ShutterstockBy Jennifer Van Grove
Facebook (FB) on Wednesday soft-launched its long-rumored Work initiative with desktop, iOS and Android applications for select pilot partners -- thus far a private list of companies -- who want to repurpose the social network to actually get things done.
"I read these efforts to reach enterprise users as a big initiative, and one that is as important as consumer Facebook, Internet.org and advertising," Gartner (IT) analyst Brian Blau told TheStreet.
The Facebook at Work product is a workplace network -- with data private to each individual company network -- that still looks and feels like Facebook -- just no ads. "Facebook at Work is a separate experience that gives employees the ability to connect and collaborate efficiently using Facebook tools -- many that they're likely already using such as News Feed, Groups, messages and events," a company spokesperson told TheStreet.
Freemium Model Likely
The company is not currently thinking about monetization plans for Facebook at Work, the spokesperson said, but the opportunity to build a new freemium subscription revenue stream is clearly in play. For comparison sake, Salesforce (CRM) charges $15 per user, per month for the premium version of its enterprise social network Chatter.
"It's a good idea -- [it] makes tons of sense long term," Hudson Square analyst Dan Ernst said via email. Ernst noted that the easiest place to go is small businesses, "especially in emerging markets where LinkedIn (LNKD), Salesforce and Yammer have no play."
As it stands, Facebook has just two businesses: advertising and payments. In the third quarter, Facebook posted total sales of $3.2 billion, up 59 percent year-over-year, with its advertising business contributing $2.96 billion, or 92.5 percent, to the pot.
Into the Business World
Facebook doesn't need to charge for Work to enjoy some immediate fruits of its labor. The enterprise that starts working on Facebook will, of course, recruit its employees to the fold, and once operations are up and running, the company will be reluctant to leave. Facebook at Work, then, represents a gateway to the professional side of the Internet.
"Facebook has many product efforts on the consumer side of the business but fewer on enterprise, and this effort to socialize the workplace is one that not only fits well into Facebook's wheelhouse but also allows them to go after a very different type of customer," Blau said.
In that light, you can view Facebook at Work as not all that dissimilar in big-picture purpose than the social network's arsenal of standalone apps: Paper, Slingshot, Groups, Messenger and Rooms. They're all a part of the company's grander plan to recast itself as a network with something for everyone.
Artko Capital Director of Research Peter Rabover believes that though professional service companies such as law firms or asset management firms won't use it, but other companies may use it. "I can see it being a good idea for companies trying to use it internally, to build up corporate cultures, and internal brands," Rabover said via email. "It would be a good way for companies to network their employees, organize internal social events and even have an internal messenger system."
A Lot of Competition
The workplace collaboration market, however, isn't Facebook's for the taking. Even putting the social network's less-than-trustworthy reputation aside, Facebook is showing up to the office unfashionably late. The space is a complicated one with a smattering of competitors ranging from enterprise behemoths like Salesforce and Microsoft (MSFT), which operates Yammer, to enterprising startups such as Symphony, backed by Goldman Sachs (GS), and billion-dollar Slack.
Facebook brings a sense of familiarity to the table, but in creating workspaces distinct from Facebook proper, the social network seems to recognize that professionals don't want to merge business with pleasure. The familiar, then, doesn't exactly equate to a net positive. Facebook's known to be for friends and family. Do big businesses and their employees really want to see it in a different light?
The social network, said Blau, is entering a new product category that already has significant competition and usage challenges. That's not to be taken lightly, nor is the promise of great rewards. "Facebook at Work is a big move and one that I think over time -- as in a few years -- will become a important part of their business," Blau said. That is, of course, if Facebook can make it work.
Seth Wenig/APEntrepreneurs Chase Reed, right, and his father Troy Reed at their sneaker store in New York's Harlem neighborhood.By DEEPTI HAJELA
NEW YORK -- A 16-year-old sneaker-loving teen is using the footwear to get a different kind of kick -- he's opened a pawnshop that uses high-end athletic shoes as collateral.
Chase Reed and his father, Troy Reed, opened Sneaker Pawn on Lenox Avenue in Harlem looking to capitalize on America's multibillion-dollar athletic footwear market and the high prices sneakers can get being re-sold.
The idea started close to home, when Chase would ask his father to borrow money after Reed had spent a few hundred dollars on sneakers for his son. Reed would hold onto a pair of his son's shoes until he had gotten his money back.
"My son said, 'Dad, you're actually kind of making me pawn you my sneakers,' " Reed said during a recent interview at the store. "Once he said that, a light bulb went off."
My father told me, certain things you have to sacrifice.
He told his son, "You don't have no money, but you got all these sneakers. Imagine how many other kids got all these sneakers and probably need cash."
The duo decided to renovate the space in Harlem, where they had been living before moving elsewhere, into a retail location. And to pay for it all, Chase sold his own collection, bringing in about $30,000.
"My father told me, certain things you have to sacrifice," Chase said.
Basketball sneakers can sell and re-sell for hundreds of dollars, depending on the shoe model, how limited the production run was, and how easy it is to find a pair in good condition. Sneaker Pawn carries shoes with price tags of more than $1,000.
The shop, which opened about six months ago, offers different options. People looking to just unload their sneakers -- specifically basketball shoes -- can offer them to the Reeds to be bought outright, or on a consignment agreement which nets the Reeds 20 percent of the final sale price. Those looking to pawn their sneakers have two months to redeem them for the amount of money the Reeds forwarded them plus a storage fee. Shoes that are being pawned are held in storage and not displayed, until the owner either gets them back or gives them up.
Chase, as the sneaker aficionado, has the final say on whether they buy a certain pair from someone, and what prices they sell the shoes at. He also customizes sneakers with his own art. Since he's still in high school, his father handles the running of the store during the weekdays.
Fourteen-year-old Harlem resident Chaise Mack shelled out a couple of hundred dollars for a pair of Air Jordan sneakers released in 2012 that sell online for at least twice the price that he paid.
The store, he said, "is amazing. You can't really find sneakers like this downtown. Most of the sneakers here are not in retail."
It's been a learning experience for Chase, who's had to put aside the rebuilding of his own collection.
"Sadly there are a lot of size 14s that come through the store," he said. "The nicest sneakers on Earth that come through the store and the first thing I do is sell them."
He's philosophical about it. I "can't let my sneaker high get in the way of me making money, me being a businessman," he said.
Did you know that you can make your candles burn longer by freezing them for 24 hours before using? The cold temperature will harden the wax and slow down the melting process. Here are some more simple tricks that'll extend the life of your belongings, and save you a few bucks, too.
Toothpaste can be expensive, and while advertisers would like you to think more is better, that's hardly the case. In fact, a small, pea-sized amount is what most dentists recommend, so there's no need to squeeze your budget dry every time you brush.
The same goes for laundry and detergent. In many cases, you can use half of what the manufacturers recommend and still get things just as clean. This applies to dishwashing detergent too. Use too much and you're just pouring money down the drain.
Speaking of soap, if you've ever wondered why your bar seems to melt away in a matter of days, your soap dish might be to blame. Any exposure to water will make the bar deteriorate faster, so be sure to keep your soap in a dish that has plenty of holes in the bottom so you can keep your bar, and your budget, from dissolving into thin air.
A few small changes can really make a big difference. Give these tips a try and you'll see that extending the life of your products can sometimes be the best way to stretch your dollar.
Everyone at J.W. Hulme Co. seems to have a story about how the finely crafted leather goods made by this St. Paul, Minnesota, company first captivated and then compelled them to become a part of the 110-year-old legacy brand.
Gene Castle, the company's production manager, found two Hulme bags while cleaning out his parents' garage. They had been his father's, passed down from his grandfather. But over time, they were misplaced and tucked away behind the gatherings of his parent's lives and never passed down to Castle.
Josh Franer/Man Made ContentGene Castle is J.W. Hulme's production manager.
"I realized they were J.W. Hulme bags," he says. "I took them out and cleaned them up. Then six months later I saw an ad for a (job) at the company that made the bags my grandfather had."
He applied for and landed the job that comes with the responsibility of overseeing everything from purchasing leather sourced only from U.S. tanneries, to making certain finished bags make it out of the factory on time. It's a job that Castle speaks of with quiet reverence, particularly for the leather cutters who work with Hulme's most valuable resource.
"You have a lot of imperfections, scars, bug bites, heal-overs," Castle says of the leather they work with. "It was once living. So in cutting leather you need to be able to lay out the pattern to get the best yield. It takes a master cutter, working the dies around the imperfections, it is truly an artform."
