Budget Airline Ramps Up Orders for Boeing Jets

September 8, 2014, 3:20 am

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Filed under: Aerospace & Defense, Manufacturing, Transportation & Logistics, Travel Industry, This Built America

NEW YORK -- European airline Ryanair has committed to order 100 of Boeing's (BA) 737 MAX 200 airplanes, valued at $11 billion at current list prices.

Buyers often get steep discounts off list prices for passenger jets.

Ryanair has options to buy another 100 of the 737 MAX 200s as well.

The 737 MAX 200 is considered more fuel-efficient than most other current single-aisle airplanes and can accommodate up to 200 seats.

Ryanair runs more than 1,600 flights daily. CEO Michael O'Leary said in a statement Monday that the 737 MAX 200 order will allow Ryanair to reduce its costs and airfares. It will also expand Ryanair's fleet to 520 airplanes by 2024 and create another 3,000 new jobs for pilots, cabin crew and engineers in Europe, he added.

O'Leary anticipates the order helping Ryanair increase its traffic to more than 150 million annually by 2024. Its 2013 traffic totaled 82 million.

Stephen Levenson of Stifel Nicolaus said in a client note that since most of Ryanair's flights are less than 2.5 hours, the high density seating plan of the 737 MAX 200 is ideal for its operations.

The analyst also believes that any backlog growth concerns investors have for Boeing should be wiped away by the announcement of the Ryanair order. Levenson anticipates that even if Boeing's 2015 orders don't keep pace with the previous year, its outlook is still strong for earnings and cash flow growth in 2015, 2016 and the future.

Levenson maintained a "Buy" rating for Boeing Co.

The company's stock added $3.01, or 2.4 percent, to $127.70 in midday trading.

 

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McDonald's Wants to Start Your Day With a Free Cup of Coffee

September 8, 2014, 3:44 am

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Filed under: Starbucks, McDonald's, Consumer Ally, Fantastic Freebies, Spending

If you like to start your day with a cup of a coffee and like the idea of free, McDonald's (MCD) has a deal for you. From Sept. 16 through Sept. 29, the fast food giant is giving customers a free small coffee during its breakfast hours. At participating restaurants only, of course.

McDonald's announced earlier this year that it was going to put more effort into growing its coffee business. Even though its brand is hardly built on coffee, the chain has become the top seller of coffee in the country. But there's stiff competition out there, with the likes of Starbucks (SBUX) and Dunkin' Donuts (DNKN) enjoying fierce brand loyalty -- and far stronger associations with java.

But free is free, and the idea is to see if any of those who usually head to the other places for their morning Joe could be convinced to give McDonald's brew a try. Even when it's not free, coffee at McDonald's is often a much better deal than its competitors' cups. Many McDonald's outlets offer any size coffee for $1. Those who drink large coffees can expect to pay twice that at Dunkin' Donuts and even more at Starbucks.

But if you value caffeine in your coffee, particularly to get you going in the morning, be aware that McDonald's coffee typically doesn't pack the punch of what Starbucks, Panera Bread Co. (PNRA) and Dunkin' are offering. Starbucks coffee has been measured as having more than twice the caffeine of McDonald's coffee, while most of the others were at least 20 percent more potent.

Of course, not everyone requires the same amount of jolt. And free is free, even if it's only for two weeks.

Freebies First, In Supermarkets Later

McDonald's tried to amp up its coffee game in 2009, when is launched its McCafe concept. Now, the company is saying it expects to get into the grocery coffee wars, too, with its branded bagged coffee and single-serve K-cups arriving in stores early next year.

This is the second time McDonald's has used a "Free Coffee Event" giveaway to promote its brew. In March, McDonald's said it gave away "millions" of cups of coffee. The chain increasingly is offering a variety of coffee drinks to gain a greater foothold in the coffee market.

"We know our guests are busy, especially during the morning, and a free cup of coffee goes a long way in helping get their days started," McDonald's Senior Vice President Greg Watson said in a statement.

 

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Is the Small Business Economy Growing Fast Enough?

September 8, 2014, 4:45 am

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Filed under: Economy

It has been known for several years now that this current economic recovery would require raw net growth from the small business economy. Many large businesses have continued to keep their payrolls low or have been slow to add to R&D and capital spending. A new report suggests that the small business economy continues to grow modestly, according to Newtek's July 2014 SB Authority Index.

Newtek Business Services' SB Authority Index of small business indicators shows that the index hit 128.72 for July 2014. The index was up 0.7% from June 2014, but on a year-over-year basis it was up 6.98%. Leading the increase were approved SBA lending volumes, the Russell Microcap Index and Newtek Merchant Processing volume.

Barry Sloane, who is chairman, president and CEO of the Small Business Authority, said:

The small business economy seems to be picking up a little bit of steam, despite a lack of robust growth in new employment hires. The low interest rate environment continues to make the financing market for equity and debt fertile, as well as encourages consumers to spend instead of save.

So, what are other things looking like in the world of small businesses? On September 2 we showed separately how the Paychex reporting indicated that small business hiring looked less robust in August. We also showed last month that the National Federation of Independent Business (NFIB) said its Small Business Optimism Index technically rose 0.7 points to 95.7 in July.

The good news is that small business growth continues. The bad news is that small businesses in America might not be growing fast enough to make up for the business losses that could be expected as a side effect of the slowing business trends in Europe.

READ ALSO: The 10 Best-Paying Jobs for High School Graduates

Filed under: Economy

 

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Does Your College Kid Know How to Prevent Identity Theft?

September 8, 2014, 5:05 am

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Filed under: Identity Theft, Consumer Ally, Credit Cards, College, Consumer Protection

It would be hard to dream up a better group for identity thieves to target than new college students. Fresh from relying on Mom and Dad to cover virtually all of their expenses, freshmen arrive on campus with clean credit reports, and before they've even fully unpacked, they're inundated with offers for credit cards. Naturally, they usually lack experience about the perils of dealing with credit -- everything from fees that can be imposed for exceeding a credit limit and late payments to the fraudulent charges that appear after an identity theft. And they're rarely developed the appropriate level of caution about taking care of their identity information.

Result: Once they enter college and cross the age-20 line, young adults' rates of identity theft victimhood more than triple -- from 6 percent to 20 percent, according to the Federal Trade Commission.

A Big Problem for All of Us

According to the FTC's Consumer Sentinel Network Data Book, identity theft is the No. 1 type of complaint the agency received from consumers last year, making up 14 percent of all complaints recorded. (Complaints about debt collectors and banks, respectively, were Nos. 2 and 3.)

