as for today, stocks clawed higher in final hour of trade to turn around and end the week on a positive note. the dow gained nearly six points, the nasdaq rose by 19 again and s&p tacked on almost four. for the week, the dow and s&p were down slightly while the nasdaq continued its climb higher. the quarter is the story to itself with three averages looks like they will end higher but as with the market, some areas have stood out more than others and as dominic chu explains now, a little research goes a long way. >> reporter: the second quarter is shaping up to be a descent one for the stock market. while the broader s&p 500 is up nearly 5% since the end of march, industry groups like biotechnology, tobacco and computers posted higher returns. if you took time and lucky enough to invest in these types of stocks, you would be having a great quarter. many experts believe that doing some homework and picking specific parts of the market will pay off for investors. >> this year, we think it's about the return of business spending as businesses feel more c confide confident, do more hiring and build for factories and offices. this benefits industries or companies in the industrial sector and technology sector. >> reporter: the market is currently in a state of flux and sometimes stocks can be beaten down to create attractive buying opportunities. look at shares of apple that made the shares more affordable. after losing around 45% of its value from record highs back in september of 2012, the stock shot up by 66% or cosmetics giant este lauder bounces right back and hit fresh record highs this year. both were stocks where investors were rewarded for buying on a dipping value. bullish investors think there is still room. >> there is good growth ahead for earnings for u.s. corporations. that's the life blood of the stock market. as we look to the second quarter, we'll see results from a wide variety of companies bouncing back from a lackluster first quarter owing to the weather effect. >> if that were to happen, the current long-term trend could remain in tact but the more pessimistic say we're long over due for a significant stock market pull back. for "nightly business report", i'm dominic chu. our guest has doubts about stocks going much higher this year, richard steinberg. hi, rich. you're calling for the dow to end at 16,800. you say this is as good as it's going to get for 2014. tell us why. >> the only way that will change, susie, if earnings accelerate. righnow the s&p will earn $119 this year and analysts have $132 next year. we're not quite sure that that 11% growth is reflected in this economy that's somewhat sluggish and anotherer factors. we think the market is ahead of itself. it doesn't mean you can't make money but will be pull backs along the way to justify this valuation. >> i'm looking at the stocks you are talking about tonight, rich. looks like you're going for dividend yield. is that the way you make money in the market now, liquid martin. >> they have a great line of products. stocks trading 2014 and there is a ton of cash flow as projects they have with the defense department continue to mature. international there is also an upside. >> and one of your other picks, ford, ticker symbol f you like. it also has a rich dividend. >> the stock yielding at 2.9%. it's really cheap trading at nine times 2015 earnings. we've had an upgrade in their product cycle where they spent a lot of money. now the cash flow going forward should be better. we have a $21 target roughly from these levels. it's a boring stock, but we think that, you know, in a market where you really want to have stocks that are getting paid while you wait while we figure where evaluations go, it's one we want to own. >> your highest yielder we'll talk about is a master limited partnership which i keep hearing about. if you're looking for good dividends, tell us about it and who is this best for in terms of investing rig now? >> well, this is the jp morgan mlp index, eft yielding 4.4%. we have a $56 target. this is a story of more production for u.s. oil and energy bill and also, there could be good rulings within the commerce department to allow kpt port of u.s. energy. the stocks had a big run so i think this is one you buy back on a pull back but the mlp space also in etf form is a good way for individual investors to play the space. >> you know, rich, i want to circle back to where we started this conversation, your outlook for the market. we're coming up on earnings season and we'll hear from ceos on the calls. what do you expect to hear and might you change your outlook and change your mind about the markets depending what you hear? >> at the beginning of the year when you and i spoke last january, we had a target based on the earnings we talked about. if we start to see in the next two weeks better that companies are getting much more upbeat, we'll flick the switch to 2015 earnings. if you apply a 16 multiple to those earnings were lower than the street, you could have an eight to ten percent upside between now and the next 12 and 16 to 18 months. we're not ready to do it get. we think this market needs a break. there is investors with money on the sideline that could maybe help us from