In general had another blow out day wednesday. With the dow up 108 and the nasaq 32. Gold fell 4 dollars. While oil cruised above 94 dollar. Good for a two week high. Also making news jcpenney plans to close 33 Underperforming Stores and cut 2,000 jobs in its latest turnaround effort. The retailer is also bringing back Commission Pay for certain positions. And yahoo coo Henrique De Castro is leaving the Internet Company effective today. Todd horwitz of average joe options joins us on this thursday morning for a check on the markets. Good morning todd. Good morning angie. Weve had a big down day. Weve had 2 big up days. Im hearing this is a traders dream. The action is good. Its nice when we get volatility. Volatility is a very forgiving item so when trades go wrong you have a chance to get out. So yes the ups and downs are great for traders. What would be your reaction to the feds beige book that came out yesterday . I think it was fairly muted. I think the market had basically no reaction off of it. I think everything they had to say was priced in and i still think that the fed has a big problem and mountain to climb. We are awaiting earnings coming from a couple of big Financial Firms todaygoldman sachs and citigroup. What do you expect . Based on the past we look at wells fargo, jp morgan, and bank of america. I expect them to blow the doors off and it would be hard to imagine they couldnt based on that theyre getting free money and giving it back for the full in credit so i expect earnings to be very good. The real question i have is where is the growth coming from . Although theyre cutting costs and making money, they really arent growing. And finally, what are you doing with this market . Ive had this market range from 18,20 which we hit on monday to 1850 which we hit yesterday. I think were going to stay in this range until we hear from the fed next week. Thank you todd. Have a great day. Bank of america did indeed make money hand over fist in the 4th quarter. The bank turned a profit of 3. 44 billion vs 732 million in the same quarter last year when it paid for an 11 billion settlement with fannie mae. After years of litigation that followed the financial crisis. Bank of america appears to have found stronger footing especially in the area of wealth management. This morning we are turning to juli nieman of smith moore and company for her take on bank earnings. Good morning. Thank you julidiane moca who is filling in for Chuck Coppola steps in now with an update on the target hacking scandal. Hello diane. Good morning angie. Targets damage control is in full tilt. As potential winners and losers in other sectors start to emerge from Cyber Security firms poised to boom. To card processors braced for possible fines in the millions. And other retailers are wondering how to prevent their own breach. Some of them are using Antiquated Software and credit card captures. Bbb ceo steve bernas says Data Security has been underfunded in many us companies. And that must change in light of targets massive breach of private customer info. Nobody wants governmental intervention or regulations as well; unfortunately, with this being in the medias eyes right now, in consumers eyes really, somethings gonna happen. Ultimately you could see new legislation pass to try to prevent these issues and there probably are companies out there that will benefit from that. Firms like palo alto networks. Symantec and fire eye. Whose stock is climbing this month. This has really woken everybody up, and i think theyll be a lot more money spent on this. Business leaders say the public and wall street will likely continue to focus hightened attention to data leaks. Pushing other businesses to debate whether to announce every hack into their system. Were not sure the extent of these breaches and how many are actually silent breaches. What i mean by that is theres some companies that dont say anything when theyve been breached. The cause of the target breach itself remains a mystery. Leaving open the possibility target may name its vendors as defendants now that customers are filing suits to recover damages. Moneynews said a target Research Note from last month identified vantiv as its transaction processor. Td bank group as its card issuer. And Merchant Services handled by a joint venture with bank of america and kkr company. The question will really be how thats split among the different parties involved, and how is ultimately responsible for various aspects of the data breach. Experts say it could take years for the full extent of the breach to be felt. Today target sent an email offering one year of free credit monitoring through an experian product to all its us store customers. The Better Business bureau is out this morning with its list of the top ten scams in 2013. Starting with. Companies charging advance fees on loans, followed by work at home scams, Credit Repair Services with advance fees, foreign lotteries,fake Office Supply invoices, prize promotions, traveling Home Improvement workers who often show up after floods or other disasters, pyramid companies,phony sweepstakes that you never entered, and Debt Relief Services by unscrupulous companies. In italy. A crack down at the vatican bank. Pope francis is reforming the vaticans financial insitution, firing four out of the five cardinals who served as commissioners. The bank has accused of Money Laundering however denies any wrongdoing. Four replacement cardinals have been named by pope francis. The commission is responible for monitoring the banks operations and charitable giving. 