DailyFinance.comhttp://www.dailyfinance.comDailyFinance.comhttp://o.aolcdn.com/os/df/2013/img/2-dailyfinance_logo_m.pngDailyFinance.comhttp://www.dailyfinance.comen-usCopyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only.Blogsmith http://www.blogsmith.com/Midday Market Minute: Are Beer Sales Tapped Out for 2013?http://www.dailyfinance.com/2013/05/24/beer-sales-tapped-out-2013/http://www.dailyfinance.com/2013/05/24/beer-sales-tapped-out-2013/http://www.dailyfinance.com/2013/05/24/beer-sales-tapped-out-2013/#commentsFiled under: , , ,

Memorial Day weekend. That means parades, the beach, barbecues ... and beer. Or does it?

Beer-makers were hoping 2013 would be their year after several years of steady decline in beer consumption in the U.S. But it's not turning out that way.

In fact, it's been a pretty brutal year so far. Sales continue to limp along, hurt by a string of problems -- mainly the weak economy, the cold weather, and a long-term shift in consumer preference for wine and liquor.

The volume of beer sold domestically has dropped for three straight months, compared to last year.

coors lite
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Analysts say consumers are increasingly likely to uncork a bottle of wine than to pop the cap on a bottle of beer. And it's the biggest names that are suffering the most: Anheuser-Busch InBev (BUD), SABMiller, Molson Coors Brewing (TAP) and Heineken.

Despite the sales weakness, the stocks of the beer makers have held up pretty well.

During the past year they've outperformed the market in general. Anhueser-Busch is up 39 percent, SAB Miller shares traded in London are up 45 percent and Molson Coors, up 30 percent.

In order to boost sales, the big beer makers are pushing out more upscale and pricier brews, including fruit and margarita flavored lagers.

Anhueser-Busch also rolled out a higher alcohol content brew, Budweiser Black Crown, in January. It also offer Bud Light Platinum. Both cost about a third more than regular beers.

Anhueser-Busch controls five of the world's top six brands, including the recently acquired Corona.

If there's a bright spot in the industry, it's smaller brewers such as Boston Beer (SAM) -- which makes Samuel Adams -- and craft beers.

Boston Beer's chairman recently told analysts that he expects 800 new craft brews to debut this year. That will bring the total to more than 2,500.

According to CNNMoney, craft beer sales have grown 15 percent over the past year -- but they still account for less than 10 percent of total beer sales.

The Memorial Day weekend can account for five percent of annual beer sales. But there's rain in the forecast for many parts of the country, so the summer season may get off to flat start.

-Produced by Drew Trachtenberg

Gallery: Dumbest (And Coolest) Beer Bottle Gimmicks

Bud Light: The Write-On LabelCoors Light: The Cold-Activated CanMiller Lite: The Vortex BottleHeineken Keg CanSly Fox's Removable-Lid Can

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]]>anheuser-buschbeer salesbrewbudCraft beermarket newsmemorial dayMolsonCoorsSAB Millersamuel adamsDailyFinance StaffFri, 24 May 2013 12:20:00 ESTMarket Minute: P&G Brings Back Lafley; Google Faces New Antitrust Probehttp://www.dailyfinance.com/2013/05/24/pg-brings-back-lafley-google-faces-internet-ad-probe/http://www.dailyfinance.com/2013/05/24/pg-brings-back-lafley-google-faces-internet-ad-probe/http://www.dailyfinance.com/2013/05/24/pg-brings-back-lafley-google-faces-internet-ad-probe/#commentsFiled under: , , , ,

Alamy
Procter & Gamble brings back an oldie but goodie, and Google faces new charges.

U.S. stocks avoided the rout that damaged markets around the world Thursday. The Dow industrials (^DJI) fell 12 points Thursday, the S&P 500 (^GSPC) lost 4 and the Nasdaq (^IXIC) edged 3 points lower.

What's old is new again at Procter & Gamble (PG). No, the consumer-products giant isn't reinventing Tide or Crest. It's bringing back A.G. Lafley as president and CEO. Lafley replaces his own hand-picked successor, Bob McDonald, who unexpectedly announced his retirement after four years in the corner office.

Google (GOOG) is reportedly facing a new antitrust investigation into whether it illegally dominates Internet advertising. News reports say the Federal Trade Commission is launching this probe just five months after dropping a separate investigation.

Sears Holdings (SHLD) is in for a rough day. Its shares are set for a double-digit decline after posting a loss of $279 million, as sales continued to slide. The company, which operates Sears and Kmart stores, plans to close more than 100 stores.

The clothing retailer Gap (GPS) has its mojo back. After several challenging years, Gap posted a 43 percent jump in quarterly earnings, topping Wall Street expectations.

But two other fashion retailers -- Abercrombie & Fitch (ANF) and Aeropostale (ARO) could come under pressure. Abercrombie posted a quarterly loss, and Aeropostale said its sales declined last quarter. It also forecast a worse than expected loss in the current period.

Pandora Media (P) shareholders are giving thumbs up to the strong sales from the Internet music services. Pandora shares have already rallied 45 percent in the three months since its last quarterly report.

It's not unusual for disgruntled shareholders to confront corporate executives at annual meetings, but this one got out of hand. Cablevision Systems (CVC) CEO James Dolan yesterday called the police to evict protesters. Those protesters were linked to a union in a long-running labor dispute with the company.

Gallery: The 20 Most Valuable Brands In The World

20. MasterCard19. SAP18. Walmart17. Vodafone16. ICBC

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]]>A.G. LafleygapgoogleInternetmarket newspandoraPGretailsearsDailyFinance StaffFri, 24 May 2013 08:48:00 ESTMidday Market Minute: Average 401k Balance Reaches Record Highhttp://www.dailyfinance.com/on/401k-balance-fidelity-retirement-account/http://www.dailyfinance.com/on/401k-balance-fidelity-retirement-account/http://www.dailyfinance.com/on/401k-balance-fidelity-retirement-account/#commentsFiled under:

The retirement game: Who can play, and who thinks it's an unrealistic dream?

Let's start with the good news.

Retirement money fundsFidelity Investments says the average balance for 401k retirement funds has jumped to a record high of nearly $81,000 dollars in the first quarter.

That's up 8.4 percent from a year ago, and up 75 percent since the stock market bottomed out in March 2009. Since then, the S&P 500 has soared 145 percent.