falling down too much but we really think that investors need a little break unless we get a break in the ukraine or in the mideast and better earnings. don't forget, oil at 106 is a drag on the economy, so we'll watch the consumer names also to make sure we're in good shape. >> it's a tricky market right now. rich, thank you so much. do you have any disclosures to make on the three stocks you were talking about? >> we own them all until the firm and i own them all personally. >> great. richard steinberg. speaking of consumers, their moods brightened this month. the latest readings showed a rise in june as many look past the economy's weak first quarter. the survey conducted by the university of michigan says steady hiring is improving finances right now. economists watched levels to get it feeling for the direction of consumer spending, which is a key indicator. the economy could run face-first into a potential threat if dock workers at some of the busiest parts strike monday. billions of dollars in commerce could be disrupted and that' worrying businesses and consumers. courtney regan explains. >> reporter: the clock is ticking as the current contract keeping shipments on track at west coast ports expires at midnight on monday. the 30 west coast ports handle at least 40% of goods that enter the u.s. a port shut down could cost the economy as much as $2.5 billion per day, though the union involved in talks calls that figure exaggerated. on one side is the international long shore and warehouse union representing 13,600 west coast port workers. the specific maritime association is on the other side representing major shipping companies at ports from san diego to seattle and expects talks to continue past the deadline until possibly mid july. the worry for businesses, talks could stall and so will dock work or worse, if workers strike, goods destine for store shelves will be stuck. a sen narp ocenario that puts t between the shore and stores. >> there may be goods that reach the march ets they are intended for too late and those goods have to be marked down at a loss or certainly at a reduction in profit. so i think there are any number of forms of impact on the economy, on retailers and other businesses, none of which are very good. >> reporter: most don't believe a strike is likely, but retailers aren't taking chances. walmart, best buy, target, macy's and j.c. penney all told us they are exercising caution, closely monitoring the situation, and invoking already established contingency plans ahead of the important back to school shopping season. shipments will be moved to other ports, transported by rail and sometimes air to meet customer demand. 2002 was the last time ports closed surrounding a contract dispute that lasted ten days and cost the u.s. economy upwards of a billion dollars per day. it only ended because president george w. bush ordered both sides back to work under the taft heartily act. they say there are signs the union is flexing muscles. he waited seven to eight hours last week to pick up cargo. for "nightly business report", i'm courtney regan. now to another pillar of the economy, namely housing in this case home builder kb home reported earnings that topped east mi estimates. while fewer homes were sold this quarter compared to last year, the sale prices were 10% higher. kb is beginning to see first-time home buyers reemerge in some markets and sends shares up by 4.5% today. and as new housing trend emerges in pricey urban areas where demand is high and space to build is at a premium. as diana olick explains, that's why some developers are thinking outside the box, way outside. >> reporter: land values in hot urban neighborhoods are going up and they are buying air rights in the middle of 100-year-old row houses. they are called pop-ups and some say the buildings stick out like a sore thumb or even worse, a middle finger. >> maybe that's one way to think about it. i would say i don't agree. i think it's unique. >> reporter: she has been house hunting in dc for eight months. bidding wars, multiple offers, all cash offers, she keeps losing out. there isn't enough for sale to meet the demand, why developers are building up, not just here in dc but other tight urban neighborhoods like philadelphia and new york. the sky is the limit even if the sky is the only view worth looking at. >> they will take it up as high as they can go to get more units out of the square footage of the lot. >> reporter: and oversized row of three story houses, this building now offers four stories plus a basement, four separate condo units, one a duplex listed at over a million dollars and it is not alone. others are popping up nearby and more are planned. the neighbors hated this one at first and tried to block construction, but the pastor and the church across the street says it's growing on him. >> now the only time people that have seen it stop is when they have family in town visiting, they want to show them the building on v street. this is like a tourist site. >> reporter: you can't do this everywhere. the neighborhood has to be zoned and whatever you think of the style, developers probably don't care because they are selling. for "nightly business report", i'm diana olick