Red state, blue state: Where Detroit can (and can't) sell cars

If the Detroit Three automakers want to survive, they need to look beyond their traditional red state customer base for car sales.

(Fortune)

But underneath the gauzy good news lies an unpleasant fact. The brands of the Big Three are in danger of becoming regionalized, their appeal strong in some parts of the country and weak in others. What's more, demographic trends and population growth suggest they will grow only more regionalized over time, rooted in their core markets but unable to meaningfully expand beyond them over time.

That's dangerous because it limits Detroit automakers' ability to hold on to their current levels of market share -- much less build on them -- as it creates more opportunities for import brands. And while every dollar made by GM, Ford, or Chrysler largely remains in the U.S., import brands provide jobs here too, but their corporate profits go overseas.

State-by-state sales data, analyzed and provided to me by Edmunds.com, strongly indicates that cars made by the Detroit Three are largely red state cars, popular with the same people, many in the heartland, who voted Republican in the last presidential election.

Imports, by contrast, perform far more strongly in the blue states, where the majority of votes were cast by the Democrats.

MORE: 13 auto execs to watch in 2013

This geographic division does not favor the domestics. Red states tend to be more rural, less populated, and slower-growing than the rest of the country. Blue states, on the other hand, are more urban, more dynamic, and benefit from a greater influx of new population.

That's not good. Being confined to red states slows sales growth and makes it difficult to attract younger buyers. It also creates problems for product planners, because they have to come up with designs that can help conquest new customers without alienating older buyers. That helps explain why import brands have been leaders in new technologies like hybrid gas-electric powertrains, and new product segments like compact crossovers, while domestics have been largely fast-followers.

The domestics have been trying to break out of their red state box for a decade or more, sporadically trying, for instance, to boost sales in California. Their inability to do so has become a subject of frustration. One well-placed Detroit insider told me, "We are terribly concerned about it."

Take a look at the 10 states that have the highest proportion of domestic sales, according to Edmunds.com data. They are, in order: Michigan, North and South Dakota, Iowa, Wyoming, Montana, Nebraska, Oklahoma, Arkansas, and Indiana. The common characteristics they share are stable or declining populations, being mostly ignored by the national media, and having relatively little impact on broader societal trends.

MORE: 13 cars to watch in 2013

By contrast, the imports shine on the coasts. Theories abound why this is so, but import cars seem better adapted where streets are narrower, traffic is heavier, and destinations are closer together. Import buyers also tend to be early adopters who are better informed about choices available to them and are less inhibited by past preferences. The 10 states with the lowest proportion of domestic sales are, in order: Hawaii, District of Columbia, California, Massachusetts, Connecticut, New Jersey, Rhode Island, Florida, Maryland, and Washington State.

The geographic distinction is even more sharply drawn when you look at metropolitan areas. Domestics are anchored to older, slower-growing metro areas like Buffalo, Indianapolis, and Cleveland. But they lag in fast-growing regions such as Miami/Ft. Lauderdale, San Diego, and Portland. Import brands meanwhile dominate in opinion centers like New York City, Los Angeles, and Washington, D.C.

MORE: 3 little letters GM is counting on now

The divide is just as pronounced when you compare the regional sales of two popular midsize cars: the Ford Fusion and Toyota Camry.

The Fusion is most popular in the Midwest, starting with Michigan, where it accounts for nearly 6% of all car sales, followed by Ohio, Kansas, Kentucky, and so on.

Camry's top 10 states in market share begin with red state stalwarts Alabama, Kentucky, and North Carolina. But that is surprising only until you consider that Kentucky is home to Toyota's huge manufacturing complex, and the other two states are nearby. California and Florida, two of the nation's most populous states, are also on the Camry list.

The Detroit Three have made huge strides in sustainability, technology, design, and quality. Now they have to start conquesting buyers who haven't shopped domestic before.

First Published: January 31, 2013: 6:55 AM ET

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AutoNation to become McDonald's of car dealers

Most of AutoNation's 265 car dealerships will now operate under the AutoNation name.

NEW YORK (CNNMoney)

Currently, AutoNation (AN, Fortune 500) dealerships operate under individual names such as Champion Chevrolet and Dobbs Nissan. This will be the first time a large new-car dealership group has ever operated under a single overarching brand name from coast to coast, similar to the way other retail and restaurant chains, such as McDonald's (MCD, Fortune 500) and The Gap (GPS, Fortune 500) sell clothing and food.

CarMax (KMX, Fortune 500) uses a similar one-brand model for its used car dealerships.

AutoNation's move had to be approved by all the major automakers whose products AutoNation sells. The company operates 265 dealerships in 15 states selling 32 different brands.

Related: Cool cars from the Detroit Auto Show

AutoNation's high-end luxury dealerships, which sell cars such as Mercedes-Benz, Bentley, and Porsche, will continue to operate under their own, separate names, AutoNation said. But dealerships that sell mass-market cars, such as General Motors (GM, Fortune 500)' Chevrolet, Toyota (TM), Nissan and Ford (F, Fortune 500), will take on the AutoNation name and logo.

"Ten years ago, everyone was doing their own thing," Jackson said. "Everyone was encouraged to do their own thing."

Since then, AutoNation has been working to have all its dealerships operating in the same way with the same back-end software and training for service and sales employees, CEO Mike Jackson said. Jackson said he wanted all that in place before rolling out the name change otherwise customers would still have one type of experience at one dealership and a different one at another, undermining the value of having the same name.

In preparation for this move AutoNation stores already offer a three day, 150-mile money back guarantee on new cars. Vehicle inventory information for all dealerships is also available through one database making it easier for dealerships to see if other AutoNation dealers have a particular vehicle in stock, including vehicles from competing automakers.

Related: 13 cars to watch in 2013

"To take this step to unify under one brand, we really need to have developed a unique customer experience with universal brand attributes," he said. The effort cost the company about $3.7 billion over the decade, Jackson said.

Operating under one brand nationwide will also make its advertising and marketing more cost effective, Jackson said.

The plans should be successful, said Jesse Toprak, an industry analyst with the car pricing service TrueCar.com. Toprak ran car dealerships in the Midwest during the 1990s.

The used car dealership network, CarMax, has been successful with its one-brand strategy, Toprak pointed out. While it might not make a huge difference at first, as customers come back to buy second, third and fourth cars they'll return to those trusted dealerships where they've had positive experiences before.

"Next time I buy a car, no matter where, I know what to expect," Toprak said

First Published: January 31, 2013: 7:40 AM ET

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Jobless claims bounce higher

NEW YORK (CNNMoney)

First-time claims for unemployment benefits rose by 38,000 last week to 368,000, from 330,000 the previous week.

Claims have been volatile all month, falling by a whopping 40,000 one week and then two weeks later, rising again dramatically.

Economists often prefer to smooth out the volatility by looking at a four week moving average, which was 352,000 last week, a slight increase from the week before.

Meanwhile, continuing claims, a closely watched measure of those who remain on unemployment benefits for a second week or more, totaled about 3.2 million in the week ended Jan. 19, the most recent data available, a 22,000 drop from the week before.

The report comes a day before the government's monthly reports on payrolls and unemployment. Economists are expecting 180,000 jobs were added and that the unemployment rate dipped slightly to 7.7%.

Did you get a job recently? Tweet your story to @CNNMoney with the hashtag #igotajob.

First Published: January 31, 2013: 8:53 AM ET

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A couple's 5-year plan to pay off $93,600 in debt

Larry and Lynn Mantanona, 56 and 54, Fairview, Ore.

NEW YORK (Money Magazine)

They had no qualms about taking a $12,000 loan for college tuition for Savanah, 22, and borrowing $20,000 for wedding expenses for Chanelle, 28.

"We want to do for our daughters what our parents couldn't do for us," says Lynn.

Now the couple find themselves in a difficult situation. The Mantanonas owe over $90,000 on various credit cards and personal loans and can't seem to whittle the debt down.

"We aggressively make payments, but then something comes up, and we have no savings to fall back on," says Lynn. They also owe more on their house than it's worth.