Why the big discrepancy between the overall market return and the gains to our retirement portfolios? It's because most of us are not fully invested in stocks.

In fact, Fidelity notes that for people who abandoned the stock market during the financial crisis and never got back in, returns have significantly lagged behind those who stayed invested. Fidelity is the nation's largest administrator of 401k plans, and its numbers come from a survey of the accounts it holds

Not surprisingly, people who have been in the workforce the longest have the biggest 401k balances.

For workers 55 and older who have been with the same employer for 10 years or more, the average balance is $255,000 dollars.

Still, that's not enough to make most workers feel secure that they can retire at the traditional age of 65. A new Gallup poll finds that three-quarters of adult workers in the U.S. expect to continue working after age 65.

Forty percent say they'll work because they want to, and 35 percent say they'll work because they have to. Those earning more than $75,000 a year are most eager to stay in the workforce.

And we have the results of a third survey, this one focusing on the youngest people in the workforce: the group of 22-to-32 year-olds known as millennials.

Wells Fargo (WFC) finds that more than half of them are so focused on what they see as "overwhelming" debt loads -- mostly college loans -- that they can't even begin to plan for retirement.

Collectively, they have $1 trillion of student loans to repay. Despite this, and the weak job market for younger workers, two out of three millennials are optimistic that they will end up better off financially than their parents.

-Produced by Drew Trachtenberg

Gallery: Top-Paid Bank CEOs

1. Ken Chenault: $28 million2. Richard D. Fairbank: $22.6 million3. John G. Stumpf: $19.3 millionJamie Dimon: $18.7 million5. Lloyd C. Blankfein: $13.3 million

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]]>401kInvestingmarket newsretirementDailyFinance StaffThu, 23 May 2013 12:15:00 ESTMarket Minute: Markets Swoon on Threat of Higher Interest Rateshttp://www.dailyfinance.com/2013/05/23/higher-interest-rate-threat-drives-down-stocks/http://www.dailyfinance.com/2013/05/23/higher-interest-rate-threat-drives-down-stocks/http://www.dailyfinance.com/2013/05/23/higher-interest-rate-threat-drives-down-stocks/#commentsFiled under: , , , ,

Federal Reserve Board Chairman Ben Bernanke
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Markets around the world are skittish after Fed Chairman Ben Bernanke warned the central bank could begin winding down its bond buying program later this year. That has added uncertainty that's likely to weigh on the market Thursday morning. Pressure is also coming from a 7 percent sell-off in Japanese stocks, and a contraction in China's manufacturing activity.

The Dow industrials (^DJI) fell 80 points Wednesday on the Fed news. The S&P 500 (^GSPC) lost 13 points and the Nasdaq (^IXIC) dropped 38.

Hewlett-Packard (HPQ) is already the best performing Dow stock so far this year, and it's set to soar again today. The tech giant reported an earnings decline of 32 percent, but that beat expectations, and the company raised its outlook for the current quarter.

It's a similar story for the teen retailer Pacific Sunwear (PSUN). Its shares have soared 84 percent this year, and there's more room to run today. The company's loss widened last quarter, but it issued an upbeat outlook for this one.

Struggling retailer J.C. Penney (JCP) has secured a loan for $2.25 billion to fund its planned expansion. That's $500 million more than expected.

Pfizer (PFE) plans to spin off to shareholders its majority stake in Zoetis (ZTS). Earlier this year, Pfizer sold about 20 percent of the animal health company in an IPO that raised $2 billion.

Merck's (MRK) new drug to treat insomnia has received the backing of a Food and Drug Administration advisory panel. It said the product was effective and safe enough at lower dosage levels.

Chinese regulators have given airlines there the go-ahead to begin flying Boeing's (BA) 787 Dreamliner. Chinese airlines have ordered 35 Dreamliners, although none have yet been delivered.

And Tesla Motors (TSLA) has repaid the government's $465 million -- nine years ahead of schedule. Tesla has been high-flying stock this year, but an analyst at Seeking Alpha warns that bigger competitors "are already catching up."

-Produced by Drew Trachtenberg

Gallery: Fortune 500 Companies That Secretly Run Your Life

Johnson ControlsCHS Inc.United TechnologiesAmerisourceBergenADM

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]]>Ben BernankeBoeingeconomic recoveryeconomyFederal Reserveinterest ratesmarket newsmortgagesTeslaDailyFinance StaffThu, 23 May 2013 09:28:00 ESTMove Over, Apple: 16 More U.S. Companies Stashing Billions Overseashttp://www.dailyfinance.com/2013/05/22/tax-dodging-us-companies-billions-overseas/http://www.dailyfinance.com/2013/05/22/tax-dodging-us-companies-billions-overseas/http://www.dailyfinance.com/2013/05/22/tax-dodging-us-companies-billions-overseas/#commentsFiled under: , , ,

CEO Tim Cook
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Apple (AAPL) CEO Tim Cook was summoned to Capitol Hill Tuesday to explain his company's tax arrangements, which, according to Congressional investigators, amount to large-scale avoidance of taxes due to the U.S. and other governments.

According to a report by the office of Senator Carl Levin (D-Mich.), the world's most profitable tech company pays U.S. taxes on revenue from its sales in this country only. That money is kept in California. Revenue from international sales winds up in Ireland, and Apple only pays U.S. taxes on the interest on that money, which doesn't amount to very much.

As Levin explained, to minimize its tax obligations, Apple created subsidiaries with no employees, run by execs at HQ in Cupertino, that could hold money without owing duties to any state:

"Apple wasn't satisfied with shifting its profits to a low-tax offshore tax haven. Apple sought the holy grail of tax avoidance. It has created offshore entities holding tens of billions of dollars while claiming to be tax resident nowhere."

But if Apple's use of accounting tricks saved it an exceptional amount of cash, the company is just one of many U.S.-based multinational corporations to create elaborate tax shelters. Here are some other heavy users of tax havens, companies that were each holding more than $5 billion offshore as of early 2012. (Hat tip to Business Insider for unearthing the Senate report from last September that highlighted this.)

