traders tread lightly sensing market weakness. in today's cover story... wage rage. fast food workers around the world hit the picket lines. plus... we turn to one of the world's most successful entrepreneurs for startup advice! and... a vote of confidence... what the guys think about mixing business with politics... first business starts now! it's friday, may 16th. steep sell-off! the dow dives 167 points.. the nasdaq 59 and the s&p 25 on walmart and builder confidence falls the lowest level in a year. gold slips below 13-hundred while oil

trades: retailers rip higher. shares of jcp jump 19% after the close.. on stronger than expected sales and earnings. it's viewed as indication the chain may be turning around.. nordstrom stock rallied nearly 10% on successful sales numbers earnings that beat estimates. and, the burning cost of wildfires in california could reach the billion dollar mark.. as fires rage through 10,000 acres in san diego county... trader bob iaccino, of tethys partners leads the way on this friday. good morning to you. > > good morning. > > well we definitely have some market weakness especially in tech and biotech but what are the opportunities out there

that you would like to take advantage of as you're trading? > > you have to look at this market 2 ways: you're either a bottom fisher, which i'm not and if you're going to be a bottom fisher you're going to do in the small caps and the biotech but you want to wait. you want to see what the broader market does. we have a technical correction in the russell 2000 down a little over 10 percent, we don't have that in the broader market and if the broader market reaches for a correction which some of the volume we saw yesterday on the selloff seems to imply that it might be doing that. russell could be down 16-18, 20 percent so you want to be careful on those small caps and biotech. but if we're still in a bull market which i believe we are, and the only sell-off we're going to see is a technical correction which i believe we will. those are really good opportunities to make a bundle of money on the way up. risk

and reward can't be separated so be careful where you get in on those. > > what do you make of the large tumble in the treasury market? > > really important thing on a a couple of levels. normally that's the canary in a coal mine-- that we're going to be slowing, but i don't look at it that way. europe is really causing our 10 year treasury to look attractive to the rest of the world. europe and to a certain degree and japan, but when you combine the 10 year note being below 250 there's a couple things to look at: last time we spent a prolonged period below 250. the vix on the s&p went from 12 to 20 last time we dipped and only stayed for a couple days and rallied up, the vix went from 13 to 12 so it doesn't necessarily tell you just yet what it's going to do to the equity markets but it's giving you a clue that it should be watched at, and it's also a dream situation for the federal reserve because they're tapering and they don't have to worry about interest rates going higher. > > thank you. you're really terrific with those market lessons, thank you. > > thank you. walmart has plenty of blame for its profit pain. the world's largest retailer-- missed on earnings on flat sales and a profit drop. the ceo says the tough winter disrupted shoppers and drove up operating expenses. he also admits cuts to the government's food stamps program continue to hurt results. while stores are becoming busier with shoppers as the weather improves... walmart warns wall street to brace for a bumpy

year. the retailer's stock fell 2% yesterday. the stock was a big drag on the stock market. and this is huge, walmart tells the wall street journal its not opposed to raising the minimum wage. chuck coppola has more on the wage war. in today's cover story, fast- food workers went on a one-day strike across the u.s., thursday. part of a global campaign to get more for employees who say they are not fairly compensated for their role in the 200-billion dollar fast-food industry. "protest chant" a one-day, nationwide strike drew employees of fast-food restaurants to walk off the job, demanding $15 an hour for their work--nearly double what thelma gonzalez makes now. "running for drive-though, taking orders, keeping a happy face for customers is stressful. (does it deserve $15 an hour?) yes, it does." in chicago, "a skeleton staff" kept the city's largest mcdonalds open. while congresswoman jan schakowsky spoke of unfairness to taxpayers who provide public assistance to more than half of the nation's fast-food workers. "meantime, mcdonald's made 5.6 billion dollars in profit. don't you think they should give

these people a raise?" the protesters have the support of the service employees international union, which has two million members, as well as advocates for the homeless. "it's on the backs of these workers that those giants live." but u.s. chamber of commerce vice president glenn spencer said "these union-produced, made-for-media protests have repeatedly failed to gain support from more than a handful of actual workers." the strike is the latest in a series of protests targeting several fast-food operators. in response, mcdonalds issued a statement saying: "mcdonald's respects our employees right to voice their opinions and to protest lawfully and peacefully. if employees participate in these activities, they are

welcomed back and scheduled to work their regular shifts." last month, a bill to raise the federal minimum wage to $10.10 an hour failed in the senate. the house has yet to bring a minimum wage bill to the floor for a vote. the co-ceo's at chipotle mexican grill are in a fight for pay. shareholders overwhelmingly rejected the way the fast-food company compensates top executives. last year, the restaruant chains co- ceo steve ells received a $25.1 million dollar pay package. his counter part- monty moran took home $24.4 million. ctw investment group questions their pay and perks. the company tells march. general motors issues another recall, this time for 3 million

cars and trucks. it covers chevy, pontiac and saturn cars dating back to 2004. along with newer model cadillacs, malibus, corvettes, tahoes, silverados. and gmc pick ups. problems include: brake light troubles, hydraulic brake malfunctions, million. its recall process." shares stalled thursday, falling 1% to $34. a senate panel votes to keep the federal highway bill going for the next 6 years. but it's not clear if congress will get on a fast track to avoid a road kill of the bill. the department of transportation projects the federal highway trust fund will go broke august 29th. officials in several states are already said to be making plans to delay commiting to new road construction projects... the $265 billion dollar bill sailed through the senate panel. one issue that still needs to be resolved is whether to increase the tax on gas. to cover a short fall.