Related: Couple with $455,000 playing it too safe

On the upside: The couple have a decent amount of retirement savings, thanks to Lynn's longtime habit of putting 5% of her salary in her 401(k). She'll also qualify for a monthly pension of $1,300 at age 62.

Still, the couple feel behind. "Lynn deserves to retire in 10 years," says Larry. "I'll keep working if I have to."

Occupations: Catering manager, IT manager

Goals: Pay off debt, retire in 10 years

Total income: $152,000

Retirement savings: $330,000

THE PROBLEM

The Mantanonas clearly need to axe the debt, says Marc Russell, an adviser with Convergent Wealth Advisors in Los Angeles. Still, they need to keep saving for retirement. "It's about weighing competing priorities," Russell says. With the right plan, they can get there.

THE ADVICE

Make a repayment plan. In early 2013, Lynn will receive a $14,000 tax-free gift from her mother. That money can nearly wipe out their credit card debt.

By temporarily cutting Lynn's retirement contributions to 3% -- enough to still get the full company match -- they'll free enough cash to make a big dent in their highest-rate debt within a year. Then they can focus on other loans.

Check for money leaks. After closely examining the Mantanonas' budget, Russell thinks they can carve out $200 a month to save in a money-market account earmarked for emergencies and future expenses.

Related: 12 ways you're wasting money

As they pay their debts, they should aim to build the emergency fund to six months' worth of living expenses and save more aggressively for retirement.

Move into a target-date fund. Right now Lynn's retirement plan is mostly low-yielding government bonds.

Russell suggests she shift into the low-fee 2020 target-date fund in her plan, which would bring her fixed-income allocation to about 46%, or half what it is now.

Assuming the couple save an additional $12,000 a year for retirement beginning in 2018, they should hit $600,000 in savings in 10 years -- not what they need to fully retire, but not far off.

Says Lynn: "At least that will bring us to a manageable situation."

Would you like a free financial makeover in Money magazine? E-mail makeover@moneymail.com for more information.

The payment strategy

By using Lynn's windfall to pay off credit cards and then attacking other loans, the Mantanonas can be debt-free in five years.

Debt	How they'll get rid of it	Remaining debt
Credit card: $20,200	Year 1: Pay off credit card debt by using $14,000 gift and cutting retirement savings to 3%	$73,400
Personal loans: $22,300	Year 2: Pay off one of the personal loans	$62,300
Retirement plan loans: $15,900; Student loan: $11,200	Year 3: Pay off student loan, half a retirement loan; return to 5% retirement savings	$43,600
Home equity loan: $24,000	Year 4: Use freed-up-cash to pay off remaining non-home loans	$19,600
Total: $93,600	Year 5: Pay off home equity loan	$0

First Published: January 31, 2013: 5:48 AM ET

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ANA: Dreamliner trouble costs reach $15 million

LONDON (CNNMoney)

ANA, the world's biggest Dreamliner operator with a third of the 50 aircraft delivered so far, said it would seek compensation from Boeing (BA, Fortune 500) once the full extent of the damage is clear. But the carrier said its priority was to establish the cause of the problems and return the 787 to service.

The global Dreamliner fleet was grounded earlier this month due to battery fires and electrical problems. Boeing said Wednesday it did not expect a "significant financial impact" this year, but acknowledged that could change once the cause of the problems and details of the fix are known.

ANA has been forced to cancel 459 flights so far this month, at a cost of ¥1.4 billion in lost revenue, it said in a statement. It is unclear when its 17 Dreamliners will be in the air again.

Related: Boeing keeps building Dreamliners it can't fly

The aircraft is at the heart of the airline's strategy and if it remains out of action for a year or more, the impact will be significant, ANA executive vice president Kiyoshi Tonomoto said at a news conference, adding he didn't expect the problems would last so long.

"ANA is making the utmost effort to regain confidence in the safety of 787 and return it to operation by cooperating with U.S. and Japanese authorities and the aircraft maker," Tonomoto said.

ANA is Japan's biggest airline by passenger numbers. It operates about 1,000 flights a day with a fleet of 233 aircraft and is part of the Star Alliance international network.

Related: Airbus CEO says A350 on track

The Dreamliner grounding will not affect its forecasts for the fiscal year ending March 31, ANA said, after posting net profit of ¥52.2 billion for the first nine months, up almost 56% on the same period the previous year.

ANA also reported a sharp fall in demand on passenger routes between China and Japan due to the impact of anti-Japanese demonstrations sparked by a dispute between the two countries over control of the Senkaku islands -- or Diayou, as they're known in China.

Sales of Japanese cars in China plummeted last fall due to an unofficial boycott.

-- CNN's Yoko Wakatsuki contributed to this article

First Published: January 31, 2013: 6:52 AM ET

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Red state, blue state: Where Detroit can (and can't) sell cars

If the Detroit Three automakers want to survive, they need to look beyond their traditional red state customer base for car sales.

(Fortune)

But underneath the gauzy good news lies an unpleasant fact. The brands of the Big Three are in danger of becoming regionalized, their appeal strong in some parts of the country and weak in others. What's more, demographic trends and population growth suggest they will grow only more regionalized over time, rooted in their core markets but unable to meaningfully expand beyond them over time.

That's dangerous because it limits Detroit automakers' ability to hold on to their current levels of market share -- much less build on them -- as it creates more opportunities for import brands. And while every dollar made by GM, Ford, or Chrysler largely remains in the U.S., import brands provide jobs here too, but their corporate profits go overseas.

State-by-state sales data, analyzed and provided to me by Edmunds.com, strongly indicates that cars made by the Detroit Three are largely red state cars, popular with the same people, many in the heartland, who voted Republican in the last presidential election.

Imports, by contrast, perform far more strongly in the blue states, where the majority of votes were cast by the Democrats.

MORE: 13 auto execs to watch in 2013

This geographic division does not favor the domestics. Red states tend to be more rural, less populated, and slower-growing than the rest of the country. Blue states, on the other hand, are more urban, more dynamic, and benefit from a greater influx of new population.

That's not good. Being confined to red states slows sales growth and makes it difficult to attract younger buyers. It also creates problems for product planners, because they have to come up with designs that can help conquest new customers without alienating older buyers. That helps explain why import brands have been leaders in new technologies like hybrid gas-electric powertrains, and new product segments like compact crossovers, while domestics have been largely fast-followers.

The domestics have been trying to break out of their red state box for a decade or more, sporadically trying, for instance, to boost sales in California. Their inability to do so has become a subject of frustration. One well-placed Detroit insider told me, "We are terribly concerned about it."

Take a look at the 10 states that have the highest proportion of domestic sales, according to Edmunds.com data. They are, in order: Michigan, North and South Dakota, Iowa, Wyoming, Montana, Nebraska, Oklahoma, Arkansas, and Indiana. The common characteristics they share are stable or declining populations, being mostly ignored by the national media, and having relatively little impact on broader societal trends.

MORE: 13 cars to watch in 2013

By contrast, the imports shine on the coasts. Theories abound why this is so, but import cars seem better adapted where streets are narrower, traffic is heavier, and destinations are closer together. Import buyers also tend to be early adopters who are better informed about choices available to them and are less inhibited by past preferences. The 10 states with the lowest proportion of domestic sales are, in order: Hawaii, District of Columbia, California, Massachusetts, Connecticut, New Jersey, Rhode Island, Florida, Maryland, and Washington State.

The geographic distinction is even more sharply drawn when you look at metropolitan areas. Domestics are anchored to older, slower-growing metro areas like Buffalo, Indianapolis, and Cleveland. But they lag in fast-growing regions such as Miami/Ft. Lauderdale, San Diego, and Portland. Import brands meanwhile dominate in opinion centers like New York City, Los Angeles, and Washington, D.C.

MORE: 3 little letters GM is counting on now

The divide is just as pronounced when you compare the regional sales of two popular midsize cars: the Ford Fusion and Toyota Camry.

The Fusion is most popular in the Midwest, starting with Michigan, where it accounts for nearly 6% of all car sales, followed by Ohio, Kansas, Kentucky, and so on.

