Transcripts For KICU First Business 20131223 : comparemela.c

Transcripts For KICU First Business 20131223



highs.investors pushed stocks higher on a government report showing evidence of strength in the economy. gold gained 7 dollar oil 8 cents.archer- daniels-midland will pay $36 million to the sec to settle allegations of bribing officials in the ukraine to win tax refunds. and, janet yellen's confirmation vote is expected january 6th. if approved by the full senate. she becomes the next fed chairman february 1st. a lovely way to start the trading day on this monday morning. ben lichtenstein of traders audio is here. good morning to you. now that we're in the christmas spirit, what will be the christmas trade this week? >>it seems that the santa rally has come a bit late. it took a bit of prodding from one of his helpers, fed chairman ben bernanke. last week we saw that big come into the market to close the week out. it was in reaction to wednesday's fed announcement and the question and answer session afterwards. the mindset of traders is just status quo. this is not over until the fat lady sings and for the most part we haven't even really heard her warming up her voice yet. i think this was a bit of a relief rally. i think there was a lot of uncertainty in terms of the taper---when, how much, and how often, or when it would start. i think that the investors and traders alike really got a little bit of information. just enough to relieve some of the uncertainty. the market tends to love that and that's really what we're seeing last week. closing the week out strong. >>turning now to the economy, gdp coming in at a strong 4.1%. does that make traders believe that this is the real deal with what's happening with the economy and the stock market? >>it does. it's been interesting because for a while we've been sitting back saying if we see very strong economic conditions.then we'll probably be working our way towards tapering which for a little while was actually making the market come off a bit. but we talked about a few sessions ago, and i've been mentioning for the most part the market should really see the fed's ability to taper as very bullish for the economic situation because again, they wouldn't be doing it if we needed to continue to fuel the economy or prod or provoke it. for the most part there have been a lot of naysayers out there talking about all of the money we pumped into the market and how we had gdp still below 2% but this was a game changer in some ways. we saw very favorable reaction combined with what i already mentioned in terms of the relief rally. but friday was the big day to the upside, back up above the 1800 level. for the most part friday was a trend day higher. it really didn't get much going late in the day to the upside. most of it was in the morning but we didn't give anything back really either so we had quadruple witching on friday and all of that information the market was still able to sustain upper levels. >>thank you ben. >>my pleasure. thank you. saturday marks the end of the "long-term"unemployment benefits...the emergency program was set up under the george w. bush administration in 2008.it allows for unemployment checks for longer than 6 months.the program expires this weekend which means benefits will end after 26 weeks.it will initially effect 1.3 million americans-- and millions more during the next year. in a state by state check-- unemployment rates fell or were unchanged in all 50 states during the month of november,california, texas and indiana reported the strongest gains.the states with the highest unemployment rates are nevada and rhode island. changes to the affordable care act are garnering a "strong reaction". the obama administration said last week it is delaying sign up deadlines.people who lost insurance plans in the midst of the overhaul now qualify for an exemption which protects them from a tax penalty. also, the "catastrophic plan" -- is more widely available. previously it was restricted to those under 30 years old.insurers are criticizing the reforms. friday, an industry executive said changes "could cause significant instability in the marketplace."the white house says fewer than 500 thousand people will be affected. ally financial is accused of charging higher interest rates to car buyers who were hispanic, african american or asian.the justice department and consumer financial protection bureau found in an investigation ally and car dealers pumped up loan rates than split the additional interest from the payments.on average the minority customers paid up to $300 dollars extra on the life of the car loan.ally says in a statment: its dealers' contracts don't include information on consumer's race or ethnicity. the crash test for vehicles sold in the u-s is getting tougher for 2014 models.as our cover story shows you, the insurance institute for highway safety wants to prod auto makers to include crash avoidance technology more widely available.and to do that, it's raised the bar. the insurance institute for highway safety is raising the standards for its top safety awards. it may push automakers to design cars to redirect the force of impact and add more sensors to warn drivers. but some consumers