momentum in the auto market is picking up. but a negative trend is also emerging: drivers owing more than what their car is actually worth. 27% of new car buyers were upside down in the first quarter, up from 21% in 2009. that's according to jd power. "those buyers tend to be a little bit younger, have slightly lower credit scores or otherwise excluded from the industry, when they come back to market we see that they are the kinds of customers who more often than not will have negative equity." king says the silver lining is that the average amount of negative equity is very small, only a couple hundred dollars. analysts say its best for consumers to pay off current loans before committing to new loans. the number of foreign countries buying u.s. debt reached a record high. total foreign buyers of u.s. treasuries rose 1% to $5.95 trillion in march. belgium, luxembourg and switzerland were among nations

increasing holdings. china, the largest buyer of treasury debt slightly lowered its position. while russia reduced its by 21%. russia controls $100 billion worth of u.s. treasury securities. a proposal to change the face of the open internet is now up for debate. the federal communications commission will collect public feedback on net neutrality rules. it voted to advance the rules, yesterday. the proposal aims to companies such as netflix, to pay more for comcast applauded the fcc's move. netflix -- oppose the rules, and the higher fees that could be required for faster streaming. the new rules are expected in the fall. jitters in the stock market are not stopping ipos--- true car debuts today. the online seller of new vehicles. the value could reach $1.1 billion dollars. the ticker symbol is "true" jumei-- an online beauty products site-- that ticker is "jmei" it's performance will be closely watched for hints about china's alibaba's ipo later this year. yesterday-- zandesk-- a cloud-based customer service company soared 49% in its first of trading..

credit ratings of s&p says lower-rated poorer nations with weak will be the hit the the majority of and africa. rising number of yet revised any ratings. midwest tumbled in the first quarter, and are expected to become weaker throughout the reserve. driving down prices. . slow sales during the cold winter. stock was down more than 3 percent. seaworld earnings fell 11 percent, but the company

record year. stock was up 1 percent thursday. seaworld late easter and bitter for poor attendance at parks, but animal rights its treatment of in after the movie "blackfish." billionaire investors warren buffett is revealing where he's investing his money. buffett is increasing his stake in walmart by 17% despite its recent profit problem. he's also slighlty upping his position in ibm. add a new stake in verizon. the berkshire hawthaway portfolio is reducing shares of gm, phillips 66 and directv. christie's set a new record in contemporary art sales this week, boosted by asian buying. the auction house sold $745 million in artwork in one night, its biggest auction ever. of the 72 lots offered, 94 percent sold and only four remain. asian collectors bidding by telephone took five of the

still to come: are political power plays a good trading strategy? plus... the hot new startup that investors could be getting ready to pour money into. and... talking shop with martha stewart. what the entrepreuner has to say about the push to be all american. that's after this break!

can be awkward and uncomfortable. but when their behavior changes, it's time to act. because if we don't, 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 1-800-273-8255 and press "1".

as we celebrate national small business week, martha stewart -- is crafting advice to entreprenuers-- on how to build a brand... "you have to build up, first, trust.you have to make sure your products are manufactured to your specifications and not belittled by manufacturing glitches, et cetera et cetera. you want to make sure that they

are distributed appropriately and that the factories in which they are made are clean, and good, and healthy, and treat the workers very nicely." stewart has written several bestselling books, published martha stewart living magazine and hosted a network tv show. and there was the issue of her 2004 prison conviction. she's bounced back and is now the founder of the american made awards along with ups. the awards are given to america's top entreprenuers. you can find information at marthastewart.com/americanmade. ride sharing app uber may get a cash windfall. bloomberg news reports the starup is in talks for a new round of funding that could value uber at $10 billion or more. reports say the size and value of the funding may change. prior to the rumors, uber was valued at 3 and a half billion. uber allows users to find rides from cabs via their smartphones. americans in new york and

around the country remember a day of tragedy. the september 11th memorial museum opened it's doors for the first time this week. president obama attended the museum dedication, where he remembered the heros of that dark day. "coworkers who led others to safety, of passengers who stormed the cockpit, our men and women in uniform who rushed into an inferno, our first responders who charged up those stairs." the museum holds more than 12 thousand objects. organizers call the museum a symbol of resilience. we'll be right back.

