Damon Dahlen/AOL
Amazon (AMZN) and Proctor & Gamble (PG) are plastering ads on some public bathroom stalls that let you continue shopping during your holiday bio-breaks.
The Stall Mall campaign includes bar-coded coupons you can scan with a smartphone and Amazon app while you're sitting on the toilet. Deals include $2 off Charmin Mega Rolls, Double Rolls and baby wipes; $7 off Crest 3D Whitestrips and 50 cents off Febreze. You can also buy paper towels and batteries.
Cincinnati-based P&G is calling the ad campaign "a whole new way to sit, shop and save." The ads are now in stalls at malls in greater New York, Philadelphia, Los Angeles and Seattle.
The campaign is designed to help "Americans save time this season with their holiday shopping," P&G's Scott Mautz told the Cincinnati Business Courier. "During this hectic time of year, Charmin wants to help others enjoy the go by making holiday shopping more efficient."
A 2013 CashStar survey found that more than 38 million Americans -- more men than women -- admit to having shopped online while on the toilet. A recent Charmin survey, CNN reported, said that a third of Americans say they like to be "productive" while on the toilet, and that 13 percent of people who have shopped on the toilet have bought household items.
WASHINGTON -- Many HealthCare.gov customers will face higher costs next year, the Obama administration acknowledged Thursday in a report that shows average premiums rising modestly.
However, officials said millions of consumers who are currently enrolled can mitigate the financial consequences if they are willing to shop around for another plan in a marketplace that's becoming more competitive.
Premiums for the most popular type of plan will go up an average of 5 percent in the 35 states where the federal government is running the health insurance exchanges, said a report from the Health and Human Services Department.
However, the administration says about two-thirds of current customers can still find coverage comparable to what they have now for $100 a month or less if they shop around. That estimate takes into account the tax credits that most consumers are entitled to, which cover about three-fourths of the cost of premiums on average.
Double-digit premium increases were common for people buying their own insurance before the passage of President Barack Obama's health care law.
The modest average increases the administration reported Thursday mask bigger price swings from state to state, and even within regions of a state. Some are still seeing double-digit hikes. But others are seeing decreases. And most are somewhere in the middle.
On the whole, administration officials say the market is more stable.
"In today's marketplace, [insurers] are competing for business," Health and Human Services Secretary Sylvia M. Burwell said in a statement. "Returning customers may find an even better deal if they shop and save."
The report said about 90 percent of customers will have a choice of three or more insurers this year, with each company usually offering a range of plans. That's a notable improvement from last year, when 74 percent of customers had similar options.
The most popular coverage is known as the lowest cost silver plan and will go up 5 percent next year.
Another key plan, the second-lowest cost silver, will go up an average of 2 percent.
Obama's health care law offers subsidized private health insurance to those who don't have coverage on the job. Online markets called exchanges provide different options in each state.
NEW YORK -- U.S. stocks ended slightly lower Thursday after European Central Bank President Mario Draghi brushed off pressure for more immediate monetary policy action but said the issue would be addressed early next year.
The day's losses were slight but broad, with seven of the 10 primary S&P 500 sectors ending in negative territory and no sector up more than 0.3 percent.
Draghi said the ECB would reassess the impact of its stimulus early in 2015 and take further action if necessary, but didn't mention a specific timeline.
The S&P 500 fell as much as 0.6 percent before rebounding and briefly turned positive. The Dow had touched an intraday record.
"I wasn't expecting much from the ECB, which doesn't want to paint itself into a corner, but eventually we'll need to see action, not just words," said Matt Lloyd, chief investment strategist at Advisors Asset Management in Monument, Colorado.
We expect more stimulus will eventually happen, and it will really help the European economy.
The ECB met under growing pressure to prevent the bloc's economy from entering recession. The bank has already cut borrowing costs to record lows, given cheap loans to banks, and started buying debt to kick-start lending and bolster growth.
"We expect more stimulus will eventually happen, and it will really help the European economy," said Lloyd, who helps oversee $16 billion in assets. "We're very bullish on Europe going into next year."
The Dow Jones industrial average (^DJI) fell 12.52 points, or 0.07 percent, to 17,900.1, the Standard & Poor's 500 index (^GPSC) lost 2.41 points, or 0.12 percent, to 2,071.92 and the Nasdaq composite (^IXIC) dropped 5.04 points, or 0.11 percent, to 4,769.44.
The day's losses were concentrated in energy shares, where the S&P Energy sector lost 0.8 percent alongside a 1 percent drop in the price of crude oil. ConocoPhillips (COP) fell 2.1 percent to $69.31 while Chevron (CVX) was off 1.3 percent at $112.28.
The moves follow three days of gains, when the group advanced 3.2 percent.
Microsoft (MSFT) rose 1.6 percent to $48.84, limiting the decline in all three major indexes. Earlier, Barnes & Noble (BKS) struck a deal to buy Microsoft's stake in Nook Media in a deal valued at $125 million. Shares of Barnes & Noble fell 5.4 percent to $21.03.
Investors are looking ahead to the government's non-farm payrolls report for November, due before the market opens on Friday. Expectations are that the U.S. economy created 230,000 jobs last month.
Declining issues outnumbered advancing ones on the NYSE 1,957 to 1,117, for a 1.75-to-1 ratio; on the Nasdaq, 1,625 issues fell and 1,068 advanced for a 1.52-to-1 ratio favoring decliners.
The S&P 500 was posting 102 new 52-week highs and 8 new lows; the Nasdaq Composite was recording 133 new highs and 89 new lows.
About 6.02 billion shares traded on all U.S. platforms, according to BATS exchange data.
What to Watch Friday:
The Labor Department releases employment data for November, and the Commerce Department releases international trade data for October -- both at 8:30 a.m. Eastern time.
The Commerce Department releases factory orders for October at 10 am.
The Federal Reserve releases data on consumer credit for October at 3 p.m.
NEW YORK -- The holiday shopping season is always a make-or-break period for struggling retailers.
But this year, the fight to grab shoppers has intensified, making it difficult for stores to use the season that accounts for about 20 percent of the retail industry's annual sales to bounce back.
Stores face cautious shoppers who are juggling stagnant wages and higher costs for food and health care. And Web-savvy customers are using information easily available on their smartphones to hold out for ever-better deals. All of that means that stores have had to discount more -- and earlier -- this holiday shopping season.
"If you're a retailer on the edge, it's harder to maintain your viability and return to profitability because of the intense promotional environment," said Ken Perkins, president of RetailMetrics, a retail research firm.
He expects fourth-quarter earnings for the 123 retailers he tracks will rise 7.7 percent, down from a projected 16 percent increase in June.
Here, four retailers with years of sales declines that could use a good holiday season:
The problems: The Hoffman, Illinois-based company, which operates Kmart and Sears, has been struggling for years as it faces increasingly stiff competition from Walmart (WMT), Target (TGT) and Home Depot (HD). Critics say Sears has failed to update shabby and tired stores.
Billionaire hedge fund manager Edward Lampert, now chairman and CEO, combined Sears and Kmart in 2005, about two years after he helped bring Kmart out of bankruptcy. But that merger hasn't been successful, and the company's financial results keep worsening.