Dean Vanech, CEO of the private equity firm Olympus Capital Investments that helped saved Hulme from closing up shop forever, was drawn to the company because of its story of survival from World War I tent maker to struggling American leather goods manufacturer. Vanech read of Hulme's problems in a 2009 Wall Street Journal article that chronicled its struggles as a symbol of how the debt crisis was affecting small U.S. manufacturers.
Later that year, according the Wall Street Journal, Olympus invested $550,000 in the company. The company's owner, Chuck Bidwell, also managed to pull together another $794,000 by selling some of his vintage Buicks to help reduce the company's debt. Hulme began its slow climb out of near-extinction.
Now five years after the infusion of money, Hulme is doing more than surviving. It's thriving.
At the company's lowest point, Bidwell had laid off everyone except four people who made bags when the occasional order came in. Today, Castle oversees a team of 37 people who work year-round in the factory. Another 20 people work in product development, sales, online marketing, among other jobs. This summer they all plan to move from their cramped offices and factory into a refurbished can factory that was once an icon of Minneapolis-St. Paul's proud manufacturing heritage. The new space will include a store and an open factory plan that will make it far easier to take a bag from raw leather to delivery.
Chapter 1: The Sewing Circle
The soul of Hulme can be found in its sewing section of the factory.
Here leather that has been cut and skived -- a process that shaves minute amounts off the leather to make the edges easier to stitch together -- comes together to make bags and accessories meant to last beyond a lifetime. Hulme's products range from traditional gun cases to a new line of bright silver leather jewelry cases crafted from the same patterns used to make its fly-fishing reel cases.
The sewing room at Hulme upends the idea that industrial sewing is drudgery. "We are so busy in life," says Rachel Selby, who leads a team of sewers. "It's a chance to be quiet, to sit at our machines, (to hear) the whirr, the familiarity of the machines. You do sink into this state and you allow yourself to create just this one thing."
Sewers work in teams with their machines pulled together in circles or semicircles instead of impersonal rows. In many cases, one sewer will put together an entire bag instead of sewing one part and handing it off to another sewer. Sewing circles often focus on specific products and in each circle there are people who are experts at tasks like binding or working with the stiff leather, like the sewer from Alaska who learned her skills sewing seal skins.
Josh Franer/Man Made ContentZabeida Osman at work.
The combination of individualism and teamwork brings a sense of what may best be described as energetic peacefulness to the sewing room. The women and men who work here speak of sewing using words such as "therapeutic," "relaxing" and "piecing together a puzzle."
"My heart gets happy when I sew," says sewer Deb Griffin. Ironically, Griffin recalls being mortified during her school years, when an aptitude test told her she had a knack for mechanical skills.
But those skills have made her and other sewers like Zabeida Osman invaluable to Hulme as it began its slow climb back. Osman remembers getting the phone call about two years ago that Hulme was hiring again after the layoffs that began in 2008.
"I got a phone call around noon," she says, who learned to sew after coming to America from Ethiopia in the 1980s and is now a team leader at Hulme. The caller was the woman who had been Hulme's sewing supervisor. "I knew it was good news. She laughed. I laugh. We both choke. 'Zabeida,' she said, 'Do you want to come back?'"
Osman started the next Monday and has grown to love making new products in the expanded women's line that is helping fuel Hulme's revival. Her favorite is the Linwood wallet. "The layers of pockets make it look like a work of art," she says.
Josh Franer/Man Made ContentSarah Furnae, Kerrie Gray, Holly Forrey and Amanda Peterson are a tight-knit team.Chapter Two: Four Women, One Bag
For much of its long history, Hulme focused on traditional hunting and fishing products. Catalogs through the decades show little variation from the themes of manly game bags, gun cases and duffle bags.
But as Hulme pulled out of its difficult times in 2010, four women from a local community college with a strong technical apparel program started working at Hulme in product development. Hired separately over the past several years, the four women are now a tight-knit team.
Sarah Furnae, Kerrie Gray, Holly Forrey and Amanda Peterson are equally passionate about Hulme's traditions and can track back rivets, turnbuckles, tongues and handles to bags the company has made for decades. But all of them know that to grow "they have to try cracking the women's market a little more," Peterson says.
Josh Franer/Man Made Content
Working under the tutelage of company's vice president of brand management, Laura Smith, the four women are changing what Hulme makes for women -- but always with an eye to the past and a deep appreciation for the factory just outside their studio door.
Around a large table that takes up most of their workspace, the four women work from designs often first imagined on a computer. They create patterns from those designs using the same leather the bag will be made with. Then they begin incorporating different elements from Hulme's past aesthetic to create a cohesive look.
One of their favorites is the Henry Crossbody, inspired by the company's signature duffle bag. It has the same solid leather handle, just smaller and more feminine. The shape of the flap mimics the duffle flap with its distinctive shape and buckles. Even on the bag's sides, a spear of leather is a nod to a traditional bag.
But their job is much more than picking out the traditional elements to include in new products. While an outside designer might have a great idea for a new bag, these women know whether it's possible to make in a factory. "It's always evolving," Forrey says. "It never ends up quite how you thought it was going to."
In fact, they are the only people in the company who can make a bag all by themselves, from cutting the leather with the razor-sharp steel dies to skiving leather and using rivet machines. "We know what's possible," Gray says.
The women are more than a little proud of the fact that their four-person department does work that puts them in the same league as Coach (COH) or Louis Vuitton. "They don't have four people doing five different departments," Forrey says. "They have four or five departments with lots of people. There are just the four of us to do those jobs and we still go to the markets that those competitive companies go to."
Josh Franer/Man Made Content Chapter Three: St. Paul Meets New York
More than a thousand miles away in Manhattan, Herschel Thompson is doing his best to make certain the work and the craftsmanship coming out of St. Paul gets noticed -- on the Internet.
Hulme likely wouldn't be as successful -- or pulled out of near extinction -- without e-commerce. While its worth has been derided and debated, for many niche brands like Hulme, the Internet as a retailer has been its saving grace.
"We've helped define new audiences beyond the rugged adventurers who already knew the brand," says Thompson, who started out as a digital adviser to the company and is now head of e-commerce and digital marketing. "Digital has enabled us to connect with a whole new generation. We had a cult following, but really we are just scratching the surface."
Hulme's digital presence started simply as a functional website, but as Thompson has learned firsthand, it's the mythology of Hulme that make people connect with the brand.
Josh Franer/Man Made Content
"Honestly going there blew me away," he says of his first trip to St. Paul. "It inspired me because it was a window on a world I didn't know. I walked across the factory floor and I was holding my breath. If they make a mistake in that bag it was going to be ruined."
Inspired like many by Hulme's history, he's working on creating a website that does more than help you click to buy. It has to tell the story of how John Willis Hulme founded the company, how it takes 100 hours to make a Hulme duffle bag, and that's why one can cost more than $2,000.
"Certainly for a handbag, women may not care that something's made to last a lifetime. That it's made in St. Paul," Thompson says. He hopes his strategy of marrying storytelling with retail will change that mindset.
Hulme's story, at its heart, is about the artisans who work in St. Paul using leather from Maine and Tennessee. It's about the value of taking care of something, holding onto it and passing it down to children and grandchildren. It's about paying a little more for a product that won't need replacing. Hulme, as Thompson says eloquently, "is about the values I have, but hadn't really associated with the things I've worked on in the past."
Researchers have developed an ultra-thin sensor that sits on the skin like a "rub-on tattoo" and can help patients monitor blood sugar levels without the painful prick of the finger that currently available devices require, according to research published this week.
About 80,000 children are diagnosed with Type 1 diabetes around the world every year, according to the American Diabetes Association. Several times a day, many of those patients punch a small hole in their fingers and release a drop of blood onto a device that checks their blood glucose levels. The results will tell them whether or not they need to pump themselves with insulin. The pinprick may be necessary, but it can hurt and annoy patients.
Scientists at the University of California, San Diego, developed a thin and flexible patch resembling a temporary tattoo that they say can continuously monitor glucose levels in the blood without puncturing or irritating the skin. The sensor is a clear patch affixed with two small electrodes and an enzyme that reacts with glucose. The researchers ran a mild electrical current through the electrodes to drive glucose to the surface of the skin where it reacted with the enzyme on the patch. Measuring the reaction allowed the scientists to accurately take blood glucose measurements in seven healthy volunteers. They published their findings Monday in the journal Analytical Chemistry.
The team is part of the Center for Wearable Sensors at UCSD and is now working with other engineers to develop the other half of the device: a wearable wristband or other similar device that would provide the electrical current and the glucose readouts. The tool could be available in a few years and could have appeal not just to Type 1 diabetics, said Amay Bandodkar, one of the researchers on the team.
