traders prepare for a data driven week following a record run in the s&p. in today's cover story... hop to it. the craft beer commodity that brewers can't get enough of. plus... forget fetching coffee... why more companies are hiring paid interns. and... the sunshine state takes on a darker shade... as farmers swap out citrus for berries. that's all ahead on today's first business! you're watching first business: financial news, analysis, and today's investment ideas good morning! i'm chuck coppola. it's tuesday may 27th. in today's first look: new highs on wall street. the s&p broke records friday when it crossed the 19 hundred mark. all the major indexes ended in the green. gold slipped two dollars. oil was up 61 cents.

ebays massive data breach is under investigation. regulators in europe and in the u.s. are currently investigating how hackers obtained access to the companys 145 million users. speaking of investigators, dick tracy's two-way wrist radio is about to be made by samsung and could be available in a month or two. the world's largest smartphone seller's watch-phone will be able to make and receive calls without being tethered to a smartphone. might apple give us a peek at its smart-watch? one week to go before apple's worldwide developers conference in san francisco where such new goodies are announced. apple shares hit their highest point in a-year- and-a-half, last week. a lot of us who just did a lot of driving over the holiday probably noticed gasoline prices are at their highest in a month. daniel stecich, sr. v.p. of athena advisor services joins us, hi dan! > > hi how are you this morning? > > i'm doing very well. so is this a seasonal rise or is it an indicator that traders think a lot more of us are going to be in a better financial position to travel bit more this summer? > > well you know it's a yes on

both but the second part i'll explain a bit. as far as the seasonal factor you always see these prices go up on a holiday weekend, you'll see it again when the fourth of july comes around... and as far as an indicator of what the economy is doing, i think it's kind of a tail wagging the dog type of deal. if the economy does better, oil tends to rally a bit and that's what we're seeing right now, it's nothing more than that because we're still very well supplied. i think the prices should be lower but they're not and so we have to deal with what we have. > > moving on the s&p 500 got a big boost from april's new-home sales up 6.4 percent and home sales that is... i get that. several industries benefit from home sales, but the job cuts at hewlett-packard 11,000- 16,000... why does that also contribute to the s&p's rise? > > i don't think it's a job cut component all of it... i think it's the fact that when hewlett-packard announced initially the stock had gone down, but when they had an interview in the morning it was explained that things are going to be better going forward so things are going to be more profitable-- their forward

guidance is good. so that helps hewlett-packard and what you've been seeing a lot in terms of numbers lately and earnings releases has been forward guidance going forward is better and one other thing that's been helping the market along in addition to the home sales which has been a drag of late, is the early year numbers seem to have been affected by weather. more and more firms are saying that that's not the case right now, we do have a lot of economic data coming out in the next two weeks that will give us a better confirmation, but i think it's just the economy being better is helping us. > > so investors are really looking for better managed companies and indicators of that? > > absolutely you always want to see a solid company and if they're making money in the lean times in terms of what they have been experiencing, should the economy pick up and i do believe it is, then they'll be quite profitable going down the line. > > dan stecich, thanks so much. > > you're very welcome i enjoyed it. diane moca steps in now with a look at a startup that's reportedly in the fast lane for funding. good morning diane! good morning chuck! reports say ride-sharing app 'uber' could be coasting to

record funding. the wall street journal says uber is seeking to raise 500 million dollars in a new round of funding. reports last week stated the startup was seeking an unspecified amount of funding. if uber reaches its goal -- that would make it one of the most valuable startups, with a valuation of 12 billion dollars. however, the app is getting pushback from taxi drivers, who cite a lack of regulation. an alleged pact among some of silicon valley's most influential employers not to poach each other's talent could cost the tech giants, apple, intel, google, and adobe systems nearly 325-million dollars in a court settlement over suprpresed wages. a federal judge needs to approve the settlement. the class-action lawsuit brought on behalf of 64- thousand technical employees sought three billion dollars in damages. the alleged conspiracy spanned four years from 2005-to- 2009. google is working on a new 3-d tablet as part of its "project tango" platform. the device uses a technology seen here, which tracks 3-dimensional motion as it's held, while it creates a map of the environment

