why traders say sell in may and walk away does not apply this season... in today's cover story....coporate america threatens low wage workers with robotic replacements. plus... a fascinating behind the scenes look at youtube's explosive growth... and deal appeal.... profit plays off a mega merger... in meat! you're watching first business: financial news, analysis, and today's investment ideas good morning! i'm angela miles. it's friday, may 30th. in today's first look: farewell to the merry month of may. today marks the final trading day with the s&p at a record high of 19-20. yesterday was the 13th record close for the index this year. the dow ramped up 66 points, the nasdaq 23. gold fell $4 and oil edged up 86 cents. the u.s. justice

department seeks $10 billion from bnp paribas over allegations it evaded u.s. sanctions against iran and other countries. southwest airlines is fined $200,000 for advertising cheap seats that did not exist. forbes reports-- microsoft is working on a smartwatch that is also a heart monitor. and the la times reports-- former microsoft co-ceo steve balmer has offered to buy the la clippers for $1.8 billion dollars. trader bob iaccino of tethys partners steps in now for an early look at the market. bob we are at the end of may. how is today likely to play out? > > well we'll probably play out with a little bit of selling but that something you have to take with a grain of salt. everybody knows the sell in may and go away phrase. it doesn't work in a bull market. if you track it historically and if everybody agrees we're in a bull market which i don't see how you can at this point disagree with that-- it doesn't work. so sell in may and go way that will affect some people toward the

end of the month, but you're going to see new positions being established in june and held even if they don't gain traction. > > should investors be watching for clues about the economy and the market in the bonds or stocks? > > well the 10-year is sort of the canary in the coal mine. i think a lot of us including myself thought we'd see a 3% 10- year this year. we're at 242 as of yesterday, so i think that it's telling you that there's potential for some kind of slowdown until you look globally, and when you look at the bond investors that need to be in bonds, this is still the highest yielding safest place to put that money. so i don't think necessarily that 10-year is the way to look at this point. it's housing and its bonds. > > quickly before you take off: what do you see happening in gas and oil? > > gas is probably going to spike a little bit. we like to

see that brent crude, wti spread widen. i don't know if that's going to happen in the short term. there was actually a refinery in the east coast that shut down temporarily due to a tornado-- that's going to affect gas prices across the u.s. a slight spike in gas prices and potential widening in the wti and brent. > > thank you, bob. > > anytime. blame it on the weather. the economic recovery ran into a frigid headwind in the first quarter... as winter weather hampered businesses activity. gdp fell by 1%, it's the first negative number in 3 years as businesses were slower to boost inventories. however, consumer spending rose 3.1%. and one money manager sees a plus coming from the labor market. "take a look at the labor market - claims fell 27,000 in the month and we're looking at continued improvement in that area. so the labor markets are really continuing to improve here. that's the positive thing." the housing sector could get stimulus shot as mortgage rates decline for the 5th consecutive week. the 30 year fell to 4.12% the 15 year to 3.21 chuck coppola joins me now good morning chuck... angie, hillshire brands suddenly becomes a hot takeover target. tyson foods, a titan in the meat industry, is now

throwing its hat in the ring to buy hillshire. tyson is bidding 50 dollars per share, or 6.8 billion dollars, topping an earlier bid by pilgrim's pride, of 45 dollars per share, or 6.4 billion. pilgrims is owned by brazilian meat company jbs. hillshire shares soared 17% yesterday. it's setting up to be an agressive battle. "this is not a no brainer there is no easy winner that you can point to in this fight, but tyson is certainly going to be aggressive in their bidding and its not going to let such a large competitor slip away so easily to another company like jbs." christopher leonard, of the new america foundation says it's possible cargill or kraft could swoop in with more bids, but adds tyson has more motivation to protect its market share. president obama is going it alone on combating climate change... he's expected to come