in washington. >> still ahead, how can casual dining chains win over the crowd? the answer might surprise you and change the way some restaurants do business. tablets, apps, data, analysis you don't usually connect those things when it comes to fast food or cause well dining restaurants but panera could change the business model and potentially by a blueprint for others. morgan brennan explains. >> reporter: panera bread is looking to transform the way fast food works, launching sweeping digital changes. panera 2.0 will be across the north america stores by the end of 2016. it allows customers to avoid long lines. they can order through a mobile app or kiosks in store. >> the comparable sales in a cafe like this versus a non-panera 2.0 calf fee are in the single digits higher. we are pleased. >> reporter: it took four years and $42 million to develop. they believe it will improve service and cut down on order mistakes. 2.0 could be a long-term game changer but not without short-term risks. >> for panera 2.0 there are risks and challenges associated with the evolution. frankly, the timing is very uncertain and for changes of this nature, it can often take longer and be more costly. >> reporter: one potential cost, labor. while some worried restaurant automation will cut jobs, they insist it won't reduce the work force. it could require more jobs but they are not alone. chilis and applebees have been experimenting and dominos, pizza hut and more are ramping up mobile ordering options. an estimated $12 billion revenue comes from online ordering. that's a fraction of the $675 billion the restaurant industry pulls in overall each year. as panera and others adopt more technology, that number is likely to increase considerably. for "nightly business report", i'm morgan brennan in massachusetts. craft retailer michaels didn't exactly sparkle in the trading debut. that's where we begin market focus. shares of michaels stores went back and forth between gains and declines today and priced the initial public offering of almost 28 million shares at $17 a piece. that was the low end of the expected trading range. the stock trades under the nasdaq ticker symbol mik and at the close the stock rose slightly to $17.02. news that dollar general ceo is retiring next year sent shares lower today. that decision comes as activist investor carl icahn has been pushing for the chain to merge with family dollar. dollar general is also sticking with it's lowered full year profit outlook and as a result, the stock tumbled more than 7% to $57.19. a strong first quarter finish, though, for finish line. the athletic apparel company posted earnings and revenue that topped estimates as sales and margins expanded. finish line credits its relationship with macy's to expand the market share. the stock was up more than 1% to close at $29.56. shares of rack space fell after a news report saying the company is not catching the eye of potential buyers. shares surged in may after rack space hired morgan stanley ranging from partnerships to an out right acquisition but today, the stock was down more than 7% to $33.63. and ceasers delivered another blow to atlantic city. it will close the show boat hotel it blamed on falling revenue and high property taxes. ceasers cceo said it's to help stabilize other resorts. yahoo reportedly wants to buy one of youtube's biggest content creators. they are going after full screen that brings in over 3 billion youtube view as month to expand the reach to young consumers. full screen is one of the start j startups with more established companies attending vidcon because as the popularity grows, so does the potential for add dollars. julia boorstin has more. >> reporter: youtube fans flocked to this annual event to hear from their favorite youtube stars talking about creating content. >> i am here to meet all the youtubers and stuff that i've been watching for years. >> it's insane. 18,000 people for online video but i like seeing a lot of the exhibits and how a lot of businesses are involved in youtube. >> reporter: youtube is projected to hit $7.2 billion in gross ad revenues this year and it pays half of that to its content partners making big stars here hundreds of thousands of dollars a year or more. producer devin gram has 2 million subscribers watching his videos about extreme sports. >> it keeps on growing faster and faster and people advertisers are seeing that and contacting full screen and youtubers to do videos with them. >> reporter: full screen that works with gram and content creators is one of many startups built about youtube's echo system. >> media companies create content to touch consumers and they ultimately want to find ways to reach audiences and particularly young audiences. >> reporter: to help grow the ad dollars, youtube is bringing 100 brand representatives to the event including ea, mattel and at&t. they are hoping to help brands overcome concerns about user generated content and get them to buy into the partner program. >> it's not just google. they are tied to catch in, disney eventually acquired maker studios for $500 million. they were acquired for $3 million. the next generation studios focused on youtube content. ♪ ♪ >> reporter: but youtube stars