around it. "project tango" is a part of google's 'advanced technology and projects' group. google plans to produce about four thousand prototypes of the tablets, beginning next month. facebook's ceo takes an "about face." mark zuckerberg says the social media site will start making it easier for its users to share items with friends only and not the general public. it seems relatively simple-- the default setting for sharing items will now become: "to friends only" instead of: to "public." in a statement, facebook says "we recognize that it is much worse for someone to accidentally share with everyone what they meant to share just with friends." analysts say the move is facebook's attempt to keep its user base from slipping and preempt government regulation. best buy is blaming "lack of innovation" for weak sales. the big-box electronics retailer says it's having trouble luring customers to its stores with no exciting merchandise to show off. it warned it expects sales to continue to slow in the second and third quarters

"absent any major product launches." we'll have more on best buy later in the show. e-waste is on the rise. the "step" initiative reports globally, 49 million tons of electronics were improperly thrown out in 2012. the u.s. tossed the most gadgets, followed by china and japan. the study finds its not just smartphones being ditched. small household appliances such as microwaves and washing machines are ending up in landfills, too. step initiative advises consumers to take advantage of recycling programs offered by tech companies such as apple. the government is cracking down on "secret shipments" of crude oil. starting next month the transportation department will require railroads to issue alerts about incoming trains from crude-oil hub 'north dakota'. current restrictions require railroads to keep information about routes limited to few officials because of security fears. however concerns about the dangers associated with transporting crude oil-- following high-profile train derailments-- have alarmed

local officials who are often kept in the dark. the new regulations start next month. residents of new york and new jersey will get an additional 2 and a half billion dollars in aid money. that's according to abc news. the money is to help repair damage from superstorm sandy. including the latest round of funding-- residents will have received close to 13 billion dollars in federal assistance. congress approved the spending in 2013. the u.s. government is ramping up efforts to combat offshore tax evasion. last week credit suisse (swees) agreed to pay a 2-point-six billion-dollar fine as part of the foreign tax compliance act. it requires foreign banks to reveal the accounts of their american customers - or pay a 30% tax on u.s. investment income. despite the efforts, the government says it still has a long way to go to stop tax cheats from keeping secret accounts. drugstore chain cvs is increasing efforts to tap into brazil's growing need for health care. its in talks to buy the country's third-largest drugstore chain, dpsp.

the first offer of $2 billion was rejected, but cvs is evaluating making another proposal, according to a report from a brazilian business magazine. back in the u.s... the latest housing data was a welcome surprise for economists. new home sales thawed in april, rising 6.4%, and inventories hit a three and a half year high. the numbers were a jump for this year, but slower than last year's pace. since then, price increases and higher mortgage rates have slowed down the market. homebuilder stocks rallied friday. lennar shares shot up 3%, dr horton, up 4%. 1 in 4 americans is not saving for retirement. that alarming statistic is according to country financial. it finds that a quarter of americans across every age group have no money put aside for their golden years. 55% said they are not using their 401k plan or don't even know if they are offered a plan through work. older americans expressed regret, with nearly half of all respondents saying they did not start saving early enough.

donald sterling is letting go of the clippers. sterling authorized his wife, shelly, to sell her 50 percent stake in the los angeles team. previously, ms. sterling said she would fight to keep it. however, the nba said in a statement that it still plans to terminate the sterlings's ownership. a hearing on the decision is set for june third. sprouts are the latest in a long list of bacteria-related food recalls. raw clover sprouts from evergreen sprouts have been linked to an e-coli outbreak in idaho and washington, according to the centers for disease control and prevention. hummus, dips, and walnuts from other producers were recalled last week. a hot weekend usually means more sales of cold beer... but it's not just the major breweries cashing in. in today's cover story... demand for craft beers continues heating up-- pushing the price of hops to record highs and drawing in more newcomers trying to find a niche -- including one with a patriotic twist. "i'm glad to be around in the golden age of beer." "it's the quality; it's not the price."