The company Thursday said its revenue fell 13 percent in the third quarter. In the first three-quarters of the year, Sears has lost $1.6 billion.
It's on track to lose money for four straight years and record eight straight years of falling revenue when it reports its annual results early next year.
The fix: To raise money, Lampert is closing weak stores, cutting inventory and selling assets to raise cash to keep the company afloat. At the same time, Sears says it is shifting its focus from running a store network to operating an online and offline business tied together by its Shop Your Way loyalty program.
The prospects: Brian Sozzi, CEO and chief equities strategies at Belus Capital Advisors, says crowds at both chains were thin over the Thanksgiving weekend. And the latest third-quarter results will likely make it critical for Sears to keep selling assets and stores to prop up its operations.
Sozzi believes that by 2017, the company will operate about 900 stores, half its current size.
The financial maneuvers "are basically enabling (Sears) to tread water on the operating losses," said Everscore ISI's Greg Melich.
The problems: Long known as a destination for batteries and obscure electronic parts, RadioShack's problem has been that the functions of so many products it sold have been taken up by smartphones.
So it sought to remake itself as a specialist in wireless devices and accessories. But growth in that business is slowing because more people have smartphones and see fewer reasons to upgrade.
RadioShack's shares are now trading below $1. It warned in September that it might need to file for Chapter 11 bankruptcy, which wasn't unexpected. It bought some more time soon after by restructuring part of its debt with lenders.
The fix: RadioShack's turnaround efforts have included cutting costs, renovating and closing stores, and shuffling management. The Fort Worth, Texas-based company has tried to update its image and work on adding new products, including private brands and exclusive items.
The prospects: RadioShack has been fighting with its lenders during the holidays, which is hampering its efforts to restructure the business and close some of its stores to help raise cash. The lenders notified RadioShack of alleged breaches this week to a $250 million loan and wants the company to prepay some of its debt, along with other fees. RadioShack says that is unreasonable.
"I think they're going to close, but it's about doing it on an orderly basis," says David Tawil, co-founder and portfolio manager of Maglan Capital, which follows distressed companies.
The problems: Teen retailer Aeropostale a widening loss and falling sales on Thursday, and its forecast for the holiday quarter mostly fell short of analyst predictions.
Aeropostale, like many traditional teen destinations including Abercrombie & Fitch (ANF) and American Eagle Outfitters (AEO), has struggled with changing fashion tastes among teens. Those chains face intense competition from fast-fashion retailers like Forever 21 and H&M, which offer a wide and quickly changing array of clothing at low prices.
Aeropostale thrived during the depths of the recession because of its affordable logoed T-shirts and pants. But fashions with brand logos have lost their appeal, and the trendier items that have replaced them have not excited shoppers.
The fix: In August, Aeropostale reinstated its former CEO Julian Geiger. But Geiger told investors this week that the chain went too far to try to be trendy in its quest to rival fast fashion chains. "I still believe that while (teens) strive for individuality ... there's still a uniform that they wear that makes them cool and fit in," she said.
The prospects: Aeropostale's "path to reclaiming relevance among teens continues to be an uphill battle," said Randal J. Konik, a Jefferies analyst.
The problems: J.C. Penney is still trying to recover from a botched transformation plan spearheaded by former CEO Ron Johnson that sent its sales in a freefall and resulted in mounting losses.
Mike Ullman returned to the CEO job in April 2013 and has stabilized the business by restoring discounts and basic merchandise. But it's now up to Marvin Ellison, who will take over Ullman's job in August, to remake it as a shopping destination.
The fix: In October, Ullman laid out a strategy to improve productivity, expand e-commerce and spruce up some departments that it said would boost sales to $14.5 billion by fiscal 2017. That's still well below the $17.23 billion it generated before the sales plunge.
The prospects: Analysts are closely watching how Penney fares this holiday season after growth has slowed in an important sales measurement. A slow holiday season would make investors less confident in their business.
"It calls into question their turnaround strategy and whether it's gaining traction or not," Perkins said.
Alamy
December has begun, and the New Year will come before you know it. With all the holiday planning and celebrations that take place this month, taxes and retirement might well be the last things on your mind. Yet if you do take the time to do a little simple financial planning before 2014 comes to an end, the payoff can be huge tax savings that can last for the rest of your life and beyond.
Most people are familiar with individual retirement accounts, as they're one of the most popular tax breaks that people take advantage of well into tax season. Thanks to the way the tax laws work, you can make an IRA contribution all the way until the April 15 deadline and still have it be treated as if you'd made it in 2014. But there's one strategy that you'll lose if you wait until after Dec. 31 -- and that could make you miss out on the best opportunity to put it to your advantage.
How to Turbocharge Your Roth IRA
Among retirement accounts, Roth IRAs have unique advantages. With most retirement accounts, you're rewarded when you make your initial contribution by getting a tax deduction for the amount you deposit. That reduces your current-year tax liability and gives you tax-deferred growth as long as your money remains invested within your retirement account -- but it also means that the withdrawals you make from those accounts in retirement will be fully taxable, causing your taxable income to balloon higher. Roth IRAs, on the other hand, allow you to make withdrawals completely free of tax, letting you keep more of your hard-earned retirement money when you need it most.
Not everyone can contribute to a Roth IRA; income limitations apply that prevent some people from making direct contributions. What anyone can do, though, is convert an existing traditional IRA to a Roth IRA. This backdoor method has no income restrictions under current law and can be your gateway to long-term tax savings.
When Roth Conversions Are Worth the Cost
Of course, when it comes to the IRS, nothing is free, and Roth conversions have a catch: You have to include the amount of money you convert to a Roth as taxable income in the year you convert it, meaning that you'll pay more tax in April if you convert in December. That's why Roth conversions don't necessarily make sense for everyone. But for many people, converting an existing retirement account to a Roth IRA does have some advantages, despite the added short-term tax burden.
Specifically, Roth conversions are best for those who have relatively little taxable income. By converting, you essentially lock in your current tax rate, so if that rate is low, converting to a Roth can help you make the most of it. Several situations can create a good opportunity for a Roth conversion, including a temporary drop in income, large amounts of tax deductions, or the availability of tax credits that would otherwise go unused. If you expect your income to go up markedly in 2015, then it's especially important to consider the Roth strategy in December.
All the same, it's important to consider all the ramifications of a Roth conversion. Because converting boosts your taxable income, it can also take away other tax benefits you might receive, such as exemption of Social Security benefits from taxation or leaving you ineligible for certain low-income tax breaks. It's essential to weigh the negatives of those lost benefits against the potential long-term positives from converting.
Perhaps the best aspect of the Roth conversion is that if things don't go as well as you'd expected, you can undo it and end up in exactly the same position you were in before you converted. For some, undoing their conversion lets them take advantage of a decline in their investments to reduce its tax consequences. For others, a do-over lets them take unexpected changes in income into account. In any event, under the right circumstances, you can undo a Roth conversion as long as Oct.15 of the year following the conversion if you take measures to maximize the length of time you have.
Take a Closer Look at the Roth IRA
A Roth conversion can bring some short-term tax pain, but the long-term gain can lead to hundreds of thousands or even millions of dollars in your retirement account being completely free from future taxes. That's a tradeoff that's worth considering, especially for those whose tax situation is only likely to get worse in the future.
