Is DISH Network really throwing in the towel in its battle with SoftBank for Sprint Nextel ?

Knocked back on its heels by SoftBank's offer of an additional $4.5 billion in cash to Sprint stockholders, DISH released a statement late Tuesday saying, "While DISH continues to see strategic value in a merger with Sprint ... [Sprint's] revised agreement with SoftBank ... [has] made it impracticable for DISH to submit a revised offer by the June 18th deadline imposed by Sprint. We will consider our options with respect to Sprint, and focus our efforts and resources on completing the Clearwire tender offer."

From that statement, DISH seems to be totally giving up on acquiring Sprint. But wait, we have to remember that only two months ago DISH seemed to be stepping back from its original proposed buyout of Clearwire  and instead made its shocking counteroffer for Sprint.

We also have to remember who's running the show at DISH. Chairman and founder Charlie Ergen does not give up what he wants without a fight -- he once likened his company to "a dog with a bone" -- and it is clear that he desperately wants DISH to be a player in the wireless communication industry.

He has called his company a "one-trick pony" in the slow-growth business of pay TV. Mobile video and data as well as wireless voice communications is where the future dollars will be, and Ergen does not want DISH to be left behind.

To that end, DISH has been amassing spectrum over the last few years but does not have the infrastructure or the expertise to use those frequencies. To build a wireless network from scratch would be prohibitively expensive. DISH's best strategy, then, is to buy -- or at least get access to -- an existing wireless network.

That is why Sprint and Clearwire have been the flames to DISH's moth. Their 4G infrastructures -- and additional spectrum licenses -- are too essential to future DISH growth, if not survival, for DISH to give up on totally.

In April of last year, Ergen told a Silicon Valley audience that doing nothing could be fatal. "For us, not taking a risk is the bigger risk," he said.

Even though it seems like DISH now has the edge in its bid to buy Clearwire -- with the Clearwire board of directors unanimously recommending stockholders vote to accept DISH's $4.40-a-share offer over Sprint's $3.40 -- Sprint has thrown a lawsuit at DISH, which could cause problems. And if legal action doesn't work, Sprint, with SoftBank's financial help, could raise its per-share bid for Clearwire.

What then? Remembering what he said about risk, Ergen may then reconsider giving up on Sprint and indeed make a revised offer. I don't think the fight for Sprint is over yet.

The following video is from Wednesday's Investor Beat, in which host Chris Hill and analysts Jason Moser and Charly Travers dissect the hardest-hitting investing stories of the day.

Fourth-quarter profits for FedEx came in higher than expected, and shares rose on the news. In this installment of Investor Beat, Jason and Charly discuss FedEx's various divisions, the strength of its ground game in the U.S., and why investors should consider the long-term advantages of FedEx's stock.

The relevant video segment can be found between 0:14 and 1:54.

Today, the Federal Reserve spoke, and investors didn't like what they heard. In what has become typical backwards fashion, the stock market responded negatively to the Fed's fairly positive assessment of future economic prospects, with calls for unemployment to fall to 6% within the next couple of years and for inflation to remain muted. Although the Fed didn't change its current trillion-dollar annual pace of bond purchases, most investors took the news as an indication that a reduction in those purchases is imminent, and the Dow Jones Industrials plunged 206 points in a broad-based sell-off that pulled every one of the Dow's 30 components lower.

When you think of prospective candidates to survive the worst of the Dow's carnage, Hewlett-Packard wouldn't be on most people's lists. But HP was the best performer in the Dow today, losing only a single penny. With the company having replaced former personal-computer segment head Todd Bradley with Dion Weisler yesterday, HP now looks poised to salvage what it can from the struggling PC industry. Meanwhile, Bradley will turn his attention to moving forward with strategic-growth initiatives to capitalize on more promising prospects, such as emerging markets. These and other moves will present continuing challenges for HP, but in the long run, they should help the tech giant evolve into a company that's more likely to survive.

Also making the best of a bad day was Caterpillar , which limited its losses to a third of a percent. The construction-equipment industry has had a bad few months, as weakness in the global economy has dampened levels of construction activity, leading rival Terex to reduce its earnings guidance for the year. But if the Fed's assessment of the U.S. economy is correct, then Caterpillar's rise today might mark the beginning of an upturn for more cyclically focused stocks, defying the general good-news-is-bad-news sentiment that investors have adopted lately.