fear that will make cars cost even more. "i would say it probably adds to the cost of them. that's a lot of wiring and the sensors have to work properly." for 20-14, higher standards include improved performance in a 40-mile-per-hour crash into a vehicles' front corner. "about 25% of serious injury comes from accidents that involve the front corner of the vehicle." the non-profit institute funded by auto insurers added another hurdle for its highest rating---a front crash avoidance system---an alarm that alerts a driver of fast closing- speed. it may include automatic braking but not necessarily. nor is it offered separate from bundles of luxury options. "they're only available on the high trim levels so it comes with the sunroof that you didn't want in the first place." "safety issues should be separate from luxury. let's keep it that way." here's the list of safest vehicles for 2014 according to the i--i-h-s. honda, mazda, subaru and volvo had the widest range of models. only one american-owned automaker lincoln, and one german manufacturer mercedes, made the list. that's expected to change, however. "this is going to proliferate across the models very quickly." the insurance industry says front-end collision warning systems have reduced crashes by seven-percent. when added to an automatic braking system, crashes are cut by 15-percent. it's boom time for boeing. the jet maker won a major order for its 777-x jets from cathay pacific airlines. the order is valued at more than 7 billion and due for delivery between 2021 and 2024. the 777x launches in 2020 - but boeing has not yet decided where to build the aircraft.union workers in washington recently rejected what the company called its best last contract offer whirlpool is shifting some of its production to the u-s from mexico. the move brings 80 to 100 additional jobs to a washing-machine plant in clyde, ohio that currently employs more than three-thousand workers.wages are 18-to-19 dollars an hour - about five- times higher that at its plant in monterrey, mexico. but the ohio plant is more automated, and electricity costs are lower. blackberry has turned into stunning stock.shares jumped 15% friday on surprising news the smartphone maker is connecting with foxconn.under the 5 year deal, foxconn will create blackberry phones for indonesia and other growth markets. it was especially positive news because blackberry just reported a loss of $4.4 billion in the latest quarter. foxconn is noted for making iphones for apple and for allegations harsh working conditions. it's damage control at target. the retailer is scrambling after a hack attack that could potentially affect millions of customers. reports say hackers stole credit and debit data, which was replicated, and sold to the black market. target says the security codes on the backs of cards were not breached which means no online shopping or atm withdrawals are permitted. also... an apology email target sent to consumers friday was hacked and mimicked, sending fake links to credit bureaus and the ftc. target is adding staff to help with the hacking mess. it says very few cases of fraud have been reported. the gold futures market is in serious meltdown mode. the price has collapsed from 1,700 dollars per ounce to below 1,200 during the past year.joining us now-- joe kinahan of td ameritrade. good morning. smart traders like yourself are always looking for opportunity-- what would you buy here gold futures, gold stocks, or gold miners. >>first of all, for your viewers who aren't as comfortable with futures, the may want to look at one of the etf's of the miners or gld which is another etf. for those who are more familiar with futures, i'm always a believer in getting exposure to what i want the exposure to and the gold futures gives you the most exposure to the underlying itself. as you mentioned, it is in a bit of a meltdown mode. 1200---we're trading right at that area back and forth around it all day on friday. that's an area we need to hold, we need to close above a couple of days for gold to sort of bounce back. there are so many gold bugs out there who like to trade the product itself. the risk with the miners is that you do have other influences of how the company is run on there. so depending on what the people who are trading it are comfortable with, as long as they understand what makes up the etf, or what's inside those miners---any of the three can be good for them to trade. >>thank you joe. the f-d-a will revise a sweeping set of food safety regulations. the proposals are being re- worked after farmers deemed the precautions too costly. the rules would have required farmers to buy new equipment for contamination prevention and water evaluation.the f-d-a says it would cost farmers 30- thousand dollars a year to meet the standards. the changes will delay new farm standards until next summer. electronic cigarettes are "out" in the big apple. new york's city council has voted to ban ecigs in indoor spaces.the bill is expected to be signed by mayor michael bloomberg.the city council speaker says the city is trying to prevent stepping back in time to when smoking indoors was the status quo. a famous billionaire decided to shock "reddit" users by