30 amazon workers in delaware voted to join a union. It establishes the first u. S. Union shop at an amazon facility. The company says it recognizes the individual rights of its workers. Amazon currently is involved in an battle with a group of workers in germany who have organized strikes and protests over wages. The year of action continues. Just two weeks before the state of the union address, president obama is crossing another goal off his list. He revealed new funding for the first of three new manufacturing innovation facilities in North Carolina yesterday. Where i can act on my own without congress, im going to do so. And today im here to act, to help make raleigh, durham and america a magnet for the good hightech manufacturing jobs that a growing middle class requires, and its going to continue to keep this country on the cutting an edge. President obama also put the pressure on congress to extend jobless benefits for the long term unemployed. The bill to extend those benefits failed to advance in the Senate Earlier this week. Walmart is facing serious allegations about its treatment of protesting workers. The National Labor relations board. Accuses the Worlds Largest retailer of threatening retaliation against protestors. After failing to reach an agreement in settlement talks. The nlrb moved forward with a lawsuit. Walmart responds. we look forward to shedding light on the facts of the situation. President obama names a new head to the Small Business administration. Maria contrerassweet has been nominated to head the organization, which helps Small Companies secure loans. The position has been vacant for 11 months. The nomination requires confirmation from the senate, and rounds out president obamas second term cabinet. The senate is expected to vote this week on a 1. 1 trillion dollar bill that would keep the government operating through september. The house approved the measure by a large margin wednesday. Democrates say it includes funding for childhood education and health research. Republicans are pleased the bill cuts 1 billion dollars from an obamacare fund. Tea Party Members contend the bill spends too much and want it to fail. Tim cook calls it a watershed day for apple. The company will offcially launch its new deal with china mobile tomorrow. Apple can now tap into chinas growing middle class through its state run carriers. Cnbc reports 1 million iphones have already been pre ordered. Meantime, 32 Million Dollars in refunds are being issued to consumers whose children made App Purchases when playing on their parents phones. The accidental charges garnered tens of thousands of complaints. Apple is now required to change its billing policies. Facebook is said to be closer to launching a digital newspaper called paper. According to blog site recode it could happen by the end of january. Paper would be available on mobile devices and aggregate content from a number of sources including facebook. There is no confirmation from the company. Facebook shares closed around 57. 00. Solar city is on the hunt for cash. The company will sell securities to Retail Investors in an effort to gain capital. The securities are backed by a pool of contracts of existing solar city customers. The ceo hopes to eventually raise billions with the plan. The stock was heating up on wall street yesterday, jumping 4 and a half percent. Shares of verizon popped on u. S. Court decision. Shares rallied 2. 5 wednesday on a ruling that could make it possible for broadband providers including verizon to charges companies such as netflix for the faster access it takes to stream videos. The fcc could still appeal the ruling or it may even land at the surpreme court. In detroit. Auto enthusiants cant help but stare at the latest round of hot wheels in the spotlight today. The Detroit Auto Show will get a visit from Vice President joe biden, who will make a speech on the industrys recovery. So far, a lot of focus is not only on luxury cars and pickup trucks, but also on Performance Vehicles including these new sleek models from from lexus and acura. General motors predicts a modest improvement in market share and profits for 2014. The car Company ForecastsGlobal Demand will climb only 2 this year despite growth in the u. S. And china. Gm made huge news tuesday on word it will payout a dividend to investors. Its the first since its bankruptcy. Shares traded last at 39 dollars. Anheuser busch is pouring money into super bowl ads. At 4 Million Dollars a pop, the beer company has snapped up five spots during the february 2nd broadcast of the big game. Two of the ads named epic night will feature a celebrity cast. Plus. If you fell in love with this heart warming clydesdale spot last year. Get ready, its about to get cuter. Bud is bringing back the clydesdales this year. In an ad that will also costar a 10 week old puppy. Still to come cloud control. What one trader has to say about intels next move. Plus. How derailing your daily work routine could put you on the path to success. And after the break. Hello oscar find out who our critic thinks should win hollywoods top honor. First business continues after this 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. Its an exciting day. Oscar nominations are out this morning and keeping with that theme we are good to go with our movie guy who is ready with his picks. Erik, lets get it going with the best picture. Who will be on the nomination list . Its a list of 10 and we dont know if theyre gonna go from 8,9,10we dont know but this is the order that i think they could get nominated 12 years a slave, gravity, american hustle, the wolf of wall street, captain phillips, her, nebraska, inside llewyn davis, blue jasmine, and dallas buyers club. Not the butlerwhich i liked. I think the butlers going to get shut out completely. Moving on to best actor for best actor im going with bruce dern for nebraska, Leonardo Dicaprio for wolf of wall street, Chiwetel Elijofor for 12 years a slave, tom hanks for captain phillips, and Matthew Mcconaughey for dallas buyers club. Who is suddenly on everybodys radar. Its all about matthew. Its a tough call for that 5th slot too. Im going with dicaprio but Robert Redford who i think is gonna get snubbed could get in or Christian Bale from american hustle. Its a very tight race for best actor this year. Now on to the ladies amy adams for american hustle, Cate Blanchett for blue jasmine, Sandra Bullock for gravity, judi dench for philomena, and Emma Thompson for saving mr. Banks. That is a tough category. It is. And you know whos not on there . Meryl streep. I think she is going to get snubbed. Emma was amazing. Emma i think is safe. I think shes gonna get nominated but amy adams won the golden globe over meryl streep on sunday night and i think thats the final nail in the coffin for meryl streep. And sandy is the it girl still in hollywood. Yeah, although Cate Blanchett is the favorite. She is. Lets move on to what happened at the box office over the weekend. Kind of standard fare here. Lone survivor was the big winner this weekend. The 2nd biggest opening in january of all time. I sort of expected that. A lot of people didnt but zero dark thirty and blackhawk down have done very well this month before. Lone survivor is a huge winner. And after lone survivor