In more bad news for college kids victimized by ID thieves, they're basically on their own in dealing with the consequences. According to a survey by consumer website CreditDonkey.com last year, 66 percent of the time that identity theft results in fraudulent charges on a consumer's credit card, it's the consumer who's first to notice them. So what should your college kid be watching out for?

Social Media Isn't Your Friend

A 2013 E-Expectations Report from consultant company Noel-Levitz surveying more than 2,000 college-bound high school students found that while interest in social media may be declining, 67 percent of respondents still use Facebook (FB), 28 percent use Twitter (TWTR), and 15 percent use Instagram.

That could be a problem. As a general rule, when people set up a Facebook account, some of the first details about themselves that they post online are their name, where they were born, where they live now and their birthday -- all helpful facts for friends trying to recognize and friend them online, no doubt, but also helpful for anyone looking to steal an identity. Add in information about employers, pets, favorite movies, authors and so on -- all common "challenge" questions on bank and credit card websites -- and social media can be a gold mine for would-be identity thieves.

It gets even worse when you consider that, according to CreditDonkey, three in 10 social media users share their passwords with friends to give them full access to their accounts, and 25 percent of Facebook users happily accept friend requests from people they do not know -- enabling wider access to their personal data.

Be Smart About Phone Use

Nearly four out of five college-age kids own smartphones, according to Nielsen Research. On these devices, they carry their entire digital lives -- and a host of useful information for identity thieves. Unfortunately, a 2012 report by Javelin Strategy & Research notes that 62 percent of smartphone users don't password-protect the welcome screen on their phones.

That's the digital equivalent of leaving your home's (or bank vault's) front door unlocked. It means that anyone who gets access to your kid's smartphone more likely than not will have instant access to all the information it contains -- not least of which the phone number that a bank inquiring about a questionable charge will probably call when seeking confirmation -- making identity theft a snap.

Ask Your Kid's School to Smarten Up, Too

Nearly a decade after the epidemic of identity thefts first swept across America, many of America's colleges are still stuck in the 20th century, still playing fast and loose with what is perhaps a student's single most important piece of personally identifiable information: the Social Security Number.
Many colleges in the U.S. still use a student's SSN as their student identification number. This number then gets used all over campus -- to pay for meals at the cafeteria, as identification in the campus bookstore, to sign in at the recreation center -- and each time the SSN gets input, an identity thief gets a chance to swipe it.

As the school year starts ramping up again, so does college students' risk of identity theft. Make sure your kid is being smart not only about their studies, but about identity theft prevention as well.

Motley Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends Facebook and Twitter. The Motley Fool owns shares of Facebook. Try any of our Foolish newsletter services free for 30 days.

 

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Last Week's Biggest Stock Movers: Keep an Eye on Mobileye

September 8, 2014, 5:30 am

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Filed under: Company News, Earnings, Market News, Industry News, Investing

In any given week, some stocks are sure to shoot up, and others will plummet. The big gainers inspire us to keep investing. The presence of the decliners keeps our greed in check while reminding us about the risks of the equity markets.

Let's go over some of last week's best and worst performers.

Methode Electronics (MEI) -- Up 21 percent last week

Strong quarterly results helped move Chicago's Methode Electronics higher. The developer of custom-engineered products and solutions for the automotive, power and interface industries saw revenue and earnings climb 30 percent and 57 percent, respectively.

Methode Electronics' profit of 55 cents a share blew away the 40 cents a share that analysts were expecting. That's a big surprise since the company had fallen short of Wall Street profit targets in the two previous quarters. Methode Electronics is also raising its guidance for the entire fiscal year.

1-800-FLOWERS (FLWS) -- Up 18 percent last week

There are now more eggs in the gift basket at 1-800-FLOWERS. Shares of the floral arrangement delivery specialist moved higher after announcing that it was buying gourmet gift basket specialist Harry & David in a $142.5 million deal. It's true that 1-800-FLOWERS already offers more than just flowers. This deal will allow it to expand its reach in fruit and gourmet food gift baskets, broadening its appeal.

Mobileye (MBLY) -- Up 16 percent last week

The self-driving car is getting closer to becoming a reality, and Mobileye keeps driving higher. The Israel-based company is in the pole position when it comes to camera-based Advanced Driver Assistance Systems, and it made the cut in this weekly column last week with a 15 percent advance after several analysts initiated coverage on the company with bullish forecasts.

This week investors padded their gains with an even better 16 percent gain after Mobileye posted strong quarterly results. Revenue soared 91 percent during the period. A Morgan Stanley (MS) analyst talked up Mobileye on CNBC, suggesting that the stock could hit $100 if a viable competitor doesn't emerge in the next year and change.

Exelixis (EXEL) -- Down 55 percent last week

It's feast or famine for investors in upstart biotechs riding on the success of a single drug, and that kind of speculation burned Exelixis last week. It was last week's biggest sinker, losing more than half of its value after a late-stage clinical trial for its potential prostate cancer drug failed to show an improvement in patient survival rate.

If Exelixis shares look bad, the company itself looks worse. The bad news will result in Exelixis eliminating more than two-thirds of its employees.

Conn's (CONN) -- Down 35 percent last week

Consumer electronics retailers continue to get pummeled in 2014 after being one of the hottest sectors of 2013. Conn's shed more than a third of its value after deadbeat shoppers forced it to hose down its guidance.

Conn's may have held up fine on the surface in its latest quarter. Sales soared 30 percent in its latest quarter with comparable-store sales moving 11.7 percent higher. However, it posted a loss in its credit segment, with 8.7 percent of its customer credit portfolio now delinquent for more than 60 days. Adjusted earnings clocked in at 50 cents a share as a result of having to boost its provision for bad debts. Analysts were holding out for a profit of 75 cents a share. Conn's also had to lower its guidance for the entire fiscal year, and it did by a lot more than the quarter's shortfall. In other words, the second half of the year will continue to be challenging on the collections front.

Noodles & Co. (NDLS) -- Down 11 percent last week

We saw the rich getting richer with Mobileye posting back-to-back weeks of double-digit percentage gains. We saw how the other half lives at Noodles & Co. as the fast-casual pasta chain completed back-to-back weeks of double-digit declines. Noodles & Co. finally fell below last year's $18 IPO price.

There was no major news driving Noodles & Co. lower this past week, but clearly investors continue to sell, since Jim Cramer singled out the restaurant operator as one of five eatery stocks for investors to avoid a week earlier on his "Mad Money" show.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Exelixis. Try any of our Foolish newsletter services free for 30 days. For some winning dividend stock ideas, check out our free report.

