont exist like they used to. But the study found a surprising 42 said they wouldnt blow it all on an expensive luxury. Id pay off debt. Even those with lavish ideas had a measure of investment. An antique car or motorcycle that i could sell, if i wanted. Of those who expect an inheritance, most figured it would be between 10thousand and 50thousand dollars. The survey also looked at 401k accounts and found the average balance is about 80thousand dollars. An inheritance, even a small amount can make a difference. The best thing you can do is put that 50,000 away and forget about it. An inheritance can be like a burst investment. It can really boost your savings if you invest it. Personal Savings Rates have changed a lot since the 1970s when roughly 14 of every paycheck was put away. Now, its about 5 , according to interest. Com traders and investors are anxiously awaiting the opporunity to jump on the twitter ipo. The social Media Company revealed last week with a tweet that it has confidentially filed with sec to place shares on the stock market. Gsv capital is the top investor in twitter and reporteldy values the Internet Company at 10. 5 billion dollars. Ahead of the ipo, some traders are using gsv capital as a way to trade twitter. Gsvc shares have been trending higher. Microsoft is playing a trading game. In a new promotion, microsoft is offering gift cards up to 200 dollars to customers who trade in their ipads at microsoft stores. Microsoft is hoping shoppers will use that money to buy a surface tablet. Still to come the automaker thats almost ready to roll out an ipo. Plus, how cashstrapped drivers are saving spare change by renting car parts. And, after the break. How entrepreneurs from wall street are dredging up new business. Stay with us fiats ipo could roll onto the stock market early next year. Fiat owns a nearly 60 percent of chrysler and is working to merge the two car companies. The ceo of fiat says even though the merger process may stall chrysler intends to file for intial Public Offering by the end of the month. The United Auto Workers trust holds a large stake in chrysler and wants to sell part of it through the ipo by the first quarter. When you think of renttoown, bigscreen tvs and leather couches might come to mind. But what about tires . Tire prices are at alltime highs. And consumers short on cash, are fueling this booming business. Jackie keenan reports from florida. When it came time for rebecca kelson to replace the tires on her mustang, she couldnt afford to pay full price. But she found rentaroll to keep her ride rolling. Shes been coming in every two weeks to pay her debt. I like the payment plans they have for you, its pretty reasonable. Kelson isnt the only one racing to rent n roll on payday. The renttoown industrys Fastest Growing segment is the tire and wheel business. Here consumers rent or buy a new set of tires and make small weekly payments. If they take too long to pay it off, customers can end up paying twice as much for the tires. You definitely pay more if you dont pay it off early. Ceo larry suttons business is booming. When he started his first rentnroll in 2000 70 percent was focused on flashy rims. Now tires make up half his business, and rent and roll is the 17th largest tire dealer in the country. With Household Income down five percent since 2009, and credit still hard to come by, the recession is playing the largest role in rent n rolls success. Sutton says his customers simply cant afford to shell out a large amount of cash for tires. But they still have a need to keep their cars safe. A lot of people that had the cash and were creditworthy, all of a sudden didnt have the cash, didnt have a job, but yet they still needed a decent set of tires. The economy is a big reason why this industry is booming. But its also been the cost of manufacturing tires. Gas prices, a worldwide rubber shortage, and tariffs on chinese tires all caused tire prices to jump by 70 percent within the last three years. The cost of Raw Materials is now going down, but manufacturers still havent lowered wholesale prices. All of a sudden a customer that could have bought tires for 300 all of a sudden it cost 550, so it got crazy. Sutton says about half his customers have trouble making payments, but hes rarely had to reposses. Kelson says she definitely doesnt want that and is dilligent about paying off her wheels. I try to pay more than what i owe every two weeks so i can hurry up and get it paid. For First Business news, im jackie keenan. The average renttoown tire dealer turned a revenue of more than 720,000 dollars. Rent n roll has 66 locations and 11 new franchises opening in the next 12 months. Coming up how an entreprenuer gets his inspiration from the bottom of a lake. And