Finally, beyond the Dow, there were a few outright winners in today's market plunge. Qihoo 360 gained almost 3% as it continues to build its position in fighting against Chinese search market leader Baidu. Fool contributor Kevin Chen recently observed that in his opinion, Qihoo's products are inferior to Baidu's, but Qihoo has nevertheless successfully used its strength in antivirus software to make a powerful entry into search and browsers. As long as users want multiple options, Qihoo could become the permanent No. 2 in the market, and given the size of the Chinese Internet market, that's an enviable position to be in.

Tesla stock climbed to more than $106 in early trading on Wednesday despite the EV maker announcing a partial recall of 1,228 of its Model S cars. In a rare move, CEO Elon Musk issued an apology on the company's blog. In it, he explains that the recall is the result of a weakness in the mounting bracket on the back seat. Tesla says the defect only affects cars that were manufactured between May 10 and June 8 of this year.

Why this is a good thing
Typically, when a company issues a recall, that company's stock plummets on the news. Tesla stock, on the other hand, was trading up by more than 2% at the time of this writing. General Motors recently recalled 200,000 SUVs due to the risk of mechanical fires inside the doors of the vehicles.

Meanwhile, Chrysler finally complied with the National Highway Traffic Safety Administration's requests to recall as many as 2.7 million Jeeps due to concerns that the vehicles can catch fire when hit from behind. I mention this because unlike Tesla, the NHTSA had to force these companies to issue a public recall, whereas Tesla discovered an imperfection in its cars and immediately confronted the situation.

Tesla's transparency in these matters is more important than ever. That's because it enables it to build trusting relationships with its customers, as well as potential customers. Moreover, Musk was quick to point out that Tesla's partial recall should not be blown out of proportion:

We do not wish to cause undue alarm, so it is perhaps worth clarifying that:

•  The weld has not actually detached on any car
•  There have been no customer complaints
•  We are not aware of any injuries or near injuries
•  No regulatory agency brought this to our attention

Because of Tesla's manageable size, the company is also able to make the recall as painless as possible for Model S owners. In fact, a Tesla representative will deliver a loaner Model S to your home and pick up your car for servicing. The car will be returned to you once a new bracket is installed. It's refreshing to see an auto company get ahead of a manufacturing problem. In Tesla's case, I think this setback paints both Musk and Tesla in a very flattering light. It's no wonder, then, that the stock is flying high despite a recall.

Where is Tesla stock headed from here?

Amazon.com and Netflix have stepped up their game in kid-friendly programming this month. Amazon snagged Viacom's Nick and Nick Jr. content earlier this month after it left Netflix's digital vault, and Netflix scored its biggest original programming deal this week in a partnership for 300 hours of original content from DreamWorks Animation .

In this video, Fool contributor Rick Munarriz argues that subscribers and investors can do well by going with both. It doesn't have to be a choice.

PNC Financial Services Group , owner of PNC Bank, has been one of the fastest-growing banks of the last 15 years. But as the sixth-largest U.S. bank by assets today, and with management spending conference calls discussing too-high acquisition prices, does PNC have the strategy to continue this growth trajectory?

Building the core banking business
PNC's growth in the mid-Atlantic is a perfect case study in PNC's acquisition strategy. In 2003, PNC entered the region by purchasing United National Bancorp. This brought the bank into New Jersey and eastern Pennsylvania. This was followed in 2005 by the purchase of Riggs National Bank, bringing PNC into Washington D.C., Maryland, and Northern Virginia.

With a foothold established, the company began a series of acquisitions that made PNC a major player throughout the region. In 2007 alone, PNC bought Sterling Financial Corp, Mercantile Bancshares, ARCS Commercial Mortgage, and Yardville National Bancorp.

Mercantile Bancshares added 240 offices throughout the mid-Atlantic, particularly in the D.C. Metro area. Yardville National was a regional player, with $3 billion in assets and $2 billion in deposits that strengthened PNC's presence in New Jersey and eastern Pennsylvania. At the time of the acquisition, ARCS Commercial Mortgage was the largest independent multifamily lender in the U.S.

"Be fearful when others are greedy and greedy when others are fearful" -- Warren Buffet
With the mid-Atlantic under wraps, PNC then opportunistically focused south and west.

In 2008, PNC acquired National City Bank in a $5.2 billion all-stock deal, immediately giving the bank a strong foothold in the Midwest, including Ohio and Michigan. The deal was struck at a near 20% discount to National City's market value at the time, and it included a plan to cut 4,000 jobs as part of a $1.2 billion cost savings plan.