 

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Employment Trends Index Looks Better Than Labor Department Payrolls Data

September 8, 2014, 5:30 am

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Filed under: Economy

The reading on the Employment Trends Index may seem like an afterthought, considering the disappointing payrolls report from the U.S. Labor Department on Friday. That being said, this report may also signal that the public does not trust the Labor Department data as fact.

The Conference Board released its Employment Trends Index Monday, showing an increase in August. The 121.29 reading was up from the revised 120.62 in July. The Employment Trends Index is up 6.4% compared to a year ago.

It was just over the weekend that we questioned whether the Labor Department data may have just been wrong. Gad Levanon, Director of Macroeconomic Research at the Conference Board, said specifically:

The strong increase in the Employment Trends Index in recent months signals robust job growth through the fall. The disappointing employment numbers for August seem to be a one-month deviation from a stronger trend.

The Employment Trends Index is an aggregate of eight labor-market indicators, each of which is said to have been proven accurate in its own area. By aggregating individual indicators into a composite index, the Conference Board aims to show underlying trends more clearly.

The Employment Trends Index increased over the course of August and made gains from positive contributions in seven of its eight components. The largest gain was made in the component of "Percentage of Firms With Positions Not Able to Fill Right Now."

Maybe it is hard to draw any direct comparison to the confusing Labor Department report for August from last Friday. Still, it seems to be a bit more positive than what the Bureau of Labor Statistics indicated due to seven of the eight components being up.

READ ALSO: What Happened to Normal 5% Unemployment?

Filed under: Economy

 

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With Confidence Rising, Americans Borrowed More in July

September 8, 2014, 8:30 am

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Filed under: Credit Cards, Economic Indicators, Federal Reserve, Consumer Issues, This Built America

By CHRISTOPHER S. RUGABER

WASHINGTON -- U.S. consumers stepped up their borrowing in July, led by rising auto loans and higher credit card balances.

The Federal Reserve said Monday that overall consumer borrowing jumped $26 billion in July to $3.24 trillion. The 9.7 percent increase matches April's gain as the largest in three years.

The figures add to a mixed picture for consumers in recent weeks. A healthy increase in credit usually indicates that consumers are shedding some caution about spending, which would boost economic growth. Rising debt loads are generally a sign of greater confidence in the economy.

But other data hasn't been as positive. Overall spending fell in July for the first time since January, the government said last month. And consumer confidence, as measured by the University of Michigan, has barely budged in the past year.

Auto and student loans jumped 10.6 percent to $2.36 trillion, fueled by strong auto sales. Automakers in July reported their best sales figures for that month in eight years. Credit card debt, meanwhile, rose 7.4 percent to $880.5 billion.

Americans have reined in their credit card spending since the Great Recession and household finances have generally improved. But student and auto loans have skyrocketed, intensifying concerns that they are creating new challenges for consumers. Young Americans saddled with student debt may not be able to buy homes or spend on other items the way previous generations did.

And more Americans with checkered credit histories are obtaining auto loans, which raises the risk that millions of them could default. New auto loans reached their highest level in eight years this spring, the New York Federal Reserve said.

Student loans have soared since the recession ended, topping $1.1 trillion by the second quarter of this year. That's up from $700 billion in 2009.

Still, consumers are reluctant to build up their credit card balances. Many have likely switched to debit cards instead. Total outstanding credit card debt was more than $1 trillion when the recession hit in December 2007. The total bottomed out at about $835 billion in April 2011 and has only recovered gradually since then.

 

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Consumer Credit Shows Credit Use On the Rise

September 8, 2014, 8:46 am

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Filed under: Economy

Consumer borrowing picked up in July. The total outstanding consumer credit, excluding real estate secured loans, increased to $3.238 trillion at a seasonally adjusted annual rate of 9.7% in July from the previous month according to the Federal Reserve. The translation comes to a gain of $26.0 billion, much higher than the $17.3 billion which Bloomberg had as the consensus target. June posted growth of 7.1% and May posted growth of 7.3%.

Outstanding non-revolving credit rose 10.6% to $2.357 trillion. As a reminder, consumer spending makes up more than two-thirds of the U.S. economic output. Durable goods spending in the second quarter boosted economic growth, and more consumption in the second half of the year would yield stronger overall growth.

Despite the increase in July's credit-card borrowing, household spending did not accompany it. The Commerce Department estimated that overall consumer spending fell by 0.1% in July. Retail and restaurant sales remained flat from June. There has been a cautious sentiment since the recession that consumers are less willing to assume credit-card debt to finance household spending. There has been modest growth in outstanding revolving credit earlier in the year excluding the spike in April; July posted a growth of 7.4% against 2.5% in June and 3.3% in May.

Monthly reports on consumer credit almost never move the markets on the announcement of the data. What the data does indicate though is that more borrowing demand is there.

Filed under: Economy

 

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Market Wrap: Oil Price Slump Drains the Energy Out of Stocks

September 8, 2014, 9:47 am

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Filed under: Energy, Market News, Commodities & Futures, Oil & Gas Industry, Investing

By KEN SWEET

NEW YORK -- A retreat in oil and energy stocks pulled the rest of the U.S. stock market mostly lower Monday.

Campbell Soup (CPB) declined after the company said its 2015 profits would miss analysts' expectations. Yahoo (YHOO), which owns a stake in Alibaba, jumped in anticipation of the giant Chinese technology company going public.

The Dow Jones industrial average (^DJI) fell 25.94 points, or 0.2 percent, to 17,111.42. The Standard & Poor's 500 index (^GPSC) lost 6.17 points, or 0.3 percent, to 2,001.54 and the Nasdaq composite (^IXIC) added 9.39 points, or 0.2 percent, to 4,592.29.

Energy stocks were by far the biggest drag on the market. The energy component of the S&P 500 fell 1.6 percent, compared to the modest 0.3 percent decline in the main index.

ExxonMobil (XOM), the world's largest publicly traded oil company, dropped $1.49, or 1.5 percent, to $97.77. It was the biggest loser among the Dow's 30 members.

The decline in energy stocks was linked to a recent sell-off in the price of oil. Benchmark U.S. crude oil for October delivery fell 63 cents, or 0.7 percent, to $92.66 a barrel, the lowest price since January.

Oil prices have fallen for three days straight as geopolitical worries in Ukraine and particularly in Iraq have eased. Also impacting crude oil was a report out of China that showed manufacturing in the world's second-largest economy was slowing down.

"The market is trading lower on this subdued, weaker global outlook," said Jack Ablin, chief investment strategist at BMO Private Bank.

The three biggest decliners in the S&P 500 were oil drilling and exploration companies, which rely on high oil prices to justify pulling crude oil out of remote parts of the planet. Newfield Exploration (NFX), Nabors Industries (NBR), EOG Resources (EOG) all fell 3 percent or more.

