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tv   First Business  FOX  November 3, 2009 5:00am-5:30am EST

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where are the jobs and who is getting a raise? a career and salary guide for the new year... plus the auto sales outlook... are buyers still heading to the car lot after cash for clunkers? and selling off your stuff... how business has changed for one pawn shop during the downturn... we do have a lot to talk about although no real economic news on the docket ahead of tuesday's market action little bit here and there instead real action is going to be from the middle of the week with the federal reserve which begins on tuesday due to having an announcement coming on wednesday of course the signals still has a way for friday. that's right more on the fed's meeting in decision on wednesday they're
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expected to keep interest rates close to zero flat as always investors are going to be focusing on testing and looking for potential change in tone in their language about what they're going to say about the outlook for raising interest rates in the future in this happening all as the financial he t f showing greater weakness in the overall stock market. certainly some form in the bull market that we saw march the big question for the federal reserve is the exit strategy beginning with huge amounts of purchases it is done in the mortgage-backed securities market fancy way it's been lower-cost and borrowing from home buyers dell's that are out there and we talk about the impact of that on the better side of the market still to come. on tuesday, we'll find out whether or *not the cash for clunkers program dried up business for the auto industry... auto sales figures for the month of october will be crucial for the industry... analysts are expecting an annual sales pace of at least 10 million vehicles... for domestic and
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import cars. if it falls short of that target experts say it could be devastating to the auto industry. but if auto sales do come in at an annual pace of above 10 million... it could provide a moral boost.. not only for auto companies.. and suppliers.. but also for consumers. that kind of emits waves in consumer confidence.. people see headlines.. and if they see sales are up.. then i can go buy a car...does ripple out into overall economy and keeps suppliers happy all around board." selling 10 million cars and trucks on an annual basis.. is still far off from the 16 million it had been in 2007. as for next year.. jd power predicts auto sales could rise to above 11.5 million units next year.. the limits on home loans will remain the same and 22 and $417,000 in the port
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in the same when it comes to home mortgages above that the cost of cash goes up considerably a regular talk about the house market nice to see unit so-called performing loans why is that important? is huge because right now you can get a loan mess not of significant now down if you're not going fha you really have some for ability issues their fha is the new fannie mae or freddie mac is basically of will sam st. will go on the secondary market by or guarantee the mortgage which lowers the cost. there's a lot less risk for the bank's overall so they feel that way and for the by your you get a home for 3.5 percent down which in this mortgage market the best you are going to do. with the cost of cash the five and a half the tickets interest rates around 5% 6 full percentage point higher if you have to borrow more jumbo market. where the risk is
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more in here for the lender not only the numbers up with the loans are structured so there's a premium for double loan at this point. would the price of existing home in u.s. under $200,000 was the market be concerned with these higher borrowing wait for these properties? it upsets the whole market when you have the disparity there. if you are a luxury home owner looking to downsize you can get out of that home because she can't find a buyer to finance it upsets the apple cart back into the lower end of the market used to be people were buying up and people are also pouring down and so again it upsets the market little bit. the notice of the concerns in the double market that contrasts having to be extended because lenders aren't in the place to offer the loans? underwriting is extremely difficult were getting been sent back to was to three- time cy on the same issues on the writing is very tight at the same time, overall market in terms of appraisal issues because of the store sells and
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foreclosures again the evaluations off. caucus' ticking on the first upper end of the market were talking about here was your assessment of this influence on home sales. it's been huge for the lower end of the mark a first-time home buyers are not binding is luxury homes with income limits for the tax credit your nason that influenced up one of the market bottom end of the market stooge for all of us in the business a tremendous boon to get people out there realize this is one of the biggest and best mistake in me. i appreciate the excise think it's so much that with exit realty.
