Market Wrap: Oil Jumps, Indexes Hit New Records on GOP Win

November 5, 2014, 9:04 am

≫ Next: 6 Ways Student Loan Servicers Are Trying to Trick You

≪ Previous: Deflation Risk Ahead: But What's So Bad About Falling Prices?

$

0

0

Filed under: Energy, Earnings, Market News, U.S. Government, Investing

By STEVE ROTHWELL

NEW YORK -- Stocks returned to record levels on Wednesday as a rebound in oil prices boosted energy stocks. The stock market also gained after the completion of midterm elections that saw Republicans take control of the Senate.

The direction of the stock market has been dictated by swings in the price of oil this week. Energy stocks plunged on Monday and Tuesday on reports that Saudi Arabia was cutting prices for U.S.-bound crude. On Wednesday, oil rebounded on a smaller-than-expected increase in overall U.S. supplies.

Devon Energy (DVN) was the biggest gainer in the Standard & Poor's 500 index after it reported record oil production late Tuesday and said that its third-quarter earnings more than doubled to $1.02 billion. The results were better than Wall Street analysts had forecast.

The stock market has returned to record levels after a sharp slump last month. The rebound has been fueled by a combination of rising corporate earnings and evidence that the economy is maintaining its gradual recovery.

"We're within the midst of a secular bull market right now, and I do believe the general trend right now in the U.S. stock market is going to be upward," said Kevin Mahn, President and Chief Investment Officer at Hennion & Walsh Asset Management.

The S&P 500 (^GPSC) rose 11.47 points, or 0.6 percent, to 2,023.57. That surpassed the previous record of 2,018.05 set on Friday. The Dow Jones industrial average (^DJI) gained 100.69 points, or 0.6 percent, to 17,484.53. The index is also at an all-time high. The Nasdaq composite (^IXIC) fell two points, or less than 0.1 percent, to 4,620.72.

Investors also assessed the impact of the midterm elections.

America awoke Wednesday to sharper dividing lines in an already divided government. Republicans gained control of the Senate and strengthened their hold on the House in a wave of Election Day victories late Tuesday. Republicans racked up Senate victories in seven states, including GOP-leaning Arkansas, Montana, South Dakota and West Virginia.

Many analysts pointed out though that a divided government isn't necessarily negative for the stock market.

Evaluating data going back to 1946, analysts at S&P Capital IQ found that the stock market had its best returns when a Democratic President was opposed by a unified Republican Congress. In the eight years when that combination was in place the S&P 500 index gained an average of 15.1 percent.

The worst returns occurred when a Republican president was working with a split Congress. In that scenario, stocks rose an average of just 3.5 percent a year.

Despite this week's events in Washington, what matters more for investors when evaluating companies is the strength of their balance sheets and their earnings potential, said W. Janet Dougherty, a global investment specialist based in Chicago with J.P. Morgan Private Bank.

"In the near-term what happens in Washington shouldn't deter you, or impact how you're investing," Dougherty said. "It's really does come down to fundamentals."

Investors also got some encouraging news on hiring on Wednesday.

U.S. companies added 230,000 jobs in October, payroll processer ADP said Wednesday. That's the most in four months and a sign that businesses are still willing to hire despite signs of slowing growth overseas. The report could indicate a healthy gain in the government's monthly report on jobs due out Friday.

In oil trading, Benchmark U.S. crude rose for the first time in five days, climbing $1.49 to $78.68 a barrel on a smaller-than-expected increase in overall U.S. oil supplies and a surprise decline in oil supplies at the main U.S. trading hub in Cushing, Oklahoma. Brent crude, a benchmark for international oils used by many U.S. refineries, rose 13 cents to close at $82.95 on the ICE Futures exchange in London.

Devon Energy surged $5.60, or 10 percent, to $61.62 after reporting record oil production late Tuesday and saying that its third-quarter earnings more than double to $1.02 billion.

Other winning stocks included a pair of big media companies.

Time Warner (TWX) jumped after raising its earnings forecast for the year. The company's stock gained $3.02, or 4 percent, to $77.99.

Twenty-First Century Fox (FOX) said late Tuesday that it earned $1.04 billion in its fiscal first quarter on strong results from its cable networks and movies including "Dawn of the Planet of the Apes" and "The Fault in Our Stars." Its stock rose $1.51, or 4.5 percent, to $34.84.

TripAdvisor (TRIP) was the day's biggest loser. Its stock plunged after the company posted weak quarterly results late Tuesday. The travel website company's shares dropped $11.84, or 14.1 percent, to $71.95.

In currency trading, the dollar rose to 114.74 yen from 113.69 yen late Tuesday. The euro fell to $1.2472 from $1.2548. The yield on the 10-year Treasury note rose was unchanged from Tuesday at 2.34 percent.

The price of gold continued to slide. Gold fell $22, or 1.9 percent, to $1,145.70 an ounce. Silver slid 51 cents, or 3.2 percent, to $15.43 an ounce and copper dropped 1.1 cents, or 0.4 percent, to $3.01 a pound.

In other energy futures trading, wholesale gasoline rose 0.9 cent to close at $2.087 a gallon and heating oil fell 0.4 cent to close at $2.439 a gallon. Natural gas rose for the seventh straight trading day on forecasts for colder weather. Natural gas futures rose 6.5 cents to close at $4.194 per 1,000 cubic feet.

What to Watch Thursday:

• The Labor Department reports weekly claims for unemployment benefits, and workplace productivity and costs for the third quarter, at 8:30 a.m. Eastern time.
• Freddie Mac releases its weekly survey of mortgage rates at 10 a.m.

These selected companies are scheduled to report quarterly financial results:

• Advance Auto Parts (AAP)
• AMC Networks (AMCX)
• AOL (AOL)
• Astrazeneca (AZN)
• Cablevision Systems (CVC)
• CDW (CDW)
• Cedar Fair (FUN)
• Chesapeake Utilities (CPK)
• Cinemark Holdings (CNK)
• Computer Sciences Corp. (CSC)
• Consolidated Edison (ED)
• DirecTV (DTV)
• EchoStar (SATS)
• Fair Isaac Corp. (FICO)
• Gartner (IT)
• Hain Celestial Group (HAIN)
• Houghton Mifflin Harcourt Co. (HMHC)
• J & J Snack Foods (JJSF)
• Kate Spade (KATE)
• King Digital Entertainment (KING)
• Lions Gate Entertainment (LGF)
• Molson Coors Brewing (TAP)
• Monster Beverage (MNST)
• Orbitz Worldwide (OWW)
• Scripps Networks Interactive (SNI)
• Visteon (VC)
• Walt Disney Co. (DIS)
• Wendy's (WEN)
• Zynga (ZNGA)

 

Permalink | Email this | Linking Blogs | Comments

---

6 Ways Student Loan Servicers Are Trying to Trick You

November 5, 2014, 10:00 pm

≫ Next: Chipotle Isn't the Only Burrito Roller Growing Quickly

≪ Previous: Market Wrap: Oil Jumps, Indexes Hit New Records on GOP Win

$

0

0

Filed under: Student Loans, Personal Finance, College, Education, Financial Education

More than 40 million Americans who have student loan balances outstanding have to deal with student-loan servicing companies as their primary contact in managing their loans. Unfortunately, some of those servicers are violating laws governing how they treat borrowers, according to the latest report from the Consumer Financial Protection Bureau. The report highlights six common practices that loan servicers have used that don't comply with consumer-protection laws, and those carrying student loan balances should be aware of them to make sure that their servicer doesn't take advantage of them.

