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5.  A balanced approach to deficit reduction that includes reforming tax code, closing loopholes, and Medicare reforms.  A boost of manufacturing in America, called for greater investments in housing, infrastructure, alternative energy, scientific research, and technology.  Comprehensive immigration reform  34,000 U.S. troops withdrawn from Afghanistan by the end of 2013  Modest gun control measures to reduce violence.  Raising minimum wage 27% to $9/hr.

7.  60% of job losses since recession have been mid-wage positions, 58% of growth has been low-paying jobs  Min. wage is below living wage:  $15,080 annually.  poverty threshold for a single individual was $11,702 and the poverty threshold for a family of 4 with two children under 18 was $22,881.  More consumer spending  +$1 to min. wage=$2,800 additional spending for household yearly  Upping min. wage to $9.50=$60 billion over 2 years  Increased earnings for those above min. wage

8.  Company’s can’t afford to hire as many workers as before at the lower level so they either hire less people or pass the costs on the consumers and raise prices.  Leaves min. wage worker in same situation.  Lower incentives to move up: Increasing the likelihood and duration of unemployment for low- wage workers, particularly during economic downturns.

11. Would raising minimum wage to $9 an hour help or hurt our economy?

13. Markets Pause after rally, end week flat

14. 14,09113,981

15.  Definition: Retail sales measure the total receipts at stores that sell merchandise and related services to final consumers. Sales are by retail and food services stores.

16.  Why is this important? -Consumer spending typically accounts for about two-thirds of GDP and is therefore a key element in economic growth.

17. STRENGTHS  Gasoline sales up 0.2%  General merchandise up 1.1%  Nonstore retailers up 0.9%  Bldn. Material and garden supplies 0.3% WEAKNESSES  Misc. store retailers down 2.6%  Health and personal care down 1%  Clothing and accessories down 0.3%

19.  Retail numbers were generally positive which means that the size of the economy grew.  The small numbers indicate that sales grew marginally compared to prior months.  Clearly the pace of spending slowed in January. However, it is hard to discern the impact of higher taxes given that January came off a strong December.  Pullback is normal after a strong month. It is going to take additional reports to determine the impact of higher payroll and income taxes on retail sales.

20.  Follow @Hawktrade on twitter  Go to Bloomberg Economic calendar and look at estimates for next weeks CPI number.  Starting at 8AM tomorrow morning, tweet your guess for either CPI/ or CPI less food and energy.  Winner gets $15 Starbucks gift card next meeting.

22. TOP LINE NUMBER  Top Line = Gross Sales or Revenue  Only indicates how effective a company is at generating sales  Doesn’t account for any costs.  Determines how fast a company is “growing” BOTTOM LINE NUMBER  Bottom line = Net Income  Accounts for a company's income after all expenses have been deducted from revenues.  A company's bottom line can also be referred to as net profits.  Bottom line describes how efficient a company is with its spending and operating costs  E.P.S.= Net Income-Dividends # Shares outstanding

23. Reporting Company Surprise Type Actual EPSExpected EPS Stock Reaction Coca-Cola (KO)Positive+$0.45+$0.44Down -2.5% PepsiCo (PEP)Positive+$1.06+$1.05Up 1.5% Snapple Group Inc. (DPS) Negative+$0.82+$0.85Down 6.5% McGraw Hill (MHP)Neutral+$0.72+0.72Up 1.8% DIRECTV (DTV)Positive +$1.55+$1.13 Up 2.7% open Down 2.9% close Zipcar (ZIP)Positive+$.34+$.06Down.08%

24.  E.P.S. slightly beat estimates  Revenue slightly higher than expected, 5% organic revenue growth.  EPS growth in 13’ expected to be 7% due to increased prices and higher worldwide sales.  Raised its dividend to $2.27 per share from $2.15.

26.  Reported earnings on Tuesday  EPS of $.72 in line with analyst’s estimates  Revenue ($1.23 billion) did not meet 4 th quarter expectations  Stock ($44.95) movement was limited based off earnings, no surprises

27.  Parent of credit rating agency Standard & Poor’s Corp.  Facing a $5 Billion fraud lawsuit by the U.S. government  Claiming S&P gave too high of ratings to mortgage investments during the 2008 Financial crisis

28. Down 22.95% since 2/1/13

29.  Inside Job documentary showing at 4:00pm next Sun. before meeting  Clearly and simply explains what happened in 2008 and yrs. before to cause housing crisis.

30.  Earnings of $942 mil Up 31% from $718 mil  Focusing on growth in Latin America up $22%  658,000 new subs Compared with 590,000 Last year there

31.  A company allowing families, businesses and mainly college students to borrow a car  You register for $25 and pay their annual $50 fee then pay to drive.  Rates: Mon-Thurs Hourly from $8, Daily from $66 Friday - Sunday Hourly from $9, Daily from$72

32.  Avis is buying Zipcar at $500 million- $12.25 per share  Announced earlier this year  Profit for the quarter was $13.8 million compared with $3.9 million a year ago  $.09 a share to $.34 a share

35.  Options are a financial contract that allows an investor to speculate in assets that he/she doesn’t own.  Options can be used to predict the direction of stocks, currencies, commodities, or stock indexes as a whole.

36.  Strike Price- The price the trader thinks the stock will go to, either above, below, or at the current market price.  Expiration date- How long the option contract is good for; anywhere between a week to over a year.

37. 1. Buy a Call (Bullish on stock) 2. Buy a Put (Bearish on Stock) There are 2 positions you can take with options:

38.  One option contract= right to buy 100 shares of company at some point in the future at a certain price.  Ex: CMG- current price= $314  June 13 th call at strike price of $340 costs $11.40  $11.40= 100 shares times $11.40  So = $1,140 for one option contract.

39.  Options are priced based on their intrinsic value (how close to the strike price they are) plus their time value (How long do they have until they expire)  The farther away the expiration date the more expensive the time value aspect is.  The farther away (either up or down) the strike price is from the current (spot) price the less it costs b/c the stock is less likely to move that much before the expiration date.

41. Delta: The effect of a one dollar increase in a stock price to the price of the option. Delta, Gamma, Vega, Theta

42. Buying stock has D=1 ATM: D=.50 ITM= the more in the money the closer to D=1 Farther OTM you go, the closer to D=0

43. http://www.cboe.com/framed/IVolframed.aspx?content=http%3a%2f%2fcboe.ivolat ility.com%2fcalc%2findex.j%3fcontract%3dA8DAC572-AD45-4641-A7A8- FCA56A76BE34&sectionName=SEC_TRADING_TOOLS&title=CBOE%20- %20IVolatility%20Services CBOE options Calculator *put in stock symbol to get Delta for option.