In her testimoney today. Stocks and oil made modest gains. While gold had a bit of bounce up 11 dollars per ounce. Rackspace ratchets down. Shares of the tech company plunged more than 12 on profits problems and word the ceo will retire. A report says barnes and noble plans to layoff employees in its struggling nook division. Nook revenue fell 60 during the holidays. And, medium sized business get an obamacare break by not facing a tax penality until 2016. And the new gm ceo could get 14 million in pay versus 4 million bill baruch of iitrader joins us on this tuesday morning. Good morning bill. Good morning to you too. Everybodys so concerned about janet yellen on capital hill. Im hearing from traders this could be a volatile week. What do you think . I agree. It could be a volatile week. However i think yellen will keep things sort of calm. The market has been rallying pretty well despite poor jobs data. Retail sales as well as some data out of china is what the major focus is going to be here this week. What is the oil market telling us about the economy . The economy has been improving. The oil market is definitely showing signs of that. Weather has helped support this market as well. Moving averages have acted as support100 day on friday was the low and the market was able to rally off that on a mission to hit 100 bucks. What do you think about the overall stock market . Would you put money to work . Weve been very bullish. Weve been publicly bullish since the fall of 2012. We still feel the market has a lot of upside. The s p can reach 2000 this year. Although the bottom may not be in were buying with our clients all the way down to 1700 where the 200 moving average is right now. Good to know. Good to have you on the show. Thank you. As mentioned. Today marks the first time as a fed chair janet yellen will be grilled by lawmakers on capitol hill. She delivers testimony on Monetary Policy today before the House Financial Services committee and then tomorrow for the Senate Banking committee. Yellen became the first female to run the Federal Reserve feburary 1st. She is viewed as more focused on job growth than on the risk of high inflation. Chuck coppola joins me now. Fannie mae and freddie mac are close to paying back the 2008 bailout. The two are closing in on the 187 billion owed to the government. As the Housing Market improved fannie and freddie were able to return 130 billion dollars in profits to taxpayers last year. However a Citizens Group argues a portion of that money was originally meant to fund housing for the low income and homeless. The agencies report earnings later this month. Chrylser is expected to pay 5 billion to the United Auto Workers trust in the final payment owned from its bailout. The car company signed off on a bond sale that will reimburse the uaw healthcare trust. Chrysler is owned by fiat. Fiat is planning an ipo for this fall. In our cover story, the Auto Industry is shifting gears. Winding down, in australia toyota, the last automaker there announced it will cease australian production in 2017, ending australias 66yearold auto sector. While, in germany, audi plans to add shifts to keep up with rising demand in china and in the us. If youre looking for a serious car shopper, look no further. Janice nowak ofwest suburban chicago spent more than 20 minutes inside one car, an audi a3. And then talked with a representative for ten minutues longer, who told her audi could deliver a 2015 model to her by april. For mercedes, shes have to wait until september. Absolutely, time is a factor. My bmw is 13years old and while its been great, im tired of it and want a new look. Nowaks sense of now multiplied by countless consumers explain why audi is adding shifts at two german plants. A continuation of audis 8. 3 growth, last year. Our order books are full said one board member at audi. That makes us confident that we will grow again this year as well. Global sales last month up 12 at audi, and up 15 at daimlers mercedes, which is also adding shifts at three german plants. The car i have has 160 thousand miles on it. So its about time. Bmw, the worlds leading luxury car maker says it will add shifts as needed. And as consumers narrow their Shopping List to vehicles that fit as many of their needs as possible. Weve been looking for a convertible with trunk space and room for our two kids. Dan brown and Maria Hodgson have been looking at electric vehicles recently. The chevy spark caught their eye, but so far theyve yet to commit. Range would be one concern and heat, in the wintertime ive heard some have anemic heat. On the other end of the scale, toyota says it is closing the last auto plant in australia due to the strong australian dollar, and high production costs and relatively small domestic market. Activist investor carl ichan is backing off on his