playing "secret santa." entertainment website reddit holds secret santa for users every year.this year... a young woman revealed that bill gates picked her name. not surprisingly...gates gave the gift..of giving back, by donating to a charity that helps fight hunger and poverty. still to come: sweet tooth surge... a look at the rising demand for chocolate. plus... the stock that has emerged as a guiding star this holiday season. and... why all nighters are the new christmas shopping norm. that's after the break! just two shopping days are left before christmas-- and retailers are ready for 'round the clock shopping including kohl's.kohl's is in the midst of a 100 hour marathon. the retailer opened the doors at 6:00 friday morning and stores will remain open through christmas eve.macy's, kmart and toy's r' us also are extending hour hoping to make big cash on the last dash. it's a happy holiday for amazon. shares topped $400 for the first time ever on friday. a strong holiday season, analyst upgrades, and expansion are all contributing to amazon's 60- percent surge in growth this year.skeptics still point to the fact that amazon has not yet turned a profit, but investors seem to be confident for the long-term. earlier this year we reported on the rapidly rising price of chocolate.jackie keenan takes us to florida where..chocolatiers are cashing in, as cocoa prices remain anything but sweet. forget regular egg nog this christmas, how about an egg nog truffle. gourmet chocolates are the gifts flying off the racks this christmas. and mary caron is part of a growing number of chocolatiers opening their own local shops across the country. because there's no stress in chocolatethis is a true art form where everything is painted and made in small batches. sales are up this month - and this year - on these exotic candy concoctions, and not only here at this chocolate shop, but the entire world is having cravings. worldwide chocolate sales are set to hit 117 billion dollars, a six percent increase from last year. caron sells not only her own creations, but those from other local chocolatiers. and the cost of these little bites of decadence is a bit rich. we're about $1.75 each, although the price of cocoa is rising so we'll see what happens. cocoa prices are taking a dark turn. futures rose 24 percent this year, and is expected to rise another 14 percent in 2014, according to bloomberg estimates. cocoa demand is exceeding the supply. the worst in five decades, and it's only getting worse. drought in western africa is partly to blame. but its surging demand in europe, the u-s and especially asia that's putting stress on the sweet stuff. consumption in china alone has doubled in the past decade. chocolatier steven ashworth doesn't know what the new year has in store for his wholesale cocoa prices, which have not yet risen. it will take about six months for a small business to see if it affects the quality and the price. ashworth says despite cocoa prices, there's room for growth for all chocolatiers since that's what the market wants. there are many, many chocolatiers, and there's lots of competition but everyone is unique in their own way. plus after having great sales numbers for halloween and now christmas, he's looking onto the next holiday. don't forget valentine's day. for first business news, i'm jackie keenan. something that could hold chocolate prices in check for now-- trading volumes in the cocoa powder and butter markets are dropping as traders take time off for the holidays.coming up...how the affordable care act is spurring a flood of mergers and acquisitions. plus...in chart talk. following the money trail...one trader says he's taking a cue from the big hedge funds stay with us. ♪ ♪ ♪ ♪ ♪ factory orders, employment, gdp - these are all measures of the health of our economy. here's another metric, the number of mergers & acquisitions, and 2014 is looking like a banner year. david braun runs capstone strategic in the washington dc area & he wrote the book successful acquisitions. you advise companies on the process - where do you see the big growth in m&a activity next year? >>bill, good to be with you. i think there's probably three main areas that we're seeing some significant expected for 2014. number one is going to be healthcare. we've seen a lot of activity already over this past year. i think that's going to continue. oil and gas, energy in general but in particular oil and gas. and then the third is loosely called tech enabled businesses.think of the facebooks and the yahoos of the world and the continued consolidation that they're running out now and have been for 2013 and we're expecting that to continue at a pretty robust pace for 2014. >>are these all going to be big deals, big companies? anything happening in the mid market? >>that's a very good question. more and more we're seeing activity in the mid market. we've had a little of what i call the dumbbell effect where you've got very large companies continuing to consolidate and you have small companies and not a whole lot there in the middle.what we're seeing is more activity focused on the middle market for a couple of reasons. one is the organic growth continues to be pretty anemic. two is the