is disneys frozen, the legend of hercules, the wolf of wall street, and american hustle. I heard people are walking out of the wolf of wall street because of the language. Weve heard that. Its a little salty language for some of the old folks and a lot of sex and nudity. Hey watch it this weekend at the box office is devils due, jack ryan shadow recruit, the nut job, ride alongwhich is getting positive buzz. I think just because its gonna be a huge hit. I think kevin hart is in this period people are trying to tout him as the next eddie murphy and i think his next few projects youre gonna see a lot of great success. I dont know how good the movies are going to be but people are going to show up for them. I like him so far. There you go. Coming up. Cashing in on a Credit Card Company a trader play in American Express is still to come. Plus. One author breaks down science of habit, and how it can actually hurt you. Thats next with bill moller. You wake up each morning the same person who went to bed the night before same behaviors, biases and patterns of thought. But you can change that sameness to make a better, happier, more successful you. In whats been called one of the best books of the year by the wall street journal and the financial times, Pulitzer Prize winning New York TimesInvestigative ReporterCharles Duhigg maps this out for us in the 2nd release of his fascinating book, the power of habit why we do what we do in life and business. Youre saying essentially, habits dont have to trap us we can use them to liberate us. Absolutely. Studies indicate that about 4045 of everything we do everyday are habits and most of those are great habits. Thats how youre able to get into your car and suddenly youre at your desk and you cant really remember what happened in the meantime. But the key is there is also these bad habits that we feel like were powerless over and if you understand how habits work you can control those. Give us some insight into that because a lot of people think that its not a habit, its just the way they are. Were living through a golden age of understanding the neurology of habit formation. What we basically learned is that every habit has 3 parts theres a cue which is like a trigger for an automatic behavior to start, and then the routine which is the behavior itself, then finally a reward which is how our brain learns to remember that for the future. If you can diagnose the cues and rewards around a habit, then you have the ability to change it or create new ones. Can you give us an example of how that might be . Sure so i had this bad cookie habit when i started writing this book. I would eat a cookie every afternoon. When i was talking to a neurologist i asked him about it and we figured out the cue was the time of day. It usually hit about 3 15 in the afternoon. But then i had to figure out what the reward was. I thought it was cookies and they said no. Cookies are like 12 rewards all in one tasty little bundle. Is it that youre hungry . In which case you can have an apple instead. Or do you need the energy from sugar . In which case you can have a cup of coffee. What i figured out was when i was going up to the cafeteria to get a cookie thats when i saw my friends and i would gossip and socialize for a couple of minutes. It was the socialization that was driving the behavior, not the cookie itself. Once i figured that out i could change the habit. You just sort of dig down and figure out what the core cause for these habits and we can change them. Charles duhigg, fascinating. More power to you. Thanks so much. Thanks for having me on. Thank you bill. Its a great book. Still a head a traders who is attempting to book profits on a trade in intel. Find out why he thinks its a mover. Next in chart talk. American express reveals earnings after the close tonight. Joining us now is james ramelli. Hes watching the charts for us. What do you think about this stock going into earnings . Im not looking to put on a position going into earnings. I would probably look to establish one after the report comes out. Weve seen a lot of the financials report already. Bank of america, jp morgan, wells fargo and they had relatively muted reactions. Its very difficult as a trader to make any money in a stock that doesnt move. I want to see a big movement and i dont think its gonna happen on this report from axp. Afterwards im going to look for setups probably to the long side as i do expect them to have good numbers like the rest of the financials that have already reported. Lets move on to intel. Traditionally this stock is not the kind of stock that you count on to see big growth in but of late the stock has been moving higher. What do you think about earnings in intel . Were looking at an implied move on earnings of around 5 for intel. And thats very interesting because on average the stock moves less than 3 . Its not really a high flyer on earnings. However, weve seen a lot of options activity across a lot of different expirations going into this report. One of the most active lines is the march 28 call line. Weve seen huge blocks of calls being bought. Earlier this week i went ahead and bought those with them and its already been a very profitable trade for me. I think from a Risk Management perspective staying long those calls through the report is probably not the best move for me so i will be looking to exit them sometime ahead of the number. The stock has come up quite a bit since their last report. Its up 21 over the last 12 months but 13 since their last earnings report. I think it could find sellers if the number comes inline with expectations or is not as good as people are expecting. Thank you james. We will be watching. Thank you. Its time for us to jump out of here for today. Coming up tomorrow our traders go unplugged to talk about why it might better to invest in hedge funds run by women rather then men. Join us friday. From all of us at first business, thank you for watching. Announcer the following is a paid presentation for hip hop abs brought to you by beachbody. Pay close attention dont miss your chance to save 75 off hip hop abs. If youre looking to shed the fat. In the first week, i lost 12 pounds. Announcer a way to flatten and sculpt your core. Youre hitting every part of your abs. Announcer and finally get those tight, sexy, toned abs of your dreams. Then stop doing situps. 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