Companies with Foreign Cash Balances Greater than $5 Billion

Gallery: American Companies Stashing Billions Overseas

1. Apple2. Microsoft3. General Electric4. Cisco5. Google

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]]>amgenAppleCiscoCoca-Colacorporate taxesdelleBayFinancegeneral electricgooglehewlett-packardjohnson and johnsonMedtronicmerckMicrosoftoraclepfizerQualcommrepatriationtax avoidancetax havenstax shelterstaxestim cookwalmartDailyFinance StaffWed, 22 May 2013 14:50:00 ESTMidday Market Minute: Used Cars Get More Affordable as New Car Sales Pick Uphttp://www.dailyfinance.com/2013/05/22/used-car-prices-dropping/http://www.dailyfinance.com/2013/05/22/used-car-prices-dropping/http://www.dailyfinance.com/2013/05/22/used-car-prices-dropping/#commentsFiled under: , , ,

Have we got a deal for you on a used car. Really. It's all about supply and demand.

Prices for used cars have been soaring ever since the recession, because so many drivers tried to squeeze that very last mile out of their old clunker.

That meant there were relatively few good condition, late model cars and trucks on car dealer lots.

Used cars
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But now, with new car sales revving up, consumers are trading in their old cars, and the supply of in-demand used vehicles is finally coming into balance with demand. As a result, prices are starting to come back down.

According to Adesa Services analyst Tom Kontos, used vehicle prices fell 4½ percent in April, compared to a year ago. The average wholesale price is nearly $10,000.

The price for minivans and full-size crossovers have both tumbled by more than 10 percent during the past year. But pickup trucks and full-size vans have continued to increase in price.

There are other surveys, however, prices newer models have leveled off, but not really declined very much.

USA Today, citing figures from Edmunds.com, says prices on those sought-after, late model cars sold by major automakers have declined by less than one percent. Edmunds says the average price for those dealership "cream puffs" is $15,793.

Analysts say that if you're thinking about trading in your car, don't wait. Prices are near their peak.

On the other hand, if you're looking to buy used, don't be in too much of a rush. Prices are likely to come back down some more during the next few months.

Earlier this year, the car shopping website CarGurus, reported that used cars were cheaper in and around heavily populated urban areas.

It recommends that you expand your search area, maybe traveling as far as two hours away, in order to get the best deal.

It's always a good idea to get vehicle history reports and to pay a local mechanic to do a quick once-over to make sure there are no major problems.

Before heading out the door, there are plenty of research sites you can use. Among the most popular: Edmunds, Kelley Blue Book, NADA, cars.com and our own AOL Autos.

Gallery: The Best And Worst Vehicles For Under $30,000

The Best And Worst Vehicles For Under $30,000Best -Best -Best -Best -

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]]>adesa servicesauto salesautomobileloansnadatrade-intransportationused carsDailyFinance StaffWed, 22 May 2013 11:58:00 ESTMarket Minute: Saks Weighs Selling Itself; Sony Considers Big Movehttp://www.dailyfinance.com/2013/05/22/market-minute-saks-weighs-selling-itself/http://www.dailyfinance.com/2013/05/22/market-minute-saks-weighs-selling-itself/http://www.dailyfinance.com/2013/05/22/market-minute-saks-weighs-selling-itself/#commentsFiled under: , ,

The sale signs at Saks may apply to more than its clothes, and Sony considers a big move.

The Dow industrials (^DJI) rose 52 points yesterday and the S&P 500 (^GSPC) edged up 2 points -- both closing at record highs. The Nasdaq (^IXIC) added 5 points.

517788688 - Saks Fifth Avenue by Alamy
Alamy
Shares of the upscale retailer Saks (SKS) are set to rally for a second straight day. A report circulated late yesterday that Saks had retained an investment adviser to review alternatives, including the possible sale of the company.

Sony (SNE) is set to jump on a report that it may spin-off its movie and music division. A Japanese newspaper says the company is leaning in favor of the proposal floated last week by activist shareholder, Daniel Loeb.

On the earnings front:

Target's (TGT) net fell 29 percent from a year ago and sales were a bit disappointing. The company also lowered its profit outlook for the full year.

Home-improvement retailer Lowe's (LOW) came up short of expectations, as revenue was virtually flat.

But homebuilder Toll Brothers (TOL) easily beat the Street. Net rose 46 percent and the company says orders for its luxury homes are rising, and so are the prices.

After the bell, we'll hear from Hewlett-Packard (HPQ). Despite some lingering business problems, HP shares have soared 48 percent so far this year.

Bristol-Myers Squibb (BMY) was upgraded to a "buy" rating by Citibank (C). It raised its earnings target for the drugmaker to well above the Street consensus.

Ford (F) is planning to boost production to meet growing demand. The company will shorten its normal summer shutdown at some plants and speed up production at others. General Motors (GM) and Chrysler are also limiting their summer shutdowns.

Netflix (NFLX) viewers can no longer get Sponge Bob or other programs from Viacom's (VIA) vast library. Their contract expires today.

And the Federal Reserve could affect trading today. Chairman Ben Bernanke testifies on Capitol Hill about the state of the economy, and at 2 p.m. Eastern time the Fed releases its beige book report on regional economic conditions.

Gallery: Highest Paid CEOs of 2012

10. Louis C. Camilleri: $24.7 million9. Ken Chenault: $28 million8. Stephen I. Chazen: $28.5 million7. Howard Schultz: $28.9 million

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]]>Investingmarket newsstocksDailyFinance StaffWed, 22 May 2013 08:50:00 ESTMidday Market Minute: More Americans Paying Credit Card Bills on Timehttp://www.dailyfinance.com/2013/05/21/midday-market-minute-more-americans-paying-credit-card-bills-on/http://www.dailyfinance.com/2013/05/21/midday-market-minute-more-americans-paying-credit-card-bills-on/http://www.dailyfinance.com/2013/05/21/midday-market-minute-more-americans-paying-credit-card-bills-on/#commentsFiled under: ,

We can give ourselves a collective pat on the back for making progress on our credit card debt. The rate of decline for national credit card delinquencies in the first quarter of this year fell 19 percent compared to the final quarter of 2012.

TransUnion, the credit-rating firm that tracks the numbers, says that's a sharp drop, and it indicates that consumers are doing a better job of making their payments on time, and of getting a better handle on their debt.

You're considered delinquent on your credit card if you haven't made the minimum payment in at least 90 days.

Credit card debt
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The amount of credit card debt we carry is also declining, even though the pace is much slower. The average credit card borrower owes $4,878. That's down 4.8 percent from the previous quarter. Compared to a year ago, it's down 1.7 percent.