cash is available out there on two fronts, one the balance sheets of companies are a lot stronger and two, banks are starting to lend more to smaller and middle market companies. so we think the middle market's going to be pretty active in 2014. >>a lot of hospitals have been buying up competitors. is the affordable care act the impetus for some of the acquisition activity going on in health care? >>without a doubt. there's so much uncertainty that everybody's trying to figure out which way to go and consequently there's going to be some significant winners and losers but a lot of that activity is driven by people's beliefs on one side or the other about how the affordable care act is going to play out. >>david braun with capstone strategic, thanks so much. >>thank you. fortune magazine is out with it's business person of the year.and the high honor goes to...tesla's ceo elon musk fortune compares the tesla innovator with the "shared genius" of apple icon steve jobs.musk is credited with leading the electric car revolution.according to the magazine-- the tesla brand may have a larger effect on the world than even apple. still ahead-- a big time investor is feeling energized about a natural gas stock.should you be too?find out next in chart talk. i'm going to pass chemistry, and i'll take it from there. i'm going to do what makes me happy. i'm 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 didn't have a clue. the u.s. department of education has over $100 billion. and that's 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. i'm never giving up on my goals. i will make a difference. i'm going to find out how to pay for college. i'm going to college.gov. affl and many actors have played the part of u.s. servicemen in the movies, but for veterans like james crosby their service and their sacrifice are real. and too often when they come home, their struggle continues. for over sixty years, paralyzed veterans of america has been fighting to help our injured veterans get the benefits they need, and have earned. paralyzed veterans of america was there for me when i came home. join me in supporting our paralyzed veterans. visit p-v-a dot org. feel the power of christmas today. joining us now for chart talk is james ramelli of keene on the market here to talk about a couple of energy stocks. good morning. >>good morning. >>let's start with cheniere energy. a lot of call buying happening here. they are looking for a big run in this stock. >>we see some aggressive out of the money call buying with some pretty aggressive targets in cheniere. whenever we talk about unusual option activity i always point to cheniere as a stock that is a great example of telegraphs in unusual option activity. institutional order flow, telegraphs moves higher in lng very well and it has all year long. it's a stock that has gone through a couple periods of consolidation throughout the year. but whenever we see institutional money coming in and getting long this stock, it heads higher. i'm currently long lng along with a lot of other traders at our firm. this is one that we really like into the next year. >>let's get the details on this one. the stock is trading around $42 but these traders think it could go well above $50. correct? >>correct. and a lot of this could be a play on volatility. those options still do have a delta. they are very far out of the money. they do have a long time to expiration. it's very possible that we do get there and i like the play going forward. >>what other energy stocks do you like? >>we're seeing a lot of activity in friday's session in 1st energy---fe. now this is a stock that is a completely different story from cheniere. it's been very weak this year. the stock's down 22% ytd. what we're looking at here is institutional money coming in and getting long through april of next year via the april 35 calls that they bought today for 65 cents almost 9000 times. this is a stock that is making a new 52 week low in december . stocks that so that tend to outperform in january and february of the next year as they are sold off in december for tax purposes. so this is one i'm getting long. i am long fe. we see institutional order flow into it. i think it's a very good chance the stock heads higher. that's why i bought those same calls. >>i like the tax play in there. thank you james. >>thank you. as we wind it down for today, we are already looking forward to our show tomorrow -- a tax expert will be here with tax tips for investors holding money in stocks, bonds and mutual funds. don't miss it. from all of us first business, enjoy the final monday before christmas. >> announcer: the following is paid presentation for focus t25, brought to you by beachbody. >> [ echoing it's about time. the number-one people have for not working out is they don't have time. >> i have four kids. >> i work 60, 70 hours a week. >> i don't want to work out for no hour. are you kidding me? i don't have the time. >> announcer: no time to work out? no problem. introducing focus t25, the breakthrough in-home fitness program guaranteed over an hour's results in only 25 minutes. t25 was created by a guy who

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Transcripts For KICU First Business 20131223 : Comparemela.com