Motley Fool contributor Dan Caplinger loves to look for smart tax tricks. You can follow him on Twitter @DanCaplinger or on Google+. To read about our favorite high-yielding dividend stocks for any investor, check out our free report.
Konstantin Chagin/Shutterstock
On Black Friday, I mentally high-fived myself when I used cash-back rewards money to buy several pieces of clothing I needed for my winter wardrobe. I thought to myself, "I just saved $100." But really, I didn't. While $100 didn't leave my checking account, it didn't go into my savings account, either.
We all routinely brag about a way we saved money. You'll hear people wax poetic about cutting the cord and no longer paying for cable, or couponing to save a few bucks on groceries, or using credit card bonuses to pay for a vacation. But here's the big question: are they really saving?
While we claim to be saving, is that extra $40 a month from cutting cable actually going into savings or just being reallocated to justify eating out or going to the movies?
A Penny Really Saved
Abigail Perry, founder of I Pick Up Pennies, realized her mistaken assumption about saving and decided to make a simple change.
Whenever Perry saves money, she doesn't just pat herself on the back, she actually moves it to savings. She coined the term "saved savings" and opened an account of the same name where she deposits any money she keeps in her wallet from trimming expenses or using coupons.
She takes it a step further. "I use cash-back shopping and put any payments in the account," she said. "I use rewards programs to get gift cards. When I use those gift cards to pay for things, I put in the money I would have spent."
$1,994 and Counting
Perry started her saved savings mentality just over a year ago and has put away $1,994.
For the regular saved expenses, like a reduced monthly bill by cutting cable, Perry suggests automating the savings. These savings can be used to help you reach actionable goals.
"Personally, we use it to plump up savings," she said. "Other people might want to fund a big vacation or save for their dream car. On a less frivolous front, it would be a great way to build up an emergency fund or a down payment for a house."
She's quick to point out it can help those in debt by adding an unexpected boost to their repayment strategies. And for those who struggle to make ends meet each month, Perry admits they're often the most skilled savers, although the money is immediately allocated to another expense.
Or Challenge Each Bill
J. Money, founder of Budgets are Sexy, created his own version of saved savings with a "challenge everything" series.
The blogger decided to challenge every bill his family pays each month to see if they could reduce their costs without sacrificing quality of life.
"I've decided to hit the bills that have forever been the norm that I've just assumed were off limits," he explained. Those "off limits" items included iPhones, car insurance and TV bills.
Two months in and he's socked $406.60 into a savings account he created. But the challenge hasn't come without a struggle. His hardest money saver was switching his cell phone carrier to Republic Wireless.
You Can't Phone It In
"Not that the switch wasn't smart in the least -- we're literally saving $100 every month by switching to Republic Wireless," says J. Money. "But just that it's more of a hassle to swap phones and platforms than, say, calling your cable company for 10 minutes and negotiating a lower cost."
He also moved from an iPhone to an Android in the switch, which he admits took some getting used to, until he realized the Android saved him $1,200 a year.
He found his new strategy spawned other thrifty habits.
After two months, he hasn't decided exactly what the challenge savings will be used for but thinks an contribution to his individual retirement account may be in his future.
He found his new strategy spawned other thrifty habits. "I've started forming some other new habits as well, such as listing one new item a week on Craigslist and diverting any unexpected income directly towards this same pot of savings."
When he is tempted to spend some of his hard-earned (or saved) cash, J. Money uses a trick to deter himself by playing a game popular at pre-teen sleepovers: would you rather, except his version ends in early retirement instead of a pillow fight.
"I can't tell you how much of an impact it's been anytime I've asked myself if I'd rather have X vs. early retirement," he said. "Nine times out of 10 I pick freedom all the way, which helps put things in much better perspective."
Hero Images
If you're getting a real Christmas tree this year, understanding trees and what they need can be the difference between one that lasts and a big brown mess of dried needles on lifeless limbs.
The first step is picking the right tree. The type of tree you choose can make it a lot more likely that you'll have a nice green tree in your home from now through Christmas.
Noble Fir, Fraser Fir or Scotch Pine?
The longest-lasting tree is the Noble fir, according to Ji Crowley, owner and president of Gotham Florist in New York City and a florist on the boutique floral site BloomNation.com.
"If you need the tree to last a long time, go with the Noble fir," Crowley said. "But my favorite is the Fraser fir. It has, hands down, the best Christmas tree scent. The needles on this tree are nice and plump so they don't prick you, and the branches are angled slightly up so the ornaments hang nicely and don't droop from the weight."
Scotch pine, perhaps the most common Christmas tree, has about four weeks of life in it once it's cut down and is known for good needle retention.
If you're able to go to a farm where you (or someone who works there) can cut the tree fresh, that's ideal. But if that's not possible, you'll need to ask some questions and do a few simple tests to ensure you're getting the freshest tree you can.
What to Do, Ask While Shopping
There can be an enormous difference from one tree-seller to another and from one tree to the next. Be prepared to go to another seller if you can't find a relatively recently cut tree.
"Remember that trees sold on retail lots in urban areas may have come from out of state and may have been exposed to drying winds in transit," according to the University of Illinois Extension program. "They may have been cut weeks earlier."
So, ask when the trees were cut and delivered.
Then give the tree a good look. It can have some brown needles, but you don't want to see too many. Next step is the touch test.
"Run a branch through your enclosed hand -- the needles should not come off easily," according to the National Christmas Tree Association. "Bend the outer branches -- they should be pliable. If they are brittle and snap easily, the tree is too dry."
Care at Home
If the tree is pre-cut, be sure it gets a fresh cut before you put it in place. You'll need to get it in water within four hours, Crowley said. If there's dry sap on the bottom, scrape it off before you put it place.
At home, be sure to give the tree its best chance to stay hydrated. That means keeping it as far from heaters and the fireplace as you can, Crowley said, and ideally someplace cool.
That tree is going to be thirsty, and you want to satisfy that thirst. On day one, you'll want to give it a half gallon to a gallon of water, she said. And after that, at least a quart per day to have the best shot at keeping the tree fresh through the holidays.
Mark your calendar: Jan. 1, 2015. That is when both Hilton (HLT) and Marriott (MAR) stop permitting same-day hotel reservation cancellations. That may mean you will be paying for rooms you never set foot in. This is why you now need to know your other, better options that will save you money and still let you travel in comfort.
What has long been true about reservations has been, for decades, that they could be cancelled up to -- usually - 6 p.m. the day of arrival without penalty. That has been good news for executives who do lots of last minute schedule changes. It's been great news for travelers whose flights are cancelled and who are stuck many miles away.
Resorts sometimes had more restrictive policies, requiring long-in-advance cancellations, but city hotels frequented by business travelers typically have allowed last-minute, no-penalty cancellation. Not anymore, at least not across the Hilton and Marriott brands. They both require notification the day before scheduled arrival for the traveler to avoid paying for a night.