Some strategists say the decline in oil prices is likely to be temporary.

"I suspect oil cannot fall further than $90 a barrel," said Paul Christopher, a chief international investment strategist at Wells Fargo Advisors, who focuses on the oil market. "Saudi Arabia and other OPEC members will start cutting production if oil continues to fall like this."

Another international concern for investors is in Europe, where a drive for Scottish independence seems to be gaining momentum. Once considered a far-flung idea, a recent poll by YouGov showed rising support for a break from the United Kingdom.

Scotland's economy is not large enough to derail the region's economy, but a breakup of the U.K. could potentially be messy for investors, strategists say. Which of the U.K.'s bonds would go to Scotland? Can Scotland's economy function on its own, while still using the British pound? Who would take control of the oil reserves north of Scotland?

"A vote for independence or fear of that outcome may roil financial markets over the next two weeks," Bill Stone, chief investment strategist at PNC Asset Management, wrote in an e-mail.

Stocks in London, particularly those with links to Scotland, fell. Britain's FTSE 100 index lost 0.3 percent. Investors also sold the British pound, which fell to lowest level in nearly a year.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.47 percent. In metals trading, the price of gold fell $13 to $1,254.30 an ounce, silver fell 20 cents to $18.96 an ounce and copper was flat at $3.17 a pound.

In other energy trading, Brent crude, a benchmark for international crudes imported by U.S. refiners, slipped 62 cents to $100.20 a barrel in London. Wholesale gasoline lost 2.15 cents to $2.562 a gallon and natural gas gained 8.3 cents to $3.876 per 1,000 cubic feet.

Among individual stocks:

o. China's Alibaba Group is seeking to raise up to $24.3 billion from its initial public offering, which would be the largest of all time. Alibaba Group is expected to make its long-awaited debut on the New York Stock Exchange later this month. Yahoo was an early investor in Alibaba and owns 23 percent of the company and is expected to be the largest seller of shares in Alibaba's IPO. Yahoo jumped $2.22, or 5.5 percent, to $41.81.

o. Campbell Soup fell $1.15, or 2.5 percent, to $43.39 after the company reported sales that were weaker than analysts were expecting. Campbell also expects its earnings to be slow next year.

What to Watch Tuesday:

• The Labor Department releases job openings and labor turnover survey for July at 10 a.m. Eastern time.
• Apple (AAPL) unveils new products and updated software at 1 p.m.

These major companies are scheduled to release quarterly financial statements:

• Barnes & Noble (BKS)
• Burlington Stores (BURL)
• Krispy Kreme Doughnuts (KKD)
• Palatin Technologies (PTN)
• Palo Alto Networks (PANW)

 

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Here's Where Today's College Students Most Want to Work

September 8, 2014, 11:00 pm

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Filed under: Careers, Job Search, Professional Development, College, Education

College students use Apple (AAPL), Facebook (FB) and Google (GOOG) products every day, so it's not much of a surprise that those companies are high on their lists of potential employers. But a new survey also shows Boeing (BA), the National Institutes of Health and Disney (DIS) at the top.

The annual survey by Universum, an international consulting and brand marketing firm, asked 50,000 students for their top choices -- undergraduates in business, engineering, computer sciences, natural sciences and humanities plus those working on their master's of business administration. Google placed first in three categories and in the top six in all of them.

"It is perception-based, so a lot of these companies have really strong brand recognition," said Kortney Kutsop, senior account director at Universum. "We're trying to understand what makes students tick, what they're looking for in a career."

Government Agencies Do Well

Students were given 230 potential employers to choose from. NASA, the Department of Energy, the CIA, the Environmental Protection Agency, the Defense Department, the FBI and the Air Force all ranked in the top 40 for engineering students. Kutsop says this is partly because of the desire among students to "give back and be part of the greater good." Oil and gas companies have also climbed in the rankings among engineering students. Exxon Mobil (XOM) came in No. 6, while Shell Oil (RDS-A), Chevron (CVX) and BP (BP) all made the top 25.

"This generation is looking for employers that provide development, training and mentorship," said Kutsop. "They want to become leaders of the world." She says they also want jobs that offer some flexibility, work-life balance and job security. She says there's a perception about millennials that they like to change jobs frequently, but in fact many are seeking job security. "They may stay if they see the opportunity to grow and advance."

Potential employers are working hard to recruit top students. At campus job fairs and other events, they want to fly the corporate flag and show students that they care about their professional development and leadership training. "Companies that can talk about that can go a long way in building their brand," according to Kutsop.

Consultants Rise, and Retailers Fall

Among business students, Google was No. 1, but the leading accounting and consulting firms have climbed the list in recent years. Ernst & Young, Deloitte, PricewaterhouseCoopers and KPMG all rank in the top 10 -- ahead of Amazon.com (AMZN), Microsoft (MSFT) and Wall Street-giant Morgan Stanley (MS). Several of those accounting firms weren't in the top 50 as recently as 2006. However, retailers have fallen down the ladder.

The same companies ranking high on the Universum list are also the most sought-after employers for internship programs. Students seek internships to get the experience they'll need to get a full time job, and companies use internship programs to recruit the best future employees. Interns "want to do real work. It's a test to get a feel for the day-to-day work," says Kutsop. They want to find out what the work environment is like and what challenges they'll face each day. "It's a good test for both sides," according to Kutsop. She says that some companies eventually offer full-time jobs to as many as 80 percent of their interns.

The lists:

Business

1. Google
2. Disney
3. Apple
4. Ernst & Young
5. J.P. Morgan (JPM)
6. Deloitte
7. PricewaterhouseCoopers)
8. Nike (NKE)
9. Goldman Sachs
10. KPMG

Engineering

1. Boeing
2. NASA
3. Google
4. Lockheed Martin (LMT)
5. General Electric (GE)
6. Exxon Mobil
7. Apple
8. Microsoft
9. Disney
10. Intel (INTC)

Computer sciences

1. Google
2. Microsoft
3. Apple
4. Amazon
5. Facebook
6. Blizzard Entertainment
7. Sony (SNE)
8. IBM (IBM)
9. Walt Disney
10. Intel

Natural sciences

1. National Institutes of Health
2. Mayo Clinic
3. Centers for Disease Control
4. American Cancer Society
5. Environmental Protection Agency
6. Google
7. Peace Corps
8. Disney
9. NASA
10. FBI

Humanities

1. Disney
2. Google
3. Department of State
4. United Nations
5. Teach for America
6. FBI
7. Peace Corps
8. Apple
9. NBCUniversal (CMCSK)
10. National Security Agency

MBA

1. Google
2. McKinsey & Co.
3. Amazon
4. Bain & Co.
5. Apple
6. Boston Consulting Group
7. Deloitte
8. Goldman Sachs
9. J.P. Morgan
10. Nike

 

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How Competing with Friends Helped My Finances Race Ahead

September 8, 2014, 11:00 pm

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Filed under: Personal Finance, Financial Education

Personal finance has been a passion of mine since my late teens. After I headed off to college and set out upon my path in the industry, I quickly fell into the role as a financial guru of sorts for my friends. Early on in my career, I had friends coming to me asking for hot stock tips and advice about the penny stocks they were throwing their money into. From atop my virtual soapbox, I stressed to all of them the need for healthy asset allocation and diversification, and discussed why picking a hot stock was not what I did as part of the financial planning process -- but picking low-cost, healthy mutual funds and exchange-traded funds was.