Camry's top 10 states in market share begin with red state stalwarts Alabama, Kentucky, and North Carolina. But that is surprising only until you consider that Kentucky is home to Toyota's huge manufacturing complex, and the other two states are nearby. California and Florida, two of the nation's most populous states, are also on the Camry list.

The Detroit Three have made huge strides in sustainability, technology, design, and quality. Now they have to start conquesting buyers who haven't shopped domestic before.

First Published: January 31, 2013: 6:55 AM ET

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Boeing: Dreamliner woes won't hit earnings

Boeing said it expects no hits to its 2013 financial results from the problems with the Dreamliner.

NEW YORK (CNNMoney)

The aircraft maker said it still intends to build more than 60 of the Dreamliners this year, which suggests no slower pace than the five jets a month it is now building. But the pace could be slower than the seven to ten jets a month it had originally projected to build later this year.

Boeing said it will continue to work with federal investigators to find a cause of battery fires and electrical problems that prompted the Federal Aviation Administration to ground the Dreamliners on Jan. 16.

"Our first order of business for 2013 is to resolve the battery issue on the 787 and return the airplanes safely to service with our customers," said the company's earnings statement.

Related: Authorities find no problems with Dreamliner's battery maker

Boeing said it expects full-year core earnings to rise 5%, which is roughly in line with analysts' current forecasts.

For the fourth quarter of 2012, Boeing said it earned $978 million, down 30% from a year earlier, but slightly better than analysts' forecasts. Revenue rose 2% to $22.3 billion, roughly in line with expectations.

Shares of Boeing (BA, Fortune 500) rose1% in premarket trading on the announcement.

First Published: January 30, 2013: 7:59 AM ET

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ADP: Private sector adds 192,000 jobs

The private sector added 192,000 jobs in January, according to payroll processing firm ADP.

NEW YORK (CNNMoney)

Analysts were expecting the private sector to add 175,000 jobs in the month, according to Briefing.com.

Small businesses led the way, hiring 115,000 workers. Medium-sized businesses added 79,000 jobs, while large firms actually cut 2,000 positions.

The ADP report is closely monitored since it comes before the government's monthly reports on payrolls and unemployment. The Labor Department will release those figures Friday morning. Economists are expecting 180,000 jobs were added and that the unemployment rate dipped slightly to 7.7%.

Economists say the economy needs to create at least 150,000 jobs a month just to keep pace with population growth. Job growth has been near those levels for the past six months.

Last week, the number of people filing for unemployment claims fell for the second week in a row, and is now hovering near a five-year low.

But the ADP numbers were released just before the U.S. government reported a surprise contraction in the economy for the fourth quarter of 2012. That news could raise more concerns about the health of the labor market.

First Published: January 30, 2013: 8:27 AM ET

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U.S. economy contracts for first time since recession

NEW YORK (CNNMoney)

Gross domestic product, the broadest measure of the nation's economic growth, contracted at an annual rate of 0.1% from October to December, the Commerce Department said Wednesday. It was the first quarterly contraction since the second quarter of 2009, amid the Great Recession.

The contraction was due to cuts in federal spending, primarily on defense. Defense spending contracted at a 22% annual rate.

Weaker U.S. exports and a contraction in spending on commercial buildings also weighed on economic growth, more than canceling out strong consumer spending.

Consumer spending makes up the largest part of the U.S. economy and accelerated at a 2.2% annual rate in the fourth quarter.

First Published: January 30, 2013: 8:53 AM ET

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Get ready to file your taxes

Tax season officially kicks off on Wednesday.

NEW YORK (CNNMoney)

Wednesday marks the beginning of tax season, when most Americans can submit their returns to Uncle Sam.

The IRS had originally planned to kick things off on Jan. 22, but the fiscal cliff debate forced the agency to push the official start date back eight days.

Related: Taxpayers claiming education credits must wait to file

Certain taxpayers will still need to wait to file, however. Tax returns claiming the American Opportunity Tax Credit or the Lifetime Learning Credit, two popular education credits, won't be processed until mid-February.

This means the roughly three million people who typically file returns claiming these credits before mid-February will likely have to wait longer for refunds this year.

Other filers with more complex returns, including those claiming residential energy credits and general business credits, will need to wait until late February or March for their returns to be processed. The full list of forms being accepted in late February or March can be found on the IRS website.

Related: Prisoners rake in millions from tax fraud

If you're a victim of identity theft, you may also have to wait for your refund. The IRS has been struggling to keep up with surging tax fraud, and identity theft victims often experienced delays of at least 180 days last tax season, according to the Taxpayer Advocate Service.

Otherwise, you can generally expect to receive a refund within three weeks after the IRS receives your return. Last year, more than 110 million taxpayers collected an average refund of $2,803 a piece.

First Published: January 30, 2013: 5:08 AM ET

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Long-term investing: Keep it simple

A low-cost road to long-term investing: Index funds.

NEW YORK (Money Magazine)

I believe that investors are generally better off when they keep things simple. So for that reason alone, I'd go with index funds.

You can make a very nice diversified portfolio for yourself by combining just two funds: a total stock market index fund (VTSMX) and a total bond market index fund (VBMFX). That would give you a portfolio that covers all sectors of the U.S. stock market -- large and small caps, value and growth shares, virtually every industry -- as well as the entire investment-grade taxable bond market, including government and corporate bonds.

You would do just fine if you stopped there.

But if you want to add some exposure to foreign markets -- which over the long run can reduce the volatility of your portfolio overall -- you could also throw in a total international stock index fund (VGTSX). For guidance on how to divvy up your holdings between stocks and bonds, you can check out our Fix Your Mix asset allocation tool.

Simplicity aside, this approach offers another huge benefit: low annual expenses.

Related: Get help meeting your financial goals

By sticking to diversified stock and bond index funds, you'll likely pay yearly fees of less than 0.25% of the amount invested, in some cases less than half that figure. Regular, or actively managed, mutual funds on the other hand, often charge 1% of assets or more. And while there's no guarantee that lower expenses leads to better performance, there's plenty of evidence that's the case, including this 2010 Morningstar study.

Oh, and there's one more reason I prefer index funds: You know exactly what you're getting. As their name implies, index funds track a particular index or stock market benchmark. The fund holds all, or in some cases a representative sample, of the stocks in the index and nothing more (except, perhaps, a smidgen of cash to accommodate redeeming shareholders).

Managers of actively managed funds, by contrast, have lots of wiggle room when it comes to investing.

So even though a fund may purport to specialize in, say, domestic large-cap value stocks, it's not unusual to find a manager making forays into small-caps, growth stocks or even foreign shares in an attempt to juice returns. This sort of "adventurism" makes it harder to use actively managed funds as building blocks for a diversified portfolio in which you're counting on each fund to play a specific role.

But as much as I believe index funds are the better choice, I don't think you'd be jeopardizing your financial future by devoting a portion of your investing stash to actively managed funds. And if that's the way you want to roll, you should have no trouble finding funds run by smart managers with solid long-term records who can do a credible job of investing your money.

In that case, you might employ a version of what's known as a "core and explore" strategy: put most of your money into index funds and then round out your portfolio with some well-chosen actively managed funds.

Related: Mutual funds - a simple way to diversify your portfolio

How much of your dough goes into the core vs. explore is up to you. But to prevent any bad picks from undermining your portfolio's overall performance, I'd recommend keeping the active portion of your holdings pretty small, say, 10% to 15%.

There's one other thing you'll want to be careful about if you decide to take this hybrid approach. Some advisers suggest using index funds in "efficient" markets like those for U.S. and developed country large-cap stocks and recommend actively managed funds for "inefficient" markets like those for small-caps and emerging market stocks. But identifying efficient vs. inefficient markets isn't quite so simple, and finding active managers who consistently outperform is difficult in almost any market.

So I'd recommend that you get exposure to all markets with index funds and then add the actively managed funds you like even if it means you'll have a bit of overlap in some areas.