time for a tell-all from the trading floor. joining us for traders unplugged from the floor of cme group.. alan knuckman and scott shellady.. ready to jump into the ring to take on hot topics. good morning, round number 1 russel russel the small cap index

remains nearly 10 percent off its highs. what is that telling traders and investors? alan: well i'm always a fan of distressed sectors and this is 10% off holding its pivot that we've seen the last six months. i'm looking for a comeback believe it or not we just made all time highs in the s&p and the dow. scott: well you know i'd like to say to everybody out there that stocks are allowed to go down. they don't always have to go up. it was up 33% last year or something like that so a little bit of a pullback and even if it's 10 percent... alan: so you're a buyer? scott: i still think it's ok and for this year i am. i'm not saying for the rest of the years but for this year we're going to see eight to 10% on the stock market regardless of what happens this week, but i think it ultimately-- free money globally keep the stock market big. alan: russell doubled the value

from 60 to 120 since 2011-- very very strong trend you have to respect that. angie: topic number 2: insure boost the gdp forecast increased because of the affordable care act how you play it? scott: here we go i've got to jump in on this one. this is funny how we worded this question because we're celebrating a negative 0.1 gdp all because of the government's obama care. isn't that great? without the obama care it would've been much worse than a horrible -0.1. how can you celebrate that? aren't you embarrassed yet? alan: $37 billion increase in personal income that money went into health care my play... how do you make money with it? my play is diapers, better economy, more babies... diapers: kimberly-clark and procter and gamble i'm looking for a move in price procter and gamble 20% angie: topic no. 3: right bread. the new york times reports flowers foods the maker of wonder bread and tasty cakes donated 99% of its contributions to republicans. what's your political party play? scott: i'm upset that it wasn't a hundred percent to tell you the truth. i think i'm angry that they let one percent out of the bullpen. i think i'm going to stick with general mills in an uptrend, i'm a commodities guy-- its 53 and a half-ish today and if it breaks 53 watch out for the down side but we're still in an uptrend.

stay long on general mills. alan: of the major contributors that had donated 90% of their contributions to the gop, a majority more energy. i'm a big fan of the energy sector obviously this trend. the p/e ratio is very low so look at x l e as an investment. energy companies donated to the gop, but they have their own interest and their interest is making money. alan: which is a shame isn't it? it should just be given away no earning anything anymore. angie: and the bonus round for today: it's hockey time. nhl playoffs are under way for the stanley cup. name the team that has won the cup more than any other team in nhl history. alan: red wings! scott: it's because he's from michigan. somebody's gotta be from michigan... so i'll have to go with the red wings as an answer because i can't think of... or maybe a canadian team... alan: yeah i was thinking maybe montreal. scott: o canada. angie: it's montreal... alan: you betcha, eh! angie: i was giving you a little bit of a hint this time. alan: lord stanley's cup... scott: we can give michigan back to the canadians. they can have it back. there's nothing up there anyway. its a skate from michigan. angie: i love canada. i love the united states as well and i love you guys. first business continues right after this.

dan deming of stutland volatility group joins us now to talk about volatility and volume numbers in this market. good morning to you dan > > good morning angie. > > we have seen some wild swings in the stock market that i know some people that are watching our show, watching the stock market are very concerned about this, but it seems like the stock market is moving on relatively low volume. what does that mean to you as a trader? > > well you're right angie,

basically when you saw the sell-off yesterday and even in the course of the last couple days, where we see the sell-off points more pronounced and some of the smaller names with russell particularly, it's the fact that the volumes really haven't been all that big. so if you're looking at the market from being long the market, you have to put that in the plus column for a short-term indicator. > > so what would you do with the market right now? would you be a buyer of this market or would you stay on the sidelines? > > right now angie it depends on what your ultimate goal is. if you're looking longer-term i don't think that there's any reason why the market would fall apart especially with the fed serving as a backstop, but if you're looking to get in the market right here, i think there's a lot of crosscurrents. it would be a difficult call right now given the fact that if you look at what's going on across the market there seems to be a lot of confusion but ultimately there still seems like there's some further weakness here before we could find maybe a meaningful bottom. > > we have a relatively low volatility index as well. what does that tell you? > > certainly it's an indication that depends on how you look at it. i mean there has been a fair amount of complacency but the market hasn't really dictated a higher

vix to this point. yesterday we did see a significant selling pressure in the s&p 500 we'll have to see if that plays forward. we did hold the 50 day moving average in the s&p 500. so i think that's significant, however you are seeing like you said the russell and the nasdaq particularly being a much weaker than the overall market. so i think that will ultimately put further pressure on the s&p and possibly break through that 50 day moving edge where we would see short-term probably a pretty significant pickup with volatility expectations. > > dan, always a pleasure, thank you. > > thanks angie. that is the end of the line for us today... coming up next week.. outlet malls are hotter than ever. how those discount stores are attrating shoppers from overseas. we'll see you back here on monday. from all of us at first business... have a great weekend.

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