"Carbohydrate-rich diets and the related insulin spike is one of the major reasons for several of the modern lifestyle diseases faced by humans, especially in developed countries like the USA," Bandodkar told CNBC. A noninvasive glucose monitor might appeal to a broad swath of the population suffering from Type 2 diabetes as well, which doesn't require insulin injections, or other diet-related diseases.
Bandodkar thinks information about glucose levels could be collected in databases and help scientists understand broad health trends, and the "corrective steps needed to be taken to control the spread of modern lifestyle diseases," he said.
A non-invasive glucose monitor could also be useful in treating conditions such as kidney disease, or appeal to athletes tracking their nutrition or physiological changes. The researchers also noted in their study that this technology could pave the way for other sensors that monitor different chemicals in human bodies, or could even lead to new ways of delivering drugs through the skin.
Non-invasive glucose monitoring has become something of a hot area. A medical device company called Cygnus had previously brought wristband-based glucose monitor to market, but wearers complained of skin irritation, according to the UCSD researchers.
As recently as last summer, Apple (AAPL), Google (GOOG) and Samsung were reported to be trying to add glucose monitoring to their wearable devices, according to Reuters.
Google also partnered with Novartis (NVS) in 2014 to develop a contact lens that can monitor glucose through fluids in the eye. Monitor-maker Dexcom (DXCM) showed a simulation of what its glucose monitoring app would look like on an Apple Watch at CES this past week, fueling further speculation that the upcoming device will include a glucose sensor.
Andrew Burton via Getty ImagesBy Caroline Valetkevitch
NEW YORK -- U.S. stocks fell for a fifth straight session Thursday as bank results disappointed and investors fretted over the potential impact of global economic weakness on U.S. earnings.
Energy shares extended recent losses as oil prices settled down more than 4 percent after weak U.S. economic data spurred worries over oil demand. The S&P energy index fell 1.2 percent.
We're probably going to see slowing in the global economy, and it will be very difficult to sail through a global recession without getting touched.
"We're probably going to see slowing in the global economy, and it will be very difficult to sail through a global recession without getting touched," said Scott Colyer, chief executive officer of Advisors Asset Management in Monument, Colorado.
Suggesting further weakness may be ahead, the S&P 500 index closed below its 120-day moving average and ended for the first time in a month below the 2,000 mark, considered a psychological support level. The CBOE Volatility index notched a fifth day of gains, up 4.2 percent at 22.39.
Expectations for U.S. fourth-quarter earnings have been scaled back sharply, with growth now estimated at 3.5 percent, compared with an Oct. 1 estimate of 11.2 percent, according to Thomson Reuters data.
The S&P financial sector dropped 1.3 percent. Bank of America (BAC) lost 5.2 percent to $15.20, among the S&P 500's biggest drags, after the second-largest U.S. bank by assets reported a 14 percent slump in quarterly profit. Citigroup (C) shares fell 3.7 percent to $47.23 after its results.
The Dow Jones industrial average (^DJI) fell 106.38 points, or 0.61 percent, to 17,320.71, the Standard & Poor's 500 index (^GPSC) lost 18.6 points, or 0.92 percent, to 1,992.67 and the Nasdaq composite (^IXIC) dropped 68.50 points, or 1.48 percent, to 4,570.82.
The S&P is now down 4.7 percent from its Dec. 29 record high.
Adding to volatility, the Swiss National Bank scrapped its cap on the franc currency in a surprise move.
U.S.-traded Swiss stocks climbed. Credit Suisse (CS) was up 1.8 percent at $23.22 and Novartis (NVS) jumped 3.9 percent to $100.58 as a strengthening franc made U.S.-dollar denominated stocks cheaper.
Best Buy (BBY) shares tumbled 14.1 percent to $34.30 as the worst performing S&P 500 component. The electronics retailer expects same-store sales growth to be flat to negative in the first two quarters of its fiscal year.
After the bell, shares of Intel (INTC) fell 1.1 percent to $35.80 following its results.
U.S. producer prices recorded their biggest fall in more than three years in December, while other reports showed mixed signals for manufacturing in New York state and the mid-Atlantic region in January.
About 7.9 billion shares changed hands on U.S. exchanges, above the 7.3 billion average for the last five sessions, according to BATS Global Markets.
NYSE declining issues outnumbered advancers 1,995 to 1,091, for a 1.83-to-1 ratio; on the Nasdaq, 2,152 issues fell and 603 advanced for a 3.57-to-1 ratio.
The S&P 500 posted 27 new 52-week highs and 17 new lows; the Nasdaq composite recorded 30 new highs and 134 new lows.
-With additional reporting by Ryan Vlastelica and Chuck Mikolajczak.
What to watch Friday:
The Labor Department releases the Consumer Price Index for December at 8:30 a.m. Eastern time.
The Federal Reserve reports industrial production for December at 9:15 a.m.
The University of Michigan releases its initial survey of consumer sentiment for January at 9:55 a.m.
These selected companies are scheduled to release quarterly financial results:
So you decided to splurge. Against your better judgment you bought that expensive new car. Maybe you didn't realize how much it would handcuff your finances. Maybe you expected your financial situation to blossom. Or maybe you just couldn't let neighbor Bill be the only one with a new ride. Regardless of what led to this decision, you're finding that you just can't keep up with your loan payments, hefty insurance and all the other expenses of owning that hot vehicle. So what are you supposed to do now? Let's explore your options.
1. Suck It Up and Sell the Car
Most financial experts will say the smart move is to sell it. This is what I did when I was underwater on my first new car. Looking back, I should never have set foot on that dealership lot if I wanted to make a good financial decision. But that's not to say you and I can't recover.
Your car loses an estimated 11 percent the second you drive it off the lot. This is a big mental hurdle if you have to consider selling it. It takes a very strong person to push pride aside and downgrade your vehicle. There is a feeling of failure in not being able to keep the car and shame worrying what others would think. Plus, you'll miss the nice new car.
Why did I choose this option? I was beginning to get serious about my financial life. I had started my blog, and it was beginning to take up more of my time. I could spend more time working from my house and I didn't really need a car the way I did before. I sold it and got around on a bike for the next eight months, before finally buying the reliable 8-year-old Honda (HMC) I drive today. At first, it was a drastic change, living without a car. But eventually I developed a cyclist's lifestyle, and it saved me a ton of money.
2. Refinance Your Car Loan
When refinancing, you're basically shopping around for better rates from another lender. That lender will pay off your current lender, and then you'll go on paying for your car, just to a new institution. The hope is that you'll find a much better rate, and the money you'll save on interest will reduce your monthly payment.
When applying for refinancing, you'll have to supply basic financial documentation to your new financial institution (pay stubs and whatnot). They'll check you information and your credit scores, usually approving you immediately. Then you have only to accept or reject the deal and go on paying your current creditor until the account is switched over.
In my case, my car payments were just too high. Even if I had found a creditor who would save me $50 or $100 a month (hint: that creditor does not exist), I would still have been paying more than my financial situation could allow. It was hard to come to this conclusion, but I just had to sell the thing.
3. Cut Your Car-Related Expenses
If you are close to being able to make your payments comfortably, then you may be able to find some extra money without too much effort. Have you shopped around for insurance savings? I was surprised at how much we saved when my girlfriend and I just looked around for cheaper rates. If your insurance rates are elevated due to traffic violations and accidents, a defensive driving course can reduce violation points associated with your license, and your insurance premiums will be reduced as well.
4. Find a Secondary Source of Income
If you don't want to sell the pricey vehicle, your best bet may be to find more income. Just be sure the extra funds go to car payments, not other expenses. First, figure out if there's any way to earn more money from your current job. Maybe you can work overtime. Perhaps you can take on extra responsibilities that could result in a raise. Even just asking for a raise might work. Then there's the option to trying to find a higher paying job. If you've exhausted these options, how much are you willing to sacrifice? You're not going to let an expensive car eat up your retirement savings contributions. No, if you're keeping that car, you're going to sacrifice some of your free time and work your butt off.
While you could start some kind of side business, I don't recommend it in this situation, as 50 percent of all small businesses will fail within four years. You need more of a sure thing that is going to bring in money now. When you finish reading this post, start checking online job classifieds as well as the good ol' newspaper. Look for part-time positions with potential for tips and bonuses. Something like serving in a restaurant would be perfect. Even delivering pizzas in that nice car might work out. Don't overlook jobs as being beneath you or not in line with your career. You do want to keep that car, after all.
5. Slash Your Other Expenses
If you're anything like me when you splurged on a nice car, you probably don't watch your other spending closely enough. Any dollar that you can save on those expenses is another dollar to put toward your loan. If you can't make your payments, your credit will take a dive and your car will be repossessed.