I also suggest that as much as possible you go with actively managed funds that have reasonable expenses, as that should give those funds a better shot at competitive performance. You can find such funds, as well as all the index funds you'll need, on our MONEY 70 list of recommended funds.

To sum up, I think most investors would be best served if they just stick with a straightforward portfolio of broad index funds.

Human nature being what it is, however, many people will give in to the urge to venture beyond the indexes for the thrill (even if only fleeting) of finding a fund that beats the market. If you're one of those people, fine. Just don't let yielding to that urge undermine your investing results.

First Published: January 30, 2013: 5:10 AM ET

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Toyota recalls 1 million cars in the U.S.

LONDON (CNNMoney)

The Japanese carmaker said Wednesday it was recalling more than 1 million vehicles sold in the United States over faulty airbags and windshield wipers.

The airbag control issue affects about 752,000 Corolla and Corolla Matrix cars sold in 2003 and 2004. And the windshield wiper issue affects some 270,000 Lexus IS models sold between 2006 and early 2012.

Toyota (TM)said there was the possibility that the Corolla airbags could deploy inadvertently, and the Lexus wipers may not operate if restricted by a heavy buildup of snow.

Related: Toyota reveals self-driving cars

General Motors (GM, Fortune 500) is the leading automaker in the world's two largest markets, China and the U.S. But Toyota is a clear leader in its home market of Japan, where non-Japanese automakers have had trouble competing due to limited dealerships.

Sales of Toyota vehicles totaled 9.75 million in 2012, beating GM's 9.29 million and propelling the Japanese firm to top spot in the global car market.

In 2011, Toyota's car sales were hurt by the earthquake and tsunami, and in 2009 and 2010 sales were hit by damaging recalls.

During those two years, more than 8 million Toyota vehicles were brought in for a potential problem involving sticky accelerator pedals.

Sales and production of eight models were suspended temporarily, and the company agreed to pay $1.1 billion to settle a related class-action suit by owners who claimed they suffered losses because of unintended acceleration.

The automaker also suffered two major recalls in 2012. In October, it recalled 7.4 million cars due to a power window problem that posed a fire risk. And a month later it recalled 2.8 million cars over problems with steering and hybrid systems.

First Published: January 30, 2013: 5:50 AM ET

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Microsoft wants you to pay $100 a year for Office

PowerPoint and other apps are getting a nice refresh in Office 2013, but Microsoft wants you to pay $100 a year for them.

NEW YORK (CNNMoney)

Starting on Tuesday, Microsoft (MSFT, Fortune 500) will be offering Office as a subscription service for consumers. For $100 a year, "Office 365 Home Premium" customers can put Office on up to five computers (including Apple (AAPL, Fortune 500) Macintoshes and Windows 8 tablets) and store up to 27 gigabytes of data on Microsoft's SkyDrive cloud storage service. The subscription includes frequent software updates and allows users to automatically load their customized Microsoft Office settings on each different device.

Office 365 users will also be able to get "Office on Demand," a feature that allows them to temporarily access the latest version of Office on any computer through a Web browser -- whether or not that device has the program installed. One caveat: Once you stop paying, you lose the software.

Is all of that worth $100 a year? Possibly.

The bigger question is whether changing the Office business model is worth it for Microsoft. Office has 1 billion users around the world, and last year it brought in a profit of nearly $16 billion on sales of $24 billion. Both sales and profit grew 7% even though the latest version of Office was already two years old.

Microsoft will still sell Office the traditional way too, but for the first time since 2001, the price tag is going up. Office 2013, which hits store shelves on Tuesday, is priced at $140 for the basic version, a $20 increase over Microsoft Office 2010. The new software costs $220 if you want Outlook and $400 if you want Access and Publisher.

Unlike Office 365, the Office 2013 software won't receive regular updates.

Related story: Office 2013 review - Nice upgrades, but save your cash

Microsoft said it is targeting Office 365 at families with multiple computers, including laptops and tablets.

"The lines between work and home are blurring," said company spokesman Jevon Fark. "People want a seamless experience across all their devices."

There's another emerging trend -- one Microsoft doesn't like to talk about -- threatening Office: PC sales are slumping badly. People aren't replacing older PCs, and they're relying on tablets (let's be honest: iPads) for their daily computing needs. Office, which is not yet available on the iPad, is getting replaced by free alternatives like Google (GOOG, Fortune 500) Drive.

That means a growing number of Office customers are staying with the same version for five, six or even seven years, according to Laura DiDio, principal analyst of consultancy ITIC.

That doesn't put money in Microsoft's pocket.

"They have to continue to drive annual revenue, and that means changing with the times," DiDio said. "It's no secret that Microsoft is under attack from Google."

Microsoft's hope is that subscription pricing will create a predictable, fixed sales stream it can count on every year.

If, that is, people pay up. Will you?

First Published: January 29, 2013: 9:02 AM ET

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Microsoft Office 2013 review: Nice upgrades, but save your cash

Microsoft's Office 2013 apps, like Excel, finally have a modern design and clean user interface.

NEW YORK (CNNMoney)

That's why Microsoft has been content to incrementally update Office every couple of years. It makes sure its applications run smoothly, folds in the latest tech standards, and mostly leaves things alone.

Now, though, it's facing an existential threat: Google Docs, a free suite that replicates most, if not quite all, of Microsoft Office's functionality.

With Office 2013, Microsoft (MSFT, Fortune 500) has to prove that its standalone applications are still worth paying for. It focused its efforts in two key areas: a substantial user-interface redesign, and adding Internet services through its "Office 365" package.

Improved looks, improved handling: Office was one of the last holdouts in Microsoft's crusade to bring its products into the 21st century, design-wise. Like Xbox 360, Windows 8 and Windows Phone 8, Microsoft Office now looks -- finally -- about as good as you can make a productivity suite look in 2013.

The texture-free graphics and stark contrast between colors makes it easier to navigate through the various interfaces of Office's different apps. There are a few places where the new design seems like a hindrance, like the "File" drop-down menu that takes you to a whole new screen. That's an exception, though: Most of the changes streamline the Office experience.

Microsoft's attempt to make Office 2013 touch-friendly involved minor tinkering. Everything is a little more spaced out, which makes it easier to edit with your fingers. It works very well in some places, like highlighting cells in Excel or editing PowerPoint slides.

That said, this isn't a touchscreen revolution. Office 2013 is still best experienced with a physical keyboard and mouse.

One area where design seems to have gotten away from Microsoft is Outlook. Microsoft took a stab at a revamp, but the result is just as cluttered and busy as ever. The software has a more minimal look, but the lack of strong visual separation between panes and buttons makes everything feel incohesive and jumbled.

Office anywhere: The main functional improvements in Office 2013 come through Microsoft's new "Office 365" subscription service, which costs $100 per year. In a nutshell, it turns Office into an Internet-connected app, allowing you save documents in the cloud, collaborate with others, receive regular software updates, and use a remote version of Office from any computer if you're in a pinch.

The beauty of Office 365 is that it isn't a completely separate piece of software. Its features are integrated straight into the same software that non-365 users have.

Related story: Microsoft wants you to pay $100 a year for Office

When you want to save a Word document to the cloud, the menu prompt sits right beside the option to save locally. If you're working on a spreadsheet with someone else, a little "refresh" graphic pops up over the save icon to let you know that changes have been made.

It's an experience that's mostly seamless -- but with room for improvement. Collaborative document editing, for example, doesn't pop up on screen in real-time as it does with Google Docs; changes only reveal themselves when you save or refresh. That minimizes distractions, but when you're working with collaborators, real-time updates are far more efficient.

Office 365 also offers a new feature called "Office on Demand" that lets you tap into Office even if you're working on a machine that doesn't have it installed. Go to Microsoft's Office website, launch Office 365, and a little applet acts as a terminal between you and an Office version running on Microsoft's servers.

This is strictly for emergencies, though. Right now it's simply too laggy to use for any extended period without wanting to pull your hair out.

Should you buy it? Office 2013 and Office 365 are a clear improvement over previous iterations. All the core aspects function as advertised, and there's no major product flaw or shortcoming that should stop anyone from using the software.