Transcripts For KICU First Business 20131223

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highs.investors pushed stocks higher on a government report showing evidence of strength in the economy. gold gained 7 dollar oil 8 cents.archer- daniels-midland will pay $36 million to the sec to settle allegations of bribing officials in the ukraine to win tax refunds. and, janet yellen's confirmation vote is expected january 6th. if approved by the full senate. she becomes the next fed chairman february 1st. a lovely way to start the trading day on this monday morning. ben lichtenstein of traders audio is here. good morning to you. now that we're in the christmas spirit, what will be the christmas trade this week? >>it seems that the santa rally has come a bit late. it took a bit of prodding from one of his helpers, fed chairman ben bernanke. last week we saw that big come into the market to close the week out. it was in reaction to wednesday's fed announcement and the question and answer session afterwards. the mindset of traders is just status quo. this is not over until the fat lady sings and for the most part we haven't even really heard her warming up her voice yet. i think this was a bit of a relief rally. i think there was a lot of uncertainty in terms of the taper---when, how much, and how often, or when it would start. i think that the investors and traders alike really got a little bit of information. just enough to relieve some of the uncertainty. the market tends to love that and that's really what we're seeing last week. closing the week out strong. >>turning now to the economy, gdp coming in at a strong 4.1%. does that make traders believe that this is the real deal with what's happening with the economy and the stock market? >>it does. it's been interesting because for a while we've been sitting back saying if we see very strong economic conditions.then we'll probably be working our way towards tapering which for a little while was actually making the market come off a bit. but we talked about a few sessions ago, and i've been mentioning for the most part the market should really see the fed's ability to taper as very bullish for the economic situation because again, they wouldn't be doing it if we needed to continue to fuel the economy or prod or provoke it. for the most part there have been a lot of naysayers out there talking about all of the money we pumped into the market and how we had gdp still below 2% but this was a game changer in some ways. we saw very favorable reaction combined with what i already mentioned in terms of the relief rally. but friday was the big day to the upside, back up above the 1800 level. for the most part friday was a trend day higher. it really didn't get much going late in the day to the upside. most of it was in the morning but we didn't give anything back really either so we had quadruple witching on friday and all of that information the market was still able to sustain upper levels. >>thank you ben. >>my pleasure. thank you. saturday marks the end of the "long-term"unemployment benefits...the emergency program was set up under the george w. bush administration in 2008.it allows for unemployment checks for longer than 6 months.the program expires this weekend which means benefits will end after 26 weeks.it will initially effect 1.3 million americans-- and millions more during the next year. in a state by state check-- unemployment rates fell or were unchanged in all 50 states during the month of november,california, texas and indiana reported the strongest gains.the states with the highest unemployment rates are nevada and rhode island. changes to the affordable care act are garnering a "strong reaction". the obama administration said last week it is delaying sign up deadlines.people who lost insurance plans in the midst of the overhaul now qualify for an exemption which protects them from a tax penalty. also, the "catastrophic plan" -- is more widely available. previously it was restricted to those under 30 years old.insurers are criticizing the reforms. friday, an industry executive said changes "could cause significant instability in the marketplace."the white house says fewer than 500 thousand people will be affected. ally financial is accused of charging higher interest rates to car buyers who were hispanic, african american or asian.the justice department and consumer financial protection bureau found in an investigation ally and car dealers pumped up loan rates than split the additional interest from the payments.on average the minority customers paid up to $300 dollars extra on the life of the car loan.ally says in a statment: its dealers' contracts don't include information on consumer's race or ethnicity. the crash test for vehicles sold in the u-s is getting tougher for 2014 models.as our cover story shows you, the insurance institute for highway safety wants to prod auto makers to include crash avoidance technology more widely available.and to do that, it's raised the bar. the insurance institute for highway safety is raising the standards for its top safety awards. it may push automakers to design cars to redirect the force of impact and add more sensors to