Web and mobile budgeting apps are easy to find. Mint is popular, but it doesn't matter which software you pick. The important thing is to track and regulate your spending. Once you've established how much money you have, and where it's going, reduce spending in every area. A measure of objectivity will serve you well. Last week you may have felt like your spending is as low as it needs to be, but look at your restaurant and coffee spending. Any cuts to be made there?
If you're just unsure how to reduce spending, read personal finance blogs daily (DailyFinance, of course, has great ideas). You'll learn all kinds of creative ways to slash spending, such as saving on food, negotiating cheaper utilities and mastering coupons. Make a game out of saving money and see what new ways you can discover. It might even grow on you and help your finances long term.
Summary
You have to see where your finances and your priorities lie. If you are up against a wall, and you've purchased a car you can in no way afford, my advice is that you sell the vehicle. It's what I had to do in my younger days, and I'm glad I did it. If you can nearly afford your car, but not quite, look into refinancing, insurance adjustments, and additional income options. My personal feeling is that you shouldn't work around the clock to pay for a car. When evaluating your situation, look not just at your ability to pay for your car. Look at the car as one of your many financial goals: your retirement savings, investments, rental/mortgage payments. If you can find a way to make your car payments fit into your larger financial picture, keep it. If not, sell it.
Retailers love long holiday weekends for the simple reason that consumers have an extra day off from work to shop. That's why you'll find big sales happening around the Presidents Day, Memorial Day and Labor Day holidays. Typically, the Martin Luther King Jr. Day holiday has been an exception, with the focus more on service than spending. But that doesn't mean you can't find good deals on MLK weekend. You just need to be smart about shopping for the right things at the right places.
Stores will welcome the business on the heels of a surprise drop in December retail sales in the U.S. Just don't expect many merchants to bill their promotional events as "MLK sales," says Phong Vu
of coupons Web site DealScience.com. Associating consumerism with the civil rights movements isn't an attractive strategy for retailers, he says.
Instead, look for advertisements of "weekend sales," "three-day sales" or "winter sales" from big-box retailers such as Kmart (SHLD), Target (TGT) and Walmart (WMT) and department stores such as Kohl's (KSS), JCPenney (JCP), Macy's (M) and Sears over the MLK weekend. Others that will have sales include clothing retailers Ann Taylor (ANN), Banana Republic, Gap (GPS) and Express, and electronics sellers Best Buy (BBY), Fry's and Newegg.com will likely discount select items, Vu says. Plus, local furniture stores will have sales over MLK weekend, says Offers.com Vice President Howard Schaffer. Shopping expert Brent Shelton of FatWallet says he expects more online retailers to offer deals this year than in past years.
Here's what you can expect to see marked down during MLK weekend sales - as well as clearance events throughout the month.
What's on Sale
Bath and bedding items. Department stores and home-goods retailers have long held white sales in January featuring discounts on bed linens. Now those sales often include a variety of bed and bath items, as well as other home goods. Shelton says there will be plenty of white sales over MLK weekend, with discounts of 30 to 50 percent.
Cameras. The annual Consumer Electronics Show just wrapped up, so consumers will start seeing discounts on the current models of gadgets for which new models were debuted at the show. Shelton says that cameras, in particular, will be deeply discounted this weekend. Look for markdowns on other electronics to appear later in January and throughout the winter.
Fitness gear. Retailers typically take advantage of the fact that many people resolve to lose weight in the new year by offering markdowns on fitness apparel and equipment to get them into stores. Schaffer says you can expect discounts of up to 40 percent on new styles of fitness apparel and shoes over the long weekend. Fitness equipment will be marked down 30 percent to 50 percent, Shelton says. Also look for deals on gym memberships and fitness classes.
Furniture. Furniture stores typically have sales in January to clear out old styles before new designs arrive in February. Look for discounts of up to 50 percent, plus 0 percent financing for four or more years, Schaffer says. (Wait until spring for better deals on mattresses.)
Winter apparel. Clothing retailers are clearing their racks of sweaters, coats and other cold-weather apparel to make room for spring clothing already. So you'll find winter clothing discounted as much as 70 percent, Schaffer says.
Wait a Little Longer to Buy
Big-screen HDTVs. Some retailers might advertise sales on televisions this weekend. But you should wait until the end of January or beginning of February to get the best price on a brand-name big-screen HDTV. New models introduced at the CES usually roll out in February, so retailers mark down current models, Vu says. Plus, retailers also use the Super Bowl as a draw to get people into stores, Shelton says. Shoppers looking to upgrade to 55-inch or larger models that include built-in "smart" capabilities can expect savings of $300 or more, he says. Although so-called 4K resolution won't be supported during this Super Bowl broadcast, January TV discounts will present shoppers with the lowest prices yet on these new high-resolution models, Shelton says.
Jewelry. Wait until after Valentine's Day to buy jewelry because demand will be down and discounts will be deeper, Schaffer says.
April 15 isn't as far off as it sounds. If you'll need help preparing state and federal tax forms, start now so you won't be fighting crowds in late March. Americans will pay $273, on average, this year to get help preparing and filing an itemized Form 1040 with Schedule A and a 2014 state tax return, according to a survey of members of the National Society of Accountants. Taxpayers filing with no deductions will pay an average of $159, the society told me.
That's no doubt a worthwhile expense for many. But free is better. Don't discount your ability to prepare your taxes on your own. Lifehacker advises doing your own taxes if your return is simple and straightforward. Do get help, however, if you:
Dread tax forms.
Own real estate.
Are a landlord.
Are self-employed.
Worry you'll make mistakes.
Own investments that generate capital gains and dividends.
1. Volunteer Income Tax Assistance
An IRS-sponsored program called Volunteer Income Tax Assistance uses trained volunteers to help taxpayers complete basic state and federal tax returns. According to Free File Alliance, a nonprofit coalition of tax preparation software companies: "VITA sites are staffed by IRS-certified volunteers, who help taxpayers complete their annual tax return and provide information about tax credits, such as the Earned Income Tax Credit, Child Tax Credit and Credit for the Elderly or the Disabled."
Who's eligible: Taxpayers earning $53,000 a year or less, the elderly, those with disabilities, and people with limited English-speaking abilities."
Resources:Use VITA's online locator tool to learn when and where to find free tax prep help and whether you'll need an appointment or can walk in. Or call 800-906-9887. "Self-prep" is an alternative. You prepare and file your own basic state and federal tax forms using Web-based tax software and with help from an IRS-certified volunteer. Check online or by phone for locations offering self-prep. Bring all the needed material with you.
2. Tax Counseling for the Elderly
The IRS certifies volunteers who provide free tax preparation aimed especially at older taxpayers through Tax Counseling for the Elderly. Many TCE volunteers work with the AARP Foundation's Tax-Aide program. Tax-Aide deploys about 35,000 volunteers who help 2.6 million taxpayers each year at some 5,000 locations nationally, typically community centers, schools, libraries and shopping centers, according to AARP.
Who's eligible: The service is free to anyone. It's meant particularly for people 60 and older. Preparers can help with questions about retirement-related issues and pensions.
Free File is a partnership between the IRS and 14 makers of commercial tax preparation software. Taxpayers can use, free of charge, secure, brand-name tax preparation software. Self-assist computer kiosks are available in some locations. There's no charge for help with federal tax forms.
Who's eligible: You qualify if your adjusted gross income in 2014 was $60,000 or less (last year's cutoff was $52,000). About 70 percent of Americans qualify, according to Free File Alliance. Cheapism says, however, that "each company also has its own income, age and residency requirements within the IRS limit, some stricter than others." It adds: "These companies also hawk free editions without any income or age requirements, but they come with value-added offers for paid software and features. The more complicated the tax situation, the more likely a required upgrade."
Resources: A state Free File program offers free help with some, but not all, state income tax forms, through a partnership between Free File Alliance member companies and a limited number of states. Free File goes live Jan. 16, with links to state programs following. A chart shows how Free File works. Free File Alliance's FAQ answers many questions.
4. IRS Free File Fillable Forms
There is no income limit for getting help from another free IRS program: Free File Fillable Forms. Fillable Forms gives you access to electronic versions of IRS paper tax forms. You complete and file them online; the forms do your math for you. Benefits include tracking your return and getting refunds more quickly. Fillable Forms is a good choice if you have previously completed your own tax forms, the IRS says.
Who's eligible: Anyone.
Resources:This chart shows the differences between the IRS' Free File and Free File Fillable Forms programs so you can see which, if either, is right for you. Fillable Forms go live Jan. 16.