attempt to force apple to increase its stock buyback. Ichan stated in a letter to apple shareholders. We see no reason to persist with our nonbinding proposal. Chan has been after apple to aggresively buy back shares. On sunday an Advisory Firm recommened that apple shareholders reject ichans proposal. Apple has repurchased more than 40 billion of its shares during the past 12 months. Apples ceo tells the wall street journal thats a record for any company. Apple is the most valuable company in the u. S. But google is playing catch up. Apple has a market cap of 463 billion. Google recently rose to 2nd place with 395 billion, beating out exxon mobile which fell to third place with 392 billion. Googles stock is up 66 since last year while exxon gained 5 . In a bid to distinguish itself from, bing and google, yahoo is partnering with Online Review site yelp. The wall street journal reports yahoo Ceo Marissa Mayer wants to connect the local review sites user generated reviews to yahoos Search Engine results yahoo lags its competitors holding only 10. 8 of the search market. Yelp shares climbed to 91 dollars yesterday. Aols Ceo Tim Armstrong is issuing a back track following a back lash. Armstrong made controversial comments last week. Citing two highcost births of distressed babies by aol employees as the reason the Company Needs to cut expenses and would contribute only once a year to employees 401k plans. He also blamed president obamas health care reform. Public backlash was swift and severe. Well, he just gave us the hook and it made him look bad high costs of births of our employees . Thats a healthcare problem, not his problem, so why did he put his foot in his mouth . It was doubledumb that was caree anderson a connective behavior expert and a former wall street journal reporter. Armstrong issued a memo obtained by reuters to the aol staff over the weekend stating i apologize for my comments. And the company will return to year around matching contributions aol recently reported its best growth in a decade. Just as mcdonalds opens its first restaurant in vietnam. Comes word the chain is making gains overseas. Mcdonalds reported stronger than expected global sales. With much of the strength from europe and chinaoffsetting weakness in the u. S. Worldwide sales rose 1. 2 last month. Analysts predicted. 7 . Sales in the u. S. Dipped 3. 3 percent on cautious consumer spending. The burger chain opened a restaurant monday in ho chi min city. Lawmakers are hoping for a Chain Reaction from drugstores. Senate democrats are pressuring walgreens and rite aid to stop selling cigarettes. It follows a surprising move from cvs, which will phase out Tobacco Sales by october 1st. Former u. S. Surgeon general dr. David satcher believes eventually, major chains will join the anti tobacco movement. I think anything that businesses can do voluntarily to prevent the spread of this epidemic, i think they should do it. So i am very pleased with what cvs has done and i do believe that other retailers will step up to the plate and join them. So far, competitors including rite aid and walgreens have promised to evaluate customer demand. Federal officials says tanks containing chemicals that spilled into the waterways and drinking supplies of west viriginia residents were not necessarily in complaince with standards ahead of the leaks. A house transporation and Infrastructure Committee held a hearing into the spill yesterday. The chemicals that spilled were considered non hazardous and are not regulated under federal law. But residents have complained of a black licorice smell and illness. I recognize the customers fear associated with the smell of something in their water. Thank you for that answer, i would still like to hear its safe and i think thats what everybody wants that one word. Freedom industries the owner of the chemical Storage Facility skipped the hearing. In china ubs is in the midst of a hiring scandal. Ubs has suspended two executives over allegations that the bank hired a close relative of a client. Marketwatch reports one of the suspended executives includes a top ipo banker in asia. Jpmorgan is currently involved in an investigation for similar hiring practices overseas. Ubs declines to comment. United has reached a deal with its flight attendants. The airline was threatening to furlough nearly 700 employees claiming it sometimees has too many working o the united side and too few for contienntal. The two arilines merged in 2010 and are still facing turblence. A new deal will allow united flight attendants to cross over to continental while retaining seniority pay and vacation days. The Airline Industry is on track for its most profitable year ever. Airlines worldwide are expected to rake in profits of 19. 7 billion dollars up from 19. 