The Numbers Behind the Change
Bob Gilbert, CEO of the Hospitality Sales and Marketing Association International, a hotel industry group, said of the Hilton and Marriott moves: "It's not surprising. The hotel business is one of the last places where you can hold inventory with no commitment." He also pointed out that in many key domestic markets -- such as Manhattan, Washington D.C. and Boston -- daily occupancy rates are averaging around 75 percent. On several days each week, many hotels in prime markets are selling out, said Gilbert. That's not likely to change soon, said Gilbert, who indicated that new hotel construction lagged in the recession. That's created a supply-demand imbalance that puts the whip in the hand of the hotel operator. So by forcing travelers to cancel reservations sooner, hoteliers are hoping to get more control over their room inventory and maximize returns.
They also are hoping to stifle use of apps like Yapta that track hotel prices and, whenever a rate dips, apparently a growing number of travelers rebook at a lower rate and cancel the costlier reservation, literally right up until check-in time. Industry experts said that - anecdotally, if not quantitatively - there seems to be a lot more use of such tools by penny-pinching travelers. Effectively, Marriott and Hilton are seeking to stick a stake in the heart of this.
The big question: can Marriott and Hilton make this policy change hold? "I think it will come back to haunt these guys," said travel expert Joe Brancatelli, who blogs at JoeSentMe. Brancatelli's belief is that Marriott and Hilton are shoving cautious travelers into the beds of chains with "less onerous rules."
Like who? Try Starwood (HOT) -- Sheraton, Westin, Four Points and many more. Also Intercontinental (IHG) -- Crowne Plaza, Hotel Indigo, Holiday Inn and others. Remember that other, huge hotel groups continue to have traveler friendly cancellation rules.
A Workaround or Two
But there's yet another way around the Marriott/Hilton policies. Tim Leffel, editor of Hotel Scoop, said what Hilton and Marriott are doing has forced him to rethink the wisdom of making a reservation at all.
"If I'm going to book a hotel that doesn't allow me to cancel when my plane gets delayed or there are weather problems preventing me from getting there ... that cancels out any advantage to booking ahead if I'm going to get charged for a room I didn't use," he said. "This would positively keep me from booking a hotel at one of those two chains. If other companies follow that lead, then I will exclusively use last-day booking services like HotelTonight or just negotiate a day-of-arrival discount directly when I actually land."
Chew on that. Just maybe what Marriott and Hilton have done is force savvy consumers into playing chicken with them. Just don't book in advance, use last minute booking tools, and in the bargain you probably will be rewarded with a lower price.
What if there's no room? For the risk averse, the better strategy is to go with the competitors that have more flexible cancellation policies. Reserve at a Sheraton, and you'll still get that 6 p.m. day-of-arrival cancellation option (but do check at the time of booking, as not all hotels under a particular flag follow the chain's policies on cancellations).
But whichever route you take, know this: you don't have to get stuck paying for unused rooms at Marriott or Hilton. And you shouldn't.
Like company holiday parties, tipping is one of those annual traditions that can feel more awkward than welcome. Just how much to hand out, and to whom, is often unclear, and the rules are constantly changing. If you're confused about why you can hand cash to your doorman but not your postal service worker, here's a guide to help you sort out this year's tipping traditions:
Don't
Don't tip the owners of establishments or salaried staff. Generally speaking, there's no need to tip the owner of a hair salon, salaried staff (like salespeople), full-service gas attendants, furniture delivery people (charges are included) or a flower delivery person.
Skip the postal worker. Like other federal employees, postal workers are prohibited from receiving cash or any gift worth more than $20. That means you can hand your carrier baked goods as a sign of appreciation, but don't hand out bills of any denomination.
Think About It
Tip the cabdriver but not the Uber driver. If you're a frequent taxi user, then you probably know to tip 10 to 20 percent of the ride's fare, but confusion has cropped up with the popularity of private car services like Uber. Uber specifies on its website that "there is no need" to tip drivers, and it's generally not expected. (The only exception is when you request a taxi through the Uber app, in which case an automatic 20 percent tip is added to your bill.)
Tip More
Tip more at restaurants. The holidays are also a good time of year to be more generous while dining out, especially given the new standard of tipping is closer to 20 percent (and up) than 10 to 15 percent.
Do
Do thank personal caregivers with cash or gift certificates. Personal caregivers, such as day care teachers or aids to older adults, can receive cash gifts as a sign of appreciation. If the caregiving is in a group setting, like at a day care, then parents can team up to give a group cash gift or gift certificate, typically ranging from $100 to $300.
Do tip doormen. Plan on giving each worker at least $20 and sometimes closer to $100, depending on the type of building and its traditions. Ask longtime residents or the building manager if you're unsure. If the doorman provides extra services throughout the year, like bringing up your groceries, you can tip around $5 per trip.
Do thank housekeepers and housecleaners. If someone cleans your home on a weekly or biweekly basis, then thanking him or her with a gift equivalent to one home cleaning is appropriate, along with a more personal gift, especially if you've known the person for a long time.
Do tip hairstylists, trainers, aestheticians, massage therapists and other service providers. Similar to the cleaning service recommendation, consider giving a tip equal to the value of one visit. This guideline only applies to people you see regularly (more than once a month). Otherwise, a 20 percent tip per visit without an additional holiday boost is standard.
Do tip newspaper deliverers. A gift of between $10 and $20 or more in an envelope will help show your appreciation for all those cold and rainy mornings you can pick up your paper without a coat.
Do tip garbage collectors. This thankless job often gets overlooked at tipping time, but consider giving each worker at least $20. If you leave extra garbage any time throughout the year, then leave an additional $10 to $20 for their effort.
If it seems like tipping rates keep rising, it's because they are, since prices are rising. Given the rising cost of living and inflation, life is more expensive for everyone -- including service providers.
WASHINGTON -- A burst of U.S. hiring in November -- the most in nearly three years -- added 321,000 jobs and provided the latest evidence that the United States is outperforming other economies throughout the developed world.
In addition, the government said Friday that 44,000 more jobs were added in September and October combined than it had previously estimated. Job gains have averaged 241,000 a month this year, putting 2014 on track to be the strongest year for hiring since 1999.
The unemployment rate remained at a six-year low of 5.8 percent.
November's robust job growth, reflecting a steadily rising economy , could make it likelier that the Federal Reserve will start raising interest rates by mid-2015 as many economists have speculated. The Fed has kept its key short-term rate at a record low near zero since 2008 to support the economy.
The job gains last month coincided with a sharp increase in workers' pay. The average hourly wage rose 9 cents to $24.66, the biggest gain in 17 months. Still, over the past 12 months, hourly pay has risen just 2.1 percent, barely above the 1.7 percent inflation rate.
Seasonal Hiring
Hiring last month was broad-based but was particularly concentrated in retail, temporary services and transportation and warehousing. Those increases likely reflect seasonal hiring for the holiday season. Shipping companies have announced ambitious plans: UPS (UPS) has said it expects to add up to 95,000 seasonal workers, up from 85,000 last year. FedEx (FDX) plans to hire 50,000, up from 40,000.
In addition, manufacturers added 28,000 jobs, the most in a year, and education and health services 38,000. Professional and business services, a category that includes temps but also higher-paying jobs in fields such as accounting and engineering, added the most jobs in four years.