customers say they're happy to pay more for top-notch craft beers. and quality is also the mantra of small brewers... who continue to buy specialty hops despite prices that are double or nearly triple the cost of average hops. "it's the demand of those and the need for the producer to shift away to more specialty hops that have created the move of the prices." commodities trader jack scoville says farmers planted 25 percent more hops over the past three years... but supply still isn't keeping up... as the craft brew craze keeps hopping along. "it seems that can't last forever -- 200 new breweries every year nationwide." paul jenkins says he's trying to stand out from the crowd by standing up for vets. the former navy pilot says he launched the "veteran beer company" in 2013 to fulfill a mission to employ those leaving the military. "we've got 22 veterans a day

committing suicide. it's a terrible statistic. i knew some of them were beaten down by the fact they couldn't get a job when they got back." so he's hired all vets -- many of them disabled -- to produce and sell his two varieties. and he exceeded his sales projections 10-fold. "the feel-good behind the scenes can only carry you so far. the product has to be good. we knew that and developed recipes that way." the disabled vet says the rising cost of hops will not convince him to user fewer or cheaper hops... or to adjust his price. but traders say craft beer lovers may drink up a rise in beer prices. "there's still growth potential for the next couple of years." traders say this demand for specialty brews continues to spread to small town america -- just like high-end coffee and wine have done. and esquire magazine says hops can be purchased in futures... but you have to look hard to find hops exchanges.

still to come: best buy shares ride out a rally despite lackluster earnings... plus....why farmers in florida are straying from it's signature orange crop. and... interns demand more. are the days of working for free... over? that's next after this in the know message.

unpaid internships are going the way of the indentured servant. not worth it--say students. and companies hit with lawsuits from unpaid interns are dropping these programs. jerry cahn joins us from mentor our kids. mr. cahn--how is this going to be resolved? > > i think it's going to be resolved by people making a clear distinction between whether they're going to offer a mentoring internship which then makes it worthwhile for both the student and the company

and for the mentor to run the program... or are they going to decide that they really don't want to mentor their interns, they don't want them there to learn, they just want cheap labor in which case they have to end their program. > > do you think that all companies should pay something? > > again it's a question i think everyone should pay for what they are getting, yes, but i think the question becomes, what is it that they are doing? i think the distinction being made right now that needs to be made is the difference between a mentoring internship which gives the students an opportunity to learn new things about their skills, themselves, and the workplace and develop an understanding of what the company is about... as opposed to asking them to do scut work like go get me lunch, make photocopies, clean the bathroom, what ever the case may be in which case they are indentured servants and they should be paid for that as well. > > do you think for the student who does something like this it is a myth that the internships will lead to a job offer? > > it will not. that's the whole point-- it is not an

internship. > > do you think this will eliminate internships at small, entrepreneurial sized companies that can't afford to pay interns? absolutely not, actually, it's the small entrepreneurial ones that understand the value of learning on the job and they're always scouting to find new people who are potential recruits. that's the absolute greatest advantage of mentoring internships you find people with the skill, you see if they fit your culture and if they do you hire them and they're not all that expensive. so actually small businesses around the country you're going to find those who are intelligent and use these programs well, the company benefits the mentor benefits, the student benefits-- it will continue on at $10 an hour-- it's a bargain. on the other hand if they only can use them as indentured servants to do things that are not about interning and learning, the answer is those will stop and people will pay the money anyhow just to have a staff member doing it. but they won't get the intelligence and the interest and the engagement that they would have gotten the other way. > > bottom line: what would you advise companies considering revising their internships program? > > our position is really very clear, we believe that right now america faces a crisis and that has been found by the associated press which did a study and found that 50 percent of all kids graduating college can't find jobs commensurate with the skills that they have. mckinsey does a study showing they don't know how to launch good careers in terms of where they're trying to go and the people who have valuable internships are offered jobs and want to stay there. and interim

bridge did a study that found that kids are pretty happy having something where they can learn but they would be willing to give up the money if they could just to learn more. that's the issue! > > that's a very interesting point. jerry cahn from mentor our kids, an organization trying to improve the internship experience. thanks very much. > > my pleasure have a great day! coming up... why traders are hopping on the best buy bandwagon. and, after the break why it's blueberry or bust for some florida farmers. stay with us!