2 billion in 2010. A spokeswoman for the trade group, airlines for america says some profits will go to adding seats, paying down debt, raising employee wages and updating equipment. More growth is happening overseas, also. Boeing reports its plane deliveries to the Asia Pacific Region will triple over the next 20years. In a side show to the olympics searches for flights to get out sochi soared last week following tweets about Horrible Hotel conditions. But, now that the games are well underway s an executive editor with forbes tells cnbc these Olympic Games will generate more money than any other olympic through ad revenue for broadcasters and for sponsors. However, she says russia may not fair as well. This one of the most expensive olympics to date. Fans of flappy bird may flock to ebay. The game, a massive hit with android and iphone users, was mysteriously pulled offline by its developer this week. However, if you already have it downloaded. It wont be erased. Phones or ipads that have flappy bird are spotted on ebay going for nearly 100,000. Still to come the whole truth. Is an upscale grocery chain a bargain stock for investors . Plus. Tricks of the trade. A Hedge Fund Takes a money lesson from warren buffett. And. Are Driverless Cars steering consumers towards plunging insurance rates . Thats right around the corner, with bill moller. Real issues theyre dealing with can be awkward and uncomfortable. But when their behavior changes, its time to act. Because if we dont, our families and relationships will suffer. Listen to the veterans in your life and show you care. It matters. When you recognize a veteran is in crisis, call the Veterans Crisis line at 18002738255 and press 1. Driverless cars. Theyre coming. Right now theyre being tested on roads in europe and the united states. When this goes mainstream one of the big advantages will not only be that you can read and work while behind the wheel. Itll be the plunge in road accidents and a big drop in Car Insurance costs. Becky yerak did some research on this. Shes a Business Reporter at the chicago tribune. Bring it on. Is this plausible or probable . A few years ago this was looking merely plausible but now were heading to probable. Maybe in the next decade or so we may be paying a lot less for Car Insurance because were seeing fewer accidents and fewer fatalities. And for a combination of reasons were just gonna keep heading that way. Driverless automobiles will really advance this and accelerate it by a great degree. It will depend on a lot of thingsthe cost, the adoption rate, and certainly other things too. Exactly. Are people going to see control of their cars . But really theyre already doing that in so many aspects of their life. Well we have Collision Avoidance systems and i know a lot of the Insurance Companies have adoptedyouve written about thistelematics. Its where our driving habits are being reported to the Insurance Companies in exchange for lower rates. Nearly every Major Insurance Company has these telematics. You put the device in your car and it monitors your driving. If you drive well or dont drive a lot you get a discount. People have been slow to adopt that but awareness is great and eventually people are thinking a lot more people are going to adopt it. The Car Companies already have certain devices. For example, they have Blind Spot Technology where if a car comes into your blind spot you get an alertor if you drive out of a lane the wheel vibrates. With Driverless Carswhat is the industry doing . Are they trying to obstruct this or slow it down in any way . Some suggest its not in their interest to go along because really it would upset their business model. State farm last month announced that it and ford and the university of michigan are working together on a research vehicle. I asked state farm if this could put them out of business and they say they are for this because its good for public safety. Also, they said, Car Insurance isnt the only thing we sell. We also sell home insurance, financial products. Were a bank. But clearly Driverless Cars would really change the industry dramatically. Even for diversified Companies Like state farm. Becky yerak thanks so much. Thank you. Coming up. New money. How hedge funds are taking a cue from mr warren buffett. Plus. A high profile couple uses Facebook Stock to help a non profit. Thats next after this in the know message. Hedge funds are always on the hunt for ways to make money. And one trends that appears to be forming is hedge funds putting money to work in the reinsurance industry. Joining us on set this morning randy swan, founder of swan wealth advisors. Good morning randy. Good morning and thanks for having me on. Great to have you here. Warren buffett has made a bundle in the reInsurance Business. So how do you plan to use your fund to capitalize on this industry . Well, its definitely