Part of the improvement is seasonal. TransUnion says delinquencies and balances due typically decline during the first three months of the year as many of us pay down the debt run up during our holiday shopping sprees.

Many of us also get tax refunds in the first quarter and use some or of all of that to reduce debt.

The decline in the delinquency rate is a sign that many people are getting a better handle on their personal finances, even though millions have still not fully recovered from the recession.

The states that have the highest average credit card debt loads are Alaska, Colorado, North Carolina and Connecticut. Those with the lowest debt levels are all in the Midwest: Iowa, Wisconsin, and North and South Dakota.

Bottom line, the improving numbers are important because delinquency is so damaging to a borrower's credit rating. And once we have our debt under control, we're in a better position to spend a little bit more, which will give a boost to the overall economy.

-Produced by Drew Trachtenberg

Gallery: 13 Money Lies You Should Stop Telling Yourself By Age 40

1. Debt collectors will stop chasing me once I'm in retirement, so why worry about it?2. I can definitely get by in retirement with less income than I'm making now.3. I can always save more by postponing retirement until my late 60s or early 70s.4. I can always rely on Medicare for my long-term health care needs.5. My nest egg will be safe in a bank account.

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]]>american expresscredit cardsdebtdiscoverincome taxmastercardpersonal financevisaDailyFinance StaffTue, 21 May 2013 11:50:00 ESTMarket Minute: Scrutiny Awaits Heads of JPMorgan, Applehttp://www.dailyfinance.com/2013/05/21/tim-cook-jamie-dimon-face-scrutiny/http://www.dailyfinance.com/2013/05/21/tim-cook-jamie-dimon-face-scrutiny/http://www.dailyfinance.com/2013/05/21/tim-cook-jamie-dimon-face-scrutiny/#commentsFiled under: , , , ,

The heads of both JPMorgan and Apple are in line to get grilled today.

The Dow industrials (^DJI) fell 19 points yesterday, the S&P 500 (^GSPC) edged one point lower, and the Nasdaq (^IXIC) lost 2.

Apple (AAPL) chief Tim Cook testifies on Capitol Hill today about the huge cash horde it has sitting overseas because of the high taxes it would have to pay to repatriate the funds. He wants to overhaul the tax code, but a Senate panel charges that Apple and other companies use "gimmicks" to avoid paying taxes.

Tim Cook and Jamie Dimon
Getty Images
The day of reckoning has arrived for JPMorgan's (JPM) Jamie Dimon. Shareholders meet today to grill him and to conclude a vote on whether to split the chairman and CEO positions. The vote is expected to be close, but early indications are that he will hold on to both jobs.

A new drug from Merck (MRK) to treat insomnia is effective, but the staff of the Food and Drug Administration has raised questions about its safety when given in high doses. There's concern about patients' ability to operate a car the day after taking the medication, and to suffer severe bouts of daytime sleepiness. The FDA will review the findings tomorrow.

Microsoft (MSFT) today unveils its new Xbox console, its first major overhaul in eight years. But console-based videogames aren't nearly as popular now as they were back then.

Home Depot (HD) is benefitting the recovery in the housing market. Its quarterly net rose 18 percent, topping expectations. The retailer also raised its outlook for the full year.

Shares of Urban Outfitters (URBN) have soared more than 70 percent over the past year, but they could come under pressure today. The retailer posted solid earnings, but sales fell short of expectations.

And the cruise ship company Carnival (CCL) is feeling the effects of a string of accidents and bad publicity. The company says earnings for the full year will be sharply below expectations, as cancellations start to pile up.

-Produced by Drew Trachtenberg

Gallery: America's Nine Most Damaged Brands

9. J.P. Morgan8. BlackBerry7. Groupon6. Best Buy5. J.C. Penney

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]]>Applefdajamie dimonmarket newsMicrosoftstockstim cookxboxDailyFinance StaffTue, 21 May 2013 08:40:00 ESTHome Depot and Lowe's Report in Sandy's Continuing Wakehttp://www.dailyfinance.com/on/home-depot-lowes-earnings-sandy/http://www.dailyfinance.com/on/home-depot-lowes-earnings-sandy/http://www.dailyfinance.com/on/home-depot-lowes-earnings-sandy/#commentsFiled under: , ,

Home Depot and Lowe's continue to service, and benefit from, the victims of Hurricane Sandy.

It's been nearly seven months since the storm ravaged many communities along the east coast, and the reconstruction effort continues.

Hurricane construction
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That's expected to help both of the leading home improvement retailers post strong profits when they report quarterly results this week. Home Depot (HD) results are due out tomorrow morning and Lowe's (LOW) reports on Wednesday.

Home Depot opened a smaller store in the hard hit town of Seaside Heights, New Jersey this year. It's been set up to take orders from contractors involved in the rebuilding. There's also a design center for local residents.

The pick-up in orders from contractors isn't just along the path of Hurricane Sandy. The surge in home sales this year has jump-started that side of the business for both Home Depot and Lowe's.

Contractors usually account for more than a quarter of Home Depot's sales.

The resurgent housing market is also prompting new homeowners to spend heavily on landscaping, decorating and do-it-yourself projects. That could help offset the impact of a particularly cool spring that may have limited the sales of gardening and other seasonal items.

According to Briefing.com, Home Depot is expected to post earnings of 76¢ a share, up from 65¢ a year ago.

Lowe's is seen earning 51¢, up from 44¢ a year ago.

Revenue gains for both retailers are expected to be in the two to six percent range.

In general, Home Depot has been outperforming smaller rival Lowe's -- partly, analysts say, because it operated more efficiently. In its previous earnings report back in February, Home Depot posted a 32 percent profit jump and, unlike other retailers, said its customers did not seem to be holding back because of the payroll-tax hike.

But Lowe's has held its own on Wall Street. Its shares have jumped 33 percent so far this year. Over that same time, Home Depot is up 24 percent.

-Produced by Drew Trachtenberg

Gallery: Hurricane Sandy Destruction Photos: An Epic Storm


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]]>earningsHome Depothome improvementhurricane sandyLowesDailyFinance StaffMon, 20 May 2013 12:50:00 ESTMarket Minute: Suitors Circle Hulu; Yahoo Bets on Tumblrhttp://www.dailyfinance.com/2013/05/20/suitors-circle-hulu-yahoo-buys-tumblr/http://www.dailyfinance.com/2013/05/20/suitors-circle-hulu-yahoo-buys-tumblr/http://www.dailyfinance.com/2013/05/20/suitors-circle-hulu-yahoo-buys-tumblr/#commentsFiled under: , , , ,

The business week starts with potential buyers circling around Hulu, while Yahoo makes a big bet on social media.