1. Watch Out for Late Fees, Especially If You Have Multiple Loans

Borrowers who can't make their monthly payments in full generally have to pay substantial late fees. To minimize those late fees, some borrowers make partial payments on their loans. If you have more than one loan outstanding with the same servicer, it's natural to assume that if you pay enough to cover the minimum payment on one or more of your loans, you'll avoid late fees on those loans even if you end up owing them on the remaining loans.

But some servicing companies take partial payments and divide them evenly across every loan outstanding. That can result in late fees on all of your loans and -- even worse -- can send all of your loans into default and trigger further consequences. According to the CFPB, this practice violates the Dodd-Frank Act, and if you see it happening, calling your servicing company and demanding the correct treatment of your partial payments is entirely warranted.

2. Make Sure Your Minimum Payments Are Right

Most loans have minimum payments that are due. But some servicing companies neglect to notice that some of your loans are still in deferment, and thus miscalculate minimum payments. As a result, your servicer might charge you late fees even if you've paid the proper amount. To catch this, you need to understand the terms of each of your loans, but the CFPB found that these practices were deceptive. If you think a problem has occurred with your loans, contact your servicer first, and if you don't get a good answer, then submitting a complaint with the CFPB could help move the process forward.

3. Don't Let Your Servicer Take Away Your Grace Period

Some loans offer grace periods during which lenders can't charge late fees even after the due date. The CFPB, though, found that servicers sometimes illegally charge late fees even when payments are made during the grace period. If your loan documents say that you're entitled to a grace period, make sure your servicer honors it -- and call your servicer on any improper late fees.

4. Get the Tax Data You Need to Deduct Loan Interest

Many students are entitled to deduct the amount they pay on student loan interest, and loan servicers are required to provide the information returns that you rely on to determine how much interest you've paid in a given tax year. Some servicing companies, though, have made it difficult to get the information you need to claim the deductions you're entitled to, resulting in the loss of tax writeoffs of as much as $2,500. As the end of 2014 approaches, make sure you put it on your tax checklist to see if you get the forms you need from your loan servicer early next yearn. If you don't get the standard tax forms from your servicer, look at your monthly statements to figure out how much in interest you've paid each month. Still, in the ideal situation, your servicer should make things easier on you, and letting the CFPB know if your servicer doesn't cooperate could help you get what you need.

5. Know Your Bankruptcy Rights

It's harder to have student loan debt discharged in bankruptcy, as current laws require you to establish an undue hardship that prevents you from repaying your student loans. But contrary to what some servicers tell borrowers, it's not impossible to have student loans discharged through bankruptcy, and the CFPB found that those servicers who said otherwise were engaging in deceptive practices under Dodd-Frank.

6. Get Protection From Debt Collectors

Student-loan servicers often double as collection agencies against borrowers who become delinquent on their loans. Even though debt collectors are required to honor laws governing when and how often they can make calls, the CFPB found that many servicers illegally call borrowers at impermissible times, either early in the morning or late at night. With one consumer reporting four dozen calls within a 45-day period, and with a total of 5,000 impermissible calls made overall during that same time frame, you need to understand that you have rights and to assert them.

Motley Fool contributor Dan Caplinger celebrated the day he paid off his last student loan. You can follow him on Twitter @DanCaplinger or on Google Plus. To read about our favorite high-yielding dividend stocks for any investor, check out our free report.

 

Permalink | Email this | Linking Blogs | Comments

Chipotle Isn't the Only Burrito Roller Growing Quickly

November 5, 2014, 10:00 pm

≫ Next: When a Spender Wed a Saver, a Budget Cemented Their Future

≪ Previous: 6 Ways Student Loan Servicers Are Trying to Trick You

$

0

0

Filed under: Company News, Earnings, Restaurants, Investing

Chipotle Mexican Grill (CMG) is the undisputed champ of the restaurant industry, but another Mexican chain is posting double-digit revenue growth and consistently positive comparable restaurant sales. It's also a lot smaller and earlier in its growth cycle than Chipotle, translating into a potentially bigger opportunity for investors -- if things play out the right way.

Chuy's (CHUY) has just 59 locations, scattered across the country. However, that should also provide years of growth as the concept expands.

Chuy's doesn't fall into the "fast casual" niche that Chipotle has mastered. It's a sit-down table-service restaurant. That's not a strong selling point at first. We've seen El Torito, Chevy's and On the Border peak in popularity as casual-dining chains serving up Mexican food after an initial buzz.

Chuy's is different. It's festive, and not in a strolling mariachi kind of way. We're talking about Elvis shrines and complimentary happy hour nacho bars served out of makeshift car trunks. We're talking about a wall of customer-submitted snapshots of their pet dogs. Going by Chuy's latest quarter, it seems to be working.

Everything Goes Better with Salsa

Chuy's is on a roll, despite posting mixed quarterly results after Tuesday's market close. Revenue soared 20 percent to $64.1 million in its latest quarter when pitted against last year's third quarter. Expansion was the biggest contributor to the top-line spike. There are 11 more locations open than there were a year ago. However, even at the individual restaurant level we're seeing a 3 percent improvement in comps as a combination of a 1.3 percent increase in customers and a 1.7 percent bump in the average check.

This isn't a fluke. Comparable restaurant sales have moved higher for 17 consecutive quarters.

Things get scarier for Chuy's as we work our way down the income statement, explaining why the stock took a dive on Wednesday. A spike in food cost inflation and weakness at some of its newer locations drove margins lower. Earnings only grew half as quickly as Chuy's top line, and the current quarter will continue to be challenging.

Chuy's now expects earnings per share to clock in between 67 cents and 69 cents this year, vs. its earlier range of 76 cents to 78 cents. That's obviously not cool with Mr. Market -- and the stock is being punished accordingly -- but it doesn't take away from the growth of Chuy's popularity as a concept in a niche where Chipotle has been the lone standout.

There's Only One Chipotle

It's hard to top Chipotle's most recent quarter. Revenue and earnings per share soared 31 percent and 56 percent, respectively, over the prior year. Comparable restaurant sales soared a jaw-dropping 19.8 percent.

However, a big reason for the accelerating comps growth and widening margins is that Chipotle kicked in a menu price increase in May. It was the chain's first major hike in three years. Chuy's wasn't as aggressive, absorbing most of the increase in commodity prices this time around. It moved prices marginally higher during the latter half of the quarter -- in late August -- but Chuy's will wait until February to roll out another hike.

Chipotle is in a fortunate position where it can increase prices substantially without having its customers blink. We may see Chuy's pricing flexibility in a few months. For now, Chuy's is popular in part because of its reasonable pricing. Most of its menu items are priced in the single digits, with Chuy's knowing that it can make a lot of that back in beverage sales. If February's pricing change gets margins back on track, the market will once again get talking about the high ceiling at Chuy's with just dozens of restaurants open -- and dozens if not hundreds more to go.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Chipotle Mexican Grill. Try any of our Foolish newsletter services free for 30 days. To read about our favorite high-yielding dividend stocks for any investor, check out our free report.

 

Permalink | Email this | Linking Blogs | Comments

When a Spender Wed a Saver, a Budget Cemented Their Future

November 5, 2014, 10:00 pm

≫ Next: 5 Simple Steps to DIY Investing Success

≪ Previous: Chipotle Isn't the Only Burrito Roller Growing Quickly

$

0

0

Filed under: Life Stage Lessons

When my husband popped the question and I said yes, we saw it as nothing more than a deep commitment to each other. It was the most meaningful way we knew to express that we wanted to spend the rest of our lives together. It was all about love.