not a new concept. Berkshire hathaway has been doing this for decades and other Money Managers have done this recently. Its really trying to take advantage of the premium flow to invest in our basic underlying strategy. So people give their money to an Insurance Company and then youre taking advantage of that big pool of money and doing some investing, correct . We actually reinsure Insurance Business from other Insurance Companies, take a portion of their defined risk, and put it in our Insurance Company and actually use that moneythat premium flow to invest in our strategy. What should you returns look like . Whats your projection . Historically speaking, the defined Risk Strategy has earned over an excess of 9 percent after fees and expenses with a very conservative premium to capital flow of 2 to 1. We expect to be able to generate roes in the low 20s. More importantly, its also on a tax deferred nature. So investments in this reInsurance Company should receive tax deferred income indefinitely until you sell the stock. I noticed that a lot of this business is happening in bermuda. Last year 41 of these reinsurance funds were acting in bermuda. Why is that . Bermuda established itself as the Gold Standard in reinsurance so theyve properly positioned themselves and maintained that Competitive Edge against other locales around the world. So they seem to be the place where people want to accept and use insurance. Is this something the average person can get in on . Right now were offering swan re as a reg d offering. Its available to accredited investors but our hopes are sometime in 2014 that well have an ipo that will be available to all investors. We will be watching. Thank you randy. Thanks for having me. George soros shines as manager of the worlds most successful hedge fund. His fund, quantum endowment, made 5. 5 billion dollars in 2013. Soros actually stepped down from running quantum in 2011, but remains a key player in the business. Facebooks Mark Zuckerberg and his wife Priscilla Chen are named the countrys most generous philanthropists. The couple donated 970 million worth of Facebook Stock to a Silicon Valley nonprofit in 20 13. They top a list of the 50 most generous americans all told those 50 donated nearly 8 billion last year. Still ahead a trader says whole foods may deliver a surprise to investors on earnings day. Why hes nibbling on the stock now. Thats just ahead in chart talk. 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. Matt shapiropresident of mws capitaljoins us now. He has an appetite for whole foods. As you know mattbetter known as whole paycheckbecause of the prices. But you like the stock. What do you like about the chart . Theyre trying to change that. I dont think management really likes the term whole paycheck and if you go into the stores theres a lot of value merchandise nowadays. But of course they catch you with all those little extra gourmet things that people like. I think actually the stock has been a little bit left for dead. They have earnings coming out in a couple days so at 55 i think you have a chance to take a look at this stock with what is expected to be record quarterly revenue of 4. 3 billion. Im a little concerned. Only because the Options Market is showing some very unusual activity. Theyre buying calls up in the 60s and the puts down in the 50s. So people are really uncertain as to what this stock will do on earnings. Would you buy the stock ahead of earnings or after earnings . What would you do . Funny you should aski bought some this morning. Im not looking for one particular Earnings Report or the next. I think whole foods is an all american franchise and people forget about that. When these kinds of stocks are down management tends to make the moves to get them back up. It has become one of the category leaders in groceries. Here in chicago, dominicks shut down and whole foods is taking over some stores so theyre gonna continue the expansion. They have those mega whole foods that are doing really well so despite the cold weather and last quarter not being so goodits a good company to earn long term because it owns this category and no ones gonna be able to get into it. Finally whole foods translates internationally so you can look for that as well. I know theres a lot of action about this earnings quarter but im looking past that. Thank you matt. You got it. Coming up tomorrow. Youve seen the commercials about how americans failed to take advantage of 1 billion dollars in deductions least year. The h r block man will be here to share tax secrets. Dont miss it from all of us at first business. Have a great tuesday. Announcer the following is a paid advertisement for Armando Montelongo live events. Youre about to meet a man that can change your future now. 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