The surge in hiring comes after the economy expanded from April through September at its fastest pace in 11 years. The additional jobs should support steady growth in coming months.
The U.S. recovery still has far to go to fully rebound from the Great Recession, given that many people without jobs have stopped looking for one and are no longer counted as unemployed and many others have received little or no pay increases.
"At this rate, we won't return to pre-recession labor market health until October 2016 -- nearly nine years since the recession began," said Elise Gould, a senior economist at the liberal Economic Policy Institute.
Better Than Europe, Japan
Even so, the improving U.S. job market contrasts with weakness elsewhere around the globe. Growth among the 18 European nations in the euro alliance is barely positive, and the eurozone's unemployment rate is 11.5 percent. Japan is in recession.
China's growth has slowed as it seeks to rein in excessive lending tied to real estate development. Other large developing countries, including Russia and Brazil, are also straining to grow.
Most economists say the United States will likely continue to strengthen despite the sluggishness overseas. The U.S. economy is much less dependent on exports than are Germany, China and Japan. U.S. growth is fueled more by its large domestic market and free-spending consumers, who account for about 70 percent of the economy.
That trend helps support the steady U.S. job growth. Most of the industries that have enjoyed the strongest job gains depend on the U.S. market rather than on overseas demand. Retailers, restaurants and hotels, and education and health care, for example, have been among the most consistent sources of healthy hiring since the recession officially ended in 2009.
Buying Spree
Most recent figures on the economy have been encouraging. Americans are buying more cars, which will likely keep factories busy in coming months. Auto sales last month rose to their second-fastest pace this year. Car sales are on track to rise 6 percent this year from 2013.
And a survey by the Institute for Supply Management, a trade group of purchasing managers, showed that services firms expanded at nearly the fastest pace in eight years last month. Retailers, hotels, construction firms and other service companies added jobs, the survey found, though more slowly than in October.
The ISM's separate survey of manufacturing firms showed that factories are expanding at a brisk pace. New orders and order backlogs rose, pointing to steady growth in coming months.
There have been some signs of moderating growth. Consumer spending rose only modestly in October. And businesses ordered fewer big-ticket manufactured goods that month, excluding the volatile aircraft category. That indicates that companies are holding back on investment.
Mike Groll/AP
Buyout rumors come and go, but there was one potential pairing that made too much sense to let go of. Shares of DreamWorks Animation (DWA) soared 17 percent a couple of weeks ago after Hollywood insider Deadline.com reported that Hasbro (HAS) was in talks to acquire the animation studio. The New York Times' DealBook also had sources telling it that the deal was legit.
The chatter didn't get much of a chance to simmer. Negotiations reportedly broke off during that very weekend, and shares of DreamWorks plunged 14 percent the next trading day.
Hasbro shareholders got a break. Its stock had taken a 7 percent hit during the same week that DreamWorks had seen its shares fly high on the chatter. Wall Street either felt that Hasbro would be overpaying for the animation studios or felt that it wasn't a good match. The stock made back most of that dip after sources told reporters that the deal was dead.
It Would Have Made Dollars and Sense
The very notion of Hasbro buying DreamWorks Animation probably seemed absurd at first. Why would a toy giant ringing up more than $4 billion a year -- rivaling Lego and behind only global leader Mattel (MAT) -- want to get into the hit-or-miss movie business? Well, Hasbro's own actions in recent years point to a company that's growing fond of the silver screen.
It has helped turn a few of its toy franchises into popular film properties. Transformers has cranked out four full-length feature films since 2007, averaging nearly $330 million apiece in domestic ticket sales. The fourth installment this summer was the least financially successful, but it still raked in more than $245 million at the box office.
G.I. Joe is another Hasbro line that has received the celluloid treatment. Those two movies haven't been at the same blockbuster level as "Transformers," but the 2009 and 2013 releases did manage to break into the respectable nine figures.
Even Hasbro toy lines that don't organically lend themselves to compelling stories have found big studios willing to take chances. Battleship and more recently Ouija weren't multiplex darlings, but they didn't exactly bomb, either.
In short, Hasbro knows that toys can make compelling movie franchises -- and vice versa. Sales of G.I. Joe and Transformers playthings have spiked around the time of movie releases. Locking up DreamWorks Animation would have given Hasbro new characters to inspire the next generation of toys. It also would have provided access to the second most successful computer animation studio if Hasbro wanted to take more control in getting its toys into theatrical features.
Shrek the Halls
DreamWorks Animation knows that every release can't be "Shrek" or "Madagascar." It's had a few duds lately, including last year's "Turbo" and "Rise of the Guardians" the year before that. However, this is also a studio that knows how to milk a franchise when it's successful. Despite all of the magic at Disney (DIS) and its Pixar subsidiary, the highest-grossing computer-animated film of all time in this country remain's 2004's "Shrek 2" from DreamWorks.
This doesn't mean that a marriage between Hasbro and DreamWorks would have been perfect. Hasbro has a lucrative licensing deal with Disney covering everything from "Frozen" to "Star Wars." If Hasbro were to become a more direct competitor to Disney, it wouldn't be a surprise if the family entertainment giant chose to rely on rival toy manufacturers in the future. Could Disney have gotten to Hasbro's ear during the weekend when the negotiations fell apart? However, if Hasbro would have been able to weave its way through its existing licensing partnerships and still walk away with DreamWorks, it would have been a more dynamic company with greater upside the next time that the studio produced a hit.
There was no storybook ending to this proposed pairing, but it would have been a good match for both companies.
Motley Fool contributor Rick Munarriz owns shares of Walt Disney. The Motley Fool recommends DreamWorks Animation, Hasbro, Mattel, and Walt Disney. The Motley Fool owns shares of Hasbro and Walt Disney. 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.
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Members of Gen X, that much-maligned age group born between 1965 and 1980, are fretting about how to preserve their wealth and health when they hit old age, according to a new study by Weber Shandwick.
"Leveraging the Gen X Retirement Market: From Overlooked to Opportunity" says that Gen Xers, now hitting 50, are busy planning for their golden years. And although they realize they must save more for retirement, they fret more about how they'll pay for their health care.
"We were surprised by the level of concern that Gen X'ers have around their health -- both today and over the long term," said Barb Iverson, president of Weber Shandwick's North American Financial Services practice. "And although they express significant anxiety around how they will cover their future health needs, their retirement planning seems disconnected from this concern."
Needs and Fears
The survey aims to help the financial services industry leverage the Gen X market by understanding their needs and fears. Here are some insights gained by the survey, conducted in May online with 18 U.S. Gen X consumers whose household income is $50,000 to $150,000.
Their lives are demanding with countless responsibilities with families, jobs and activities. They characterize their lives as frenetic, busy, tiring and blessed.
Although they think they'll need $1 million in retirement saving and most participate in 401(k) or other retirement plans, they don't feel like they're doing enough to meet their financial retirement needs.
Gen Xers are caring for their health now with diet and exercise so they can build a foundation for their elder years.
Although Gen Xers are worried about paying for long-term health care in older age, they have not made strides in saving for those expenses.
Coca-Cola (KO) is ditching the carbonation, caffeine and most of the sugar in its new beverage -- milk.