But there's a larger question here about who Microsoft Office 2013 and Office 365 are really for.

Some students and professionals actually need all the bells and whistles. For small businesses, the free software upgrades and simplicity of having all users on a standard, shared apps suite make Office 365 an appealing option.

But for the person who doesn't need cloud support and just wants to print up a garage sale flier, or share a spreadsheet for managing the family finances, online services like the very good (and very free) Google Docs work just fine. An existing copy of Microsoft Office -- even one that's years out of date -- will also get the job done.

We all use word processors and spreadsheets in our day-to-day lives, but most of us don't need all the rich formatting options, plug-ins and cloud services that Office 2013 and Office 365 provide. Not for the $140 price tag (for Office 2013's most basic version) or $100 a year subscription fee (for Office 365) that Microsoft is changing.

This is one upgrade most of us can afford to skip.

First Published: January 29, 2013: 9:05 AM ET

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Home prices post biggest jump in 6 years

NEW YORK (CNNMoney)

The latest reading of the closely watched S&P Case-Shiller index is another sign of the growing recovery in the long-battered housing market.

The last time prices jumped this much was in August 2006, when the housing bubble was still inflating. Soon after that, prices went into a steep decline that led to a flood of foreclosures. That sparked the most serious economic downturn since the Great Depression.

"Housing is clearly recovering," said David M. Blitzer, chairman of the index committee at S&P Dow Jones Indices. "Prices are rising as are both new and existing home sales. These figures confirm that housing is contributing to economic growth."

Housing prices have been helped by a number of factors in recent months, including increased sales of both new homes and previously-owned houses, a drop in foreclosures, and near record low mortgage rates. A drop in the nation's unemployment rate also is helping

The rise in home prices is good news for more than just people hoping to sell their home. The higher prices rise, the fewer homeowners that will be underwater on their mortgage, meaning they owe more on their homes than they are worth. That can help many homeowners to refinance and save money, which would pump more cash into the economy.

The S&P Case-Shiller index tracks home prices in 20 major markets. The latest reading showed 19 of them posting a gain in prices, with only New York posting a modest decline from a year earlier. Phoenix, one of the markets hit hardest by the housing crisis, posted the biggest increase, with home prices there climbing 23%.

But even with November's strong gains, the overall index stands 29% below the home price peak reached in the summer of 2006.

First Published: January 29, 2013: 9:25 AM ET

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Automatic spending cuts more likely now

Republican Paul Ryan, the House budget chairman, and Democrat Patty Murray, who leads the Senate budget panel, have both said that automatic spending cuts set for March 1 may occur.

NEW YORK (CNNMoney)

The sequester, as it's called, aims to reduce deficits by $1.2 trillion over a decade, including interest savings. The fiscal cliff deal brokered over New Year's postponed its start date to March 1 from Jan. 2.

The cuts will slash how much federal agencies are allowed to spend by $85 billion over seven months.

The reductions would come primarily from discretionary spending -- meaning they would largely protect entitlement programs such as Medicare, Medicaid and Social Security. The cuts would be split evenly between defense and nondefense programs.

House Republicans have proposed replacing the defense cuts with more nondefense reductions, which Democrats reject. Democrats want to replace all the cuts with a mix of better targeted spending cuts and tax increases, the latter of which Republicans reject.

Unless that dynamic changes soon, sequester here we come.

"I think [the sequester's] going to happen," Republican Paul Ryan, chairman of the House budget chairman, said Sunday on "Meet the Press."

Ryan's counterpart in the Senate, Democrat Patty Murray, wrote in a memo last week that the sequester is "a very real possibility."

Meanwhile, the White House budget office has instructed federal agencies to plan to operate at lower funding levels.

The White House also reiterated its warning of "significant and harmful impacts on a wide variety of government services and operations" if the sequester is allowed to take effect.

Related: House passes bill to defuse debt ceiling

"[F]ederal agencies will likely need to furlough hundreds of thousands of employees and reduce essential services such as food inspections, air travel safety, prison security, border patrols and other mission-critical activities," the White House budget office said.

A taste of what's to come: The Pentagon last week said it would be laying off 46,000 contract and temporary workers and furloughing full-time civilian workers one day a week for 22 weeks. Those furloughed days would be unpaid.

When Congress first agreed to the sequester -- as a part of a last-minute deal to end the debt ceiling fight in 2011 -- it was considered to be such bad policy that it would force both parties to agree to a much smarter deficit reduction plan.

But they didn't. Some think if the sequester takes effect, it would only be temporary.

Steve Bell, the economic policy director of the Bipartisan Policy Center, is not among them. Even though both parties can find a lot to dislike about the sequester, they also don't want to give it up for something they fear could be worse, he noted.

For Democrats, much as they hate the indiscriminate reductions in non-defense programs, they know the sequester exempts beneficiaries of Medicare, Medicaid and Social Security.

And while they would prefer the defense cuts to be smarter and more strategic, they know the sequester will bring down the top spending line for defense going forward, which they've wanted to do.

For Republicans, the defense cuts are what they hoped to avoid. But if the sequester were to be replaced, they fear they wouldn't be able to secure the full $1.2 trillion in deficit reduction that they've been promised.

First Published: January 29, 2013: 5:12 AM ET

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Businesses band together to support gay marriage

The new business coalition seeks to repeal DOMA and extend more than 1,000 federal benefits to same-sex married couples that currently only opposite-sex couples receive.

NEW YORK (CNNMoney)

The Human Rights Campaign announced the launch of the Business Coalition for DOMA Repeal this week, which aims to abolish the Defense of Marriage Act, a 1996 law that defines marriage as between a man and a woman.

Thirteen businesses have signed on so far, including Marriott International Inc (MAR, Fortune 500), Armani Exchange, Aetna (AET, Fortune 500), eBay (EBAY, Fortune 500) and Thomson Reuters (TRI).

The coalition specifically supports the Respect for Marriage Act, which was first introduced in 2009 and is expected to be reintroduced in Congress next month.

Related: 'What legalizing gay marriage means for our money'

By repealing DOMA, the act would extend more than 1,000 federal benefits to same-sex married couples that currently only opposite-sex couples receive. These include the ability to file taxes jointly, receive Social Security survivor benefits and qualify for certain estate and gift tax exemptions.

The Human Rights Campaign said that not only is DOMA unconstitutional, but it's bad for businesses -- causing "administrative headaches and tax inequities for companies as they simply try to treat their employees fairly."

For example, same-sex couples are required to pay federal income tax on health benefits provided to a spouse through an employer-sponsored health insurance plan. Some employers reimburse employees for the extra tax paid, which requires extra time and money.

Related: Gay marriage case & the financial benefits at stake

In addition to the Respect for Marriage Act, the Supreme Court also announced in December that it will review the constitutionality of DOMA for the first time.

Meanwhile, other businesses are voicing their support for same-sex marriage on a state level. In an open letter to Illinois lawmakers earlier this month, 50 business leaders and companies said "it is vitally important that Illinois lawmakers enact marriage equality soon" and cited a Williams Institute study showing that same-sex marriage would generate millions of dollars in new revenue for Illinois businesses.

Google (GOOG, Fortune 500), Orbitz (OWW) and Groupon (GRPN) were among the bigger companies to sign the letter, along with CEOs from Hyatt Hotels (H), Morningstar (MORN) and Exelon (EXC, Fortune 500).

First Published: January 29, 2013: 5:42 AM ET

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Philips sells video business to Funai

LONDON (CNNMoney)

The Dutch company, established in 1891 to meet the growing demand for light bulbs as electricity became more widely available, announced it was selling its video, audio and multimedia business to Japan's Funai Electric for 150 million euros. Funai will also pay a license fee for the brand.

Part of the deal will close later this year but the video business won't transfer until the end of 2017, due to existing intellectual property licenses.

The agreement completes Philips exit from consumer electronics, after it spun off its television unit last year into a joint venture with Hong Kong's TPV.