In 2011, the bank first acquired 19 branches in the Tampa area from BankAtlantic Bancorp. This was quickly followed with the headline-grabbing purchase of Royal Bank of Canada's U.S. operations. For $3.45 billion, PNC added 426 branches and 900,000 customers in six southeastern states.

Both the National City and RBC deals came during one of the most uncertain times in the last 75 years for banks. Both were large acquisitions that provided tremendous long-term upside for PNC, expanding the brand out of the mid-Atlantic and into the Midwest and then the South.

Strategically building the corporate and investment business.
The pattern exists beyond just the retail bank. PNC brings the same approach to growing its corporate and investment business.

PNC has always been a strong commercial lender. As of Q1, the company had $83 billion in commercial loans and $19 billion in commercial real estate loans. The bank started with this foundation, and through strategic acquisitions has built a robust investment unit to complement its commercial banking services.

In 2005, PNC bought Harris Williams, adding merger and acquisitions advising and other investment banking services to the division. This was followed in 2007 by the purchase of Sterling Financial, a financial services company with $3.3 billion in assets and 67 branches. These two acquisitions gave PNC a robust investment platform for both businesses and individuals. The pattern, again, is to buy into a market, then buy again to strengthen its market share.

What does the future hold?
There is no reason to believe PNC will not continue the same pattern, opportunistically expanding its footprint, then blanketing the region with successive acquisitions.

PNC has real estate and corporate operations already established in the west and southwest. The move north into New England is also appealing, as the PNC brand would be continuous along the entire east coast.

The proof is in the pudding, as they say, and PNC's acquisition strategy has proven to be highly effective. Since 2003, the bank nearly doubled total assets and tripled basic earnings per share. The bank has proven itself at growing without sacrificing profitability.

PNC Total Assets data by YCharts.

PNC EPS Basic Quarterly data by YCharts.

With Tier 1 common capital at 9.8% for Q1, an increase from the 9.3% posted for Q1 2012, the bank has options. On recent conference calls, management stated that valuations today do not look attractive to continue acquisitions. However, given PNC's acquisition history, don't be surprised to see management move quickly if an opportunity (or two) presents itself.

Some companies go out of their way to court controversy, while others, like General Mills , seem to unwittingly be thrust into the middle of it -- though its stock will surely benefit nonetheless.

Its most recent commercial for its Cheerios brand cereal showing a mixed-race family went viral on YouTube -- currently the video has been viewed nearly 3.6 million times -- and apparently unleashed a torrent of racist commentary, which the cereal maker was slow in responding to. While comments to the video are now disabled, General Mills is being critiqued for not acting fast enough to shut down the vitriol.

Hmm. News outlets, commentators, and even I here at The Motley Fool are talking about the ad. Maybe the cereal maker wasn't so "unwittingly" thrust into the spotlight after all.

As Oscar Wilde once noted, "The only thing worse than being talked about is not being talked about," which is why some companies have created a cottage industry in controversial advertising. Nike's recent ads featuring Tiger Woods had the wags talking about the company for a hot minute, simply underscoring the belief that any publicity is good publicity.

Other companies, however, get that deer-in-the-headlights look when their celebrity endorsers generate controversy. Reebok was caught flat-footed when its sneaker ambassador, thug rapper Rick Ross, extolled the virtues of date rape. PepsiCo , which similarly sought to establish "street cred" by partnering with the hip-hop community, just pulled a Mountain Dew ad after one of its rap endorsers depicted racial stereotypes and made light of violence against women, while last month it severed ties to rapper Lil Wayne after he disparaged a civil-rights icon in one of his song's lyrics.  His rap sheet for being a crack cocaine dealer was apparently no biggie.

But at other times, the brouhahas seem manufactured -- not so much on the part of the companies creating the content, but from those expressing the outrage. Toymaker Hasbro recently came under scrutiny for a kids cartoon added to its Hub TV channel. Called SheZow, it features a little boy who uses a magic ring to turn into a superhero after shouting, "You go, girl!" Or rather, he turns into a superheroine. The he becomes a crime-fighting she and in the process generated criticism that Hasbro was trying to force transgender lifestyles on impressionable kids.

Really?

In reality, it's somewhat surprising in this day and age when we've elected a biracial president that the Cheerios ad was even considered controversial to begin with. A mixed-race couple just doesn't seem all that contentious, though obviously racism is still alive and well.