That's right. Coke, which has a strong footing in the soda, energy drink, juice and water markets, is hoping to make a splash in the milk market.
According to Forbes, Coca-Cola is rolling out Fairlife, a high-end milk drink, in January. The soda giant partnered with Select Milk Producers dairy co-op in its new venture.
Coke said that when compared with ordinary milk, Fairlife will have 50 percent more protein, 30 percent more calcium, 50 percent less sugar and no lactose. Says The Huffington Post:
"We'll charge twice as much for [Fairlife] as the milk we're used to buying in a jug," the president of Coca-Cola North America told analysts at a Morgan Stanley conference last week. "It's basically the premiumization of milk," Coke's Sandy Douglas said, according to a transcript from the event.
Coke is looking to infuse new life [and money] into its business. Coca-Cola reported a 14 percent drop in profits last quarter, HuffPost said. As Americans turn away from soda and sugar, this is a way for Coke to diversify.
But along with declining soda sales in the U.S., milk consumption has also dropped. Retail milk sales declined 3 percent in 2014 and 2 percent in 2013, according to HuffPost.
Still, Coke is convinced Fairlife will be a big seller. According to Bloomberg Businessweek, Douglas said Coke expects its new milk to "rain money." Bloomberg said it could happen.
[I]t may well be appropriate to compare what Coca-Cola's doing with Fairlife to WhiteWave's marketing of Silk almond milk, whose sales grew 30 percent in the third quarter. WhiteWave's marketing efforts haven't paid off only in almond milk, sales of its Horizon Organic brand milk are also rising, showing there is demand for premium dairy products.
According to the Fairlife website, it uses a cold filtration system to separate the milk (water, fat, sugar, protein, vitamins and minerals) and ditch most of the fat and sugars. The site said Fairlife has "no added protein powders or synthetic junk."
The premium milk is already available in Denver, Minneapolis and Chicago. Fairlife will be available nationwide next year.
Personally, I'm willing to pay more for premium milk. I worry about the hormones in milk, so I pony up more money to buy organic. My toddler drinks 16 ounces of milk a day, and my husband drinks a cup or two a day, so we go through a lot of milk. I guess we buck the national trend of declining milk consumption.
What do you think of Fairlife? Share your thoughts below or on our Facebook page.
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There's only so many dollars coffee and pumpkin spice lattes can bring in. So, Starbucks has announced beer and wine availability and expanded lunch and dinner menus to come to roughly 3,000 of its stores next year, according to the New York Daily News. In addition, the company hopes that advanced mobile ordering will help reduce the wait at its locations and plans to bring food and coffee to the masses with trucks and a new delivery service.
Starbucks says it has a five-year plan to double its U.S. food revenue to more than $4 billion through the menu expansion, as Fortune reports. It expects the new evening menus, with wine and beer, to bring in an additional $1 billion next year.
The company has been experimenting with the concept in Atlanta; Chicago; Los Angeles; Portland, Oregon; and its hometown of Seattle, as the Starbucks Evenings Menu webpage indicates. The new food includes truffle macaroni and cheese, Parmesan crusted chicken skewers, bacon-wrapped dates with balsamic glaze, artichoke and goat cheese flatbread, and chocolate espresso, champagne, and raspberry truffles.
Wines include a variety of sparkling, red, white, and rose choices. Beer selections change, so customers have had to ask the baristas for the current selection.
Although perhaps less flashy, the new mobile app and coffee truck and delivery plans are just as important. One of the difficult limitations Starbucks faces is lines in the stores. If there's too long a wait, customers in a hurry might go elsewhere. Advanced mobile ordering would help the stores anticipate customers and have their morning cups available immediately when they walked in. Delivery and coffee trucks would let the company go out to customers, increasing convenience.
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If you were a Sirius XM radio subscriber and were shocked with an automatically renewing contract, a sharp price increase, added fees, or found it difficult to cancel the service, you could be due some money.
In a settlement announced on Thursday with 45 states and the District of Columbia, Sirius XM (SIRI) agreed to pay $3.8 million to resolve allegations the company misled consumers through its advertising and billing practices. In addition, the company agreed to pay restitution to customers who encountered problems addressed in the settlement (pdf).
"Consumers shouldn't have to read the super-fine print or jump through hoops to understand and cancel their service contracts," said Maryland Attorney General Douglas Gansler said. "Requiring Sirius to change its business practices means customers will be better informed about their rights and the terms of their agreement."
Sirius said it has changed its practices.
Among the issues raised in the investigation was that customers trying to cancel their contracts found that they were ignored. Another involved customers getting automatic renewals at higher rates that they were not aware of.
In a statement, Sirius XM spokesman Patrick Reilly said:
"We are pleased to have reached agreements that resolve this investigation. The changes to our consumer practices that we agreed to are practices we have already implemented at SiriusXM. Under the terms of the settlements, we have agreed to provide, upon the request of the states, additional information about our consumer practices and to participate in a process designed to address any previously unresolved consumer complaints. In addition, we agreed to make a payment of approximately $4 million to the States that has no material financial effect on the Company."
Sirius XM in the settlement agreed to:
Clearly disclose the terms and conditions at the point of sale, including billing frequency, term length, any automatic renewal date, and the cancellation policy.
Not misrepresent information about available plans in advertisements.
Provide advance notice about upcoming automatic renewals for plans lasting longer than six months.
Revise cancellation procedures to make it easier to cancel.
Prohibit compensation for customer service representatives based solely on retaining customers who attempt to cancel.
Those eligible for refunds must have had the problem between July 28, 2008 and Dec. 4, 2014 and haven't had it resolved. To be eligible, a complaint should be filed with your state attorney general by May 1.
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The House passed a bill earlier this week that would retroactively extend tax breaks, worth $45 billion over the next 10 years, which expired at the end of 2013. Individuals and companies would then be able to take advantage of them for 2014, as Time reported. The Senate isn't happy, and many senators would rather take permanent action on what has become a nearly annual legislative ritual of re-authorization or, better yet, undertake fundamental tax reform.
So far a compromise is nowhere in sight. That's just fine for a group of organizations working under the common name Financial Accountability & Corporate Transparency Coalition. They claim that two of the proposed extensions are nothing more than rampant corporate giveaways that let multinationals avoid taxes by stashing profits overseas.
Forget $45 billion. The two extensions together are "loopholes" that could cost the federal government up to $80 billion in tax revenue over ten years, according to Jaimie Woo, a tax and budget associate with U.S. Public Interest Research Group, a member of FACT. "The tax breaks are [nominally] meant to stimulate the economy and business, but at the end of the day these two loopholes really don't," Woo said in an interview with DailyFinance. "The reason they're put back in is because of these serious corporate lobbying effort."
CFC Look-Through Rule
The first provision is called the CFC look-through rule, which provides exceptions in laws that govern controlled foreign corporations, or CFCs. These wholly owned subsidiaries of American companies are set up to operate in other countries. Under the law, so-called active income of CFCs, like money made selling services or goods, is only recognized as taxable income by the U.S. parent when that money is brought back to this country, or repatriated. Passive income from interest, royalties and licenses is immediately recognized and taxable.