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a little bit of buying interest coming into the market and in the week and month bill liechtenstein traders audio. c o m at the cme group you listening to this market late last week loss of selling
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pressure you even was on the air talking about significant volume of upsizes stability coming back in early november or a little bit of cost? i wouldn't call this stability rhino were trading around this lori string of the downside activity we vestian right now it really is coming to paris as it seems like the characteristics of the bull trend we haven't seen since the march low started to read dan's a bit fewer used to seeing a strong sell-off " we saw i think was last wednesday saw the rebound on thursday began the sell-off came back on friday and a sell-off on friday was very uncharacteristic of this market we've been seeing in terms of the bull trend is the bull trend over or not is in one guess at this point we will only know if we continue to receive value to the downside. they tried to get an idea of are they willing to go home short in this market or the still one go fly? the most part the trouble had fled we saw as you come into the cockpit on the
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buy side allow us buying going on in an s and p from about 1029 all the way to about 1039 and locals are basically getting run over and ending up having to cover some chores on the way of which contributes to the upside activity a lot of traders with what the unemployment data coming later this week. big week with those to be reports been lichtenstein traders audio. c o m at the cme group. big powerhouses that sell over the counter cough and cold drugs will likely see higher sales ... thanks to the h1n1 virus..also known as the swine flu.. johnson and johnson... pfizer.. which now owns wyeth .. and to a lesser extent glaxo smith kline, and novartis make most of the over the counter flu remedies. researchers say they expect americans to spend almost 4 billion dollars on cold, cough and throat medicines this year... and if history is any clue... the h1n1 virus could prompt a spike in those medicine sales... considering back in 2005 during the avian flu pandemic, over the counter cough and cold medicines saw a 13% spike in sales... in the united states. i think it's a good way for drug stores.. to make money... but don't think it's going to help..we should just take care of ourselves." someone's making money off of fear it's costing a lot of money.. and 99% of people will survive no problem. these over the couter drugs carry lower margins.. than branded drugs.. and the uptick in sales will be helpful for pharmacuetical companies .... but it's *not likely to have a according to one morningstar analyst. still to come is the grass always greener? how salaries and jobwth your field stack up with pay in other sectors of the economy.
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the recession may be officially over, but the job market likely continued to lose work. the october jobs reports are due out friday and the unemployment rate could hit double digits. but there are fields hiring and with increasing salaries. steve kass is with jobs firm robert half international. nice to see you steve. let's talk about a year as we look into 2010 you have seen some stability moving
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into the market generally speaking. so salary all looked at i think we found those things are approximately flat eighth look at some job descriptions may be slightly down 1 or 2% other sturdily up one or two percent a given that is not a perfect science i think generally speaking the you can say is looking fairly flat from 2009 as a move until 2010. so that the industry should look at specifically accounting and finance despite the credit crunch some firming up and salaries there you mention small but still in the green information technology administration support has seen some absolutely i think as you look at what types of jobs account and finances the arena anything that contributes to the bottom line anything that can save a company money generate revenue save expense are the things the refining are going the best right now. we should point of finance does it
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mean cost. it can mean a number of things but typically it has to do directly with accounting compliance tax and those are primarily the areas we service. in fact and we could look at that trains you identified the was never one looking at tax accounting credit business and financial analysts' racine some light running up. pacifically end supply and demand standpoint very specialized skills it becomes more complicated as time goes on this people going into the field more people begin to retire so thus a high your take a look at financial analysis and compliance again anywhere where a company can look at their business and potentially save expensive refining ways to generate new revenue or things that are growing right now. don't put a company in st. i suppose he can do that bite the pyrrole is one of things you'll get when you're analyzing any financial situation. there's a number of things you can do
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including adding different types of technology that can save money. this season to another growth trend toward looking at with this information to a chronology which is now working in an inspection system and ministers in guys and gals involved with that technology as well as i t security which is continuing to explode. if you look at anything and technology and you think about your own job right now with it was five years and two years ago had more technology has come into what happened is the way for anythings was always going to be consistent demand for technology may be denied an explosion of demand but the small boat the yankee's. whatever the case may be put the score to be growing demand. more specialty go if he mentioned i t security which is certainly a hot area there needs to be more security more regulation and security as well and certainly a hot area health care continues
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to be tied obviously-aged population demographics favor medical records and customer service. with the digitizing of medical workers on the go on over the next couple of years just the health-care market you mention is exploding at the as we see the debate settles this can be more health care of the jobs report consistently looking at certain areas to have been growing in certain areas like government health care is always ready to topple the list even write to the downtrend. we have to leave it there i appreciated steve cash along with us with-placement. buffer still ahead even pawn shops are seeing sales drop dramatically... find out how one pawn shop is changing the way it does business...