Still, understanding the old maxim that "any publicity is good publicity," General Mills will probably benefit because, despite the hateful views of some, it will be seen by a larger audience as a forward-thinking company. It gained tens of millions of dollars in free advertising both for its product and its company's values, and while some may not be able to stomach such corporate positions, its stock should be able to give a hearty "Cheerio!" as it gathers greater goodwill.

Time Warner's Man of Steel wasn't Kryptonite, and that's good news for investors.

Time Warner stock opened higher on Monday after the Superman reboot broke June's box office receipt records for theatrical opening weekends in this country. The news bodes well as Time Warner's DC Comics prepares to take to Disney's road map of turning Marvel Comics hits into multiplex magic. 

In this video, Fool contributor Rick Munarriz explains how Time Warner's successes with Batman earlier and Superman now are setting the stage for another Avengers-esque pop. Unlike Disney, which is currently trading near its all-time highs, Time Warner stock has a long way to go to make back its dot-com bubble peak. Hit superhero movies can help it get there faster.

Every quarter, many money managers have to disclose what they've bought and sold, via "13F" filings. Their latest moves can shine a bright light on smart stock picks.

Today let's look at Gabelli Funds, the mutual-fund and closed-end fund arm of GAMCO Investors and familiar to many because of Mario Gabelli, the well-known value investor. Indeed, the folks at Institutional Investor named him Money Manager of the Year in 2011, citing an average annual return of 16.3% for his GAMCO Investors since its inception in 1977. That's darn impressive.

The company's reportable stock portfolio totaled $16.4 billion  in value as of March 31.

Interesting developments
So what does Gabelli Funds' latest quarterly 13F filing tell us? Here are a few interesting details.

The biggest new holdings are Liberty Media and Acme Packet. Other new holdings of interest include Cliffs Natural Resources and payment processor VeriFone Systems . Cliffs' stock is down more than 60% over the past year, and its 3.4% dividend yield is the result of a 76% dividend cut earlier this year. The company has struggled along with the coal market, but some are optimistic, seeing coal prices rebounding and demand growing, especially abroad. The stock has fallen so far that some see it as attractive now, but others worry about significant debt and negative free cash flow. On the plus side, Cliffs just inked a long-term iron-ore-pellet deal.

VeriFone has seen its stock roughly halved over the past year, as it has repeatedly posted disappointing quarterly results and weak guidance. Indeed, earlier this month, its latest results sent shares down some 20%. The company has an interim CEO at the moment, and bulls like a recent deal with China that bodes well for growth prospects abroad. With a single-digit forward P/E ratio, it's seen as attractive by some, and as a possible acquisition target.

Among holdings in which Gabelli Funds increased its stake was snack seller Diamond Foods , which recently posted a surprising gain instead of an expected loss. Some have worried about shrinking nut sales and have seen the company as a possible acquisition target, while others think the company might want to do some shopping of its own. Diamond is also recovering from accounting-related troubles.

Gabelli Funds reduced its stake in lots of companies, including rare-earth-materials specialist Molycorp , which is down more than 70% over the past year. It has been struggling in a tough environment and worried investors earlier this year with a surprisingly large share offering and debt issuance. Some also worry that it will run out of money before its market turns around. It posted lower-than-expected losses recently, but they're still losses, and competition looms. Meanwhile, the company plans to beef up production, which could put pressure on pricing.

Finally, Gabelli Funds' biggest closed positions included Ralcorp Holdings and Robbins & Myers. Other closed positions of interest include network performance specialist Riverbed Technology , which gobbled up OPNET last year. The company earned an upgrade to a "buy" rating from Lazard analyst Ryan Hutchinson, based on expected synergies with OPNET and anticipated strength in federal spending. Riverbed offers a lot of promise along with a lot of uncertainty.

We should never blindly copy any investor's moves, no matter how talented the investor. But it can be useful to keep an eye on what smart folks are doing, and 13F forms can be great places to find intriguing candidates for our portfolios.

In the world of fast food, there may be no company making better moves than Yum! Brands' Taco Bell. Last year, the company scored a big victory with an unlikely player: Dorito-flavored taco shells. It may sound simple, but since their introduction in March 2012, the company has sold more than half a billion of them. That's 47 million pounds of beef. For 2012, Taco Bell was Yum!'s shining star, and it may continue to hold that position in the coming year, as the fast-food Mexican chain is again shaking up its menu with products aimed to reengage the 20- to 30-year-old demographic.