But once we were married, we realized there was much more to marriage than just loving the other person. We had to pick out an apartment together. Buy furniture together. Grocery shop together. We were put in situations with each other that allowed our personalities to really shine through. And we learned a little something: We were two very different people.

Never did this fact become clearer than when we approached spending money together. I kept my life stress-free by not worrying about costs or prices when I shopped. If I liked it and had the money, I bought it. My husband, Johnny, kept his life stress-free by analyzing and reanalyzing costs until he found the best deal. We were at extreme ends of the spending spectrum, and we were desperate to find some middle ground before our newlywed bliss became blissless.

Budgeting Creates Our Path for Future Bliss

We finally found one thing we both agreed on wholeheartedly: what we wanted for our future. And we realized that had to create a budget if we wanted to reach our goals. There'd be no more "he says" or "she says," just "the budget says." Here's what worked best for us.

• Compromising. We worked on our budget together. It wasn't one person telling the other person what to do. Giving every dollar a name required compromise and lots of trial and error.
• Goal setting. We set specific financial goals. We both wanted to become debt-free, but we needed a plan to get there. We decided how much debt we wanted to have paid down by the end of the month, by the end of six months, by the end of a year. Our big goal was to retire our combined $20,000 in debt in less than two years, all while saving money for retirement and a rainy day.
• Keeping track. Even after we created a budget, there was still the matter of sticking to it. And we did that by tracking every cent. As soon as we spent money, we wrote it down to enter into a spreadsheet later. These were the days before nifty budgeting apps, and we weren't perfect, but we were consistent, which was the key to our success.

Keeping a budget ended up strengthening our marriage since it helped to teach us communication and compromise. We went through some growing pains, but that spender and saver who married over seven years ago met that big goal, and we still compromise every day to save for the future. Thank goodness we decided to give budgeting a try.

 

Permalink | Email this | Linking Blogs | Comments

5 Simple Steps to DIY Investing Success

November 5, 2014, 10:00 pm

≫ Next: Amazon Gives Taxi Deliveries a Try in California Cities

≪ Previous: When a Spender Wed a Saver, a Budget Cemented Their Future

$

0

0

Filed under: Investing Basics, Financial Advisors, Investing

Not everyone needs a financial manager. You might find it strange to hear a financial adviser say this, but based on my experience, it's absolutely true. If you likes to do research and enjoy making and implementing investment decisions, you could have what it takes to be a do-it-yourself investor.

Many investors start off without having a strong foundation, and that often leads to disappointing results. To make sure that doesn't happen to you, follow these five steps.

1. Have a Plan

A solid financial plan tells you what you need to achieve financially to achieve your life goals. Once you know how much money you'll need and when you'll need it, you'll find it easier to decide how to invest. Without creating a financial plan, it will be difficult to keep your investing habits in perspective and stick to your investment strategy. That's the next step.

2. Have a Strategy

Your investment strategy tells you what to buy, when to buy and when to sell. You determine your strategy by balancing what you need to achieve financially with your desire to minimize risk. Let's say you decide that you want to retire in 15 years. After running your plan, you determine that you need to take your existing savings, add $30,000 a year and grow all that money to achieve your goal. If you can achieve your goal without taking much risk, your investment strategy might be very conservative and give heavier weight towards fixed income. If you need to be more aggressive to end up where you want to be, you might need to tilt more toward equity growth. As you can see, your financial plan should drive the "what should I invest in" decision.

To determine when to buy and when to sell, you have to decide if you are a buy-and-hold or tactical investor. All approaches to buying and selling stocks and funds have pros and cons. Depending on how you invest, if you are a buy-and-hold investor, your returns will likely mimic those of broad indexes.

That's great when the market is good -- but it can be heart-wrenching when things go haywire. If you decide to try a more hands-on approach, make sure your investment strategy is rules-based rather than emotion-based. The last thing you want is to make buy/sell decisions based on how chipper you feel on any particular day. That's a sure recipe for disaster.

3. Learn the Basics

You'll be richly rewarded if you understand how stocks and bonds work before you start investing. Each alternative has a unique risk profile. When you buy bonds, you are basically loaning someone your money. They pay you interest during the period of the loan and at the end of the period they repay the money they borrowed (if they are still in business).

If you buy very solid bonds, you can minimize the risk of losing your capital, which is great. But the safer the bonds are, the lower the interest you receive. It's a tradeoff. Many investors prefer to buy stocks and stock funds or exchange-traded funds if they are planning on investing for a long period. That's because they feel they can do far better with stocks than with bonds. Of course, if they put more money in stocks, they are subject to much more risk -- especially over the short term. This issue of risk and volatility is crucial to understand.

You need to invest with your eyes wide open and expect the bad along with the good. If you ignore your risk, you might be shaken out of your investment strategy at the worst possible time. But if you take a little time to learn how these investments work, the odds of that happening are lower.

4. Set Up Your Platform

If you are going to do your own buying and selling, there is no reason to pay high commissions or fees. Dozens of online brokerage firms are eager to open an account for you. It's very easy and quick. Just make sure you do business with a reputable company with low fees and high-end research capabilities.

5. Pull the Trigger

Start slowly. Don't let your emotions cloud your judgment. You might find it useful to print out a list of your investment rules and use it as a checklist to make sure you've covered all your bases.

Are there other concerns? What other areas do you think a DIY investor needs support in? Share your comments below.

 

Permalink | Email this | Linking Blogs | Comments

Amazon Gives Taxi Deliveries a Try in California Cities

November 5, 2014, 10:17 pm

≫ Next: GOP in Charge, Eager to Move on Keystone XL, Taxes

≪ Previous: 5 Simple Steps to DIY Investing Success

$

0

0

Filed under: Company News, Amazon.com, Retail, Shopping, Internet

SAN FRANCISCO -- Amazon.com (AMZN) is testing deliveries via taxis in San Francisco and Los Angeles, according to The Wall Street Journal, as the Internet retailer explores alternative modes of delivery to speed up shipments while restraining cost.

Amazon is using the taxi-hailing mobile app, Flywheel, to ship parcels via licensed cabs, studying the feasibility of using taxi fleets more broadly as a delivery avenue, the Journal cited people familiar with the matter as saying.

The e-commerce company, stung by shipping delays last Christmas blamed on services such as UPS (UPS) and Fedex (FDX), has been exploring various options from regional couriers to its own delivery vehicles.

In its latest test, Amazon summoned cabs through Flywheel to distribution centers, from where they picked up as many as 10 packages bound for the same location at about $5 a package, the Journal reported.

The deliveries usually took place early in the morning, when taxi traffic was low and the competition unlikely to notice, the paper cited the people as saying.

 

Permalink | Email this | Linking Blogs | Comments

GOP in Charge, Eager to Move on Keystone XL, Taxes

November 5, 2014, 11:06 pm

≫ Next: Investors Find Better Balance in Their 401(k)s

≪ Previous: Amazon Gives Taxi Deliveries a Try in California Cities

$

0

0

Filed under: Energy, U.S. Government, Oil & Gas Industry, Tax Laws, Investing

By DONNA CASSATA

WASHINGTON -- Republicans' resounding victory gives them an opportunity to push legislation that's been bottled up in the Democratic Senate, from targeting elements of President Barack Obama's health care law to constructing the Keystone XL oil pipeline to rolling back environmental regulations.

Democrats suffered an electoral drubbing in Tuesday's midterms, and Republicans regained control of the Senate and widely expanded their majority in the House. In command in both chambers in January, Republicans maintained that they have to show they can govern or else voters will show them the door.