Related: Fitch cuts Sony, Panasonic debt to junk

Philips has found it increasingly difficult to compete with Asian players in the market for TVs and DVD players, and plans to focus on its healthcare, consumer lifestyle and lighting products.

It reported a fourth quarter net loss of 355 million euros, in part due to restructuring charges and a provision for 509 million euro fine imposed on Philips as part of an EU probe into price-fixing in the cathode ray tube market.

The company said it intended to appeal the fine.

First Published: January 29, 2013: 6:09 AM ET

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Super Bowl alert: Chicken wings will cost you

McDonald's is testing out Mighty Wings in select locations, a move that some experts say is helping to drive up chicken wing prices.

NEW YORK (CNNMoney)

But what will really hurt your wallet come game day? Chicken wings.

Every year, the cost of the beloved game-time grub shoots up at the end of January as restaurants gear up to feed the masses for the NFL's big showdown.

Prices usually go down soon after. But that drop never happened last year, because sweeping droughts in the Midwest drove up feed prices, agricultural experts say. As a result, the price of chicken farming, and therefore wings, has been gradually increasing.

The wholesale price of wings was up 26%, to $1.90 a pound in December from a year earlier, according to David Harvey, an agricultural economist specializing in poultry and eggs at the U.S. Department of Agriculture.

Related: Super Bowl spots, Gangnam Style

While rising feed costs certainly play a large role, Harvey said there's another reason why you'll have to pony up even more for chicken wings this year: McDonald's (MCD, Fortune 500).

Over the last year, the hamburger joint has been testing out the Mighty Wing, its own version of the popular appetizer. McDonald's first rolled out the new product in Atlanta last fall before moving to Chicago earlier this month.

The fast food chain will test Mighty Wings at 500 of its Windy City locations until March, according to Tyler Litchenberger, a McDonald's spokeswoman. There are no other plans to expand to additional cities at this time.

If McDonalds rolls out Mighty Wings in other cities, analysts say demand from the Golden Arches could put even more pressure on prices.

"McDonald's, just given its size and the fact that it has 14,000 stores across the country, could affect the supply," said Mitchell Speiser, an analyst who follows the fast food chain for Buckingham Research.

By testing Mighty Wings in a few select cities, Speiser said McDonald's is likely figuring out whether or not it will be able to source enough wings for locations nationwide.

Litchenberger said that McDonald's has been beefing up its supply as it expands into Chicago. But she said the chain is going to build it up over time so as not to take over the market.

Related: 10 things you'll pay more for in 2013

"When we were looking to launch wild berry smoothies, we found out that we would have taken up 30% of all blackberries available, so we took a two-year approach to make sure we weren't taking a huge amount from everyone else," she said. By doing so, there was more time for farmers to plant more crops and for the market to adjust.

"That's what we're doing as we go into chicken wings," she said.

The USDA's Harvey said he has already seen a larger stockpile of wings since McDonald's unveiled its new product. There were 75 million pounds of chicken wings in frozen storage at the end of December -- a 68% increase from a year earlier.

While Harvey couldn't say who owns what share of wings in storage, he said the fast food change likely plays a role in the increase.

"When companies like McDonald's go into an advertising campaign for wings, they start stockpiling the product so they have it waiting for them," he said.

Those looking to score a Super Bowl McDeal on wings should look elsewhere, however. Litchenberger said the chain won't offer any Mighty Wings promotions for the game.

First Published: January 28, 2013: 5:53 AM ET

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Toyota reclaims global auto sales crown

Final sales numbers confirm that Toyota's 2012 car sales topped those of General Motors and Volkswagen.

NEW YORK (CNNMoney)

Earlier this month, General Motors (GM, Fortune 500) announced global sales of 9.29 million vehicles for the year. In late December, Toyota Motor (TM) said it expected that global sales for 2012 hit 9.7 million vehicles, and it confirmed that Monday when it reported global sales of 9.75 million.

Volkswagen Group (VLKAY), which includes the VW, Audi and Porsche brands, came in at No. 3 with 9.09 million vehicles, the first time the company has topped 9 million.

GM is the leading automaker in the world's two largest markets, China and the United States. But Toyota is a clear leader in its home market of Japan, where non-Japanese automakers have had trouble competing due to limited dealerships. And Toyota enjoyed a bounce-back year in Japan, with sales rebounding 35% from 2011, when they were hurt by the earthquake and tsunami.

Toyota's sales totals also were helped by the fact that it made more than 600,000 heavy-duty trucks and buses during the year, a vehicle segment GM essentially shed in its home market.

Toyota is No. 3 in terms of sales in the U.S., a key market where Ford Motor (F, Fortune 500) is No. 2. Ford took back that ranking back from Toyota in 2010 when the Japanese automaker was hit with recall problems that forced it to stop selling its most popular models for a period of time.

Related: Bringing GM back from the brink

GM topped global sales for 77 years through 2007, when it finished just barely ahead of Toyota. Both automakers' sales suffered in 2008 as the bottom fell out of the U.S. economy, but high gas prices and a looming bankruptcy at GM ultimately nudged Toyota into the lead, where it stayed for the next two years.

The federal bailout of GM in 2009, and the problems at Toyota the next two years allowed the U.S. company to recapture the lead much quicker than most expected.

Neither GM nor Toyota had a comment on the rankings earlier this month when GM's sales figures essentially insured Toyota would move back into the global sales lead.

Related: Cool cars from Detroit auto show

Mike Wall, auto analyst for IHS Global Insight, said it's possible GM could come out on top in 2013. A territorial dispute between China and Japan could adversely affect Toyota, while the recession in Europe could be a drag on Volkswagen's sales growth.

"In terms of GM returning to the lead, I certainly wouldn't count them out, especially with the product they're set to introduce this year," he said. "I actually think all three will be huddled close together for the next few years."

Wall says GM is a much healthier company today at No. 2 than when it held the sales lead but posted huge financial losses in the previous decade.

"The sales lead makes for bragging rights, but GM is a stronger company than it was then," he said.

First Published: January 28, 2013: 7:18 AM ET

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Stocks: Caterpillar, durable goods give early lift

Click the chart for more premarket data.

NEW YORK (CNNMoney)

The Census Bureau said durable goods orders rose 4.6% in December. Analysts were looking orders to rise just 1.6% last month, following a 0.7% uptick in November.

Caterpillar's fourth-quarter earnings topped analyst expectations, sending shares of the company up more than 1% in premarket trading. As the biggest seller of construction equipment in the world, with major operations in China, Caterpillar (CAT, Fortune 500) is considered a bellwether for the global economy.

Yahoo (YHOO, Fortune 500) earnings are up after the bell. The company's fourth-quarter results are a big test for CEO Marissa Mayer, who shocked the world last summer by taking the top spot at Yahoo. The results will be a look into Yahoo's new business strategy -- the results of which Mayer began laying out in an all-staff meeting in September.

Of the 141 companies in the S&P 500 that have reported earnings so far, 67% have reported results above analyst expectations, according to Thomson Reuters. Overall, fourth-quarter earnings are expected to grow 2.8% from a year ago.

Related: 4 ways the market could really surprise you

Also on the corporate front, shares of Apple (AAPL, Fortune 500) will be in focus Monday, with shares edging slightly higher in premarket treading. The iPhone and iPad maker's stock is down almost 20% this year. On Friday, Apple lost its title as the world's most valuable company to Exxon (XOM, Fortune 500) as shares closed at a 1-year low.

Following the opening bell, the National Association of Realtors will release pending home sales for December.

Related: Fear & Greed Index steeped in extreme greed

U.S. stocks have had quite a run in 2013, with four straight weeks of gains so far this year. The Dow finished Friday at its highest level since October 2007, while the S&P 500 closed above the 1,500 mark for the first time since December 2007. The Dow is now just 2% away from its all-time high, and the S&P 500 is off about 5% from its record high.

European markets were slightly higher in morning trading Monday, while Asian markets ended finished mixed. The Shanghai Composite added more than 2%, closing at its highest level since June, while the Nikkei tumbled nearly 1%. The Hang Seng in Hong Kong edged slightly higher.