out with historic sweeping reforms monday that will limit carbon dioxide emissions from power plants. it would force states to meet new emissions standards and rely less on coal. coal industry executives argue changes will cost jobs and force electricity prices higher. the president plans to by pass congress and use his executive power. 8 states set a goal of zero emissions from vehicles in the next decade. the states include california, new york, connecticut, maryland, massachusetts, oregon, rhode island and vermont. people living in those states will be encouraged with incentives such as preferential parking, workplace chargers, and re- feuling centers. as well as, tax credits for plug-in hybrids and hydrogen vehicles. investors are seeing the light on green stocks. shares of sunedison shot up nearly 5% on word its "yieldco" subsidiary has filed for an ipo. the company operates clean power

plants. sun edison stock is up 178% in the past 12 months. next week, arista networks ipo- s. the company has cloud-based switching technoloy that handles traffic at internet data sites for, facebook, yahoo and others. the expected price range is $36 to $40 per share the ticker symbol is: anet. car crash costs hit nearly 900 billion dollars in a single year. the study by the national highway traffic safety administration-- cites $277 billion in economic expenses. and nearly $600 billion in death, pain and injury costs. alcohol-related costs alone accounted for $199 billion ford is recalling more than a million cars... 915,000 ford escape and mercury mariners for possible issues with the torque sensor in the steering column. and, 195,000 ford explorers for an electrical connection problem in the steering gear. both could result in a loss of "power steering" while driving. a general motors engineer says

he forgot about an order change that may have led to a massive recall and several deaths. engineer ray degiorgio told the house committee that the change to the faulty ignition switch was part of a number of upgrades. last year, during a hearing related to a fatal crash in georgia, degiorgio denied that he knew of the change. he would not comment on whether chief executive mary barra knew of the defect before she took the job. 3 doctors in connecticut are under scrutiny. in an exclusive report by reuters--56% of the claims the doctors filed were incorrect. the claims involved drug tests on older patients. analysis shows 24,000 drug tests were done on just 145 patients in 2012. that amounts to about one test every other day. two of the doctors denied wrongdoing, the third declined to comment. medicare officials also had no comment. although there is a surge in prescription drug abuse among older americans. in today's cover story, vocal

demonstrations to raise the wages of fast-food workers and retail sales clerks have had a clear impact on management. it's stepping up plans to automate. demonstrations such as those outside mcdonald's shareholders meeting, last week may have an unintended consequence of speeding up fast- food industry's plans to automate--as mcdonald's for example, seeks to streamline its business model. "the company isn't just looking at reducing its administrative costs, it's talking about reallocating resources toward its digital initiative toward online ordering and online payment." it doesn't stop with online ordering and online payment. a kiosk could replace the cashier. but bob goldin of food industry research firm, technomic thinks replacing the "service" part of the service industry could be a mistake. "i think it depends where it's done. back of the restaurant-- ok but removing wait staff up front may not be good. big companies thinking about doing this should go gingerly on that." there's no lack of software

developers seeking to supply u- s businesses with i-t solutions to staffing. this week, the government of argentina sponsored a trip by argentine i-t companies to chicago, hoping to strike deals with american businesses. representatives of the touring group, say software development is less expensive in argentina than in the u.s. "in my country, they are replacing someone who counts inventory by hand, with automation, and that person is not out on the street, but is responsible for the outcome of the automated work. you must empower people, not discard the people." retail sales clerks are using more technology, also. best buy is one retailer that has found it helps sales associates close more deals. "they do have that option, to use tablets. it helps sell amd demonstrate ways a product can enchance your life style." the u.s. labor department says the fight to raise fast-food workers' pay has come at a price already. it reports that the service employees international uniion spent at least two million dollars in organizing a series of demonstrations and strikes, last year.

walmart is getting flak over how much it pays top executives... ahead of its shareholder meeting next friday... the ceo doug mcmillon made $9.6 million last year. proxy advisory firm institutional shareholder services is urging shareholders to vote against the retailer's executive pay packages... and, for stockholders to agree to appoint an independent chairman. plus, vote against the re-election of high profile board members for failing to inform shareholders about walmart's bribery investigation in mexico. walmart-- says iss is getting its information from a union with a long history of opposing the company. in our roundup of retail earnings.. costco reports sales and memberships to its warehouse club improved last quarter. however, earnings fell shy of wall street estimates... shares dropped by a dime yesterday. abercrombie & fitch is back in style with young, hip shoppers as well as wall street. the retailer didn't lose as much as expected. investors piled in sending the stock 5% higher.