The look-through rule says that certain passive income, such as rents or royalties on patents and other intellectual property, is treated differently and does not have to be immediately taxed. The rule allows companies to create complex structures, such as an Irish subsidiary that owns intellectual property initially created by the American firm, leases it back for a substantial royalty payment, and then pays a large cut to a division in Bermuda that has no corporate taxes at all. The Irish CFC gets to deduct that payment under Ireland's tax laws. "Now the income isn't taxed anywhere," Woo said.
Active Financing Exception
The active financing exception is a rule specially written for the financial services industry. Interest on money lent by CFCs would normally be considered passive income and something that would immediately be taxable for U.S.-based corporations. Because the interest and fees, the primary income of institutions like banks, are now treated as passive income, all that profit can be held overseas as well and not taxed.
"Our position is no corporate should be allowed to defer those taxes offshore until they repatriate the money back," Woo said. "All the companies get that as a special giveaway. These American corporations use American infrastructure, education, our economy, and then manipulate a lot of their CFCs and tax bills. They should pay the taxes they owe."
As DailyFinance has previously reported, in comparison with tax avoidance techniques like these, widely criticized corporate inversions are chump change.
"We have a system in place presently that shelters companies from U.S. taxes on their foreign earnings, and through the system we also have a continuing exportation of American jobs," said Martin Press, a tax attorney with the law firm Gunster, Yoakley & Stewart. "The Democrats and the Republicans have tried to make some attempts at reform in this area, but many of these attempts are more political than corrective. What the United States needs is a really thoughtful review of our policies in regard to American companies operating overseas, and we're not politically at that point yet."
For close to a decade, Democrats and Republicans have agreed to kick this particular can down the road. With the amount of lobbying pressure the business community brings, even with all the acrimony in Washington at the moment, chance are eventually the can will again sail off into the horizon.
www.amazon.com
There were plenty of winners and losers this week, with a leading automaker failing to keep up with its peers and the top dog in online retail breaking into an unusual product line. Here's a rundown of the week's smartest moves and biggest blunders.
It seems as if there's nothing that Amazon.com won't try. The leading online retailer is rolling out its own line of diapers and baby wipes. The Amazon Elements line will offer aggressively priced disposable diapers starting at $7.99 for a 40-count package.
In a neat wrinkle, Amazon is making the diapers and wipes available only to Amazon Prime customers. It's not as if Amazon needs another reason to get folks to sign up for the loyalty program that delivers two-day shipping and access to a growing arsenal of digital media goodies for $99 a year, but it's still a smart thing to do.
Nook -- Loser
Barnes & Noble's (BKS) fledgling e-book platform has been fading in recent years, and that became even more apparent on Thursday when Microsoft (MSFT) agreed to sell its 17 percent stake in Nook Media back to Barnes & Noble for a sliver of the $300 million that it paid for the investment two years ago.
It's been five years since Barnes & Noble thought it could take on the Kindle and iPad with its Nook e-reader, but it underestimated the cutthroat ways of Amazon.com, which kept its Kindle competitively priced. The move does pave the way for Barnes & Noble to spin off Nook Media, but seeing Microsoft willing to take roughly $125 million for its stake doesn't imply that it will be very valuable.
It's been a busy week for the deal makers at Keurig Green Mountain. The company behind the leading single-cup brewing platform kicked things off on Monday by announcing a licensing deal with Community Coffee, the largest family-owned and -operated retail coffee brand in the country, to put out Community brand K-Cups.
A few days later it announced the acquisition of the Laughing Man Coffee and Tea brand, paving the way for its gourmet coffee and teas to roll out in K-Cup portion packs by early next year. It then turned heads after Thursday's market close by snapping up the 85 percent of Bevyz that it didn't already own for roughly $220 million. Bevyz has developed a single-portion multi-drink system. It may seem similar to the Keurig Cold machine that Keurig Green Mountain plans to roll out in the fall of next year, but at the very least it will remove one more potential competitor as it arms Keurig Green Mountain with Bevyz patents.
Sales are going the wrong way at Ford. The automaker giant announced on Tuesday that stateside sales slipped 1.8 percent in November relative to a year earlier. A slump in its flagship F-150 line as it transitions to new models held back sales.
Don't go thinking that all of the car manufacturers are driving in reverse. Most automakers actually stepped on the accelerator. Industry sales rose 4.6 percent to 1.3 million in November according to sales tracker Autodata, making this the best November in more than a decade.
Shares of Tilly's soared 20 percent on Thursday after the company posted better-than-expected quarterly results. It may not seem like a great quarter for the mall retailer of West Coast-inspired apparel for extreme sports enthusiasts. Comparable-store sales did decline slightly during the period, and profitability fell even harder.
However, the 25 cents a share profit that Tilly's did record was well ahead of the 17 cents a share that analysts were expecting. It's not fair to call this a turnaround, but at least it's less of a step back than what the market was braced for heading into the critical holiday shopping season.
Motley Fool contributor Rick Munarriz owns shares of Ford and Keurig Green Mountain. The Motley Fool recommends Amazon.com, Ford and Keurig Green Mountain. The Motley Fool owns shares of Amazon.com, Barnes & Noble, Ford and Microsoft. Try any of our Foolish newsletter services free for 30 days. Want to make 2015 a winning investment year? Check out The Motley Fool'sone great stock to buy for 2015 and beyond.
OKLAHOMA CITY -- Gas has dropped below $2 a gallon at a handful of stations in Oklahoma and Texas this week, a level that a price-watching group said Friday was the lowest in the nation and a bargain that's proven irresistible to some long lines of drivers coming from miles away to fill up.
A station in Oklahoma City started the trend earlier this week at a new location as a way to thank residents who put up with construction. Two nearby stations followed suit, becoming what Patrick DeHaan with GasBuddy.com said early Friday were the only ones in the United States with sub-$2 gas. A San Antonio, Texas, station also later dropped its price.
There were so many cars it looked they were giving something away for free.
"When I first saw it, I thought it was a misprint," said Marcus Hendricks, a student who lives in south Oklahoma City, at the OnCue Express in southeast Oklahoma City, where the price was $1.99 a gallon for gas with a 10 percent blend of ethanol. "There were so many cars it looked they were giving something away for free. They practically are."
The nationwide average for a gallon of gas was $2.71 Friday, nearly $1 below this year's peak of $3.70 in June. Gas hasn't been this cheap since October 2010. The decline has been driven by falling global oil prices as supplies are high. Benchmark U.S. crude oil fell 68 cents to $66.11 a barrel in New York on Friday, after hitting $107 in June.
Gas prices are expected to keep falling nationwide, perhaps by as much as another 10 cents to 20 cents a gallon by the end of the year, said AAA Oklahoma spokesman Chuck Mai. The statewide average in Oklahoma was $2.48, tied for third-lowest in the nation behind Missouri's $2.43 average and Mississippi's $2.47. The highest prices were $3.81 in Hawaii, $3.47 in Alaska and nearly $3.12 a gallon in New York, according to AAA.
"The world is swimming in crude oil right now. And this of course is what is driving our pump prices in this country, that and good old-fashioned street corner competition," Mai said. "It may not be a gas war, but it certainly is one upsmanship, or maybe in this case, one downsmanship."