Get jacked on tacos
According to Taco Bell market research, our nation's 20-somethings are a more discerning group than their predecessors. They want quick and delicious food, but they want it to be healthy-ish. They work long hours (if they're working at all) and don't want to feel guilty about eating that quarter pounder with cheese or, in this case, a cheesy-gordita-crunch-whatever. Of course, if you throw some Doritos in their food, they can't resist -- but that's an exception!

The company has had its "fresco" menu -- a line of products that are reduced calorie and fat items, which basically means no cheese or sour cream -- since 2005, but sales account for only 2% of the total and mainly from female customers. So, starting with testing locations in Ohio, Taco Bell is rolling out a "Power Protein" menu, and it expects much greater results than with the fresco options.

More power to ya
The new menu will essentially offer double meat portions, with toppings such as corn or guacamole. It will not involve any new ingredients. Gym-rat drive-thru users can look forward to items with more than 20 grams of protein and under 450 calories. As a complement, the company is also looking to add zero-calorie beverages. Customers can expect all of these goods, if testing proves positive, sometime next year.

Taco Bell's effort might be the most progressive of any of the traditional fast-food players, catering to a niche group of healthier young folk who are eager for more options. McDonald's is making efforts as well, though potentially less focused. The company recently added an egg-white option to its breakfast menu, with one version of the McMuffin that has 42% less fat. Still, it's far from the focus of the company, which is now highlighting a revamped lineup of quarter pounders, one that has 610 calories and 48% of your suggested daily fat intake.

Where to throw your weight
Taco Bell's management has proven very capable recently in turning around the once-weak fast-food chain. Yum! Brands still faces softness in China, but the stock may continue to ride the benefits of its Mexican chain. McDonald's global same-store sales rose roughly 2.5% last quarter, largely due to new menu items and breakfast at off hours.

Either are interesting investments that warrant further investigation, but Taco Bell may be the wild card of them all, so keep an eye out (or your stomach) for more innovation and more sales.

More from The Motley Fool 

Rumors are a part of life for investors -- nothing new there. For a company like Nokia , which is in the midst of a turnaround effort, the rumor mill always seems to work overtime. For a number of reasons, let's hope the latest rumblings aren't true.

Rumor has it
When Nokia and Siemens amended their joint venture agreement regarding Nokia Siemens Networks, each party was able to do what they pleased with their share of the partnership. Siemens really got the market talking when it decided to actively solicit bids for its minority piece of the NSN pie.

Rumor has it Siemens has approached several private investment houses, including Blackstone and KKR, to gauge interest in its share of NSN. It makes sense for Siemens to unload NSN as it streamlines holdings to concentrate its business lines, and now some are suggesting that Nokia may take a similar path. Hopefully, Nokia will just say "no," for a couple of reasons.

Nokia's recent fiscal Q1 results were a pleasant surprise for many. Generating non-IFRS (Europe's version of non-GAAP financial results) operating profitability along with positive net cash in Q1 in 2013 was a dramatic improvement compared to losses in both key metrics last year. How'd Nokia do it? The short answer is NSN. Yes, Nokia benefits from a strong patent portfolio valued by some at an estimated $4 billion and producing more than $600 million in revenue annually, but its NSN's consistent growth that brought Nokia back from the financial cliff.

Another rumor, and the reason behind Nokia's share price briefly jumping to over $4 a share on Tuesday, was that Chinese telecom giant Huawei Technologies was interested in buying Nokia. All it took was a Huawei executive suggesting there would be some synergies between it and Nokia, and the rumor mill was off and running. After it was shot down, Nokia's stock price eased, but the die's been cast. How long before the next Nokia buyout rumor hits the streets?

Why Elop should say, "Thanks, but no thanks"
In addition to improving Nokia's overall financial results, what NSN gives it is time: Time for high-end Lumia smartphones running Microsoft's Windows phone OS to gain traction. Time is critical right now, particularly because the Microsoft/Nokia lovefest appears to be working. Windows phone is making significant progress in the domestic OS market, and that's good for Nokia. Why? According to a Windows Phone developer blog, 80% of Windows phones sold globally are manufactured by Nokia, led by its flagship Lumia 920 device.

Yes, Google's Android and Apple's iOS continue to rule the roost here in the U.S., with 51.7% and 41.4% OS market share in Q1 of this year, respectively. While Windows domestic OS market share in Q1 was a mere 5.6%, that's up from last year's 3.8% and indicative of a growing acceptance for the new kid on the block.