In the years that followed, these discussions evolved into a friendly competition among a few friends and I to see which of us could win the race to become the first millionaire. While I'm a firm believer that money should be used to live a life you value (not what others deem appropriate), that competition added excitement, accountability and peer-pressure to the goal of keeping my finances in line.

Over the years, we've had conversations and check-ins about investment real estate, salaries, buying homes, retirement savings, passive income, asset allocations and more. Ultimately, the following rules of thumb and money principles really got the ball rolling.

1. Go in for the ask. What's the quickest way to have more money to save? Make more money. When it comes to growing your income, many people follow the path of waiting for recognition or the standard yearly increase across the board. However, finding out what's needed to advance your salary, doing research on comparable positions, and being an advocate for yourself and your skills will help grow your income at a rate that allows you to stock away more.
2. Set it and forget it. We hear this all the time in the personal finance world -- but what does that actually mean? It means automated monthly contributions to your 401(k)s and Roth IRAs. But not just those. It also means direct deposits into accounts dedicated to travel funds (so you won't be making big subtractions from your cash flow each time you go on vacation), insurance accounts (to have the funds on hand for annual premiums) and again prevent pulling from cash flow) and other savings accounts. Consistent preparation for big one-time and occasional expenses is a big help when it comes to keeping the rest of your budget in line.
3. Seek out wise, unbiased advice. Even as a financial planner, I recognize it's helpful to get a second opinion on money moves. For example, being debt-averse made me want to get our mortgage paid down at a faster rate, even though I knew the numbers said I should put retirement first. So instead of going with my emotions, I talked it through with some financial planners I trusted, and made the right decision. Without their guidance, I could have sacrificed a significant return over the long run by basing my choice on emotion and pouring our extra funds into reducing the mortgage principal.
4. Get creative. Trying to figure out the right way to deal with your money can often feel overwhelming -- but what matters isn't picking the "best" system according to some guru. What matters is finding a system that works for you. If a refinance makes sense, go for it. If having 10 savings accounts helps you manage multiple goals, go for it (but find a bank or credit union that doesn't charge monthly fees). Don't want to use an app to track your spending? Or would you feel more comfortable with the cash envelope method, or using a pen and paper. Do what works for you and save money in ways that fit your lifestyle. Just be sure they're moving you forward.
5. Spot-check. Even in the times when you're sure your finances are under control and the system is handling itself, make time to log in to check your net worth for growth, confirm bills are being paid on time, review bill amounts for any significant changes, and look at investment performance. You won't always find any reason to make changes, but regular check-ins ensure you stay in the know and catch issues before they get out of hand.

Talking frankly about money with friends can be a tricky thing, so setting limits on the information you will and won't disclose is a must. In addition, always check with your financial planner before changing your investment allocation or overall strategies. While a bit of friendly competition can help hold you accountable (and give you some fresh ideas), you want to ensure you're helping your overall financial game, not hurting it.

​Mary Beth Storjohann is a certified financial planner for Gen Y. She created Nine Steps to Workable Wealth to help you make smart choices with your money.

 

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How to Plan for Retirement When You Don't Make Much Money

September 8, 2014, 11:00 pm

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Filed under: Personal Finance, Retirement Living, Retirement Plans, How to Save Money, Saving

By Emily Brandon

Saving for retirement is especially difficult when you are earning a small salary. However, there are a variety of ways you can begin building a nest egg, even if you are receiving small paychecks. Here are some strategies to invest for retirement with a low income:

Claim tax breaks for retirement saving. Saving for retirement in a 401(k) or individual retirement account allows you to reduce your tax bill. A worker in the 15 percent tax bracket who contributes $500 to a traditional IRA will save $75 in federal income taxes. The same contribution made by someone in the 25 percent tax bracket would reduce the tax bill by $125. IRA contributions can be made up until your tax filing deadline, so it's worth plugging an IRA contribution into your tax-planning software to see how much your tax bill will decline if you can come up with the cash for an IRA deposit.

In addition to this tax deduction, workers with incomes of up to $30,000 for individuals, $45,000 for heads of household and $60,000 for couples in 2014 can claim the saver's credit. The credit is worth 50 percent, 20 percent or 10 percent of your retirement account contributions, up to $2,000 for individuals and $4,000 for couples, with the largest credit going to workers with the lowest adjusted gross incomes.

Consider a Roth account. After-tax Roth accounts don't give you a tax deduction in the year you make the contribution, but you will not have to pay taxes on withdrawals from the account in retirement. Roth IRAs and 401(k)s can be especially beneficial to people with low earnings because they pay a low tax rate on their contributions. For example, a worker in the 15 percent tax bracket who expects to get a higher-paying job that results in him jumping into the 25 percent tax bracket later in his career and in retirement would be better off making Roth contributions and paying taxes on that income now while his tax rate is low. That way, he will pay the 15 percent tax rate on the money now instead of the 25 percent tax rate when he takes the money out in retirement. "The benefits of a Roth are great in the long term," says Teri Alexander, a certified financial planner and president of Alexander Financial Planning in Columbus, Ohio. "As long as the money is in a Roth for five years or until you turn 59½, whichever is greater, you can take money out after that point totally tax-free, and once you turn 70½, you are not required to take that money out at that point in time as you are with an employer plan or regular IRA." Additionally, Roth contributions make you eligible for the saver's tax credit.

Seek a job with retirement benefits. The fastest way to grow your nest egg is to find an employer that will make contributions to your retirement account. A 401(k) match and other types of employer retirement account contributions are part of the compensation package that should be considered when comparing job offers. If you do get a 401(k) match, make sure you contribute enough to get as much of it as you can. "If your company matches up to 4 percent and you are not putting in that 4 percent, you are essentially turning down extra money," says Steven Bové, a certified financial planner and president of Lebrigh Life Planners in Oldsmar, Florida.