warn drivers. but some consumers fear that will make cars cost even more. "i would say it probably adds to the cost of them. that's a lot of wiring and the sensors have to work properly." for 20-14, higher standards include improved performance in a 40-mile-per-hour crash into a vehicles' front corner. "about 25% of serious injury comes from accidents that involve the front corner of the vehicle." the non-profit institute funded by auto insurers added another hurdle for its highest rating---a front crash avoidance system---an alarm that alerts a driver of fast closing- speed. it may include automatic braking but not necessarily. nor is it offered separate from bundles of luxury options. "they're only available on the high trim levels so it comes with the sunroof that you didn't want in the first place." "safety issues should be separate from luxury. let's keep it that way." here's the list of safest vehicles for 2014 according to the i--i-h-s. honda, mazda, subaru and volvo had the widest range of models. only one american-owned automaker lincoln, and one german manufacturer mercedes, made the list. that's expected to change, however. "this is going to proliferate across the models very quickly." the insurance industry says front-end collision warning systems have reduced crashes by seven-percent. when added to an automatic braking system, crashes are cut by 15-percent. it's boom time for boeing. the jet maker won a major order for its 777-x jets from cathay pacific airlines. the order is valued at more than 7 billion and due for delivery between 2021 and 2024. the 777x launches in 2020 - but boeing has not yet decided where to build the aircraft.union workers in washington recently rejected what the company called its best last contract offer whirlpool is shifting some of its production to the u-s from mexico. the move brings 80 to 100 additional jobs to a washing-machine plant in clyde, ohio that currently employs more than three-thousand workers.wages are 18-to-19 dollars an hour - about five- times higher that at its plant in monterrey, mexico. but the ohio plant is more automated, and electricity costs are lower. blackberry has turned into stunning stock.shares jumped 15% friday on surprising news the smartphone maker is connecting with foxconn.under the 5 year deal, foxconn will create blackberry phones for indonesia and other growth markets. it was especially positive news because blackberry just reported a loss of $4.4 billion in the latest quarter. foxconn is noted for making iphones for apple and for allegations harsh working conditions. it's damage control at target. the retailer is scrambling after a hack attack that could potentially affect millions of customers. reports say hackers stole credit and debit data, which was replicated, and sold to the black market. target says the security codes on the backs of cards were not breached which means no online shopping or atm withdrawals are permitted. also... an apology email target sent to consumers friday was hacked and mimicked, sending fake links to credit bureaus and the ftc. target is adding staff to help with the hacking mess. it says very few cases of fraud have been reported. the gold futures market is in serious meltdown mode. the price has collapsed from 1,700 dollars per ounce to below 1,200 during the past year.joining us now-- joe kinahan of td ameritrade. good morning. smart traders like yourself are always looking for opportunity-- what would you buy here gold futures, gold stocks, or gold miners. >>first of all, for your viewers who aren't as comfortable with futures, the may want to look at one of the etf's of the miners or gld which is another etf. for those who are more familiar with futures, i'm always a believer in getting exposure to what i want the exposure to and the gold futures gives you the most exposure to the underlying itself. as you mentioned, it is in a bit of a meltdown mode. 1200---we're trading right at that area back and forth around it all day on friday. that's an area we need to hold, we need to close above a couple of days for gold to sort of bounce back. there are so many gold bugs out there who like to trade the product itself. the risk with the miners is that you do have other influences of how the company is run on there. so depending on what the people who are trading it are comfortable with, as long as they understand what makes up the etf, or what's inside those miners---any of the three can be good for them to trade. >>thank you joe. the f-d-a will revise a sweeping set of food safety regulations. the proposals are being re- worked after farmers deemed the precautions too costly. the rules would have required farmers to buy new equipment for contamination prevention and water evaluation.the f-d-a says it would cost farmers 30- thousand dollars a year to meet the standards. the changes will delay new farm standards until next summer. electronic cigarettes are "out" in the big apple. new york's city council has voted to ban ecigs in indoor spaces.the bill is expected to be signed by mayor michael bloomberg.the city council speaker says the city is trying to prevent stepping back in time to when smoking indoors was the status quo. a famous billionaire decided to