I think the country has figured that out and they've given us the mandate to do it and we better produce, or they'll kick us out too.

"We now have the votes and we have the ability to call the agenda, so stop name-calling and let's actually produce some legislation that helps jobs and the economy and moves our country forward," Rep. Jason Chaffetz, R-Utah, said in an interview. "I think the country has figured that out and they've given us the mandate to do it and we better produce, or they'll kick us out too."

House Republicans are counting on Sen. Mitch McConnell, R-Ky., in line to be the next Senate majority leader, to move ahead on the dozens of jobs bills that have been passed by the House but remained stalled in the Senate. They also are counting on a swift vote early next year on building the Keystone XL pipeline to carry oil from Canada to the U.S. Gulf Coast now that Republicans clearly have the numbers in the Senate.

"It's jobs, jobs, jobs," said Rep. Randy Weber, R-Texas, who also wants to lift the ban on crude oil exports.

The GOP could have as many as 54 Senate seats if Republican Dan Sullivan prevails in Alaska and the party wins a Dec. 6 runoff in Louisiana. The House majority could reach historic levels of 250 out of 435 seats.

"It's in our best interest to show we can function and that we can lead responsibly, and that would involve getting bills that have already passed the House with bipartisan support and get Democrats to join us in the Senate and get those to the president, even something like trade," said Sen. John Barrasso, R-Wyo.

Moving Forward

McConnell signaled Wednesday that he could work with Obama on trade agreements and a tax overhaul as both sides look toward governing rather than gridlock.

It won't be easy.

Many of the moderate Democrats who would be willing to compromise were defeated in Tuesday's elections, reducing the number of lawmakers in the middle. In the next Congress, independent Sen. Angus King of Maine and moderate Democrats Joe Manchin of West Virginia, Heidi Heitkamp of North Dakota and Jon Tester of Montana will hold considerable leverage.

Republicans will be under pressure from many in their ranks and outside conservatives to scrap the health care law, but McConnell and the more pragmatic GOP lawmakers acknowledge that is next to impossible because of Obama's veto power.

"If I had the ability, obviously, I'd get rid of it," McConnell said of the Affordable Care Act as he spoke to reporters at a news conference in Kentucky. "Obviously, it's also true he's still there."

Unraveling Obamacare

McConnell indicated the GOP would push for a repeal of the tax on medical devices, which has some Democratic support, and target the requirement that individuals sign up for health insurance or face a penalty.

Obama told reporters that ending the individual mandate was a nonstarter, calling it a "line I can't cross" because it would unravel the law.

Further complicating the relationship between Obama and the newly empowered Republicans is the president's vow to act unilaterally before year's end to reduce the number of deportations and grant work permits to millions of immigrants illegally in the United States.

"What I'm not going to do is just wait," the president said as bipartisan, comprehensive immigration legislation that the Senate passed in June 2013 remained stalled in the House.

McConnell and other Republicans said such a step would be an in-your-face to the new majority GOP -- "like waving a red flag in front of a bull," McConnell said -- and Republicans would use spending bills to restrict or stop such executive action.

Line-Item Vetos

Several Republicans hold the deep-seated view that Obama already has been abusing his constitutional authority. "He doesn't get the line-item veto to unilaterally change different tenets of the law after he signs the law," Weber says of Obama's moves to delay provisions of the health care law.

On energy, McConnell was already exploring ways to derail Obama's plans to reduce the pollution blamed for global warming from coal-fired power plants, a maneuver that some Democrats from coal states are likely to support but that the president would likely veto.

Pro-energy Republican Lisa Murkowski of Alaska is expected to chair the Senate Energy Committee, and Oklahoma Sen. James Inhofe, who rejects the scientific consensus that global warming is being caused by fossil fuels, will likely lead the environment panel.

The Senate turnover from Democrats to Republicans could also complicate efforts by the U.S. to broker a new international deal to curb global warming that is legally enforceable, because a Republican-controlled Senate would be unlikely to ratify it.

"There is no way to dance around the issue that in too many races we lost good allies," said Michael Brune, head of the Sierra Club. "And we will see them replaced by people who oppose our values."

-Associated Press writers Dina Cappiello, Erica Werner and Andrew Taylor contributed to this report.

 

Permalink | Email this | Linking Blogs | Comments

Investors Find Better Balance in Their 401(k)s

November 6, 2014, 12:24 am

≫ Next: Weekly Jobless Claims Drop, 4-Week Average Lowest Since 2000

≪ Previous: GOP in Charge, Eager to Move on Keystone XL, Taxes

$

0

0

Filed under: Personal Finance, Stocks, Retirement Plans, 401K, Financial Education

By STAN CHOE

NEW YORK -- Fewer investors are going all-in with their retirement savings.

Less than 10 percent of 401(k) accounts administered by Fidelity Investments were invested entirely in stocks last quarter. It's the latest step in a yearslong march toward more balanced nest eggs. Fidelity keeps records for 13.1 million 401(k) participants, and its figures reach back to 2001, when the dot-com bubble was deflating and 33 percent of 401(k) plans were entirely in stocks. The percentage has dropped every year since then.

Putting all your retirement savings into stocks can be tempting. Stocks have the potential for much bigger returns than bonds or cash, particularly when bonds and money-market funds are offering such low interest rates. Last year, the Standard & Poor's 500 index (^GPSC) returned 32.4 percent, catnip for aggressive investors looking to maximize their savings.

But anyone keeping all their portfolio in stocks needs to have the willpower to hold steady when stocks fall, which can happen suddenly and often. The S&P 500 lost 37 percent in 2008, for example, and plunging 401(k) values caused much heartache. Anyone whose fright led them to sell then would have missed out on the big ensuing gains. A more balanced portfolio, including a mix of stocks and bonds, would have offered a smoother ride.

Conservative savers, meanwhile, can suffer if they take the opposite approach: not owning any stocks. They may avoid the ups-and-downs of the stock market, but they also lose out on the growth potential that stocks provide. That makes it tougher to keep up with inflation.

Only 5 percent of 401(k) accounts had zero stocks last quarter, according to Fidelity. That's down from 5.9 percent a year earlier and from 12 percent in 2001.

More investors have better balanced accounts as a result of the increased popularity of target-date mutual funds. These funds automatically shift the assets in a portfolio, staying heavy on stocks when the planned retirement date is far away and shifting toward bonds as the date approaches.

Nearly three quarters of all dollars in target-date funds were controlled by just three fund companies last year, and none of them had any funds that were 100 percent in stocks, according to Morningstar (MORN).

 

Permalink | Email this | Linking Blogs | Comments

---

Weekly Jobless Claims Drop, 4-Week Average Lowest Since 2000

November 6, 2014, 12:34 am

≫ Next: ECB and UK Maintain Low Rates, No More Word on Quantitative Easing (Yet)

≪ Previous: Investors Find Better Balance in Their 401(k)s

$

0

0

Filed under: Labor, Economic Indicators, Unemployment, Job Search, Investing

By Lucia Mutikani

WASHINGTON -- The number of Americans filing new claims for unemployment benefits fell more than expected last week, in the latest sign of tightening labor market conditions.

Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 278,000 for the week ended Nov. 1, the Labor Department said Thursday.

The four-week moving average of claims, considered a better measure of labor market trends as it irons out week-to-week volatility, fell 2,250 to 279,000, the lowest reading since April 2000.

Economists polled by Reuters had forecast claims dropping to 285,000 last week. Claims have now been below the 300,000 threshold for eight straight weeks, suggesting that employment growth was gaining momentum.