For the fourth week in a row, the Dow industrials (^DJI) and the S&P 500 (^GSPC) begin the week at record highs. The Dow gained 1.6 percent last week, the S&P jumped 2 percent and the Nasdaq composite index (^IXIC) rose 1.8 percent.

Hulu
DailyFinance
The video site Hulu continues to attract interest. Reports say DirecTV (DTV) is considering a bid. Time Warner Cable (TWC), Yahoo (YHOO) and several private groups have also expressed interest. Hulu owners Walt Disney (DIS), Comcast (CMCSA) and News Corp. (NWS) have been weighing options, including the sale of the business.

Yahoo has agreed to buy the Tumblr. Published reports say the deal is worth $1.1 billion. Tumblr has more than 100 million users, but so far it has generated very little revenue. The deal is seen as a bold move by Yahoo to seek a younger audience.

Generic-drug maker Actavis (ACT) has agreed to acquire Warner Chilcott (WCRX) for $8.5 billion. Warner Chilcott makes health-care products aimed at women. The deal comes as Actavis itself has been the subject of buyout efforts from Valeant Pharmaceuticals (VRX) and Mylan (MYL).

And the consulting firm Accenture (ACN) has agreed to buy Acquity (AQ), a digital marketing company, for $316 million. Acquity shares doubled on the deal.

United Airlines today will fly passengers to Chicago from Houston on a 787 Dreamliner. It's the first domestic commercial flight for the Boeing Dreamliner since it was grounded in January following a series of safety incidents involving the plane's battery system. On board the flight today -- the CEOs of both United Continental Holdings (UAL) and Boeing (BA).

Goldman Sachs (GS) has downgraded its rating on Deere (DE) to "sell." It sees a downside risk to the farm equipment maker's earnings this year.

And General Electric (GE) says it will receive $11 billion in dividend and special dividend payout from its GE Capital unit this year.

-Produced by Drew Trachtenberg

Gallery: 7 Companies That Behave Like 'Star Trek' Aliens

1. Apple2. BlackBerry3. Cisco Systems4. eBay5. Facebook

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]]>huluInvestingmarket newsstockstumblrYahooDailyFinance StaffMon, 20 May 2013 08:50:00 ESTApple's Tim Cook Wants to Repatriate Overseas Cash at Lowered Ratehttp://www.dailyfinance.com/on/apple-tim-cook-overseas-cash-tax-rate/http://www.dailyfinance.com/on/apple-tim-cook-overseas-cash-tax-rate/http://www.dailyfinance.com/on/apple-tim-cook-overseas-cash-tax-rate/#commentsFiled under: ,


Apple pushes for a major tax change that it says will boost the U.S. economy: CEO Tim Cook plans to call on Congress next week to dramatically simplify corporate tax laws.

His main focus is to make it less costly for Apple (AAPL) and other tech companies to repatriate huge piles of cash sitting overseas.

In interviews with The Washington Post and Politico, Cook said Apple would invest the money in job creation and research and development.

Tim Cook
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Apple has more than $100 billion stashed overseas. Under current law, it would need to pay a 35 percent tax rate on profits to bring that money back home.

Cook says he is not proposing that companies bring that money home without paying any tax, but he says the rate "has to be reasonable."

He will testify on Tuesday before a Senate subcommittee, and he may not receive an altogether warm welcome. Last year the panel gave officials from Microsoft (MSFT) and Hewlett-Packard (HPQ) a tongue-lashing for avoiding tax payments.

All told, a report from JPMorgan (JPM) estimates that U.S. companies hold $1.7 billion in earnings overseas.

But Cook claims that Apple is not averse to paying reasonable taxes. He says the company is likely the largest corporate taxpayer in the U.S., and will incur a federal tax bill of about $7 billion dollars this year.

The big question for Congress is whether lowering the rate on companies bringing money back home would lead to those funds being spent in a productive way. Critics doubt the cash would be used to expand and create jobs.

The controversy of tax avoidance is also getting lots of attention overseas. The British parliament lambasted Amazon (AMZN) and Google (GOOG) this week over their low tax bills.

Reuters reports that over the last six year, Amazon has paid just $9 million dollars in taxes on more than $23 billion in sales to British clients. That's because the company operates all of its European operations out of Luxembourg, where it pays a much lower tax rate.

-Produced by Drew Trachtenberg

Gallery: America's Most Profitable Products

7. Garmin nüvi6. Folgers5. Enfamil4. Coca-Cola3. Monster

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]]>Applecorporate taxesoverseas profitsTim CookDailyFinance StaffFri, 17 May 2013 11:45:00 ESTMarket Minute: J.C. Penney's Post-Ron Johnson Earnings Confirm Grim Warninghttp://www.dailyfinance.com/on/jc-penney-quarterly-results-weak/http://www.dailyfinance.com/on/jc-penney-quarterly-results-weak/http://www.dailyfinance.com/on/jc-penney-quarterly-results-weak/#commentsFiled under: , , ,


Two big name companies have fallen on hard times, and the numbers tell the story.

The Dow Industrials fell 42 points yesterday, the S&P 500 lost 8, and the Nasdaq fell 6.

JCPenney
AOL
J.C. Penney (JCP) had warned that its quarterly results would be weak. They were, and then some. The retailer posted a loss of $348 million, more than double the deficit of a year ago. And sales tumbled 16 percent. The company blames the failed policies of ousted CEO Ron Johnson. It is now in the process of returning to its prior use of sales and discounts. Penney shares have lost 30 percent over the past year.

Dell's (DELL) net tumbled 79 percent, falling short of Wall Street's already lowered expectations. It's the company's sixth straight decline in quarterly earnings, as the PC market continues to suffer due to the growing popularity of smartphones and tablets. Company founder Michael Dell is trying to take the company private in a deal valued at more than $24 billion.

Two other tech companies, Autodesk (ADSK) and Aruba Networks (ARUN), are set to slide after posting disappointing results. Autodesk also forecast results for the current quarter that are below Street estimates.