still to come: shorting the boss. is modest ceo pay a buy signal for traders? plus... how youtube is investing in users. and after the break... google admits... it has serious issues in its offices. we'll be right back!

google admits to a lack of diversity in its corporate culture. the tech giant published a diversity report this week showing... 70% of its workforce is male, and only 30% female. 61% of its employees are white, 30% asian, 4% are multi-racial, 3% hispanic, 2% african-american and 1% other races. google's head of personnel, lazlo bock says "there is an absolute pipeline problem" affecting the number of women, blacks and hispanics entering the computer science field. on its blog, google says it's "miles from where we want to be." google was recently named the world's most valuable brand. a major component of that brand is the ever popular youtube. ky sisson reports, on how google is enterprising on the rush to create video content. youtube has become the platform that millions across the world use to post videos online, but it would be nothing without all of

the content creators that feed this massive medium. that's why google built youtube space los angeles. this forty one thousand square foot facility houses sets, green screens, cameras, control rooms, and post production equipment... all at no cost to the user. at youtube we do everything we can to support our creator community. we want to help creators get to the next level and this is one of the many ways that we do that. built on howard hughes' former helicopter hanger, youtube space la hosts events and workshops that encourage and promote community and creativity. in just over 18 months, more than 2,000 videos have been filmed inside the space. this isn't just a production facility, we consider this the physical embodiment of youtube. damon berger is the ceo of "what's trending" a daily youtube show that uses youtube space la to film and edit their show. as a startup, he says the partnership with youtube space has helped his business grow. free is always amazing when you

have bottomline business. to be able to as a startup have a partnership with youtube where they have all of this amazing equipment and space for free it just helps us so much as an independent company. from creators that film here at youtube space l.a. or anyone with a camera and an internet connection can monetize their videos and cash in with youtube's revenue sharing program. by allowing advertisements on their videos, youtube partners get a percentage of the ad revenue google sells. josh klaasen is the host and creator of "the klaasen nation" a weekly youtube show that he has monetized and is working to expand. he's optimistic that by creating consistent, quality content, he'll have more opportunities to be successful. what i've seen from other prestigious youtubers that get millions of views every week. i know they make a lot of money.

it's just a matter of time and consistency. youtube spaces can also be found worldwide in london, tokyo, and, coming in october, new york city. for first business news, i'm ky sisson. 100 hours of video is uploaded to youtube every minute. nielsen rating service calculates youtube reaches more adults ages 18-34 than any cable network. dish network is the latest company to accept bitcoins for payments. starting july 1st, customers can make payments through mydish, an instant exchange feature that changes bitcoins to u.s. dollars. retailers including overstock.com, virgin america and others already accept bitcoin. coming up... a trader looks for sweet profits from a doughnut

stock... and after the break. it's our friday favorite traders unplugged... with the guys breaking down a british invasion! stay with us!

ñioczñz!ioczñz"ioczñioczñz$ioczt a short trading week means our traders should be rarin' to go for this week's traders unplugged. from the floor of cme group-- alan knuckman and scott shellady up close and personal and ready to go a few rounds... good morning and round number one: ceo pay raise.