A report Wednesday showed private payrolls increased 230,000 in October, for a record seven straight months of job gains exceeding 200,000.

The government is expected to report Friday that nonfarm payrolls advanced 231,000 last month after rising 248,000 in September, according to a Reuters survey of economists. The jobless rate is seen steady at a six-year low of 5.9 percent.

A Labor Department analyst said there were no special factors influencing last week's claims data.

The Federal Reserve last month gave an upbeat view of the labor market, dropping its characterization of labor market slack as "significant" and replacing it with "gradually diminishing."

The claims report showed the number of people still receiving benefits after an initial week of aid declined 39,000 to 2.35 million in the week ended Oct. 25, the lowest level since December 2000. The unemployment rate for people receiving jobless benefits was at 1.8 percent for an eighth straight week.

 

Permalink | Email this | Linking Blogs | Comments

ECB and UK Maintain Low Rates, No More Word on Quantitative Easing (Yet)

November 6, 2014, 12:45 am

≫ Next: Fannie Mae, Freddie Mac to Send Billions More to Treasury

≪ Previous: Weekly Jobless Claims Drop, 4-Week Average Lowest Since 2000

$

0

0

Filed under: Economy

With deflation in the air in Europe, some form of additional easing measures might have been hoped for. That hope has faded, and the reality is that European Central Bank (ECB) efforts toward quantitative easing measures are simply going to take some time to put together.

At Thursday's meeting, the Governing Council of the ECB decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30% and -0.20% respectively.

The Bank of England's Monetary Policy Committee held its monetary policy meeting on Thursday as well. The central bank voted to maintain the bank rate at 0.5%. Also, the committee voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.

The United States is ending its quantitative easing measures. The Bank of Japan just doubled down on its quantitative easing measures. Europe is fighting negative growth and deflation.

What comes next? Maybe ECB quantitative easing.

ALSO READ: 7 Commodities With Collapsing Prices

 

Read | Permalink | Email this | Linking Blogs | Comments

Fannie Mae, Freddie Mac to Send Billions More to Treasury

November 6, 2014, 1:20 am

≫ Next: Jay Z Buys Company That Sells $200,000 Bottles of Champagne

≪ Previous: ECB and UK Maintain Low Rates, No More Word on Quantitative Easing (Yet)

$

0

0

Filed under: Mortgages, Financial Reform, U.S. Government, Treasury, This Built America

By Lindsay Dunsmuir

Government-controlled mortgage finance firms Fannie Mae and Freddie Mac said Thursday they will pay U.S. taxpayers $6.8 billion after reporting a third-quarter profits that modestly rose from the second quarter.

Once they have made the latest payments in December, the two companies will have returned $225.5 billion to taxpayers in exchange for about $188 billion in taxpayer aid they received after being placed under the government's wing at the height of the financial crisis.

Fannie Mae, the bigger of the two and the nation's largest source of mortgage funds, earned a net income of $3.9 billion in the third quarter, up from $3.7 billion in the second quarter.

The increase was driven by higher net interest income, an increasing portion of which is derived from guaranty fees, and about $1.2 billion in settlement payments from Goldman Sachs (GS) and HSBC (HSBC) related to Fannie's investments in private-label mortgage securities sold by the two banks before the credit crisis.

Slowing home-price appreciation was a drag on Fannie's profit growth. Based on its own home price index, Fannie estimated that U.S. home prices increased just 1.2 percent in the third quarter and are up just 5.3 percent in the year to date, after gaining 8.2 percent in 2013.

On a year-over-year basis, Fannie's net income was down from $8.7 billion a year earlier.

Freddie Mac, meanwhile, generated net income of $2.1 billion versus $1.4 billion in the second quarter. Like Fannie, Freddie also posted higher net interest income and benefited from $1.2 billion in legal settlements in the same litigation, which had been brought by the U.S. Federal Housing Finance Agency, which regulates both companies.

Freddie's profit fell dramatically from a year earlier, when one-time tax benefits drove its net income to nearly $30.5 billion.

Neither Fannie Mae or Freddie Mac lends money directly to home buyers. Rather, the two companies buy mortgages from lenders and repackage them into securities they sell to investors with a guarantee.

Their businesses collapsed during the financial crisis and the two were seized by the U.S. government in 2008. Under their bailout terms, the two firms must turn their profits over to the Treasury as dividends on the government's controlling stake.

Fannie Mae's dividend to the U.S. Treasury was larger than the $3.7 billion it paid in the prior quarter, while Freddie's was up from $1.9 billion.

Sluggish Housing Market Impact

Those dividends swelled in early 2014 and late 2013 due to one-off events like legal settlements.

However, in a sign that the sluggish housing market is affecting its bottom line, Fannie Mae reported credit-related income of $836 million, the lowest since having negative credit-related income in the third quarter of 2012.

This was "due primarily to a slower rate of home price appreciation compared with the second quarter of 2014," Fannie Mae said in a statement.

Private shareholders in Fannie Mae and Freddie Mac have sued the government over the dividend policy, claiming Washington is expropriating the value of their preferred shares. A federal court dismissed a suit by one of the largest shareholders in September, but other legal challenges could drag on for years.

Fannie Mae and Freddie Mac have been a minor cash cow for the Treasury in recent years, paying back all their bailout funds and more. But their obligation to turn over all their profits to the Treasury has helped keep them undercapitalized, analysts say, and a severe downturn in the housing market could eventually lead them to require further bailouts.

The Obama administration has argued for replacing the firms with a new entity, but lawmakers might not address housing reform even after Tuesday's congressional elections, in which Republicans seized control of the Senate.

Republicans want to see less government support of mortgages, while some Democrats argue low-income borrowers should get more support.

---

 

Permalink | Email this | Linking Blogs | Comments

Jay Z Buys Company That Sells $200,000 Bottles of Champagne

November 6, 2014, 3:01 am

≫ Next: Mortgage Rates Rise for Second Straight Week

≪ Previous: Fannie Mae, Freddie Mac to Send Billions More to Treasury

$

0

0

Filed under: Mergers & Acquisitions, Food & Beverage, Celebrities, This Built America

By JAMES COOK

American rapper Jay Z has purchased the legendary Armand de Brignac Champagne brand, the company known for its incredibly expensive gold bottles of Champagne.

BBC News reports that Jay Z acquired the French company for an undisclosed amount from Sovereign Brands.

While normal-size bottles of Armand de Brignac retail for $300, it is the giant versions that have made the company a favorite of the rich and famous looking to show off their wealth.

Rappers often refer to the Champagne as "Ace of Spades" due to its distinctive gold design.

The largest bottle the company produces is known as "the Midas."

Here's how big it is:

In June 2011, Dallas Mavericks owner Mark Cuban spent $90,000 on a single bottle of the Champagne to celebrate the team's NBA championship. "Worth every penny," he emailed to the New York Post after the party.

American gambler Don Johnson famously purchased a 120,000 British pound ($191,000) "Midas" bottle of Armand de Brignac during a party in a London nightclub, breaking the world record for the most expensive bottle of Champagne. The previous record was held by an anonymous customer who purchased one of the company's "Nebuchadnezzar" bottles.

Jay Z has a long association with the Armand de Brignac brand. He displayed a tower of bottles during a fundraising party attended by President Barack Obama at his 40/40 club in New York. It was reported at the time that the tower was worth $280,000.