Home furnishings retailer Tuesday Morning (TUES) fired its chief executive nearly a year ago. Now she's suing the company, claiming discrimination after being diagnosed with breast cancer. Tuesday Morning says the charge is without merit.

And tomorrow is the one-year anniversary of Facebook's (FB) IPO. It was marred by a major technical glitch at the Nasdaq, and a quick drop in price. Shares were listed at $38; they closed yesterday at about $26.

Also tomorrow, diehard gamers will get their first look at Microsoft's (MSFT) new Xbox video game system. According to NPD, videogame sales tumbled 25 percent last month.

-Produced by Drew Trachtenberg

Gallery: J.C. Penney Says 'We're Listening.' Here's Who They Should Listen To

Take it Easy With the Coupon ComebackCoupons are Tough for Employees, TooYour Customers Aren't All SkinnyBring Back the CatalogsMobile Checkout Is Confusing

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]]>dellearningsjc penneymarket newsretailDailyFinance StaffFri, 17 May 2013 09:00:00 ESTMidday Report: CEO Pay Rises Modestly, Still Dwarfs Workers'http://www.dailyfinance.com/on/ceo-pay-rises-larry-ellison-oracle/http://www.dailyfinance.com/on/ceo-pay-rises-larry-ellison-oracle/http://www.dailyfinance.com/on/ceo-pay-rises-larry-ellison-oracle/#commentsFiled under: ,

Pity the poor CEO. His pay rose only 3.6 percent last year.

If you're of a certain age, you probably remember the 1970s song, "Momma Don't Let Your Babies Grow Up to be Cowboys." Well, if you're thinking of doing a rewrite, the next verse should be: "Let them be CEOs instead."

The total compensation for the top executive at major companies last year was $10.1 million.

According to an analysis of 300 major companies by the consulting firm Hay Group and The Wall Street Journal, that's up just 3.6 percent from the year before -- not all that much different than the 2.3 percent pay hike given to the average worker.

Larry Ellison CEO pay
Getty Images
But here's how the pay gap keeps widening: You can't spend percentages. Three percent of $50,000 is 1500; three percent of $10 million is 300,000.

That means the moderate raise given to these CEOs is about six times greater than what the average worker earns in a year. And the average CEO makes nearly 300 times more than the average worker.

Gallery: Highest Paid CEOs of 2012


But the Journal says that after decades of steady increases that were even bigger, CEO pay may be leveling off.

The average CEO gets a salary of $1.1 million, an annual bonus of $2 million and stock grants of $7 million.

Company boards are trying to tie a bigger percentage of pay to performance, meaning the CEO does well if the company's shareholders do well.

Some corporate governance experts say this aligns executive pay with investor interests -- and that's a good thing. But others worry that the rising reliance on stock awards makes it more likely the people receiving them will resort to accounting maneuvers and other short-term measures to artificially boost the value of their stock.

Some of those stock grants given out when the market slumped in 2008 and 2009 are now worth huge fortunes.

So who were the highest paid executives last year? Oracle's (ORCL) Larry Ellison was number one, with total compensation of more than $94 million. He was followed by the CEOs of CBS (CBS), Walt Disney (DIS), Nike (NKE), Viacom (VIA), eBay (EBAY), Medtronic (MDT), Exxon Mobil (XOM), DaVita HealthCare (DVA) and Starbucks (SBUX).

It's good to be a CEO.

-Produced by Drew Trachtenberg

Gallery: Highest Paid CEOs of 2012

Gallery: Highest Paid CEOs of 2012

10. Louis C. Camilleri: $24.7 million9. Ken Chenault: $28 million8. Stephen I. Chazen: $28.5 million7. Howard Schultz: $28.9 million

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]]>ceoscompensationlarry ellisonmarket newsoracleDailyFinance StaffThu, 16 May 2013 12:10:00 ESTMarket Minute: Facebook IPO Scammers Arrested; Warren Buffett's Portfoliohttp://www.dailyfinance.com/on/facebook-ipo-scam-arrests-buffett-portfolio/http://www.dailyfinance.com/on/facebook-ipo-scam-arrests-buffett-portfolio/http://www.dailyfinance.com/on/facebook-ipo-scam-arrests-buffett-portfolio/#commentsFiled under: , , , ,



Arrests are made in a scam involving Facebook's stock, and Warren Buffett tweaks his stock holdings.

Another day, another record. The Dow Jones industrial average rose 60 points yesterday, ringing up its 20th record close this year. The S&P 500 gained 8, and the Nasdaq rose 9.

Facebook logo
AP
Lots of investors feel like they were suckered by Facebook's (FB) much ballyhooed IPO last year, but none like a New Zealand man who bought Facebook stock that didn't exist. Bloomberg Businessweek reports that federal officials in New Jersey have charged three men with scamming the foreign investor into paying $3 million for shares he never received, and another $3.5 million in a different scheme. The three men could face up to 20 years in prison for wire fraud, and a fine of $250,000.

Warren Buffet's company, Berkshire Hathaway (BRK-A, BRK-B), is out with the quarterly changes to its investment portfolio. It increased its holdings in IBM (IBM), Wells Fargo (WFC) and Walmart (WMT), but sold its entire stakes in General Dynamics (GD) and Archer Daniels Midland (ADM).

Walmart's quarterly earnings and sales came in slightly below expectations. After the close, J.C. Penney (JCP) is expected to post another loss.

Shares of Cisco System (CSCO) are set to pop after the technology bellwether reported better-than-expected sales and earnings. That's seen as a good sign for corporate spending on technology in general.

More manufacturing problems for Boeing (BA). The aerospace giant says engines made by General Electric (GE) for some 777 models are defective and need to be replaced. This comes just as Boeing is near completion of a battery fix for the 787 "Dreamliner"; that mishap prompted the grounding of the entire fleet.

Southwest Airlines (LUV) is returning some profits to shareholders. It's quadrupling its quarterly dividend to 4¢ a share from a penny, and it plans to buy back more stock.

And Tesla Motors (TSLA), which has been red-hot of late, plans to raise 830-million in a secondary stock offering. It will use the proceeds to repay an Energy Department loan ahead of schedule.