5. Tax Preparation Companies' Free Services
Several commercial tax-preparation companies offer free, basic online versions of their software. For instance, H&R Block's (HRB) Free Edition software consists of various forms of free help for filling out the simplest 1040 forms using IRS E-file. Its free assistance includes online FAQ resources, unlimited live online chat and unlimited phone discussions with a professional tax adviser. The software includes a review of your E-file form for apparent problems and an estimate of the risk that your completed form will be audited by the IRS.
The major benefit for you with these services is in the savings. They have limitations, which vary by product. In general:
Few offer free help with state returns.
Free products are for simple tax situations. If yours is more complex, the software you use may advise you to use its paid upgrades to properly complete your form.
Products differ. Before starting to use a free product, check its website to compare the free product with costs and features of the company's paid products. TurboTax, for example, has a chart (scroll down to view it) showing features, limits and prices for each of its tax-prep products.
You could run into hidden fees. Guard against surprises by reading the fine print on a company's website. With H&R Block's free product, for example, you will be automatically charged a convenience fee if you pay your tax bill using a credit card. The fees can be hefty, depending on the card you use - from $18.70 to $22.90 for every $1,000 you pay the IRS.
Here's more guidance on choosing from among the free commercial products:
Cheapism recommends three free commercial software companies' products for use with federal forms: TaxACT, FreeTaxUSA and ESmart Tax.
Despite limitations, Money Crashers says that "you can save a ton of money by doing taxes with the assistance of one of these programs." The key to using a free product is having an uncomplicated tax form.
6. MyFreeTaxes.com
MyFreeTaxes.com, from Walmart (WMT) and its partners, Goodwill, the National Disability Institute and United Way, offers free tax help using H&R Block software. Help is free for state tax forms as well as federal.
Who's eligible: Individuals or families with a combined household income of $60,000 or less.
Resources: Go to MyFreeTaxes.com or call 855-698-9435.
Money Talks News has lots of articles on tax topics. Search Money Talks News for "tax hacks." Do you think paying for tax preparation help is worth it? Weigh in by posting a comment below or on Money Talks News' Facebook page.
Ever wonder how your income stacks up against your fellow workers? Do you make enough to put you in that at-once extolled and excoriated 1 percent of richest Americans? In the bottom 50 percent? Somewhere in between?
And, no matter how "rich" or "poor" or "middle class" you are, are you bearing your "fair share" of the nation's tax burden? Do you have the faintest idea what portion you pay now ... beyond a gnawing feeling that it's too darn much?
To help answer such questions, we created a tool to show how the nation's taxable income and the country's federal income tax bill are distributed among its citizens. Are the wealthy coddled with tax favors? Is the middle class unfairly burdened? Our tool uses the latest IRS data to shine a bright light into what are too often murky shadows. We'll also show you how your own income stacks up with that of your fellow Americans.
Are you ready to see where you fit in? With our simple calculator, enter a single number from your latest tax return and you'll instantly know the answer.
What the Numbers Show
The latest numbers from the IRS -- based on just released data from 2012 tax returns -- show what it takes to be among the top 1 percent of income earners: adjusted gross income of $434,682 or more. That's almost $50,000 more than it took to buy into this rarefied status a year earlier. The 1.4 million Americans with this elite status reported 21.9 percent of the total adjusted gross income reported on 2012 returns.
That's right. One percent of taxpayers reported almost 22 percent of all income. And that same tiny group kicked in 38 percent of all the federal income taxes paid. (A year earlier, the top 1 percent of earners kicked in 35 percent of all taxes paid.) How much do you need to make to be in the top 50 percent of earners? Just $36,055.
Fall below that level and you are in the bottom half, along with about 68 million of your fellow taxpayers. All told, that group earned just 11.1 percent of the AGI reported on 2012 federal returns. And they paid 2.78 percent of all the income taxes paid.
Use our calculator to see if you're in the top 1 percent, 5 percent, 10 percent, 25 percent, 50 percent ... or bottom 50 percent of income earners.
Our income and tax-burden breakdowns come from information reported on 2012 individual income tax returns. Income categories are based on adjusted gross income.
(Note that these figures include only federal income taxes. According to one study, more than half of all wage earners pay more in Social Security and Medicare taxes than they do income tax. The percentage of those paying more payroll tax than income tax soars to nearly 90 percent if you count both the employer and employee share of those levies.)
For historical perspective, back in 1986, the top 1 percent of earners reported 11 percent of all income and paid 26 percent of the income taxes; the lower-earning 50 percent made 17 percent of the income and paid 6 percent of the nation's individual income tax bill.
The #richkidsofinstagram hashtag gained attention when a Tumblr user started aggregating Instagram photos of uber-wealthy 20-somethings doing what they do best: flying in private jets and helicopters, drinking champagne in hotel robes, going on endless shopping sprees and partying in mansions and exotic locations.
The #richkidsofinstagram spurred a zeitgeist picked up by TV shows like "Rich Kids of Beverly Hills," which features six friends from that famous Beverly Hills ZIP code (90210) who spend thousands on their fast-paced lifestyle. Calling themselves "funemployed," these young adults make partying their chosen career path; the show gets an inside look at their privileged lifestyles, which includes wild spending on cars, vacations, clothing and entertainment.
The 20-something #richkidsofinstagram are far from the average millennial or member of Generation Y. What you might owe in student loans, they spend on one night of bottle service at the club. Your studio apartment is the size of their closets. They fly private jets around the world while you get a second job to pay for a plane ticket home for Thanksgiving.
Alcohol and Bars
The #richkidsofinstagram seem to really love their bubbly. I have never seen anything like the bottle of Moet & Chandon @alexandre_goossens (since deleted) has in his hands. Phil Burrows (@bpburrows) brought back this little souvenir from his trip to Vegas, and I'm dying to know who this anonymous photo is from because "a little of this and a little of that" could have paid for my college degree.
Their budget:
Moet & Chandon Golden Cage champagne: $1,500.
Dom Perignon rose: $350.
Table service at a South Beach club: $57,190.
Your budget:
Drinking a bottle of champagne from Trader Joe's: $9.99.
Dancing on your Ikea coffee table: Free.
Travel
Tiffany Trump (@tiffanytrump) flies from Los Angeles to New York in her father's Boeing 757 and Matthew Morton (@matthewwmorton) sure had fun tubing off his yacht in Mykonos.
Their budget:
Private Boeing 747: $100 million.
One week on a private yacht in Mykonos: $206,096 (155,000 euros).
Your budget:
Roundtrip ticket from Los Angeles to New York: Roughly $400 on Southwest (LUV) -- but you have to travel mid-week in February. Brrrr.
Spring break vacation: You don't get one. You need to work to pay off those student loans.
Transportation
Here's Chloe Bartoli (@chloebartoli) touching down in her helicopter. And Dorothy Wang (@dorothywang) said, "I love my new ride!!!" We can't tell you what exact model that is or what it costs to paint it Pepto Bismol pink, but we do know it's a Rolls Royce and that it's probably out of your budget. That is, if you are even in the market for a car.
Car ownership has declined dramatically among millennials and many are opting instead for bikes, ride share programs or public transportation to get around. In fact, the portion of Americans age 16 to 24 who have driver's licenses fell to 67 percent in 2011, its lowest level in roughly a half-century, according to federal statistics cited in a report last year by the U.S. PIRG Educational Fund and the Frontier Group.
Their budget:
Rolls Royce: $290,000.
Private helicopter: $1,000 for a short ride, depending on the company.
Your budget:
Transit pass: $110 a month or so, depending on your city.
Don't feel bad about taking the bus; be thankful you won't have to bum rides from friends because "shot gun is for poors [sic]." You really dodged a bullet there.
Food
Do you still put plain ol' milk on your Wheaties? Me too, but I guess champagne is the new breakfast of champions. I don't know, it seems a little out there, but who am I to judge? It could be delicious, but I'll probably never know. The price of a gallon of milk is at its highest since 2011, but it's still pretty reasonable when you stack it up against one of the most iconic brands of champagne in the world.
Their budget:
For breakfast, Cristal Champagne: $200.
For lunch, nothing: They must be bikini-ready for the Hamptons this summer.
For dinner, Beluga caviar: $6,800.
Your budget:
For breakfast, gallon of milk: $3.67.
For lunch, nothing: You can't afford it.
For dinner, all you can eat shrimp at Red Lobster: $15.99.
WASHINGTON -- The U.S. Postal Service on Thursday proposed slight increases for mailing postcards and international letters -- but wants to leave first-class "Forever" stamps at their present 49 cents.
Under a filing with the Postal Regulatory Commission, letters to international destinations would rise from $1.15 to $1.20. Postcards would rise from 34 cents to 35 cents.