 

Permalink | Email this | Linking Blogs | Comments

Mortgage Rates Rise for Second Straight Week

November 6, 2014, 3:22 am

≫ Next: SodaStream Switches Focus From Soda to Sparkling Water

≪ Previous: Jay Z Buys Company That Sells $200,000 Bottles of Champagne

$

0

0

Filed under: Mortgages, Refinancing, Housing Market, Home Buying, Interest Rates

WASHINGTON -- Average U.S. long-term mortgage rates rose this week, with the benchmark 30-year loan crawling back over 4 percent. It was the second straight week of increases in rates after they had fallen for five weeks amid concern over global economic weakness.

Mortgage company Freddie Mac said Thursday the nationwide average for a 30-year mortgage increased to 4.02 percent from 3.98 percent last week. Still, at 4.02 percent the rate remains at its lowest level since June 2013. The 30-year rate stood at 4.53 percent back in January.

The average for a 15-year mortgage, a popular choice for people who are refinancing, jumped to 3.21 percent from 3.13 percent.

The five-week decline in long-term rates sparked a wave of homeowners looking to refinance mortgages at a bargain rate.

U.S government figures released last week showed that the U.S. economy powered its way to a solid annual growth rate of 3.5 percent from July through September, outpacing most of the developed world and appearing on track to extend its momentum through this year and beyond.

An improving economy led the Federal Reserve last week to end a bond buying program that it launched during the 2008 financial crisis. The monthly bond purchases were intended to keep long-term interest rates low. Fed officials also have indicated that they will continue to hold shorter-term rates at near-zero levels until signs emerge of rising inflation.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

• The average fee for a 30-year mortgage was unchanged from last week at 0.5 point. The fee for a 15-year mortgage also remained at 0.5 point.
• The average rate on a five-year adjustable-rate mortgage rose to 2.97 percent from 2.94 percent. The fee was steady at 0.5 point.
• For a one-year ARM, the average rate rose to 2.45 percent from 2.43 percent. The fee held at 0.4 point.

 

Permalink | Email this | Linking Blogs | Comments

SodaStream Switches Focus From Soda to Sparkling Water

November 6, 2014, 3:34 am

≫ Next: 4 Tips to Survive the Holiday Shopping Season -- Savings Experiment

≪ Previous: Mortgage Rates Rise for Second Straight Week

$

0

0

Filed under: Company News, Consumer Goods, Food & Beverage, Investing

SodaStream (SODA) is slumping as a platform for making flavored carbonated beverages, so the Israeli company is ready to hose its old image down. With soft drink consumption waning and sparkling water on the rise, SodaStream is changing the way it approaches its marketing strategy.

SodaStream revealed after last week's dreadful quarterly report that it's abandoning its "Your home soda factory" tagline. "Water made exciting" will be its new promotional message to consumers.

"American adults and parents in particular are increasingly restricting the home consumption of soda, as we hear millions of Americans stop bringing soda into their homes or dramatically reduce usage occasions," CEO Daniel Birnbaum explained during SodaStream's earnings call. "There is a radical shift toward water consumption."

Sparkling Smile

The trend away from sugary soft drinks isn't new. Beverage Digest reports that the sale of sodas in this country has fallen for nine consecutive years. Diet soft drinks used to buck the trend, but that low-cal niche has now suffered through three years of declines. Diet soda sales in the U.S. actually fell harder than those of their full-calorie peers last year.

We're still drinking, just not sugary carbonated beverages. SodaStream brought up data from Beverage Digest and marketing research firm Mintel that shows a 33 percent surge in the sparkling water category in this country last year, with flavored sparkling water sales soaring by 62 percent. Some may argue that soda is also flavored sparkling water, but the key difference here is that sodas are flavored with sugar, high fructose corn syrup or artificial sweeteners. Consumers are shying away from pop on fears of diabetes, childhood obesity and the potential health risks of artificial sweeteners.

SodaStream has known this all along. It's more popular in Europe than it is in the U.S., and most of those owners are using the beverage maker to simply fizz up drinking water. A whopping 70 percent of SodaStream's beverage volume worldwide is for sparkling water.

A Truce in the Cola War

The marketing emphasis should be evident in the coming months. Instead of taking jabs at Coca-Cola (KO) and PepsiCo (PEP) the way it has in the past two years of Super Bowl ads, we are likely to see SodaStream pitch the health and wellness benefits of fresh sparkling water.

It's not changing its name. There are decades of brand equity in the SodaStream moniker. However, it will emphasize the Stream and not the Soda in its packaging.

The impact could sting investors. Repositioning itself as primarily a maker of seltzer will hurt high-margin soda flavor sales, but we were already seeing that anyway. SodaStream posted sharp year-over-year declines in soda maker starter systems and syrups in its latest quarter. The one category that improved, naturally, was the CO₂ refills. However, the new positioning could make parents less apprehensive about inviting SodaStream machines into their homes. Making sparkling water at home is cheaper and fresher than store-bought alternatives. There's also an environmental message for SodaStream to lean on in marketing in-home carbonation over bottled options.

It's a bold move for SodaStream, but after seeing sales and profitability move lower this year -- with a bleak outlook for the holiday quarter -- it's not as if it has much of a choice. SodaStream is still about getting busy with the fizzy. It's just redefining the fizz.

Motley Fool contributor Rick Munarriz owns shares of SodaStream. The Motley Fool recommends Coca-Cola, PepsiCo, and SodaStream. The Motley Fool owns shares of PepsiCo and SodaStream and has the following options: long January 2016 $37 calls on Coca-Cola and short January 2016 $37 puts on Coca-Cola. Try any of our Foolish newsletter services free for 30 days. Want a sweet deal? Check out our free report on our favorite high-yielding dividend stocks.

 

Permalink | Email this | Linking Blogs | Comments

4 Tips to Survive the Holiday Shopping Season -- Savings Experiment

November 6, 2014, 3:57 am

≫ Next: Tesla Quarterly Earnings: By the Numbers

≪ Previous: SodaStream Switches Focus From Soda to Sparkling Water

$

0

0

Filed under: Holiday Shopping, Savings Experiment

The holidays are rapidly approaching, and we all have some shopping to do in the weeks ahead. But before you hit the stores, here are a few savings tips that will help you and your budget survive the season.

First, take advantage of your smartphone to dial-up some discounts. RedLaser is an app that transforms your phone's camera into a barcode scanner. Simply point and scan on a product, and it will show you the lowest prices at stores in your area.

RedLaser also provides a price comparison function so you can see how one sale stacks up against thousands of others, both online and in brick-and-mortar stores.

And if you don't like "flipping" through messy sales circulars, give Flipp a try. This app condenses over 300 store flyers and discounts and puts it all in the palm of your hand. Simply look up a retailer and locate an item on sale. With just one click, you can save all your coupons to access later when you shop.

It also pays to remember that some merchandise, like electronics, software and Blu-ray discs are subject to restocking fees if the product isn't returned in a factory-sealed box. These fees can range between 10-25 percent, so if you plan on returning these types of gifts, there will likely be a charge if the packaging is opened.

Not everything comes with a penalty this season. Many stores, including Target, Staples and Best Buy, offer price-protection guarantees. This means that even after you purchase an item, you may be entitled to money back if the retailer or a competitor later offers the same product at a lower price.

Before you start your holiday shopping, put these simple tips to use. You'll find that giving more doesn't always mean spending more.

View Poll

 

Permalink | Email this | Linking Blogs | Comments

---

Tesla Quarterly Earnings: By the Numbers

November 6, 2014, 4:07 am

≫ Next: Unscrupulous Debt Collectors Are Seniors' Top Financial Peeve

≪ Previous: 4 Tips to Survive the Holiday Shopping Season -- Savings Experiment

$

0

0

Filed under: Earnings

Electric-car maker Tesla (TSLA) reported a loss of $74.6 million for the third quarter, double its loss of $38.5 million for the same time a year ago. Tesla attributed the loss to increased expenses to meet the rising demand for the Model S Sedan, as operating expenses rose to $291 million.