-Produced by Drew Trachtenberg

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Gallery: 5 Companies Getting Burned By Facebook


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]]>Facebookmarket newsScamswarren buffettDailyFinance StaffThu, 16 May 2013 08:45:00 ESTMidday Report: John McCain Pushes for à la Carte Cable, Providers Resisthttp://www.dailyfinance.com/on/john-mccain-cable-companies-espn/http://www.dailyfinance.com/on/john-mccain-cable-companies-espn/http://www.dailyfinance.com/on/john-mccain-cable-companies-espn/#commentsFiled under: ,


À la carte cable: a cheaper option for consumers, or fool's gold?

Senator John McCain is pushing a bill to allow TV viewers to pay à la carte rates to get only the channels they watch. He told a Senate panel yesterday that consumers would save money if they did not have to pay for bundles of channels, most of which they rarely turn on.

He's especially focused on sports programming, especially for people like him who rarely tune in to ESPN and other sports channels.

According to a report by the research firm SNL Kagan, ESPN charges cable companies an average of about $5.50 per month, and that cost gets passed along to consumers.



McCain argues about cable billMcCain says it's "unfair and wrong" that we're forced to pay for things we simply don't want.
But the cable industry says that argument is unfair. It maintains that bundles, such as the basic cable package, offer a wide variety of viewing options and a better value than per channel pricing.

Consumers are often outraged by the high cost of cable or satellite subscriptions. The FCC said the average cable bill in 2011 for the most popular package cost more than $57 a month. That represents an average annual increase of 6.1 percent a year, every year since 1995.

That makes à la carte pricing sound pretty attractive to many consumers. But some analysts say most people would actually lose out, because they would no longer have access to channels that they don't watch on a regular basis, but do tune in to for some particular programs.

For instance, maybe you don't watch PBS very often, but love "Downton Abbey." Or maybe there's an old movie on AMC that you want to catch.

This even pertains to sports programming. You may not watch games on a regular basis, but you still get caught up in March Madness basketball games or the World Cup soccer tournament.

Critics say à la carte pricing is a lose-lose proposition. They say consumers would end up with far fewer channels to choose from without saving much money. Smaller cable channels that are likely to get dropped by many people would lose potential viewers. And the cable companies would lose revenue.

Not surprisingly, a trade group representing Comcast (CMCSA), Time Warner Cable (TWC) and other cable companies opposes McCain's bill.

-Produced by Drew Trachtenberg

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Gallery: The Monster in the Closet: Economic Horrors and Scary Movies


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]]>cable companiesmarket newsDailyFinance StaffWed, 15 May 2013 12:00:00 ESTMarket Minute: Google CEO Larry Page Discloses Health Conditionhttp://www.dailyfinance.com/on/google-ceo-larry-page-health-condition/http://www.dailyfinance.com/on/google-ceo-larry-page-health-condition/http://www.dailyfinance.com/on/google-ceo-larry-page-health-condition/#commentsFiled under: , , ,


Google's top exec reveals why he's been out of the spotlight lately, and Walmart plans to go it alone on safety inspections.

The Dow Industrials rallied 123 points yesterday, closing at another record high. Incredibly, the Dow has now gained ground for 18 straight Tuesdays. The S&P 500 rose 16 and the Nasdaq gained 23 points.

Larry Page illness
Getty Images
Google (GOOG) CEO Larry Page is suffering from a rare and chronic medical condition, a paralysis of both vocal chords. He says the condition is improving and he continues to run the company, but he's limited in how much and how loudly he can talk. He made the health disclosure just as key conference for Google's software developers gets underway in San Francisco. Bloomberg reports the company is about to launch a new Spotify-like, subscription-based music streaming service.

Walmart (WMT) says it will go it alone and not sign on to an international safety plan for factories in Bangladesh. The company says it will inspect all of the 279 factories it uses there, but critics say Walmart's proposal falls short of the legally-binding plan that many European retailers have agreed to support. Gap (GPS) says it is still considering the global plan.

T-Mobile (TMUS) has reduced the discount it offers on the iPhone 5. It had been selling the smartphone for $100 less than other carriers; that discount is now $50.

Farm equipment maker Deere (DE) beat earnings estimates, but the company says its sales for the rest of year could be under pressure.

After the bell we'll hear from tech industry leader Cisco Systems (CSCO).

Yahoo (YHOO) is planning a marketing blitz to attract a younger audience. The company's chief financial officer told a technology conference yesterday that Yahoo has an aging demographic, and that it has to become cool again.

And Actavis (ACT) has reportedly received and rejected a takeover bid from Mylan (MYL). Reuters says the offer values the generic drug maker at more than $15 billion.

-Produced by Drew Trachtenberg

Gallery: 6 Ways Google Glass Will Change the Way You Shop

1. Barcode Scanning and Price Comparisons2. Budget and Account Balance Checks3. Get Better Customer Service4. Get Live Feedback on That Outfit5. Divide and Conquer at the Grocery Store

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]]>ceosearningsGooglemarket newswalmartDailyFinance StaffWed, 15 May 2013 09:00:00 ESTMidday Report: Networks, Losing Viewers, Show Advertisers New Scheduleshttp://www.dailyfinance.com/on/networks-new-tv-shows-advertisers/http://www.dailyfinance.com/on/networks-new-tv-shows-advertisers/http://www.dailyfinance.com/on/networks-new-tv-shows-advertisers/#commentsFiled under: , , , ,


Viewers are abandoning the old-line TV networks in droves, but advertisers are still willing to pay big bucks.

CBS (CBS), NBC, ABC and Fox are all down over the past year in the key demographic of viewers in the 18-to-49 year old range. But they may get seven to nine percent more from ad revenue this week in what's known as their upfront presentations to advertisers.

Remote TV new schedules
Alamy
The four major networks are offering up dozens of new shows for the upcoming season, starting this fall. It's one of the biggest rollouts of new programming ever, as the networks look to blow up their schedules after a disastrous drop in ratings over the past year.

The main reason is wave of competition from cable and online.

Goldman Sachs (GS) estimates that 17 percent of that key 18-to-49 demographic has simply stopped watching broadcast TV over the past year.

Meanwhile, on cable there are hit shows like "Homeland", "Game of Thrones", "The Walking Dead", and "The Bible". Netflix (NFLX) too has original programming, most notably "House of Cards" and "Arrested Development".

And then there's Hulu, YouTube and Aereo, which reroutes network programming onto computers and smartphones for free.

All of this reduces the number of eyeballs available for the networks. But advertisers are still willing to pay big bucks for network programs. Even though viewership is down -- as much as 21 percent at Fox -- the networks still garner the biggest audiences, and national advertisers find that too appealing to pass up.