median ceo pay reaches $10 million per year. what company would you invest in that pays its ceo just $1? alan: well there's only a handful and they do that obviously for symbolism here. they still get stock bonuses. the one i like is whole foods. whole foods is-- nothing is on sale at whole foods. it's gone from $60 down to $38. i like that. that guy doesn't even take stock options just $1. scott: i think allen would like to invest in the government so they could regulate all the ceos pay because that would make him happy but i would rather stick with innovators like carl icahn, sergio brena and larry page... alan: 257 times the average wage of their employers. scott: it's the most democratic thing you could do. don't buy their stock if you don't like it. how about that? it's the democracy which you fight for so much just don't buy the stock! alan: that's up from 190 times

the increase is bigger 10% last year alone... scott: let the government do it. they know better than you do... alan: the reason there's no inflation is because there's no wage inflation for employers unlike the ceos. angie: round number 2: pound polls. the u.k. has become a corporate haven for lower taxes but the british pound is up more than 13% in the past year. what's your pound play? scott: i'm going to stay long the pound. i actually happened to live in the u.k. i have a british passport and for the years 1990 to 2001 alan: hey the airports right over there my friend if you want to leave... scott: and standing next to alan it makes it the ever more possible. i've seen it as low as 135 and as high as 207. it's in mid-range but i think what they're doing with that government is something this government should look at and i'm going to stay long the pound. alan: technically their corporate tax rates are lower but with all the write offs, the actual effective rates are about the same. it's a shell game but i think the pounds going back to $2 were it was in 2008 that's still another 35% higher. i agree that the pound is going higher and the dollar's going lower. scott: because of a shell game. awesome.

angie: round number 3: chicken dance. tyson and pilgrims pride are in a battle for hillshire. how would you profit off this bird battle? alan:obviously i'm not on the inside of the meat business like other people we know around here... i look at the packaging angle on this. packagers of this see, sealed air is a company that does a lot of packaging for tyson, for programs pride for a lot of the produced chicken products-- that's my angle. i think it's got 25 percent upside. the other stocks-- i have no idea how this is going to play out. scott: why stop at packaging? when don't you go to trucking, rail, air alan: corn! why not corn? you have to feed the chickens corn! scott: why don't we talk about crude oil? the reason why it's a chicken's question is because alan asked and not me. i'm going to stick with tyson-- twice the the market cap of hillshire. i think that's one i'm going to stick with because i think they'll be able to play this much better than a smaller... alan: what happens if grain prices rise? scott: we get busier in the other room, why? alan: alright, good answer. angie: now on to your bonus round question: as the saying goes sell in may and go away and that usually means go away until october. so on average the dow jones industrial average has gained how much during that six month period since 1950? is it a) 0.3% b) two% or c) 5 percent? alan: i say 5% scott: i say two... alan: we've only gained 3% so far this year in the s&p's so i think we still have a long ways to go. angie: the correct answer is a0 0.3%. scott: at least we both got it wrong. alan: wow! scott: which proves it's not rigged. we actually got something wrong. angie: thanks for being on the show. first business continues right after this.

james ramelli of keeneonthemarket.com tells me he wants to talk donuts and

discounters this morning. good morning, james. look at the historical performance, we actually see a little bit of a bullish look there. the stock has rallied 5 of the past eight quarters. i like big lots because it's a traders stock. on average on earnings day it moves 11.2% and like i said, the chart is setting up very neutral here, however order flow has been very very bearish. all throughout this week and through last week we saw a lot of very large blocks of bearish spreads being put on in big lots. institutional money coming in and selling calls to buy put spreads-- that's extremely bearish activity. when institutional money gets short of stock, i want to get short of stock with them. they're implying a move of around $3.65. so i'll be looking for a downside target in big lots right around $33. > > which is so odd because you would think that the american public would be shopping at big

lots and maybe the company would come out with great sales numbers... let's move on to krispy kream-- let's talk doughnuts. > > right so kkd has a much better looking chart here and it's actually breaking some key resistance levels here and i think that if they get a good earnings number, the stock can really move higher. this is another one that is great trader stock. the stock moves on average 12.9% on earnings so i know that they can get a big move higher. this time around they're implying a move of around $1.80 by june expiration-- meaning i have an upside target just south of $20. i'll be looking to get long kkd ahead of earnings hoping > > well we hope that your dough rises on your krispy kream trade. thank you, james. > > thank you. coming up next week... the truth how the cosmetics industry gets you to overspend on products.. join us monday... from all of us at first business. have a good

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