OnCue Express in Oklahoma City first lowered its price to $1.99 earlier this week at the station that has been open about a month.
"We probably inconvenienced the neighbors during construction and we wanted to do something for them, and we came up with this idea," said Jim Griffith, CEO of Stillwater-based OnCue Express. He said OnCue's price will rise "probably soon," but that he's not losing money on the sales.
"I'm not cutting a fat hog, but I am making a small profit at that price," Griffith said.
At the OnCue Express, employees used orange cones and hand signals to direct drivers who were backed up at about a dozen gas pumps in front of the store. Samantha Hitsman, a stay-at-home mom, said she drove about 20 miles from Del City to get gas.
"I've got all kinds of appointment to run, so I thought I'd fill up," she said.
-Associated Press writer Sean Murphy contributed to this report.
Richard Drew/APA trader adjusts his Dow 18,000 cap as he works on the floor of the New York Stock Exchange on Friday.By Ryan Vlastelica
NEW YORK -- The Dow and S&P 500 closed a seventh straight weekly advance Friday as a better-than-expected jobs report indicated strong economic growth, but perhaps to the point where interest rates could rise sooner than previously anticipated.
Bank stocks and other sectors tied to the pace of growth led on the day, though continued weakness in crude oil weighed on energy shares. While major indexes ended off their highs of the session, both the Dow and S&P closed at records.
Payrolls rose by 321,000 in November, way above the 230,000 estimated, while the unemployment rate held steady at 5.8 percent, a six-year low.
The report blew past forecasts, but also raised expectations that a rate hike from the Federal Reserve may materialize sooner than previously thought.
Ronald Sanchez, chief investment officer of Fiduciary Trust Company International in New York, said the number was "unambiguously strong," though it "could mean some changes to policy recommendations with the Fed. June 2015 is back on the table for when rates could rise."
Payrolls confirm the strength of the economy, but that strength is reflected in stock prices.
Financials rose 1 percent as higher interest rates would prop up earnings in the sector. Bank of America rose 2.7 percent to $17.68 while Goldman Sachs was up 1.8 percent to $195.45, boosting the Dow.
Utilities, a dividend play, fell 0.8 percent as Treasuries yields rose. Energy fell 1.2 percent alongside a 1.7 percent drop in crude prices. Most sectors ended well off their highs of the session.
"The day's market action has to be seen in the context of the recovery we've had year-to-date. Payrolls confirm the strength of the economy, but that strength is reflected in stock prices," said Sanchez, who helps oversee $16 billion in assets.
Separate data showed new orders for U.S. factory goods fell for a third straight month in October, pointing to a slowdown in manufacturing activity.
The Dow Jones industrial average (^DJI) rose 58.69 points, or 0.33 percent, to 17,958.79, the Standard & Poor's 500 index (^GPSC) gained 3.45 points, or 0.17 percent, to 2,075.37 and the Nasdaq composite (^IXIC) added 11.32 points, or 0.24 percent, to 4,780.76.
For the week, the Dow rose 0.7 percent and the S&P rose 0.4 percent. It was the seventh straight weekly gain, a streak not seen in a year for both. The Nasdaq fell 0.2 percent on the week.
American Eagle Outfitters (AEO) fell 13.8 percent to $11.91 after the teen apparel retailer forecast a current-quarter profit below analyst estimates and reported its fifth straight drop in quarterly income.
About 5.81 billion shares traded on all U.S. platforms, according to BATS exchange data.
NYSE advancers outnumbered decliners 1,614 to 1,480, for a 1.09-to-1 ratio; on the Nasdaq, 1,809 issues rose and 927 fell, for a 1.95-to-1 ratio favoring advancers.
The S&P 500 posted 98 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 168 new highs and 93 new lows.
What to Watch Monday:
H&R Block (HRB) and Vail Resorts (MTN) are scheduled to release quarterly financial results.
www.3dsystems.com
This is shaping up to be another good year for stocks. The major market averages are trading higher year-to-date, and history favors the bulls in Decembers. However, there are some surprising companies that have fallen sharply in 2014.
Let's take a closer look at some of the companies that disappointed investors this year.
Three-D printing is cool, and eventually it will go mainstream. However, investors who bid up shares of 3D Systems and its rival 3-D printer specialists in 2012 and 2013 have been out of luck this year. Revenue growth has decelerated, margins have contracted, and the printers are still too slow and expensive for mainstream audiences.
3D Systems was a market darling before stumbling this year. Investors saw the shares triple in 2012 before doubling again in 2013. However, product delays and reduced guidance have been balloon-popping pins given all of the air in the stock through the end of last year.
The Container Store (TCS) -- Down 60 percent in 2014
The Container Store went public 13 months ago, and the last 11 months have been disastrous. Sales growth has decelerated sharply, and it wouldn't be growing at all if it wasn't for the home-goods store's expansion initiatives. Store-level sales are clocking in with year-over-year declines, and outlooks have been uninspiring.
The Container Store disappointed investors in each of its first three quarters as a public company, and excuses -- blaming everything from calendar shifts to winter snowstorms -- have been hard to swallow in light of other chains doing just fine.
Soda consumption in this country has been slipping for a decade, but investors flocked to SodaStream's 2010 IPO on the premise that the Israeli company's namesake maker of carbonated beverages would succeed in selling the advantages of homemade soda over store-bought pop.
SodaStream's Wall Street debut accompanied its push into the U.S. retail market, and it was able to stir up some welcome buzz during the early years. Things began to turn late last year, and what started out as having to divert some unsold units to other countries and discount retail channels during last year's holiday season has turned into a stateside disaster. North American sales plunged 41 percent in SodaStream's latest quarter. The company is holding up better internationally, particularly in Europe, which accounts for more than half of its sales. However, I'd want to see a turnaround start to take place before buying back into SodaStream.
Twitter is as popular as ever, but the same thing can't be said about the investment. Shares of the social media speedster popped when it went public late last year, but the challenge of monetization has scared away Mr. Market in 2014.
Ignore the stock chart and this has been a good year for Twitter. Revenue has more than doubled through the first nine months of the year, and Twitter is finally profitable on an adjusted basis. However, the hefty valuation when the year began left investors hungry for more than they have been seeing out of the dot-com icon.
Shoppers can be fickle, and this has been a rough year for a couple of retail chains. Let's talk Coach. The maker of high-end handbags and related accessories has fallen out of favor with consumers. Affluent and trendy shoppers with money to burn on a new purse are flocking to Kors (KORS) and Kate Spade (KATE), leaving Coach products behind in the process.
Coach has been struggling since last year, but the continuing decay of its fundamentals throughout 2014 proves that this isn't a temporary fluke. It's closing dozens of underperforming stores as it warns of a double-digit sales decline this fiscal year. Coach has a lot to do if it wants to get its brand back on track.
Motley Fool contributor Rick Munarriz owns shares of SodaStream. The Motley Fool and owns shares of 3D Systems, Coach, Michael Kors Holdings, SodaStream, The Container Store Group and Twitter. Try any of our Foolish newsletter services free for 30 days. Want to make 2015 a winning investment year? Check out The Motley Fool'sone great stock to buy for 2015 and beyond.