are increasingly looking to move outside the platform to earn higher ad rates and a bigger piece of the pie. maker studios launching its own video hub maker.tv to find media and help talent find other distribution channels. the content creators are happy, here the youtube ceo announced new tools to help creators craft and manage videos and perhaps, most important, a way to fund raise from fans. for "nightly business report", i'm julia boorstin in california. >> coming up on "nightly business report", if you think paying for college is expensive now, wait until next week when loan riates are set to rise. here we go again, general motors announcing four more recalls covering more than 400,000 vehicles in the united states first covering the chevy cruze air bags and the other through are related to wipers and rear shock absorbers in pickups, suvs and sedans. you can get more details on the recall on nbr.com. some troubling news from dnp reportedly it plans to cut its dividend and raise funds by selling billions of eroses worth of bonds next week. according to the wall street journal, it comes as the largest french bank faces a fine for alleged sanctions violations. the bank is expected to plead guilty to federal criminal charges and pay a fine of nearly $9 billion. >> well, if you plan on driving over the 4th of july weekend, your trip could be pricier than awhile. according to gas buddy.com, this will be the most expensive 4th of july for gasoline prices in six years. the catalyst, concern over violence in iraq. and many college students will soon be hit with sticker shock. on july 1st, interest rates on new federal student loans are set to rise and many new borrowers may be saddled with lots more debt than they expected this coming school year. how much more will rising rates add to the debt burden? shr r sharon epperson explains. >> reporter: for samantha cook, where to go was a big decision. >> i have doubts. my parents wanted to assure me no matter what i picked, we would find a way to make it work. >> reporter: like most families, samantha and her parents are making it work with household savings, scholarships, grants and student loans but loans are about to become more costly for borrowers. it's not the first time loans have gone up and likely not the last. though federal student loan rates are fixed for the life of the loan, they reset every july 1st and thanks to legislation passed last year, the loan rates ar tied to the treasury markets whose rock bottom rate haves gone up. the interest rate on federal stafford loans will go from the fixed rate of under 4% to over 4.5%, the loans distributed between july 1st and june 30th, 2015. for graduate students the rate will be from 5% to a little over 6%, plus loans for graduates and parents are the most expensive with rates rising to over 7%. the increase in monthly federal student loan payments can add up quickly but shouldn't be too burd burd burden some for most students. they will pay $4 more a month still experts warn this is only the beginning. federal student loan rates may can continue to increase, even with caps, rates could go as high as 10.5% for some loans. instead of dealing with the debt after graduation, find ways to make education cheaper while in school or even before you start. >> we can look for more creative ways to get that degree and get it for less money, for example, you can go to a community college for two years and then go to a great in state university commuting, get an entire degree for the price of one semester at harvard. that's no slam on harvard but suggests while education can be very expensive, it can also be made very inexpensive or affordable. >> but attending a less expensive university wasn't an option that appealed to samantha who was studying international affairs and political science. >> i considered transferring to the university of pittsburgh at the end of last year because in state it's about 1/3rd of the cost. i decided against it because, you know, the value of a gw degree, my parents and i agreed for me, at least, would be more valuable when looking for jobs later on. >> samantha is aware of the debt load she's taking on but put off worrying about it for now. for "nightly business report", i'm sharon epperson. >> if you want to read more about rising student loan rates, go to nbr.com. that is "nightly business report" for tonight, thanks so much for watching. i'm susie gharib. >> i'm bill griffeth. have a great week, everybody. see you again here on monday. >> lets do it, cmon. >> were out here celebrating my daughters 15th birthday, she turned 15 yesterday. >> i feel like im on a vacation. >> oh, i am on a vacation! >> we become the cruise ship for a day for them. >> 50 years after its maiden voyage, the cape may lewes ferry is now a part of what defines our region. >> i was a little kid. the depressing thing when you celebrate the 50 anniversary of the ferry is that i could have been on that inaugural ride. >> for the next hour, well learn a lot about the ferry. about how it got started in a rare act of cooperation among three states. about how it shaped the history of the two towns that give the ferry its name. and about some of the rough waters and sunny family moments