First Published: January 28, 2013: 6:35 AM ET

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Super Bowl alert: Chicken wings will cost you

McDonald's is testing out Mighty Wings in select locations, a move that some experts say is helping to drive up chicken wing prices.

NEW YORK (CNNMoney)

But what will really hurt your wallet come game day? Chicken wings.

Every year, the cost of the beloved game-time grub shoots up at the end of January as restaurants gear up to feed the masses for the NFL's big showdown.

Prices usually go down soon after. But that drop never happened last year, because sweeping droughts in the Midwest drove up feed prices, agricultural experts say. As a result, the price of chicken farming, and therefore wings, has been gradually increasing.

The wholesale price of wings was up 26%, to $1.90 a pound in December from a year earlier, according to David Harvey, an agricultural economist specializing in poultry and eggs at the U.S. Department of Agriculture.

Related: Super Bowl spots, Gangnam Style

While rising feed costs certainly play a large role, Harvey said there's another reason why you'll have to pony up even more for chicken wings this year: McDonald's (MCD, Fortune 500).

Over the last year, the hamburger joint has been testing out the Mighty Wing, its own version of the popular appetizer. McDonald's first rolled out the new product in Atlanta last fall before moving to Chicago earlier this month.

The fast food chain will test Mighty Wings at 500 of its Windy City locations until March, according to Tyler Litchenberger, a McDonald's spokeswoman. There are no other plans to expand to additional cities at this time.

If McDonalds rolls out Mighty Wings in other cities, analysts say demand from the Golden Arches could put even more pressure on prices.

"McDonald's, just given its size and the fact that it has 14,000 stores across the country, could affect the supply," said Mitchell Speiser, an analyst who follows the fast food chain for Buckingham Research.

By testing Mighty Wings in a few select cities, Speiser said McDonald's is likely figuring out whether or not it will be able to source enough wings for locations nationwide.

Litchenberger said that McDonald's has been beefing up its supply as it expands into Chicago. But she said the chain is going to build it up over time so as not to take over the market.

Related: 10 things you'll pay more for in 2013

"When we were looking to launch wild berry smoothies, we found out that we would have taken up 30% of all blackberries available, so we took a two-year approach to make sure we weren't taking a huge amount from everyone else," she said. By doing so, there was more time for farmers to plant more crops and for the market to adjust.

"That's what we're doing as we go into chicken wings," she said.

The USDA's Harvey said he has already seen a larger stockpile of wings since McDonald's unveiled its new product. There were 75 million pounds of chicken wings in frozen storage at the end of December -- a 68% increase from a year earlier.

While Harvey couldn't say who owns what share of wings in storage, he said the fast food change likely plays a role in the increase.

"When companies like McDonald's go into an advertising campaign for wings, they start stockpiling the product so they have it waiting for them," he said.

Those looking to score a Super Bowl McDeal on wings should look elsewhere, however. Litchenberger said the chain won't offer any Mighty Wings promotions for the game.

First Published: January 28, 2013: 5:53 AM ET

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Stocks await earnings, economic data

Click the chart for more premarket data.

NEW YORK (CNNMoney)

Another big week for corporate earnings gets underway, as the construction equipment maker's results are considered an indicator of the health for the global economy. Analysts expect Caterpillar's (CAT, Fortune 500) earnings per share and revenue figures to decline for the fourth quarter.

Yahoo (YHOO, Fortune 500) is up after the bell. The company's fourth-quarter earnings are a big test for CEO Marissa Mayer, who shocked the world last summer by taking the top spot at Yahoo. The results will be a look into Yahoo's new business strategy -- the results of which Mayer began laying out in an all-staff meeting in September.

Of the 141 companies in the S&P 500 that have reported earnings so far, 67% have reported results above analyst expectations, according to Thomson Reuters. Overall, fourth-quarter earnings are expected to grow 2.8% from a year ago.

On the economic front, the Census Bureau will release data on durable goods orders at 8:30 a.m. ET. Analysts expect orders rose 1.6% in December.

Fear & Greed Index

U.S. stocks have had quite a run in 2013, with four straight weeks of gains so far this year. The Dow finished Friday at its highest level since October 2007, while the S&P 500 closed above the 1,500 mark for the first time since December 2007.

European markets were slightly higher in morning trading Monday, while Asian markets ended finished mixed. The Shanghai Composite added more than 2%, while the Nikkei tumbled nearly 1%. The Hang Seng in Hong Kong edged slightly higher.

First Published: January 28, 2013: 6:35 AM ET

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Toyota reclaims global auto sales crown

NEW YORK (CNNMoney)

Earlier this month, General Motors (GM, Fortune 500) announced global sales of 9.29 million vehicles for the year. In late December, Toyota Motor (TM) said it expected that global sales for 2012 hit 9.7 million vehicles, and it confirmed that Monday when it reported global sales of 9.75 million.

Volkswagen Group (VLKAY), which includes the VW, Audi and Porsche brands, came in at No. 3 with 9.09 million vehicles, the first time the company has topped 9 million.

GM is the leading automaker in the world's two largest markets, China and the United States. But Toyota is a clear leader in its home market of Japan, where non-Japanese automakers have had trouble competing due to limited dealerships. And Toyota enjoyed a bounce-back year in Japan, with sales rebounding 35% from 2011, when they were hurt by the earthquake and tsunami.

Toyota's sales totals also were helped by the fact that it made more than 600,000 heavy-duty trucks and buses during the year, a vehicle segment GM essentially shed in its home market.

Toyota is No. 3 in terms of sales in the U.S., a key market where Ford Motor (F, Fortune 500) is No. 2. Ford took back that ranking back from Toyota in 2010 when the Japanese automaker was hit with recall problems that forced it to stop selling its most popular models for a period of time.

Related: Bringing GM back from the brink

GM topped global sales for 77 years through 2007, when it finished just barely ahead of Toyota. Both automakers' sales suffered in 2008 as the bottom fell out of the U.S. economy, but high gas prices and a looming bankruptcy at GM ultimately nudged Toyota into the lead, where it stayed for the next two years.

The federal bailout of GM in 2009, and the problems at Toyota the next two years allowed the U.S. company to recapture the lead much quicker than most expected.

Neither GM nor Toyota had a comment on the rankings earlier this month when GM's sales figures essentially insured Toyota would move back into the global sales lead.

Related: Cool cars from Detroit auto show

Mike Wall, auto analyst for IHS Global Insight, said it's possible GM could come out on top in 2013. A territorial dispute between China and Japan could adversely affect Toyota, while the recession in Europe could be a drag on Volkswagen's sales growth.

"In terms of GM returning to the lead, I certainly wouldn't count them out, especially with the product they're set to introduce this year," he said. "I actually think all three will be huddled close together for the next few years."

Wall says GM is a much healthier company today at No. 2 than when it held the sales lead but posted huge financial losses in the previous decade.

"The sales lead makes for bragging rights, but GM is a stronger company than it was then," he said.

First Published: January 28, 2013: 7:18 AM ET

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Boeing keeps building Dreamliners it can't fly

Boeing hasn't slowed production of its 787 Dreamliner despite the federal probe that has grounded the jet.

NEW YORK (CNNMoney)

A federal probe into electrical fires has grounded all 50 Boeing 787 Dreamliners around the world. But Boeing has little choice but to keep its assembly lines in South Carolina and Washington State running at their normal pace, building five jets a month. A significant slowdown in production, let alone a full shutdown, would be too costly for both Boeing and its suppliers who are counting on making parts for the aircraft.

"Stopping production is not going to happen," said Carter Leake, an aerospace analyst with BB&T Capital Markets. A halt in production or even a slow down would risk crucial suppliers going out of business. "They need to keep the lines running to support the supply chain. They can't do that to suppliers that barely survived the three year delay in producing the first plane."

National Transportation Safety Board Chairman Deborah Hersman said Thursday that investigators have yet to determine what caused the two lithium battery fires earlier this month that led the FAA to ground all Dreamliners. So even though Boeing has no idea what kind of fix to the aircraft will eventually be required, it continues to make the planes as if there is no problem.