Unseating industry heavyweights like Google and Apple was never going to happen overnight; they're both too established for that. But Windows Phone adoption is coming along, even growing market share faster than Android in Q1 of 2013. And Nokia continues to introduce smartphones with new features and functionality, even as Apple shareholders are bemoaning its lack of innovation. Based on Apple's stock price movement since introducing iOS 7 to developers about a week ago, it doesn't appear shareholders are convinced the new OS is innovative enough.

After everything Elop and Nokia shareholders have endured lately, it seems a shame to consider dumping NSN now, or worse yet the entire company, when it appears there is finally light at the end of the tunnel. With NSN's financial results continually improving, and Nokia's high-end smartphone gamble with Microsoft beginning to pay off, selling all or part of the company now would only appease short-term investors. For the sake of long-term Nokia investors, let's hope Elop just says "no."

The Motley Fool's readers have spoken, and I have heeded their cries. After months of pointing out CEO gaffes and faux pas, I've decided to make it a weekly tradition to also point out corporate leaders who are putting the interests of shareholders and the public first and are generally deserving of praise from investors. For reference, here's my previous selection.

This week, we'll dig into something we all love -- doughnuts, coffee, and ice cream -- and I'll highlight why Dunkin' Brands CEO, Nigel Travis, has done a truly exceptional job at the helm.

Kudos to you, Mr. Travis
Despite its popularity now, Dunkin' Brands -- consisting of Dunkin' Donuts and Baskin & Robbins -- hasn't always had an easy path to success. In fact, the company unsuccessfully tried to enter the West Coast with its popular Dunkin' Donuts before, opening up 12 stores in California in 1999, only to close them a short time later after failing to achieve the desired results.

Source: New Donuts, commons.wikimedia.org.

Part of the problem working against Dunkin' Brands is that the public perception of obesity is changing. With obesity now a full-blown epidemic, healthier food and drink choices are in the spotlight, which has required companies such as Dunkin' Brands to innovate their menus. Still, it makes growing the company's core doughnut business difficult.

We saw both of these problems eat Krispy Kreme Doughnuts alive last decade. Krispy Kreme expanded zealously without really understanding the saturation level of the markets it was operating in. In addition, it didn't have much of a menu beyond doughnuts, only recently adding its own signature coffee blend, and healthier items such as yogurt as an option.

Yet in spite of its own growing pains, Dunkin' Brands and its CEO, Nigel Travis, have persevered.

The first factor that's led Dunkin' Brands to success has been its ability to stay fluid with its menu. The company's DDSMART menu (short for Dunkin' Donuts Smart) features items such as oatmeal, egg white flatbread sandwiches, and wake-up wraps. By giving health-conscious consumers more choices, it's keeping its current customer base loyal while also giving a reason for newer customers to walk through its doors.

Partnerships have been another key to Dunkin' Brands' success. It, not Starbucks , was the first coffee chain to forge a partnership with Green Mountain Coffee Roasters , the company behind the single-serve Keurig brewer and K-Cups. It was apparent to Travis early on just how revolutionary the single-serve brewing movement was, so he inked a deal to have Green Mountain sell Dunkin' Brands' blend in K-Cups. It was only weeks later that Starbucks had essentially little choice but to partner with Green Mountain as well or be left in the dust.

This partnership is also a key reason Dunkin' Brands has been able to fend off McDonald's , which has certainly made a name for itself in coffee by taking on the big boys like Starbucks and Dunkin' and offering an inexpensive brew. Dunkin' Brands has been able to use its signature coffee line to build a brand of loyalty that simply doesn't exist for McDonald's coffee.

A step above his peers
In addition to guiding the expansion of Dunkin' Brands, including bringing the company public in 2011 on the Nasdaq, Travis has overseen a growing dividend and a gaggle of happy employees, and he's instilled a giving nature among his company and its employees.

Although its dividend is relatively new, Dunkin' Brands announced in January that it'd be boosting its quarterly payout by a whopping 27% to $0.19 from $0.15 in the preceding year. For a restaurant chain, a 1.8% yield is nothing to sneeze at -- nor is a 27% dividend boost after being public for less than two years.

Dunkin' also isn't any slouch when it comes to keeping its employees happy through various perks and discounts. On top of offering medical, dental, and vision coverage, it also provides up to $5,000 in undergraduate and graduate college reimbursements for qualified individuals and programs. Dunkin' Brands can also help its employees get discounts on auto and homeowners insurance, pet insurance, and, of course, bulk coffee purchases.