Make saving automatic. A major perk of 401(k) plans is having the money withheld from your paycheck before it ever hits your checking account and is available for spending. If you don't have a 401(k) at work, you can create this effect by having part of every paycheck directly deposited into an IRA. "If you take $50 or $100 out of each paycheck and that starts happening automatically, it's not something you have to think about every time you get each paycheck," Alexander says. "When it's something that happens automatically, you don't miss it."

Watch out for fees. The fees you pay to invest result in lower returns and slower investment growth. Take the time to shop around for investments with reasonable or low fees. "Fees matter because any fee that you pay is coming out of the return that you are getting," says Gwen Gepfert, a certified financial planner and principal of Oaktree Financial Planning in Basking Ridge, New Jersey. "Individuals are best served having a passive investment approach and buying very low-cost index funds."

Save raises and windfalls. Aim to save at least a portion of every raise, bonus, tax refund or other cash windfall. "If you happen to be lucky and get a bonus, take 10 percent of your bonus and do something fun with it, but take 90 percent of your bonus and save it," Gepfert says. "The same thing goes with a tax refund. Don't use that as a reason to spend money just because you got a large check."

Emily Brandon is the senior editor for Retirement at U.S. News. You can contact her on Twitter @aiming2retire, circle her on Google Plus or email her at ebrandon@usnews.com.

 

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U2 to Perform at Apple iPhone 6 Event

September 8, 2014, 11:15 pm

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Filed under: Apple, Advertising & Marketing, Computer Industry, Celebrities, This Built America

By Steve Kovach

U2 will perform at Apple's (AAPL) big event Tuesday, Ben Sisario of The New York Times reports.

The band is said to have some sort of role in the new products Apple plans to announce. Rumors of U2's involvement in the iPhone 6 launch began a little over a week ago on Twitter (TWTR) and some Apple blogs, but this is the most credible report we've seen yet. The rumors had previously been denied by the band -- so this new development is confusing.

Some have speculated that U2 will launch a new album Tuesday. Others have said it will come pre-loaded on the iPhone 6. The New York Times report only says U2's new album is "connected" to the new iPhone.

U2 has a long history with Apple. In 2004, U2 and Apple collaborated on a special edition of the iPod for charity. Here's a photo of the band with Steve Jobs from that time:

 

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Home Depot Confirms Data Breach that May Exceed Target's

September 8, 2014, 11:42 pm

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Filed under: Identity Theft, Retail, Shopping, Security

By MARLEY JAY

NEW YORK -- Shares of home-improvement retailer Home Depot (HD) sank before the opening bell Tuesday after confirming that its payment systems had been hacked, potentially exposing millions of shoppers who used credit and debit cards at its more than 2,000 U.S. and Canadian stores.

The breach could turn out to be one of the biggest in history. Home Depot didn't say how many cards might be affected, but the largest U.S. home improvement chain did say late Monday that its investigation into the breach goes as far back as April.

The news comes nearly a week after a website that focuses on cybersecurity reported Tuesday a possible hack of Home Depot's data. The company said later that day that it was investigating the potential breach.

"We apologize for the frustration and anxiety this causes our customers, and I want to thank them for their patience and support as we work through this issue," Chairman and CEO Frank Blake said in a press release.

Home Depot is the latest retailer to have a data breach. Others include Target, luxury retailer Neiman Marcus, grocer Supervalu (SVU), restaurant chain P.F. Chang's and the thrift store operations of Goodwill.

In December, Target (TGT) disclosed a massive data breach that was the second-largest in history, resulting in the theft of 40 million debit and credit card numbers and the potential exposure of personal information of up to 70 million shoppers.

From what I'm hearing, people think this will be as big as Target or bigger.

Forrester Research (FORR) analyst John Kindervag said the Home Depot breach could affect similar numbers of shoppers or cards, noting that months' worth of data may have been compromised.

"From what I'm hearing, people think this will be as big as Target or bigger," he said in a telephone interview with The Associated Press.

The retail breaches have rattled shoppers' confidence at a time when privacy concerns are high. It's also increased pressure on retailers to increase security so that customers can feel safe that their personal data is secure when they're out shopping.

Retailers, banks and card companies have responded to the breaches by speeding the adoption of microchips in U.S. credit and debit cards. That technology helps makes transactions more secure.

Home Depot, which said malware was used in the hack, has announced that it plans to have chip-enabled checkout terminals at all of its U.S. stores by the end of this year.

Protecting Consumers

In the meantime, the Atlanta company said its IT department also is looking into the breach and is working with outside firms, its banking partners, and the U.S. Secret Service. It added that customers will not be held responsible for fraudulent charges to their accounts.

The possible breach at Home Depot was first reported by Brian Krebs of Krebs on Security. Krebs said multiple banks reported "evidence that Home Depot stores may be the source of a massive new batch of stolen credit and debit cards."

If Target's breach is any indication, the fallout from the Home Depot breach could be severe.

The Target hack cost the company hurt the company's profit and revenue. Target's chief information officer and CEO both stepped down in the months after the hack.

"I would think if you're a member of the board of directors, somebody has to be the sacrificial lamb for this," Kindervag, the Forrester analyst, said about Home Depot's breach.

Home Depot already has had some fallout. Its shares fell 41 cents to $90.41 in premarket trading Tuesday.

Before the potential breach was announced, Home Depot said in August that Blake would step down as CEO on Nov. 1. He will be replaced by Craig Menear, president of the company's U.S. retail operations.

 

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Quiksilver Limps Along in the Slow Lane

September 9, 2014, 12:00 am

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Filed under: Company News, Earnings, Market News, Industry News, Investing

Things continue to go from bad to worse for Quiksilver (ZQK). The once-trendy retailer and distributor of extreme sports apparel and footwear for outdoor enthusiasts wiped out -- again -- on Friday after posting another horrendous quarter.

Sales declined 19 percent to $396 million as consumers continue to sour on its Roxy, DC and namesake brands. Quiksilver saw fading demand overseas, and the carnage was even worse closer to home, where net revenues plunged 27 percent. Sometimes a chain sees sales slip as it tries to hold firm to its markups, but that wasn't the case here at all, since gross margins also declined during the period. In short, Quiksilver isn't the same magnetic beacon that it used to be for surfers ringing up board shorts and snowboarders looking for gloves and goggles.

Things were even uglier on the bottom line, with Quiksilver posting a huge loss. Even if we back out the one-time hits for restructuring costs and asset impairment charges, we're still looking at an adjusted loss of 20 cents a share. Analysts were holding out for a small profit.