As for the new shows, the one that likely to get the most early publicity is an NBC sitcom featuring Michael J. Fox. He plays a character that might sound familiar: a TV personality, this time a reporter, who comes out of retirement despite his obvious symptoms of Parkinson's disease.

CBS, which sits in first place, has new comedies featuring Robin Williams, Will Arnett and Anna Faris.

Fox has several new comedies -- one about a gay divorced dad, another about Latino and white families thrust together when their teenage kids prepare to become parents.

And ABC seems to be targeting male viewers with shows like "Resurrection", in which the dead mysteriously come back to life. On the comedy side, it will try a "Modern Family" spinoff.

Comcast (CMCSA) owns NBC, Walt Disney (DIS) owns ABC, and News Corp. (NWS) owns Fox.

-Produced by Drew Trachtenberg

Gallery: Follow the Money: 5 Extremely Cash-Rich Stocks

AppleGoogleEMC CorporationIntelMicrosoft

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]]>advertisingmarket newstelevisionDailyFinance StaffTue, 14 May 2013 12:20:00 ESTMarket Minute: Carl Icahn Gives Himself the Nod for Directorship of Dellhttp://www.dailyfinance.com/on/carl-icahn-dell-director-billionaires/http://www.dailyfinance.com/on/carl-icahn-dell-director-billionaires/http://www.dailyfinance.com/on/carl-icahn-dell-director-billionaires/#commentsFiled under: , ,


It's good to be a billionaire, and three of them are making news this morning.

Investor Daniel Loeb is pushing Sony (SNE) to spin off part of its entertainment arm. The New York Times says his hedge fund is one of the Japanese company's largest shareholders. He's targeting the unit that includes Sony's movie studio and music label. Sony says it's for sale.

Private equity investor Carl Icahn speaks at the World Business Forum on Thursday, Oct. 11, 2007 in New York. (AP Photo/Mark Lennihan)
Mark Lennihan, AP
Billionaire investor Carl Icahn has nominated himself and a slate of 11 others as directors at Dell (DELL). Icahn is leading an effort to block company chairman Michael Dell from taking the company private.

And business sometimes makes strange bedfellows. Climate-change crusader Ted Turner is teaming up with the big electric utility Southern Co. (SO) to develop giant solar farms.

In other news: Blackberry (BBRY) and Nokia (NOK) were once leaders in the smartphone business, but now they're laggards. Today, both companies -- hoping to regain market share -- unveil new models. Nokia showed off the latest in its Lumia line, a phone that charges wirelessly and features a high-end camera. And later today, Blackberry may unveil a cheaper version of its phone.

Amazon (AMZN) has purchased the Samsung unit working on developing color displays for e-readers. That's prompting speculation that Amazon will soon add a color version of its Kindle device.

Video game maker Take-Two Interactive (TTWO) posted a quarterly profit, reversing a year ago loss. Sales for the period were better than expected, led by strong demand for its new "Bioshock Infinite" game.

And Verizon Wireless (VZ) plans to pay a 7-billion dollar dividend to its two co-owners - Verizon Communications and Vodaphone. There had been speculation that Verizon Communications would block the mobile phone joint venture from making the payment, in an effort to force Vodafone to sell its stake.

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Gallery: Invest Like a Cicada: 5 Stocks to Buy and Hold Until 2030

FordAppleWalmartProcter & GambleDisney

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]]>billionaireCarl Icahndellmarket newsSONYDailyFinance StaffTue, 14 May 2013 08:45:00 ESTAbercrombie & Fitch's Strange CEO May Want to Rethinkhttp://www.dailyfinance.com/on/abercrombie-and-fitch-strange-ceo-no-fat-customers/http://www.dailyfinance.com/on/abercrombie-and-fitch-strange-ceo-no-fat-customers/http://www.dailyfinance.com/on/abercrombie-and-fitch-strange-ceo-no-fat-customers/#commentsFiled under: , ,

Abercrombie & Fitch Under Fire For Lack of Plus-Sized Clothing

Abercrombie & Fitch CEO Mike Jeffries is once again attracting all the wrong kinds of attention.

Last week, Business Insider highlighted the retailer's longstanding practice of only stocking small sizes and spurning plus-sized customers. It pointed to a 2006 Salon interview in which Jeffries candidly allowed that "we go after the attractive all-American kid" and that "a lot of people don't belong in our clothes."

A&F CEO
AP
That practice is nothing new, then, but it's once again thrust the eccentric executive into the public spotlight. In 2010, the retailer was sued by a corporate jet pilot who claimed he was fired for being too old. And last year an interesting tidbit from that suit hit the press: An airline manual describing the CEO's curious standards for his flight crew. The press grabbed hold of the sordid details, including the fact that the flight attendants were required to be young men in Abercrombie jeans, boxer briefs and wearing a spritz of Abercrombie-brand cologne.

So Jeffries' no-fat-customers policy may have more to do with his own personal predilections for youth and beauty than any rational business argument.

The renewed focus on Abercrombie's business model also has a lot of people talking about Jeffries' own appearance, which many attribute to the 68-year-old CEO using plastic surgery to fight the ravages of time. One user on Reddit posted a recent picture of the executive and declared him "too ugly to work at his own stores"; the line of attack has gone viral, with various critics mocking the seeming disconnect between Jeffries' strange appearance and his stated desire to only cater to the thin and beautiful.

Regardless of Jeffries' supposed hypocrisy, there's an argument to be made that restricting his target audience might be bad for business. As one commentator notes, two-thirds of American clothes-buyers are considered plus-sized, so Abercrombie might want to consider tweaking its offerings to sell to a broader cross-section of consumers.

UPDATE: The latest development in this saga addresses the controversy in a way that's a bit more clever than calling Jeffries ugly. Writer Greg Karber has started a campaign he's dubbed "Fitch the Homeless," which donates Abercrombie and Fitch clothing to homeless people. Since Jeffries is on record as stating that he only wants "attractive" and "cool" people to wear his clothes, Karber is obviously aiming to is to antagonize Jeffries by making it the preferred brand for the homeless.

While we're not crazy about the idea of using homeless as props in this fights, we're guessing they don't really mind getting some new clothes.

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]]>abercrombie and fitchabercrombie and fitch ceofitch the homelessmike jeffriesDailyFinance StaffMon, 13 May 2013 15:19:00 EST