Perhaps nothing is more endearing than the reminder that Nigel Travis hasn't forgotten about the communities that Dunkin' operates in. In April, the company donated $200,000 to The One Fund Boston to help victims affected by the tragic marathon bombing and set up 2,000 of its stores to be able to take donations on behalf of the public for The One Fund. All told, patrons raised an additional $467,000 for Boston. The company also donated $200,000 in November to the American Red Cross and to food banks to help people affected by Hurricane Sandy.

Two thumbs up
It'll definitely take innovative new products and a loyal customers base for Dunkin' Brands to stay competitive against the kingpin that is Starbucks and a resurgent Krispy Kreme Doughnuts; but if anyone's up to that challenge, its Nigel Travis. He has Dunkin' Donuts positioned perfectly to try its hand at a West Coast expansion again, all while ensuring that shareholders reap a generous dividend. Best of all, Dunkin's employees are well taken care of, and the communities Dunkin' operates in know that he and the company care about their well-being. I'd certainly say that's worthy of two thumbs up!

Did that title surprise you as much as it did me? I was actually caught off guard when I read J.D. Power and Associates' Initial Quality Study released today. Here's how the survey, in its 27th year, works. It measures the number of problems on the current year's vehicles reported after 90 days of ownership. It rates by brand, so while Porsche knocked off Lexus to take the top spot, General Motors  was the top ranked corporation. Here are the details and what it could mean for investors and consumers.

Results
Now, before I get into the results of each brand it's important to note that these measured problems in the report aren't manufacturing defects or recalls. Instead, nearly two-thirds of the issues consumers experience are design problems and quality shortfalls, according to J.D. Power and Associates.

General Motors headquarters. Photo credit: General Motors.

According to the report, Porsche ranks the highest in the study, with GMC and Lexus filling out the top three brands. Behind that was Infiniti and Chevrolet rounding out the top five rankings. It should be noted that GMC and Chevrolet were the only two non-luxury brands that broke into the top five.

"GM has the best quality of any corporation in the study, the first time it's been on top," said David Sargent, said the study's author told Automotive News. "And GMC and Chevrolet have never finished in the top five before."

If you break down the press release further, out of the 26 model segment awards, Chevrolet received five top spots with its Avalanche, Camaro, Impala, Silverado HD, and Tahoe. Honda, Kia, Mazda and Porsche each had two models taking home segment awards.

I follow the automotive industry for The Motley Fool, and from what I've seen over the last couple of years, Ford  has topped GM in terms of product quality and consumer demand. The sales and market share increases back me up on that.

I very much respect J.D. Powers and Associates studies, and often find them great tools for inside information to the automotive industry. However, I think what we have to distinguish here is that Ford's SYNC and MyTouch infotainment systems have some work to do and those small frustrations drive its poor quality ranking in this survey.

In reality, though, while these give consumers small frustrations, Ford is still producing an overall vehicle that consumers love and are driving off the lots in droves. Fusion and Escape, for instance, have set numerous records in sales this year. Not to mention that Ford can't produce enough Fusions to keep them on dealer lots -- plant capacity has been running at 114% to try to keep up with demand. I think that's what the author hinted at below.

"Automakers are investing billions of dollars into designing and building vehicles and adding technologies that consumers desire and demand, but the risk is that the vehicle design, or the technology within the vehicle, in some cases may not meet customer needs," said David Sargent, vice president of global automotive at J.D. Power, in a press release.

Bottom line
When you look at the big picture, it's clear that Detroit's Big Three automakers have come a long way since the depths of the recession and their stereotype of producing poor-quality vehicles. Consider that for the first time in two decades all three Detroit automakers gained market share in the U.S. for the entire first quarter. In addition to that, Ford has produced America's best-selling vehicle for the last 31 straight years, and owns four of the top 12 best-selling models -- more than any other automaker.

We also have to remember that Ford consistently ranks on top in consumer loyalty and that doesn't happen by chance. I think it's time we give GM a nod in respect for improving vehicle quality -- GMC jumped 10 spots to rank second in this year's study -- but in my opinion, Ford is still on top of Detroit's Big Three automakers. One thing is for sure: If Ford and GM continue to impress consumers with quality, popular designs, and valuable vehicles, investors will surely be rewarded as automotive sales continue to surge.