shock "reddit" users by playing "secret santa." entertainment website reddit holds secret santa for users every year.this year... a young woman revealed that bill gates picked her name. not surprisingly...gates gave the gift..of giving back, by donating to a charity that helps fight hunger and poverty. still to come: sweet tooth surge... a look at the rising demand for chocolate. plus... the stock that has emerged as a guiding star this holiday season. and... why all nighters are the new christmas shopping norm. that's after the break! just two shopping days are left before christmas-- and retailers are ready for 'round the clock shopping including kohl's.kohl's is in the midst of a 100 hour marathon. the retailer opened the doors at 6:00 friday morning and stores will remain open through christmas eve.macy's, kmart and toy's r' us also are extending hour hoping to make big cash on the last dash. it's a happy holiday for amazon. shares topped $400 for the first time ever on friday. a strong holiday season, analyst upgrades, and expansion are all contributing to amazon's 60- percent surge in growth this year.skeptics still point to the fact that amazon has not yet turned a profit, but investors seem to be confident for the long-term. earlier this year we reported on the rapidly rising price of chocolate.jackie keenan takes us to florida where..chocolatiers are cashing in, as cocoa prices remain anything but sweet. forget regular egg nog this christmas, how about an egg nog truffle. gourmet chocolates are the gifts flying off the racks this christmas. and mary caron is part of a growing number of chocolatiers opening their own local shops across the country. because there's no stress in chocolatethis is a true art form where everything is painted and made in small batches. sales are up this month - and this year - on these exotic candy concoctions, and not only here at this chocolate shop, but the entire world is having cravings. worldwide chocolate sales are set to hit 117 billion dollars, a six percent increase from last year. caron sells not only her own creations, but those from other local chocolatiers. and the cost of these little bites of decadence is a bit rich. we're about $1.75 each, although the price of cocoa is rising so we'll see what happens. cocoa prices are taking a dark turn. futures rose 24 percent this year, and is expected to rise another 14 percent in 2014, according to bloomberg estimates. cocoa demand is exceeding the supply. the worst in five decades, and it's only getting worse. drought in western africa is partly to blame. but its surging demand in europe, the u-s and especially asia that's putting stress on the sweet stuff. consumption in china alone has doubled in the past decade. chocolatier steven ashworth doesn't know what the new year has in store for his wholesale cocoa prices, which have not yet risen. it will take about six months for a small business to see if it affects the quality and the price. ashworth says despite cocoa prices, there's room for growth for all chocolatiers since that's what the market wants. there are many, many chocolatiers, and there's lots of competition but everyone is unique in their own way. plus after having great sales numbers for halloween and now christmas, he's looking onto the next holiday. don't forget valentine's day. for first business news, i'm jackie keenan. something that could hold chocolate prices in check for now-- trading volumes in the cocoa powder and butter markets are dropping as traders take time off for the holidays.coming up...how the affordable care act is spurring a flood of mergers and acquisitions. plus...in chart talk. following the money trail...one trader says he's taking a cue from the big hedge funds stay with us. ♪ ♪ ♪ ♪ ♪ factory orders, employment, gdp - these are all measures of the health of our economy. here's another metric, the number of mergers & acquisitions, and 2014 is looking like a banner year. david braun runs capstone strategic in the washington dc area & he wrote the book successful acquisitions. you advise companies on the process - where do you see the big growth in m&a activity next year? >>bill, good to be with you. i think there's probably three main areas that we're seeing some significant expected for 2014. number one is going to be healthcare. we've seen a lot of activity already over this past year. i think that's going to continue. oil and gas, energy in general but in particular oil and gas. and then the third is loosely called tech enabled businesses.think of the facebooks and the yahoos of the world and the continued consolidation that they're running out now and have been for 2013 and we're expecting that to continue at a pretty robust pace for 2014. >>are these all going to be big deals, big companies? anything happening in the mid market? >>that's a very good question. more and more we're seeing activity in the mid market. we've had a little of what i call the dumbbell effect where you've got very large companies continuing to consolidate and you have small companies and not a whole lot there in the middle.what we're seeing is more activity focused on the middle market for a couple of reasons. one is the organic growth continues to be