The increases being proposed would become effective April 26, if the requests are granted.
On first-class mail, every ounce over 1 ounce would cost an additional 22 cents, up from 21 cents. And letters to all international destinations would go from $1.15 to $1.20.
The filing doesn't affect Postal Service shipping products and services.
The Postal Service said the requested price increases are the latest in a series of steps "to achieve financial stability."
"By growing volume, revenue and contribution, the Postal Service will continue to meet America's mailing and shipping needs well into the future," the agency said in a statement.
"While improving efficiency in streamlining its network and seeking legislative changes, the Postal Service must address an outdated business model," it added.
The Postal Service receives no tax dollars for operating expenses. It relies on the sale of postage, products and services to raise the revenues needed to pay for its operations.
Before they take effect, the new rates must be approved by the commission.
The last increase in first-class postage was a 3-cent boost to 49 cents that took place Jan. 26, 2014.
Forever stamps bought now are good for first-class postage up to 1 ounce regardless of future rates.
Robert Cohen/St. Louis Post-Dispatch via APBy Lucia Mutikani
WASHINGTON -- U.S. consumer prices recorded their biggest decline in six years in December and a gauge of underlying inflation failed to rise, which could make the Federal Reserve more cautious about raising interest rates.
Other data Friday, however, suggested the economy was still poised for solid growth despite the soft inflation readings, with factory output rising last month and consumer sentiment hitting its highest level in 11 years in January.
It seems nearly certain that further declines in headline inflation rates will be seen in coming months.
The Labor Department said Friday its Consumer Price Index fell 0.4 percent last month, the largest drop since December 2008, after sliding 0.3 percent in November.
In the 12 months through December, CPI increased just 0.8 percent, the weakest reading since October 2009, and a sharp deceleration from November's 1.3 percent rise.
"It seems nearly certain that further declines in headline inflation rates will be seen in coming months" due to fast-falling energy prices, said Dan Greenhaus, chief strategist at BTIG in New York.
"What is important, though, is that core inflation rates aren't necessarily immune to declines in oil and gasoline," he said.
While Fed officials have viewed the energy-driven drop in inflation as transitory, a strong dollar is taming underlying price pressures, which could cause some discomfort for policymakers who had been looking to mid-year to raise rates.
The so-called core CPI, which strips out food and energy costs, was unchanged in December. It was only the second time since 2010 that it didn't increase.
In the 12 months through December, the core CPI rose 1.6 percent, the smallest gain since February.
Despite a strengthening labor market and economy, inflation doesn't look like it will reach the U.S. central bank's 2 percent target anytime soon. Indeed, some economists think it could fall into negative territory this year before rebounding.
The softness in core inflation, however, along with darkening prospects for the global economy is likely more troubling for the Fed, which will have to weigh the inflation weakness against others signs of economic strength
The 11-year high in consumer sentiment in January reported by the University of Michigan reflected gains in both employment and income, and the boost to spending power from sharply falling gasoline prices.
A separate report from the Fed showed factory output rose 0.3 percent last month, a fourth straight monthly gain.
Many economists have been expecting the Fed to raise interest rates by June. However, surprise declines in retail sales and average hourly earnings last month have spurred investors to push back their expectations for when rates will rise. Futures markets point to October.
Tumbling Oil Prices
Weaker global demand and increased shale production in the United States have caused an oil glut, sending crude prices tumbling. Brent crude prices approached a six-year low this week.
In the United States, gasoline prices last month registered their biggest drop since December 2008. The cost of gasoline has now declined for six straight months.
Food prices rose 0.3 percent after rising 0.2 percent the prior month. Away from food and energy, shelter costs increased 0.2 percent last month after rising 0.3 percent in November.
Prices for medical care commodities recorded their largest increase since May 1989.
Apparel prices, however, recorded their biggest decline since September 1998, and there were also declines in airfares and new motor vehicle prices. The cost of used cars and trucks dropped 1.2 percent.
David Bro/Zuma Press, Inc./Alamy
There were plenty of acquisitions taking place in 2014, but that could be child's play compared to what the year ahead may have in store. Companies are holding on to a lot of cash, and with many market watchers betting on volatility, there should be plenty of opportunities for potential buyers to land great deals if they are nimble. Let's take a look at five companies that make ideal acquisition targets in 2015.
Speech recognition is as popular as ever, with smartphones, cars, and even high-end appliances activating at the sound of an owner's voice. Nuance is the top dog in this niche.
Buyout chatter has been making the rounds for two years, intensifying this past summer when reports surfaced that Samsung (SSNLF) was going to make a play for Nuance. With billionaire activist Carl Icahn taking an interest in Nuance, it wouldn't be a surprise to see it nudged toward a suitor if the price is right.
Shares of The Fresh Market took a hit on Tuesday after the abrupt resignation of its CEO. Investors don't like uncertainty, but that can also work to the advantage of a potential buyer. The high-end grocer could provide traditional grocers an upscale niche concept with plenty of upside, or private equity could make a play to grow The Fresh Market away from the quarterly scrutiny that comes with the territory as a public company.
The Fresh Market went public at $22 five years ago. The shares went on to nearly triple by the summer of 2012, but expansion hiccups have resulted in a stock that has shed nearly half of its peak value. The boutique grocer's concept is still strong, making it a compelling target here.
We're now two summers removed from the crazy rumor that PepsiCo (PEP) was going to buy SodaStream for $95 a share. The reports originated in a business publication in SodaStream's home turf of Israel, and PepsiCo quickly shot down the speculation.
A couple of things have changed to make SodaStream an interesting buyout target, possibly even by PepsiCo itself. For starters, PepsiCo's two most prominent rivals have thrown their support behind the Keurig Cold system that will hit the market later this year. Instead of following suit, PepsiCo can own the leader in home carbonation outright.
The other thing that has happened is that SodaStream is trading for less than a quarter of the original $95 buyout price. The climate is right, and the price is even better.
Pandora has been a popular buyout rumor in recent years, and it's easy to see why. Tech giants have been trying to make a dent in music streaming, and Pandora's the undisputed leader, with 76.5 million users. It's serving up 5 billion hours of audio a quarter. Why are the major tech companies trying to succeed by starting from scratch when they can snap up the niche leader before the competition does?
It's true that subscriber growth is slowing, but revenue growth is on a tear as Pandora gets better at monetizing its streams.
It's not easy being SeaWorld these days. The marine-life park operator has suffered back-to-back years of attendance declines, and the cry of activists urging SeaWorld to release its orcas is getting louder.
This is a textbook example of a company that can benefit by going private. A turnaround isn't going to be easy with shareholders clamoring for juicy dividend checks and the business having to live up to Wall Street's quarterly expectations. SeaWorld's best shot at winning back public opinion will be as a private company.
Motley Fool contributor Rick Munarriz owns shares of SeaWorld Entertainment and SodaStream. The Motley Fool recommends Nuance Communications, Pandora Media, PepsiCo, SodaStream and The Fresh Market. The Motley Fool owns shares of Nuance Communications, Pandora Media, PepsiCo and SodaStream. Try any of our Foolish newsletter services free for 30 days. Check out The Motley Fool's one great stock to buy for 2015 and beyond.
Tony Dejak/AP
The economy may be showing signs of life, but that doesn't mean that all retailers are thriving. It may be a perfect climate of improving employment trends, with cheap gas putting more money in the pockets of shoppers, but a few chains won't be there to make the most of favorable headwinds.
Now that the holiday shopping season has come and gone, many once-iconic chains are closing down stores. Let's go over a few of the retailers that will shrink in size through 2015.
The department store chain closed dozens of stores last year, and it's not done yet. J.C. Penney announced last week that it will close down 40 of its 1,060 stores, taking a $38 million charge along the way.
J.C. Penney has started to bounce back from its ill-advised "jcp" makeover three years ago that alienated existing customers and failed to attract new ones. It posted positive comparable-store sales growth during the holidays, but the retailer has a long way to go to get store-level sales back to where they were before the catastrophic redo.
J.C. Penney continues to lose money, and analysts see that continuing for several more years.
Another department store chain that will be rolling out some springtime closings this year is Macy's. The retailer managed positive comps during the holidays, but it's also staging a retreat by closing 14 of its 760 namesake stores in the next few months.
The pain won't be limited to just the locations getting shuttered: Macy's could let go as many as 2,200 employees as it shifts two to three associates out of 830 Macy's and Bloomingdale's locations. The company is hoping to find other positions for the displaced employees, but at the end of the day the goal is to achieve $140 million in savings. You don't do that by getting bigger.