orange production is at a 24- year low this year due to citrus greening. with the disease spreading more and more each year, many growers are turning to blueberries. jackie keenan reports from florida. "can you help me load up fruit?" this land for three generations grew what florida is known for - oranges. but after battling diseases, the costs were growing faster than the fruit for carleen gunter and her family. so they called it quits and turned to blueberries. the only way to save the grove was to replant, and then you got 5 years before you have marketable qualities of fruit. i thought while greening is out there before they solve this problem, i can't plant orange trees, i have to plant something else. the bacterial disease called greening is wiping out acres of oranges in florida. production is down 18 percent this year alone. so growers are turning to more profitable fruits, making blue the new orange.

it's successful because we've been able to get fruit a lot earlier than we would have with citrus. with greening getting worse, and several blueberry varieties hearty enough to flourish in florida's wet and hot climate, the berry business is booming in the sunshine state. crops have more than tripled within the last decade and acreage is up to 4500. florida has a unique position in the world market because it pretty much owns the market for three weeks. but those three weeks are under attack. chile, which sells during the winter is creeping into florida's blueberry stronghold. and northern states, like north carolina and georgia, are trying to close that small window as well. and since blueberries are getting more popular among florida farmers, bigger players are entering the blueberry field, putting the squeeze on small growers, like steve linton. it was very good years ago, but now so many farms are coming into it, the prices aren't good any more.

linton says he only makes money at the beginning of the season. he used to get $5 per pound, now it's more like $3. what we see is the commercial market dwindling down, a lot of larger farms will come in early, our prices won't be that good, so we're going to gear toward the uptick. and the people flock to tto get their blue fix. we freeze enough berries for the whole year! for first business news, i'm jackie keenan. florida blueberry production is expected to hit 25 million pounds. michigan ranks the highest with close to 50 million pounds per year, followed by new jersey. coming up.... why best buy investors are so quick to forgive and forget. that's next in chart talk.

to use baseball slang "best

buy" might be considered "a grinder." not expected to hit the home run--especially looking ahead to sales--- but it did work the count and beat profit expectations for the first quarter. alan knuckman of one stop option joins us. hello alan! > > hi there. > > in a soft consumer electronics market like we've got, what is best buy doing right? > > well it's hard to figure out this stock. they were one of the best performers in 2013 but they made a high in november of 44 and got knocked all the way down to 22. so best buy got a black eye. i don't know what's the future for electronics but i do understand risk to reward, and at these levels and the low at 22 and we're trading right now at 27 or so, i think it's a good risk-reward value at these levels. > > but alan why would you invest in a corner of the economy that is not doing very well even among its competitors like h.h. greg? > > well these guys can figure it out-- they did last year. i think there's still some value there, they are the leader so they have that ability there, but looking at it technically is where my attraction is. it's been trading between 28 and 22 essentially, 28 and 24 so that $4 range targets a break out to 32, trading on the sideways range, and again after that huge 50% fall i think there's more upside than downside risk

at these levels. > > fair enough... what would you caution investors about best buy? > > well i use options so i can limit my risk. number one-- you have limited risk when you buy an option when you look at an in the money option of 22 call-- again the low for the year is 22 so i have the right to be long from 22... for january i have 8 months of time... that option has a break-even of about a dollar or so above from where i am right now, so it's got plenty of time for good things to happen, and if and when it does break up to 28 and like a said that target is 32, that option should gain in value very significantly. > > alan knuckman thanks very much. > > thank you. that's a wrap for us today. coming up on wednesday... pop up banks. the banking industry takes a page from the retail playbook in hopes of higher profits. from all of us at first business, thank you for watching.

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