The company lowered their forecast for deliveries of the Model S Sedan by 2,000 vehicles, to about 33,000 vehicles for 2014, citing delays in a planned revamp of a factory. Forecasts for deliveries in 2015 remained the same.

Overall, sales rose to $932 million compared to $603 million in the first nine months of 2013. The introduction of the Model X crossover is now projected for the third quarter of 2015 -- one quarter later than last announced -- coming on top of several other delays in the past year-and-a-half. Tesla's challenge is not demand, but rather production capacity issues, which account for the postponement in delivery time.

Cash fell to $2.4 billion from $2.7 billion at the end of the second quarter, due to capital expenditures and the operating losses noted above, while expenses for Research and Development rose 28 percent in the third quarter.

This earnings release follows the earnings announcements from the following peers of Tesla: Daimler (DDAIY), Ford (F), General Motors (GM), Honda (HMC), Toyota (TM) and Volkswagen (VLKPY)

Highlights

• Summary numbers: Revenues of $ 851.8 million, Net Earnings of $ -74.6 million and EPS of $ -0.60.
• Performance focus more on revenue than bottom-line: Increase in revenue of 97.5 percent vs. change in earnings of -94.1 percent, compared to same period last year
• Gross margins widened to 37.2 percent from 30.4 percent for the same period last year; operating margins (EBITDA margins) now an improved 3.0 percent from -0.5 percent

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

	Q3 2013	Q4 2013	Q1 2014	Q2 2014	Q3 2014
Revenue Growth (YOY)	760.9%	100.8%	10.5%	89.9%	97.5%
Earnings Growth (YOY)	65.3%	81.9%	-542.7%	-102.9%	-94.1%
Net Margin	-8.9%	-2.6%	-8.0%	-8.0%	-8.8%
EPS	-$0.32	-$0.13	-$0.40	-$0.50	-$0.60
Return on Equity	-25.8%	-10.6%	-25.2%	-26.6%	-32.3%
Return on Assets	-7.6%	-2.8%	-5.8%	-5.2%	-5.7%

Market Share Versus Earnings Growth

Growth companies like Tesla sometimes focus more on increasing market share than on earnings.





Tesla's revenue performance surpassed its earnings performance this quarter. Compared to the same period last year, its revenue rose 97.5 percent, while its earnings declined by 94.1 percent -- suggesting perhaps that the company's focus is on the top-line at the expense of profits. However, its revenue growth exceeded its peers who have announced so far. This points to some likely market share gains, and partially assuages the weaker earnings performance this quarter. (Also, for comparison purposes, revenues changed by 10.7 percent and earnings by -20.7 percent compared to the previous quarter.)



Earnings Growth Analysis

The company's poor earnings performance has not come as a result of a deterioration in operating margins or because of any cost control issues. As a matter of fact, gross margins widened from 30.4 percent to 37.2 percent and operating margins (EBITDA margins) moved from negative to positive territory this quarter-- from -0.5 percent to 3.0 percent to be exact. For comparison, gross margins were 34.8 percent and EBITDA margins 3.4 percent in the quarter ending June 30, 2014.



Gross Margin Trend

Companies sometimes sacrifice improvements in revenues and margins in order to extend friendlier terms to customers and vendors. Capital Cube probes for such activity by comparing the changes in gross margins with any changes in working capital. If the gross margins improved without a worsening of working capital, it is quite possible that the company's performance is a result of truly delivering in the marketplace and not simply an accounting prop up using the balance sheet.



Tesla's improvement in gross margins have come at the expense of a deterioration in working capital management, suggesting that the improvements in gross margins are likely trade-offs with the balance sheet and not strictly from operating decisions. Its working capital days have gone up to 199.9 from last year's levels of 73.0 days.





Unusual Items

The company's earnings decline is partially a result of non-operational activity and unusual items such as selling emission credits. In fact, the company showed improvements in operating (EBIT) and pretax margins. EBIT margins went from -7.1 percent to -4.6 percent and pretax margins improved from -8.7 percent to -8.3 percent.



EPS Growth Versus Earnings Growth-Competitors?

While Tesla's Earnings per Share (EPS) declined by -87.5 percent, that metric is better than its earnings, which slid by -94.1 percent. This decline in earnings is worse than the earnings performances announced thus far by its peer group, suggesting that the company is losing ground in generating profits versus its competitors.



Supporting Data

The table below shows the preliminary results along with the recent trend for revenues, net income and other relevant metrics:

	Q3 2013	Q4 2013	Q1 2014	Q2 2014	Q3 2014
Revenue Growth (YOY)	760.9%	100.8%	10.5%	89.9%	97.5%
Peer Average Revenue Growth (YOY)	3.7%	3.0%	2.0%	2.8%	0.7%
Earnings Growth (YOY)	65.3%	81.9%	-542.7%	-102.9%	-94.1%
Peer Average Earnings Growth (YOY)	17.1%	69.0%	23.0%	-14.5%	2.0%
Gross Margin	30.4%	31.6%	32.1%	34.8%	37.2%
Peer Average Gross Margin	25.0%	24.5%	25.4%	25.7%	25.0%
EBITDA Margin	-0.5%	3.9%	0.0%	3.4%	3.0%
Peer Average EBITDA Margin	10.1%	10.7%	10.3%	10.5%	11.2%
Net Margin	-8.9%	-2.6%	-8.0%	-8.0%	-8.8%
Peer Average Net Margin	4.2%	5.3%	3.5%	4.5%	4.7%
EPS	-$0.32	-$0.13	-$0.40	-$0.50	-$0.60
Peer Average EPS	$0.56	$0.88	$0.92	$0.80	$0.81
Return on Equity	-25.8%	-10.6%	-25.2%	-26.6%	-32.3%
Peer Average Return on Equity	8.7%	12.8%	10.7%	9.6%	12.9%
Return on Assets	-7.6%	-2.8%	-5.8%	-5.2%	-5.7%
Peer Average Return on Assets	3.4%	4.3%	2.4%	2.9%	3.4%

Company Profile

Tesla Motors, Inc. designs, develops, manufactures and sells fully electric vehicles and advanced electric vehicle powertrain components. It provides services for the development of electric powertrain components and engages in the sale of electric powertrain components to other automotive manufacturers. Tesla Motors has manufactured its first electric vehicle, Tesla Roadster in 2008. The company was founded by Jeffrey B. Straubel, Elon R. Musk and Marc Tarpenning on July 1, 2003 and is headquartered in Palo Alto, CA.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of TSLA.

 

Permalink | Email this | Linking Blogs | Comments

Unscrupulous Debt Collectors Are Seniors' Top Financial Peeve

November 6, 2014, 4:33 am

≫ Next: Postal Service to Add Sunday Delivery During Holiday Rush

≪ Previous: Tesla Quarterly Earnings: By the Numbers

$

0

0

Filed under: Consumer Ally, Debt Collection, Financial Education

When it comes to financial shenanigans, the top targets of senior citizens' complaints in this country are debt collectors, the Consumer Financial Protection Bureau reported Wednesday. Seniors commonly report being hounded and threatened by debt collectors -- and about half of those reported incidents involved debts they didn't incur. From July 2013 through September of this year, the agency received 25,000 complaints from older consumers, and more than a third were about debt collection.