This is the fourth quarter in a row that Quiksilver posted a deficit. It's also the fourth period in a row that it failed to live up to Wall Street's expectations. One can always wonder why analysts hadn't learned after getting consistently burned by Quiksilver before, but hope springs eternal in the summer. That's the time of year when Quiksilver historically shines as beachgoers load up on swimsuits, booties and tide watches.

Then again, this also illustrates how bad things have gotten for Quiksilver. If it can't grow or turn a profit during in summertime, it's going to be a long time before it gets back on a gnarly wave.

Everyone Out of the Water

Quiksilver stock has been one of this year's biggest losers. It has shed roughly three-quarters of its value in 2014.

It's not just investors bailing on Quiksilver. Earlier this year we saw surfing legend Kelly Slater -- the 11-time world champ -- end his 24-year sponsorship relationship with the retailer.

Quiksilver is holding up better at the retail level than it is on the wholesale front, but it's still alarming to see sales plunge 27 percent in the Americas, where it scores half of its revenue.

Back in June it seemed as if Quiksilver investors would finally be put out of their misery. A couple of days after the stock plunged 41 percent on another horrible quarterly report -- yes, 41 percent -- a rumor surfaced about a potential buyout. VF Corp. (VFC), the company behind the Vans and Timberland footwear brands, was reportedly interested in snapping up Quiksilver. The shares moved higher on the news, but the chatter proved hollow.

Quiksilver is on its own. It will probably stay that way.

One Last Wave

One can't blame VF for passing, if it was indeed eyeing Quiksilver. As long as fundamentals continue to deteriorate with every passing quarter, there's no point in stepping up as a savior when the stock will probably get even cheaper after another disastrous quarterly outing.

"We continued to execute against the key initiatives laid out in our profit improvement plan and to drive growth in our direct-to-consumer channels and emerging markets," CEO Andy Mooney said in response to the poorly received fiscal third quarter.

He probably should have cut himself off after the first four words.

There's still hope. However, any shot at a turnaround will probably require closing stores or shedding underperforming brands. It's just not a good time to be in the water if you're a Quiksilver investor.

Motley Fool contributor Rick Munarriz and the Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. Dividend stocks will always be a great choice for investors; read about our top picks in our free report.

 

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Which Supermarkets Are America's Favorite? The Votes Are In

September 9, 2014, 12:00 am

≫ Next: General Mills Gobbles Up Organic Food-Maker Annie's

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Filed under: Company News, Market News, Industry News, Consumer Goods, Investing

Over the weekend, Kroger (KR) announced plans to hire 20,000 employees -- adding more than 5 percent to its current staffing. Already the nation's largest supermarket chain and its second largest retailer (after Walmart (WMT)), Kroger says it is on a "growth trajectory." Last quarter, the company grew its sales 10 percent year over year.

Maintaining that pace, however, could be difficult when competing with more popular grocery store rivals.

Ranking the Rivals

Harris Poll EquiTrend, now owned by Nielsen (NLSN), recently conducted its first poll of grocery store popularity. Kroger, it turns out, with annual sales of $98.4 billion and operations in 34 states and the District of Columbia, remains one of the more popular chains. It ranks fourth and seventh, respectively, in two of America's four regions for grocery store operations.

As for the other brands, well, Harris says it polled 41,806 U.S. consumers ages 15 and up Jan. 3-Jan. 31, asking their opinions on a wide range of well-known brands, supermarkets among them. Kroger -- which operates stores under dozens of names, including Ralphs and Fry's -- scored best in its home Midwest region, where the top eight supermarket brands were (in order from most popular to least):

• Hy-Vee
• Meijer
• Giant Eagle
• Kroger
• Whole Foods Market (WFM)
• Trader Joe's
• Walmart
• Jewel & Jewel-Osco

Elsewhere in the U.S.

The top five performers in America's other regions:

In the Northeast: Wegmans, Trader Joe's, Whole Foods, ShopRite and Hannaford Bros.

In the South: Publix, Walmart, H-E-B, Trader Joe's and Harris Teeter (now owned by Kroger -- so that means Kroger actually placed twice on the list in the South, where its namesake chain came in seventh).

And in the West: Costco (COST), Trader Joe's, Whole Foods Market, Safeway (SWY) and Stater Bros.

What's the Common Denominator?

As you can see, each region has its favorites -- Costco in the West, Publix in the South, Hy-Vee in the Midwest and Wegmans in the Northeast. Kroger may be the nation's biggest pure-play supermarket chain, but no one chain dominates in more than one region.

Two chains, however, do appear very popular across the country. Both Trader Joe's and Whole Foods rank in the top five supermarket chains in three of the four U.S. regions -- missing out narrowly on a clean sweep due only to their sixth-place finishes in just one market each: the Midwest for Trader Joe's, and the South for Whole Foods.

If Kroger hopes to maintain its growth trajectory, it would appear that Trader Joe's and Whole Foods are the rivals to beat.

Motley Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Costco Wholesale and Whole Foods Market. John Mackey, co-CEO of Whole Foods Market, is a member of The Motley Fool's board of directors. Try any of our Foolish newsletter services free for 30 days. To read about some of our favorite dividend stocks, check out our free report.

 

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General Mills Gobbles Up Organic Food-Maker Annie's

September 9, 2014, 12:15 am

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Filed under: Mergers & Acquisitions, Consumer Goods, Food & Beverage, Stocks, This Built America

General Mills (GIS), the maker of Cheerios cereal and Betty Crocker cake mixes, said it would acquire organic food producer Annie's (BNNY) for about $820 million to expand its presence in the fast-growing U.S. natural foods market.

General Mills's offer of $46 a share in cash represents a premium of about 37.3 percent to Annie's Inc's Monday closing.

Annie's shares were trading just shy of the offer price in after hours trade, while General Mills's shares rose about 1.9 percent to $54.50.

Berkeley, California-based Annie's markets over 145 products and is present in more than 35,000 retail locations in the United States and Canada. It had net sales of $204 million in the year ended March 2014.

General Mills' organic food business, which includes Cascadian Farm and healthy snacks-maker Food Should Taste Good, had sales of about $330 million in the year ended May 2014. The company's net sales was $17.9 billion in the year.

The company built the business, called Small Planet Foods, through a series of acquisitions.

Sales in the U.S. branded organic and natural foods industry has been growing at a 12 percent compound rate over the last decade, said Jeff Harmening, General Mills' Chief Operating Officer of U.S. retail.

The transaction is expected to add to General Mills' earnings in the first year following completion, excluding certain transaction related costs, the company said.

General Mills said it intends to fund the deal through available credit and expects the deal to close later this year.

General Mills stock has risen 7.2 percent this year through Monday, outperforming the 5.5 percent rise in the U.S. S&P consumer staples index. Annie's stock has lagged with a 22 percent decline in that same period.