stick around for the stock that could be the next ulta the details in chart talk. Count on the Entrepreneurial Mind to come up with an intriguing Creative Business scheme. Heres one i wouldve never thought would work. Harvesting from a lake, wood from a century old logging operation. Theyre dredging up ancient sunken timber from the bottom of a lake in maine. Who thought up such an idea . Tom shafer and his partnerhe co founded the Company Maine heritage timber. Tom let me ask you, is it the wood, that has just an interesting story behind it or is there Something Special about the properties of this wood . Its twofold. Number one, there is a very majestic story behind its also {inaudible} timber which makes it denser and stronger. That incorporated with what the water does to it and the patina that it offers makes it a oneofakind product. How does a long term specialist on the New York Stock Exchange come up with an idea like this . I wish i could take the credit for it bill. My Business Partner had done this in 2002 and we met in 2008 and i was looking for a new direction in manufacturing after being in the Service Industry for so long. We got this together and we raised the money and now its gone from manhattan to maine and real proud of it. How much wood is down there under the water that youre hauling up each day . We take out about 7590 {inaudible} of wood. To put that in normal terms, thats about 18 yd. Containers full of wood. So its quite a bit of wood. We figure we have about 10 years of longevity for this project. The initial estimates are between 500 thousand and a million quart of wood. So, how far away are your customers . There cant be anyone else in the country thats doing this. Where do you do your installations for the Wood Flooring . We rely on good nwfa installers to do our installs. Well ship nationwide. Were in some talks with some people in europe right now. The nice thing about our product is we can get it to anyplace in the country. Were doing a job in florida right now as we speak. Tom shaferfascinating story. I love these entrepreneurial stories. Thanks so much. Thank you very much. Thank you bill. Just ahead if you missed the big move in ulta last week you might have another shot on a different stock. Find out next in chart talk. Joining us now, andrew keene, president of keeneonthemarket. Com. Good morning andrew. Good morning angie. You are watching shares of pier one. What are you seeing in the Options Market . What is the Options Market telling you about this stock . Last week it looked pretty strong. It got to this 23 level. We saw a big buyer of the 23 calls in september before earnings. They have earnings on thursday. Its actually been underperforming the market this year. Its only up about 12 year to date. This is Specialty Retail, but if the consumers coming back and theyre starting to spend money. We saw great earnings out of ulta on friday. Its Specialty Retail with a high pe. I jumped on board. I bought september 23 callsi mean, october 23 calls. I think the stock can pop through 23 and get up to recent highs of 23. 50. Really . Ok, so youre looking for this to happen in just a couple of months here. This is a very short time frame, correct . Yeah, they have earnings on thursday. Ive defined my risks vs. Reward and the reason i like to use options is because if a stock does roll overthe chart isnt that great like i saidunderperforming in the s p, i can only lose the value of those calls. So, im not buying stock but im playing them through call options. And that also maybe keeps you from losing money as you mentioned. Just in case its a blooper of a number here. On friday, the minute they bought these calls the stock popped about 20 cents. The stock popped initially, got to 22. 68. Looks like it has resistance at 23. I like this. They have a lot of exposure in the United States and canada. They dont have the exposure over seas. We saw ulta with blowout earnings. I think pier 1 could get it done this week. Thanks for bringing that to us today. Thank you. Thats all the time we have for today. Coming up tomorrow why women may be taking a back seat to management positions at big banks. Tips on how to move ahead will be on tuesdays show. From all of us at First Business, we wish you a great monday announcer the following is paid presentation for focus t25, brought to you by beachbody. [ echoing its about time. The numberone people have for not working out is they dont have time. I have four kids. I work 60, 70 hours a week. I dont want to work out for no hour. Are you kidding me . I dont have the time. Announcer no time to work out . No problem. Introducing focus t25, the breakthrough inhome Fitness Program guaranteed over an
comparemela.com © 2020. All Rights Reserved.