The situation may be thorny at profitless J.C. Penney and puzzling at a restructuring Macy's, but it's outright dire at Wet Seal. The once-trendy clothing store is teetering on the brink of bankruptcy, and earlier this month it stunned most of its employees by shutting down nearly two-thirds of its mall stores.
Closing 338 locations will leave just 173 Wet Seal stores open, and the abrupt closure of the stores found some of the displaced associates putting up signs trashing Wet Seal executives. The remaining stores can't exactly breathe a sigh of relief. It remains to be seen how this plays out with creditors if and when it gets to bankruptcy reorganization.
Another chain on borrowed time is RadioShack. The small-box retailer of mobile products and consumer electronics has already closed hundreds of stores, and it's going to close hundreds more. RadioShack thought wireless customers would flock to its stores offering plans and handsets from the leading carriers, but that plan failed.
RadioShack got a boost on Tuesday when it lined up $500 million in bankruptcy financing, but that will merely pave the way for more closures.
It's not easy being an office supply chain these days, and this will be a year that finds both Staples (SPLS) and Office Depot closing stores to offset declining sales as online orders and digital delivery make getting many traditional office basics from neighborhood superstores less necessary.
Office Depot has been closing hundreds of stores since completing its merger with OfficeMax, and now it's just shuttering locations because it doesn't make sense to have so many gargantuan outlets selling paper clips and file cabinets. The company pointed out in November that it expects to shutter 135 stores this year, with another 100 locations come 2016.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool owns shares of Staples. Try any of our Foolish newsletter services free for 30 days. Want to make 2015 a winning investment year? Check out The Motley Fool's one great stock to buy for 2015 and beyond.
Christophe Ena/APWoody Allen as creating his first TV series. He will write and direct all of the episodes.
There were plenty of winners and losers this week, with the coolest maker of electric cars warning that profitability is several years away and the leading online retailer making waves with its digital video platform.
Cheap chic never took off north of the border, and now Target is shutting down its Canadian operations. The discount department store chain announced that it will close its 133 stores in Canada.
That may not seem like much of a winning move, but Target's struggling Canadian operations were eating into its financial performance. It was a mistake to jump so aggressively into a market and quickly build out more than 100 stores for a brand that doesn't have the same allure up there as it does in the U.S. However, with profitability forecasts in Canada stretching all the way out to 2021, it made sense to pull out now.
Target was able to make up for the bad news by announcing strong results closer to home over the holidays. It now sees domestic comps and adjusted earnings clocking in higher than it was originally forecasting.
The 2015 Detroit Auto Show gave automakers a great opportunity to shine, but Tesla Motors and its stock went the other way. Shares of the electric-car maker closed below $200 on back-to-back days for the first time since May after offering up a pair of problematic nuggets.
The first bombshell is that sales are slipping sequentially in China. This is a big deal because investors figured that Tesla would be a no-brainer in the world's most populous nation given the high smog levels in its largest cities.
The second bombshell is that Tesla doesn't expect to turn an annual profit until 2020. That's a long time to wait for a stock that already carries a pretty lofty sales-based valuation.
The leading online retailer began the week by winning both of the Golden Globe awards that it was nominated for, and then beefed up the prospects for its online programming by announcing a deal for a new Amazon exclusive series by Woody Allen.
The deal with Allen was probably already being finalized before Amazon's platform was validated as a result of the industry awards. However, both developments will make it easier for Amazon to land future original content deals.
Google Glass -- Loser
It's probably not a surprise that Google's (GOOG) (GOOGL) high-tech specs didn't take off, and on Thursday, The Associated Press reported that the dot-com giant was ending production of the Web-backed eyewear.
The report claims that sales to developers have been halted, and that the long-anticipated consumer rollout won't happen. Google may have been ahead of its time, and it's a rare miss for Big G.
Xbox -- Winner
The PS4 has been smoking Microsoft's (MSFT) Xbox One since the two systems hit the market 14 months ago, but it seems as if a price cut was all that Microsoft needed to gain some serious traction.
Industry tracker NPD Group is reporting that the Xbox One outsold Sony's (SNE) PS4 in the U.S. during the seasonally potent months of November and December. Sony may have retained the crown in worldwide sales, but it seems as if a promotional price cut to $350 was just the ticket to breathe new life into Microsoft's machine.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Google (A and C shares) and Tesla Motors. The Motley Fool owns shares of Amazon.com, Google (A and C shares), Microsoft and Tesla Motors. Try any of our Foolish newsletter services free for 30 days. Looking for a winner for your portfolio? Check out The Motley Fool's one great stock to buy for 2015 and beyond.
Jeff Chiu/APGoogle co-founder Sergey Brin wears Google Glass.By MICHAEL LIEDTKE
SAN FRANCISCO -- Google (GOOG) will stop selling its Internet-connected eyewear to consumers until the company can develop a more polished and affordable version that's less likely to be viewed as a freakish device.
The sales moratorium on the nearly 2-year-old Explorer edition of Google Glass goes into effect Monday. The decision coincides with Glass' spin-off from the secretive Google X lab where it was invented.
Glass will now operate in a division steered by veteran marketing executive Ivy Ross, whose past experience includes stints at fashion-conscious companies such as Gap Inc. and Calvin Klein. Ross will report to Tony Fadell, who played an instrumental role in the design of Apple's (AAPL) iPod and now runs the smart-appliance maker Nest Labs that Google bought for $3.2 billion last year.
Google will still sell a version of Glass to companies that have found uses for the device in their offices, stores and factories. The Mountain View, California, company still plans to come back with a new consumer model of Glass, but hasn't set a timetable for the next release.
'Learn How to Run'
By the time Glass returns to the consumer market, it will face more competition from other wearable computing devices, including a line of smart watches that Apple plans to begin selling this spring. In a Thursday blog post, Google likened the Explorer edition of Glass to an infant learning how to walk. "Well, we still have some work to do, but now we're ready to put on our big kid shoes and learn how to run," Google said.
Glass looks like a pair of spectacles except the Explorer edition didn't contain any actual glass in the frame. Instead, the device has a thumbnail-sized screen attached above the right eye so a user can check email, see Twitter posts or get directions without having to grope for a phone.
Google began distributing the $1,500 device to computer programmers and about 10,000 randomly selected people in 2013 with the hope that the test group would come up with new ideas for using Glass and drum up enthusiasm for a hands-free way to remain connected to the Internet.
Although it generated plenty of intrigue and publicity, Glass struggled to win widespread acceptance. Part of the aversion stemmed from a design that made it look like a weird contraption rather than a hip accessory. Glass also turned off many people for its potential to intrude on people's privacy by secretly taking pictures or video.
Concerns About Privacy
"It is a perfect stalker's tool," said John Simpson, privacy project director of Consumer Watchdog, a group has been among Google's most strident critics. "It's difficult to see how they solve that." About half of all consumers had privacy concerns about Glass, according to data compiled by Forrester Research. The price also limited the demand for Glass when Google began selling the device to all comers last May.
"Google needs to construct a consumer image for the product, and deal with privacy concerns if they want it to be mass market," said Forrester analyst J.P. Gownder.
Google hasn't disclosed how many units of the Explorer version were sold. The company says about 100 businesses -- including Hewlett-Packard (HP), Boeing (BA) and Taco Bell (YUM) -- are testing Glass as a tool for work.
Manuel Balce Ceneta/APMedicaid Administrator Marilyn Tavenner testifies on Capitol Hill in Washington last September.By RICARDO ALONSO-ZALDIVAR
WASHINGTON -- Medicare's top administrator unexpectedly resigned Friday, becoming the latest casualty in the turmoil over the president's health care law, which is still struggling for acceptance even as millions benefit from expanded coverage.
Marilyn Tavenner's departure underscores the uncertainty overshadowing President Barack Obama's health care law nearly five years after its party-line passage by a then-Democratic-led Congress. The Supreme Court will hear a challenge to the legality of the law's financial subsidies this spring, and a new Republican Congress is preparing more repeal votes.
A former intensive care nurse with a businesslike approach to a divisive area of public policy, Tavenner told staff in an email that she's stepping down at the end of February with "sadness and mixed emotions." Her chief of staff is also leaving.
Tavenner, 63, survived the technology meltdown that initially paralyzed HealthCare.gov. She remained in place even as her boss, former Health and Human Services secretary Kathleen Sebelius, left office following signals of White House unhappiness.
Embarrassing Testimony
But Tavenner was embarrassed last fall when she testified to Congress that 7.3 million people were fully enrolled for private coverage under the health law. That number turned out to be an over-count that exaggerated the total by about 400,000 people. The error, discovered by Republican congressional staff, was termed "unacceptable" by new HHS Secretary Sylvia M. Burwell.