Annie's financial adviser is J.P. Morgan Securities and its legal adviser is Proskauer Rose.

 

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Small-Business Confidence Edges Higher in August

September 9, 2014, 1:04 am

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Filed under: Small Business, Economic Indicators, Entrepreneurs, This Built America

By Howard Schneider

WASHINGTON -- Small-business optimism edged slightly higher in August as more owners said they expected business conditions to improve in coming months and planned to increase capital spending, according to a survey released Tuesday.

The National Federation of Independent Business said its Small Business Optimism Index rose 0.4 point to 96.1.

Eight of the index's 10 components either improved or showed no change in the survey based on a random sample of 598 small business owners.

The job growth indicated in the survey was sluggish, with owners adding an average of only 0.02 workers per firm, and fewer saying they planned to hire more workers in the future.

Some businesses appeared to lose pricing power, with 15 percent of respondents saying they had reduced prices, and a drop in the number of owners saying they planned price hikes.

Though more owners said they expect an improvement in business conditions than said so in the month before, a slight majority still aren't convinced conditions will improve.

The index is still 4 points below where it was before the start of the 2007 financial crisis and recession, though it has been making progress back toward that level.

Overall the index points to economic growth slightly slower than that expected by many forecasters and Federal Reserve officials.

The results of the survey point to economic growth of around 2 percent this year, not the greater than 3 percent growth cited by other forecasters.

 

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Trump Entertainment Files for Bankruptcy Again

September 9, 2014, 3:20 am

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Filed under: Bankruptcy, Company News, Layoffs, Travel Industry, Celebrities

By WAYNE PARRY

ATLANTIC CITY, N.J. -- Trump Entertainment Resorts filed for bankruptcy Tuesday and threatened to shut down the Taj Mahal Casino Resort, which would make it the fifth Atlantic City casino to close this year.

The company owns Trump Plaza, which is closing in a week, and the Taj Mahal, which has been experiencing cash-flow problems and had been trying to stave off a default with its lenders. The company said the Taj Mahal could close Nov. 13 if it doesn't win salary concessions from union workers.

It's the fourth such filing for the struggling casino company or its corporate predecessors.

The company filed in U.S. Bankruptcy Court in Wilmington, Delaware, saying it has liabilities of between $100 million and $500 million, and assets of no more than $50,000. It missed its quarterly tax payment due last month, and says it doesn't have the cash to make an interest payment to lenders due at the end of the month.

It also says both its Internet gambling partners have taken steps to end their contracts with Trump Entertainment.

It said cost-cutting negotiations with the main casino workers' union have stalled, and that the company is preparing notices warning employees the Taj Mahal may close on Nov. 13.

"Absent expense reductions, particularly concessions from their unions, the debtors expect that the Taj Mahal will close on or shortly after November 13, 2014 and that all operating units will be terminated between November 13, 2014 and November 27, 2014," the company wrote in its bankruptcy filing.

If the company makes good on its threat to close the Taj Mahal, it would further rock an already shell-shocked casino market in what just a few years ago was the nation's second-largest gambling market after Nevada. Now, New Jersey has fallen behind Pennsylvania.

Three other Atlantic City casinos have closed this year, as the industry struggles with competition in nearby states. Atlantic City began the year with 12 casinos, but could end it with seven if the Taj Mahal closes. So far this year, the Atlantic Club, Showboat and Revel have gone out of business, with Trump Plaza closing next Tuesday.

The bankruptcy filing came a day after Gov. Chris Christie's administration told the state's casinos and horse tracks that they can legally offer sports betting -- a move that defies a federal ban on it and is sure to be challenged in court by the professional and amateur sports leagues which have fought it thus far.

Trump Entertainment has struggled since the day it emerged from its last bankruptcy in 2010, having filed the year before. It came out of bankruptcy with $350 million in debt, and currently has more than $285 million in debt.

As of the end of July, the company employed 2,800 people.

The company has been trying to reduce expenses and debt, including selling its former Trump Marina casino for $38 million to Landry's, which now runs it as the Golden Nugget Atlantic City. It also sold the Steel Pier for $4.5 million; a warehouse for $1.9 million, and its former corporate offices in a converted firehouse for $3.1 million. That building now houses the Casino Reinvestment Development Authority.

It has been trying for years to sell Trump Plaza. A deal to sell it to a California firm for $20 million last year fell through.

The company also said it has been in negotiations with Local 54 of the Unite-HERE union on cost-cutting measures it says it needs to survive, but that the union has rejected them. Bob McDevitt, the union president, said that Trump Entertainment wanted union members to surrender their health insurance and pension plans, something he rejected. McDevitt said that even if the union agreed to those concessions, they would only total $11 million per year, which would hardly make a difference in the company's finances.

The concessions would be on top of a separate $4 million round of union concessions the company won in 2011.

Donald Trump owns a 9 percent stake in the firm, but neither controls it nor has any involvement in it. He is suing the company to remove his name from the properties, which he says have fallen into disrepair and do not meet agreed-upon standards of quality and luxury.

If the Taj Mahal closes, Trump Entertainment would have no remaining properties and would presumably go out of business.

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Hiring, Quits, Firing — JOLTS Remains Virtually Unchanged

September 9, 2014, 4:30 am

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Filed under: Economy

The U.S. Bureau of Labor Statistics released the Job Openings and Labor Turnover Survey, or JOLTS report, on Tuesday. The job openings and hiring statistics remained somewhat static from the July report.

The reading came out to 4.673 million job openings, which fell short of the Bloomberg estimate of 4.705 million. The numbers for July came in barely below the revision from the previous month, which read at 4.675 million.

Total separations totaled 4.559 million in July, with a rate of 3.3%. There was little change from the previous month.

Total hires in July totaled 4.9 million. Over the 12 months that ended in July, the number of hires increased for total nonfarm and total private but were little changed for government.

The hiring rate remained unchanged at 3.5%, while the quits rate remained unchanged for the sixth month in a row at 1.8%. This is not exactly the dynamic that the Fed wants to see in the U.S. labor market. However it does not mean that overall conditions have not improved, with jobless claims and the unemployment rate on the decline.

The hires level increased over the year for construction, which increased by 6.1% in July, and retail trade at 5.1%, but decreased for educational services.

The so-called JOLTS report does not really move the markets when it is released. Still, it offers a snapshot of what is happening under the formal hiring and jobless claims trends that we see. As a reminder, the job market requires people quitting their job to move up the ladder or into something else they prefer for there to be a truly strong jobs market.

READ ALSO: America's Fastest Growing Jobs

Filed under: Economy

 

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