"It is increasingly common for older Americans to carry debts into their retirement years, and consumers living on fixed incomes often struggle to pay off these debts," CFPB Director Richard Cordray said. "Older Americans deserve to be treated with the respect they have earned."

Debt collection is a huge industry in the U.S. Nearly 5,000 companies collect debts, and about 30 million consumers have debt that is subject to collection, the CFPB said.

Making Them Pay

Federal law prescribes what debt collectors can -- and cannot -- do. Collectors can only call during certain hours, and they can't just say whatever they feel like to coerce you into paying. Harassing consumers, chasing after family members of those in debt (or family members of deceased debtors) and threatening arrest or garnishment of federal benefits all cross the line. The Federal Trade Commission offers a guide to the Fair Debt Collection Practices Act.

If a debt collector violates the terms of the Act, you can sue them and collect up to $1,000. In addition, class-action lawsuits are regularly filed against collectors who are accused of violating the law. Such lawsuits can result in up to $500,000 in penalties. While such lawsuits -- even when won by the plaintiffs -- won't result in the erasing of people's debts, they can help ease some of the burden, and hold unscrupulous collectors responsible for their actions.

If you're dealing with a debt collector whom you believe has crossed the line, you can report them to your state Attorney General's office, the Federal Trade Commission, and the Consumer Financial Protection Bureau.

 

Permalink | Email this | Linking Blogs | Comments

Postal Service to Add Sunday Delivery During Holiday Rush

November 6, 2014, 5:17 am

≫ Next: Newest Target for Data Thieves: Your Hilton HHonors Points

≪ Previous: Unscrupulous Debt Collectors Are Seniors' Top Financial Peeve

$

0

0

Filed under: Company News, Holiday Shopping, Transportation & Logistics, Consumer Issues

WASHINGTON -- The U.S. Postal Service will deliver packages on Sundays in major cities and high volume areas during the holiday season.

Seven-day delivery will run from Nov. 17 through Christmas Day in response to anticipated growing demands.

The agency expects 12 percent growth in its package business this holiday season, or about 450 million to 470 million packages.

The Postal Service says demand for package services has grown as online retailers ship more products to their customers.

"Football has its season. But the holidays? That's our season. That's crunch time for us," Postmaster General Patrick Donahoe said in a statement. "E-commerce package business continues to be a big player now more than ever, so we've enhanced our network to ensure America that we'll deliver their cards, gifts and letters in time for the holidays."

The struggling agency lost $2 billion this spring despite increasing its volume and charging consumers more to send mail.

The Postal Service is an independent agency that receives no tax dollars for day-to-day operations but is subject to congressional control.

For expected delivery by Christmas, the agency recommends these mailing and shipping deadlines:

• Dec. 2 - International first-class or priority mail.
• Dec. 10 - International express priority mail.
• Dec. 15 - Standard post.
• Dec. 17 - Guaranteed global express.
• Dec. 20 - Domestic first-class or priority mail.
• Dec. 23 - Domestic express priority mail.

 

Permalink | Email this | Linking Blogs | Comments

Newest Target for Data Thieves: Your Hilton HHonors Points

November 6, 2014, 5:55 am

≫ Next: Some Americans Would Rather Die Than Be Poor in Retirement

≪ Previous: Postal Service to Add Sunday Delivery During Holiday Rush

$

0

0

Filed under: Identity Theft, Consumer Ally, Consumer Protection, Internet Fraud, Financial Education

The Hilton HHonors program was attacked by hackers who drained some accounts of their accumulated points, Brian Krebs, a leading authority on data theft, reported this week.

Hilton has not commented on the reported theft, but loyalty point forums have had some chatter about users losing points over the past few weeks. Krebs said that some consumers have reported finding a list of hotel stays in their accounts using up all their points. The chain has recently added CAPTCHA, an account feature designed to avoid automated use of the site, including programs that try to guess PINs.

One Victim Lost 250,000 Points

One victim told Krebs that the thieves used more than 250,000 Hilton points he had accumulated and began buying more points with a credit card associated with the account. "They got into the account and of course the first thing they did was change my primary and secondary email accounts, so that neither me nor my travel agent were getting notifications about new travel bookings," Brendan Brothers, co-founder of a Canadian software security company, told Krebs.

Stolen points can also be sold. Krebs noted the same number of points were used to make $1,200 in room bookings used from Brothers' account would sell on the black market for about $12.

Attacks on loyalty programs are another twist on data theft. The world's data thieves are perpetually on the hunt for your personal and financial information from businesses of all sorts -- Target (TGT), Home Depot (HD), Sony (SNE), eBay (EBAY). And three years ago, they busted into the data banks of loyalty program marketing company Epsilon to get another mega-dose of consumer info.

"The system was vulnerable, someone took advantage of it and they got through, especially given the ease with which hackers can use brute force computing to crack simple passwords and four-digit PINS," said Kristian Gjerding, CEO of CellPoint Mobile, a technology firm specializing in data security and digital transaction management. "This is just the beginning, a prime example of where loyalty fraud is headed. We're going to see more and more of this."

 

Permalink | Email this | Linking Blogs | Comments

Some Americans Would Rather Die Than Be Poor in Retirement

November 6, 2014, 10:00 pm

≫ Next: Soon, Baby Can Have an Internet Footprint Before She Walks

≪ Previous: Newest Target for Data Thieves: Your Hilton HHonors Points

$

0

0

Filed under: Family Money, Personal Finance, Retirement Living, Financial Education

By Krystal Steinmetz

One in 5 middle-class Americans say they would rather die early than run out of money during retirement.

That was the finding of a new retirement survey by Wells Fargo (WFC). What makes that statistic even more alarming (and disheartening) is that 34 percent of middle-class Americans are currently contributing nothing -- not one dollar -- to a retirement plan, the survey also found.

While two-thirds (68 percent) of those surveyed said saving for retirement is more difficult than expected, just 38 percent said they're sacrificing now so they can tuck money away for their golden years. Joe Ready, director of Institutional Retirement and Trust at Wells Fargo, said:

Saving for retirement isn't easy. It requires sacrifice, and it's not something people can push off and hope to achieve later in life. If people in their 20s, 30s or 40s aren't saving today, they are losing the benefit of time compounding the value of their money. That growth can't be made up later.

Middle-class Americans have socked away a median of $20,000 for retirement, according to the survey. But they expect they'll need about $250,000.

According to The Huffington Post:

[T]he survey also reveals that Americans are deeply aware their personal retirement savings are inadequate, especially as they get older. Forty-eight percent of respondents in their 50s said they won't have enough to live on if they stop working. Would-be retirees with inadequate savings are left with the choice of working longer or accepting the much lower standard of living that comes with relying only on the government safety net to survive.

More than half of survey respondents said they'd give up discretionary purchases, such as spa days, jewelry and dining out, so they could save more for retirement.

But, as HuffPost noted, most Americans aren't spending their money on frivolous items and services. Instead, 65 percent of most Americans' spending is gobbled up by health care, housing, food and transportation. And incomes haven't been going up.

From our Solutions Center: Click here to effortlessly track your expenses, free

"In other words, Americans' inability to save for retirement is all about high fixed costs and stagnant wages, not indulgence and a lack of willpower," HuffPost said.

The survey focused on Americans between the ages of 25 and 75 with a median household income of $63,000.

How are you saving for retirement? Share your comments below or on our Facebook page.

And also check out the video above by Stacy Johnson about how to ensure you'll have enough money when you retire.

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free. We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash.

 

Permalink | Email this | Linking Blogs | Comments