Tavenner had a played a key role in the 2013 decision to go live with HealthCare.gov, signing a required cybersecurity clearance after technology professionals under her balked because testing was incomplete. The website later passed security tests and received full authority to operate.
In her farewell message, Tavenner termed the health law's online insurance markets "a success." But she also said her job, which involves oversight of Medicare and Medicaid as well, was a "huge and complex responsibility" and "we had many additional challenges put before us" because of Obama's health law. Roughly 1 in 3 Americans are covered by health insurance programs run by the Centers for Medicare and Medicaid Services.
She has proven herself to be a strong leader and a straight shooter who brought in much-needed private sector sensibility into the agency.
Despite Tavenner's close association with "Obamacare," some senior Republicans in Congress said they were sorry to see her leave.
"She has proven herself to be a strong leader and a straight shooter who brought in much-needed private sector sensibility into the agency," Sen. Orrin Hatch, R-Utah, said in a statement. "I truly appreciate her service and wish her the very best in her next adventure."
But former House oversight chairman Darrell Issa, R-Calif., said, "Tavenner had to go." The over-count, discovered by his staff, "was a deplorable example of an agency trying to scam the American people," Issa said. The administration insists it was only a mistake, resulting from a double-count of people with dental coverage.
In her own message to the department, current HHS Secretary Burwell called Tavenner "one of our most esteemed and accomplished colleagues" and said the decision to leave was Tavenner's.
Career Health Professional
Tavenner joined HHS shortly before the passage of the Affordable Care Act. She came from state government, having served as Virginia's health secretary under former Democratic Gov. Tim Kaine.
Although she started out directly caring for patients, most of her career was spent in hospital administration. She rose through the ranks to become a top executive of Hospital Corporation of America.
Andy Slavitt, a former technology executive who played a leading role in the rescue operation to get HealthCare.gov working last year, will take over as acting Medicare administrator. The website is the online portal to subsidized private coverage for people who don't have health insurance on the job.
Slavitt had impressed the White House with his mix of technology and management skills. He stayed on after HealthCare.gov stabilized, serving as Tavenner's principal deputy, responsible not only for HealthCare.gov but also for key Medicare and Medicaid issues as well.
A permanent replacement requires Senate confirmation, and any presidential health care nominee could face rough going in the new Republican-led Senate. There was no immediate word on whether the White House would submit Slavitt's name for confirmation.
Millions More Insured
Since the health care law's big coverage expansion began last year, at least 10 million uninsured Americans have gained coverage through a combination of subsidized private insurance and expanded Medicaid eligibility. A study this week also documented significant declines in the numbers of people who forego needed care because of costs, and who struggle to pay medical bills.
But the Affordable Care Act has yet to find the public acceptance enjoyed by its federal forebears: Medicare, Medicaid, and the Children's Health Insurance Program.
This year's Supreme Court case looms as a crucial test.
Plaintiffs in the case argue that the law as written only allows the federal government to subsidize coverage in states that have set up their own insurance markets. Supporters of the law say that while its wording may be confusing, Congress intended for subsidies to be available across the country, regardless of state actions.
Since Washington is currently running the insurance markets in 37 states, a ruling favoring the plaintiffs would unravel much of the gain in coverage.
-Associated Press writers Alan Fram and Nedra Picker contributed to this report.
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Despite laws that prohibit them, new technology and other protections, consumers still complain on a daily basis about robocalls and the inability to halt them. And it just might get worse. Some businesses want to aim for your cellphones.
Consumers have long had the support of government to try to control these calls, chiefly through the Telephone Consumer Protection Act, which actually allows consumers to file lawsuits and collect penalties from companies that pepper them with robocalls or text messages they didn't agree to receive.
But now the Federal Communications Commission is considering relaxing a key rule and allowing businesses to call or text your cellphones without authorization if they say they called a wrong number. The banking industry and collections industry are pushing for the change.
We hope that the FCC will resist the pressure from business and industry trade groups to weaken rules that prevent robocalls to cell phones without consent.
A broad coalition of 80 consumer groups, including the National Association of Consumer Advocates and the National Consumer Law Center, this week appealed to the FCC to ask the agency to leave the protections intact.
"We hope that the FCC will resist the pressure from business and industry trade groups to weaken rules that prevent robocalls to cell phones without consent," said Margot Saunders, counsel to the National Consumer Law Center. "Currently, robocalls (or texts) to cell phones are illegal unless the cell phone owner has provided consent. Repeated unauthorized calls and texts to consumers' cell phones invade privacy and cost money by using their precious minutes or limited text allowances."
The request to exempt wrong number calls and texts stems from lawsuits that have been filed by consumers who were contacted repeatedly by companies seeking someone who previously had the phone number being called. Many consumers have complained that even after they reported that they weren't who the companies were looking for the calls and texts continued.
"The proposed changes that the FCC is considering will open the floodgates for 'wrong
number' calls to cell phones," the consumer groups said in their letter to the FCC. "This would not only be an improper interpretation of the TCPA, but it would gut essential privacy rights of cell phone users."
The groups left the FCC with this message:
On behalf of consumers throughout the United States, please --
o. Do not reduce the consumer protections of the Telephone Consumer Protection Act.
o. Ensure that industry callers using autodialers to make calls or send texts to cell phones are fully liable when they call wrong numbers and reach consumers who have not provided consent for those calls.
o. Maintain the current system of liability for wrong number calls to create incentives for these industry callers to create reliable technologies to enable them to avoid wrong number calls.
NEW YORK -- U.S. stocks rallied Friday after five sessions of losses, helped by a sharp rebound in energy shares and data that signaled the U.S. economy was on track for solid growth.
U.S. consumer sentiment hit its highest in 11 years in January, while factory output rose last month, reports showed.
All 10 of the S&P 500 sectors ended higher, though energy led the charge, rising 3.2 percent. U.S. crude oil futures settled up 5.3 percent after the International Energy Agency forecast the market downtrend would end. Brent gained 3.9 percent.
Along with that came sturdier oil prices, and I think that's the elixir for ultimately better equity prices.
"You had a pretty strong consumer confidence report that seemed to turn the market right around," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.
"Along with that came sturdier oil prices, and I think that's the elixir for ultimately better equity prices ... dampening concern that low oil prices are a reflection of weak demand."
The Dow Jones industrial average (^DJI) rose 190.86 points, or 1.1 percent, to 17,511.57, the Standard & Poor's 500 index (^GPSC) gained 26.75 points, or 1.34 percent, to 2,019.42 and the Nasdaq composite (^IXIC) added 63.56 points, or 1.39 percent, to 4,634.38.
For the week, the Dow was down 1.3 percent, the S&P 500 lost 1.2 percent and the Nasdaq fell 1.5 percent.
Retail foreign exchange broker FXCM (FXCM) said it may be in breach of regulatory capital requirements following client losses related to Switzerland's move to ditch the cap on the Swiss franc's value.
Leucadia National (LUK), which owns investment bank Jefferies, will give $300 million to FXCM to meet regulatory capital requirements. Shares of both FXCM and Leucadia were halted during the session. After the close, FXCM shares resumed trading and were down 69.3 percent at $3.88, while Leucadia fell 0.9 percent.
Investors continued to assess effects of the move by the Swiss National Bank on Thursday to lift the cap on the Swiss franc. The decision could foreshadow a large stimulus by the European Central Bank next week that would further weaken the euro, or be a safeguard against a possible Greek exit from the eurozone that could potentially destabilize the bloc.
Among the biggest energy gainers, shares of Schlumberger (SLB), the world's No. 1 oilfield services provider, jumped 6.1 percent to $81.33 after it said the oil price drop was likely to have a "significantly more dramatic" impact on North America than on the rest of the world. Schlumberger derives two-thirds of its revenue from operations outside North America.
About 7.7 billion shares changed hands on U.S. exchanges, above the 7.4 billion average for the last five sessions, according to BATS Global Markets.
NYSE advancing issues outnumbered decliners 2,521 to 575, for a 4.38-to-1 ratio; on the Nasdaq, 2,075 issues rose and 669 fell, for a 3.10-to-1 ratio.
The S&P 500 posted 32 new 52-week highs and 15 new lows; the Nasdaq composite recorded 40 new highs and 108 lows.
What to watch Monday:
U.S. financial markets are closed for the Martin Luther King Jr. Day holiday.
Did you know that you can make your candles burn longer by freezing them for 24 hours before using? The cold temperature will harden the wax and slow down the melting process. Here are some more simple tricks that'll extend the life of your belongings, and save you a few bucks, too.