The Federal Reserve didn't tip its cards on raising interest rates. At least, not in its prepared post-meeting statement. The message continues to be that a "highly accommodative stance of monetary policy" will remain in place until unemployment dips below 6.5% or inflation expectations start tipping above 2.5%. It's the same heavy dose of non-clear clarity that's been driving markets crazy for some time now.

But if you're a potential home buyer who's had a close eye on mortgage rates, or an investor in mortgage- and interest-rate sensitive businesses like banks and mortgage REITs, there's plenty that the Fed has offered that hints at timing.

If we look to the supplemental release of the Fed's economic projections, we can see the "central tendency" projection for unemployment has come down for both 2013 and 2014. 

Source: The Federal Reserve.

The low end of the range suggests we could be looking at unemployment hitting the magic 6.5% level in 2014. Based on the "range" projections -- which include the high and low outliers -- unemployment could go even lower. Meanwhile, neither total nor core PCE inflation is seen getting anywhere near 2.5%.

In other words, if the optimistic end of those estimates are on point, we could be hearing the Fed talking about adjusting its Fed Funds target rate some time next year. Based on the chart below, most Open Market Committee participants don't think the change will occur next year, but it's clear the key rate is expected to start moving in the 2014-2015 range.

Source: The Federal Reserve.

But it's not just the Fed Funds rate we need to focus on. The Fed also has a significant asset purchase program going on -- to the tune of $40 billion in the agency mortgage-backed security market, and $45 billion in the Treasury market. As the Fed contemplates unraveling accommodation in light of stronger economic performance, those programs will almost certainly be shut down before the Fed Funds rate is touched. 

As noted above, this is well worth paying attention to if you're in the market for a mortgage. It's also notable if you're a major mortgage originator like Wells Fargo  and JPMorgan  -- the two U.S. origination leaders. And it's notable as well if -- like mortgage REIT giants Annaly Capital  and American Capital Agency  -- your primary business is investing in agency mortgage-backed securities.

Higher rates are a mixed blessing for the likes of Wells and JPMorgan. Rising rates blunt the refinance activity that's provided a nice dose of fee income in recent quarters. But higher rates could also lead to larger spreads between what the banks lend money for and what they pay to borrow it. Over the longer term, higher rates could also benefit the mREITs, but the short-term hit to portfolio values -- higher rates reduce the value of currently held securities -- could be painful.

Luckily, the message here is a simple one: Rates are on their way up. For the Wallstreetiest of the Wall Streeters, 12 to 24 months is mind-numbingly long term. For the rest of us, it's really not that long at all. And it's over that time frame we're going to see a continuation of the recent higher-rate trend. It won't be short-term (days, weeks, or months) predicable, and it won't be smooth and steady. But it sure looks like -- after years of bold calls that higher rates were just around the corner -- it is indeed happening.

And Fed economic projections aside, it's not a mystery why it's happening, either. Unemployment declined from 8.2% in May of 2012 to 7.6% in May of this year. And it's well off of the double-digit levels we saw just a couple of years ago. In the first quarter, consumer spending was up 3.3% from the prior year. It's up 7.6% over the past two years. First-quarter nominal GDP was up 3.4% from the prior year. And that's even as federal and state government spending continues to be a drag on growth.

In short, the Federal Reserve has been providing serious "accommodation" in an effort to aid the economic recovery. The recovery hasn't been fast or showy, but it's happening, and market participants are anticipating the logical next step. 

In response, freaking out is certainly one option. Perhaps a better one is soberly considering what exactly higher rates will mean for your bottom line.

The Motley Fool's Stock of the Day is our chance each day to highlight one stock for investors that we've got a particularly close watch on at the moment.

Facebook announced Thursday afternoon that it will feature a new video component for its Instagram app. In today's installment of Stock of the Day, Fool analysts Rex Moore and Jason Moser discuss what this will mean for Facebook's stock.

The following video is from Thursday's Investor Beat, in which host Rex Moore, and analysts Jason Moser and Matt Koppenheffer dissect the hardest-hitting investing stories of the day.

The market saw continued volatility today as those crazy traders are still worried about the Fed's signals that it might ease back on its bond-buying program that's helped the recovery.

In this installment of Investor Beat, Motley Fool analysts Jason Moser and Matt Koppenheffer question whether investors should really be worrying, and which stocks look attractive for the long term.

The relevant video segment can be found between 0:16 and 2:29.