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with americans struggling in this economy... looking to sell personal items... for cash... business at pawn shops had been booming over the last year... but even they are now hurting from very slow sales... with consumers still reluctant to spend money on things they just don't need... at royal jewelry and loans - a pawn shop in chicago. sales have never been this bad sales off 80% off 2 years ago.. getting worse.. not buying much now what have you noticed about how many items bring in? less and less running out of
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tvs.. cars.. houses.. second loan to me.. i can't really do some are also bringing in big diamonds randy took in this 6 carat diamond and lent out 30,000 in cash he says the ring is actually worth 150,000 randy cohen says items rarely seen before .. he's seeing 3 times as often like wheelchairs and motorcycles if you have to pawn wheelchair.. what does that tell you.. it's rough because sales are down so much randy is now turning his pawn shop business into a jewelry refining business because of the record amounts of gold people are bringing in. how are you turning this jewlery into a business? i buy gold.. i refine it .. make 5%.. that's where i make a living now.. buying gold..
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5% doesn't seem like a lot.. buy 100000 worth of gold.. a week's time i'll live on that as for the rest of his business cohen just keeps packing stuff away like hundreds of fur coats that people have pawned in exchange for cash so randy we were here a year ago.. 3 times amount.. had 100 now 400 how much you think you can sell them.. 300 to 1000 - take 10000 coat.. sell for 800 that's a bargain i sell so cheap.. not buying.. 1/5 th of retail.. still not buying some stuff will selll christmas.. peole have to buy gifts.. from pawn shop?... better pawn shop than retail
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back to the gold refining business... randy cohen says he's had one customer actually sell the gold caps from their dental work...for money. coming up in chart talk we are taking a closer look at to financial d t f that are showing extreme weakness this coming next.
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we're already starting to see extreme weakness in the financial sector one of the e t f s making a new low lower than the previous low so this is
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certainly something to keep in mind when you're watching financials and how they affect the overall market. $22 a share for this e t f and is the biggest of the big banks have been in this and going back until august and each selling pressure that we saw in the broad market was anticipated by selling in these big bank stocks which have been holding up until it cracked below $22 a share and doing it on good volume. it's kind of hard to tell what the next support level is it could be around 19 which was the previous ties back in june so it got a little bit of ways to go to find support and certainly this is not the news when you look at overall stock market which is actually has not made a new load just yet but if a book of financials and see this k d which has made pelorus fed doesn't bode well in going over to x l f s another exchange traded fund that includes big insurance companies run into
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services companies is still is handy on although barely to $14 a share. by its teeth at this point or by is nell's 14 a share this areas of some support here and i think it's telling between east to this piece big band that not the weakness leading witness in this market the broader financial services industry as you minted this insurance company and other types of lenders have seen some weakness but not nearly the amount of weakness of the big banks and seeing lately. keep in mind as we see the sell-off in the overall stock market or not the financial will likely be leading the way. watchlist payback. the bankruptcy of c-i- t group will likely wipe out the two-point three billion taxpayer dollars the government spent hoping to keep the business lender afloat. and there's more skepticism that taxpayers will ever see all of their money back from the $80 billion poured into g-m and chrysler. the government
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accountability office warns the value of chrysler and g-m would have to - quote - grow substantially above what they have been in the past - end quote if they're able to pay back taxpayers. while a number of big banks have paid back their bailouts in full...and then some, it's clear not every too big fail bailout is going to be a winning investment for uncle sam. one more item this is my last week on first business. after six and a half years with the program, it is time for me to explore a new opportunity. it has been my pleasure to work with our top notch staff and guests, covering what i believe is the most important story there is...the story of money, from the gigantic forces at play in the global markets to how families and individuals impact and are impacted by those forces. first business will continue covering the world of money for its unique position and i, like you, look forward to watching it from the other side of the camera.
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