pretty anemic. two is the cash is available out there on two fronts, one the balance sheets of companies are a lot stronger and two, banks are starting to lend more to smaller and middle market companies. so we think the middle market's going to be pretty active in 2014. >>a lot of hospitals have been buying up competitors. is the affordable care act the impetus for some of the acquisition activity going on in health care? >>without a doubt. there's so much uncertainty that everybody's trying to figure out which way to go and consequently there's going to be some significant winners and losers but a lot of that activity is driven by people's beliefs on one side or the other about how the affordable care act is going to play out. >>david braun with capstone strategic, thanks so much. >>thank you. fortune magazine is out with it's business person of the year.and the high honor goes to...tesla's ceo elon musk fortune compares the tesla innovator with the "shared genius" of apple icon steve jobs.musk is credited with leading the electric car revolution.according to the magazine-- the tesla brand may have a larger effect on the world than even apple. still ahead-- a big time investor is feeling energized about a natural gas stock.should you be too?find out next in chart talk. i'm going to pass chemistry, and i'll take it from there. i'm going to do what makes me happy. i'm 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 didn't have a clue. the u.s. department of education has over $100 billion. and that's 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. i'm never giving up on my goals. i will make a difference. i'm going to find out how to pay for college. i'm going to college.gov. affl and many actors have played the part of u.s. servicemen in the movies, but for veterans like james crosby their service and their sacrifice are real. and too often when they come home, their struggle continues. for over sixty years, paralyzed veterans of america has been fighting to help our injured veterans get the benefits they need, and have earned. paralyzed veterans of america was there for me when i came home. join me in supporting our paralyzed veterans. visit p-v-a dot org. feel the power of christmas today. joining us now for chart talk is james ramelli of keene on the market here to talk about a couple of energy stocks. good morning. >>good morning. >>let's start with cheniere energy. a lot of call buying happening here. they are looking for a big run in this stock. >>we see some aggressive out of the money call buying with some pretty aggressive targets in cheniere. whenever we talk about unusual option activity i always point to cheniere as a stock that is a great example of telegraphs in unusual option activity. institutional order flow, telegraphs moves higher in lng very well and it has all year long. it's a stock that has gone through a couple periods of consolidation throughout the year. but whenever we see institutional money coming in and getting long this stock, it heads higher. i'm currently long lng along with a lot of other traders at our firm. this is one that we really like into the next year. >>let's get the details on this one. the stock is trading around $42 but these traders think it could go well above $50. correct? >>correct. and a lot of this could be a play on volatility. those options still do have a delta. they are very far out of the money. they do have a long time to expiration. it's very possible that we do get there and i like the play going forward. >>what other energy stocks do you like? >>we're seeing a lot of activity in friday's session in 1st energy---fe. now this is a stock that is a completely different story from cheniere. it's been very weak this year. the stock's down 22% ytd. what we're looking at here is institutional money coming in and getting long through april of next year via the april 35 calls that they bought today for 65 cents almost 9000 times. this is a stock that is making a new 52 week low in december . stocks that so that tend to outperform in january and february of the next year as they are sold off in december for tax purposes. so this is one i'm getting long. i am long fe. we see institutional order flow into it. i think it's a very good chance the stock heads higher. that's why i bought those same calls. >>i like the tax play in there. thank you james. >>thank you. as we wind it down for today, we are already looking forward to our show tomorrow -- a tax expert will be here with tax tips for investors holding money in stocks, bonds and mutual funds. don't miss it. from all of us first business, enjoy the final monday before christmas. >> announcer: the following is paid presentation for focus t25, brought to you by beachbody. >> [ echoing it's about time. the number-one people have for not working out is they don't have time. >> i have four kids. >> i work 60, 70 hours a week. >> i don't want to work out for no hour. are you kidding me? i don't have the time. >> announcer: no time to work out? no problem. introducing focus t25, the breakthrough in-home fitness program guaranteed over an hour's results in only 25 minutes. t25 was created by a guy who

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