Related: What's wrong with the Dreamliner?

"If it stopped it would be very difficult to start production again," said Chris DeNicolo, aerospace credit analyst for Standard & Poor's. And Boeing still has 800 Dreamliner orders left to fill for airlines.

Related: Dreamliner - Where the parts come from

Boeing spokeswoman Kate Bergman confirms the manufacturer hasn't changed its production schedule since the Dreamliners were grounded. Indeed, the manufacturer still plans to double production by year's end. The company would not say how many planes have been built since the FAA grounded the jets on Jan. 16, or what it will do with the completed aircraft since it can't fly them off Boeing's property.

NTSB's Hersman said the probe is only in the very early stages and suggested it could take a long time to resolve.

"This is not something we expect will be solved overnight," she said. "We are prepared to be methodical."

Related: United: Passengers will 'flock' back to Dreamliner

Leake said he is worried that the relatively quick fix that many investors were hoping for is becoming less and less likely. Airlines eager for the jet's improved fuel economy have yet to cancel any orders due to the grounding. But that won't necessarily be the case forever.

"It does sound like we're in the first inning," Leake said. "I don't know what the tipping point is. If it's three months, they'll be no cancellations, six months, some cancellations, Nine months, it's a big problem."

Working in Boeing's favor is the fact that it has more than $11 billion in cash and short-term investments on its balance sheet.

"There's an ability [for it] to absorb the additional costs," said DeNicolo. "The rest of its commercial airplane business is doing quite well."

The Dreamliner was supposed to be a major profit driver for Boeing, but that won't be the case as long as it's building planes that it can't deliver.

First Published: January 25, 2013: 4:44 PM ET

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RIM to advertise BlackBerry 10 during Super Bowl

NEW YORK (CNNMoney)

It's RIM's (RIMM) first-ever Super Bowl commercial, and while the company didn't say how much it spent, Super Bowl broadcaster CBS (CBS, Fortune 500) previously told CNNMoney that 30-second spots are going for a record high of at least $4 million.

RIM will unveil the BlackBerry 10 platform at events on Wednesday, as well as the first two devices to run on the new platform. It's been a long time coming: The software had previously been slated for release in early 2012, which was pushed to late 2012, and again to the first quarter of 2013.

While delays in tech do happen, the news was damning for the struggling RIM because BlackBerry 10 is meant t to be the crown jewel of the company's turnaround plan. Critics wondered if RIM would even survive long enough to launch the OS.

Now that launch day is nearly upon us, RIM is doing all it can to market BlackBerry 10. In addition to the Super Bowl ad, RIM said it will push BlackBerry via online ads and on social networks before and after the game. Launch day on Wednesday includes BlackBerry events around the globe.

Related story: RIM's fate hangs on BlackBerry 10

So RIM will survive to see BlackBerry 10 launch, but the delay has left the company stuck in a holding pattern. Everyone from Apple (AAPL, Fortune 500) to Nokia (NOK) to Microsoft (MSFT, Fortune 500) released new gadgets in the fall, but RIM was essentially forced to wait for the BlackBerry 10 software before selling any significant new hardware.

The company has said BlackBerry 10 will run on a smaller number of devices with essential smartphone features: a much-improved camera, a modern Web browser and social-networking integration. The software will allow customers to access e-mail with one swipe from any app, and it will shift automatically between personal and corporate modes.

RIM's main problem is its lost stronghold in the corporate market, where it once dominated. Rather than issuing company BlackBerries, many employers now have workers bring their own devices into work, usually Apple's (AAPL, Fortune 500) iPhone and Google's (GOOG, Fortune 500) Android devices.

First Published: January 25, 2013: 5:32 PM ET

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China's growth to hit 8% in 2013

Davos, Switzerland (CNNMoney)

"I think China's growth rate will be about 8% this year," Yi Gang said during a debate at the World Economic Forum in Davos, Switzerland. He said consumer price inflation could reach 3% or slightly higher.

The world's second-biggest economy grew by 7.8% last year, well below the average 10% growth seen in the past three decades but better than the government's own target of 7.5% and above analyst expectations.

The annual figure was boosted by a recovery in industrial production and exports in the fourth quarter, which grew 7.9%, prompting economists to forecast a slow but steady recovery in 2013

The acceleration in the last three months of 2012 followed seven quarters of slowing growth as China felt the impact of weak activity in the United States and Europe, as well as its own efforts to control a real estate boom and contain inflation.

Related: China's hottest companies

China's manufacturing sector showed more signs of improvement this month, with a preliminary reading of purchasing managers' sentiment rising to its highest level in two years.

Inflation rose to 2.5% in December, as a spurt of extremely cold weather drove food prices higher. That compared with 2% in November, but still represents tame inflation -- the government aims to keep annual inflation below 4%.

China is trying to rebalance its economy, placing greater emphasis on consumption. Yi said domestic demand was playing an ever more important role in the economy as growth in incomes outpaced GDP growth.

"Consumption is very robust," he said.

China would continue to aim for a reduction in its current account surplus as a percentage of GDP, he said. The figure stood at 2.8% of GDP in 2012.

First Published: January 26, 2013: 11:42 AM ET

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Boeing keeps building Dreamliners it can't fly

Boeing hasn't slowed production of its 787 Dreamliner despite the federal probe that has grounded the jet.

NEW YORK (CNNMoney)

A federal probe into electrical fires has grounded all 50 Boeing 787 Dreamliners around the world. But Boeing has little choice but to keep its assembly lines in South Carolina and Washington State running at their normal pace, building five jets a month. A significant slowdown in production, let alone a full shutdown, would be too costly for both Boeing and its suppliers who are counting on making parts for the aircraft.

"Stopping production is not going to happen," said Carter Leake, an aerospace analyst with BB&T Capital Markets. A halt in production or even a slow down would risk crucial suppliers going out of business. "They need to keep the lines running to support the supply chain. They can't do that to suppliers that barely survived the three year delay in producing the first plane."

National Transportation Safety Board Chairman Deborah Hersman said Thursday that investigators have yet to determine what caused the two lithium battery fires earlier this month that led the FAA to ground all Dreamliners. So even though Boeing has no idea what kind of fix to the aircraft will eventually be required, it continues to make the planes as if there is no problem.

Related: What's wrong with the Dreamliner?

"If it stopped it would be very difficult to start production again," said Chris DeNicolo, aerospace credit analyst for Standard & Poor's. And Boeing still has 800 Dreamliner orders left to fill for airlines.

Related: Dreamliner - Where the parts come from

Boeing spokeswoman Kate Bergman confirms the manufacturer hasn't changed its production schedule since the Dreamliners were grounded. Indeed, the manufacturer still plans to double production by year's end. The company would not say how many planes have been built since the FAA grounded the jets on Jan. 16, or what it will do with the completed aircraft since it can't fly them off Boeing's property.

NTSB's Hersman said the probe is only in the very early stages and suggested it could take a long time to resolve.

"This is not something we expect will be solved overnight," she said. "We are prepared to be methodical."

Related: United: Passengers will 'flock' back to Dreamliner

Leake said he is worried that the relatively quick fix that many investors were hoping for is becoming less and less likely. Airlines eager for the jet's improved fuel economy have yet to cancel any orders due to the grounding. But that won't necessarily be the case forever.

"It does sound like we're in the first inning," Leake said. "I don't know what the tipping point is. If it's three months, they'll be no cancellations, six months, some cancellations, Nine months, it's a big problem."

Working in Boeing's favor is the fact that it has more than $11 billion in cash and short-term investments on its balance sheet.

"There's an ability [for it] to absorb the additional costs," said DeNicolo. "The rest of its commercial airplane business is doing quite well."

The Dreamliner was supposed to be a major profit driver for Boeing, but that won't be the case as long as it's building planes that it can't deliver.

First Published: January 25, 2013: 4:44 PM ET

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RIM to advertise BlackBerry 10 during Super Bowl

NEW YORK (CNNMoney)

It's RIM's (RIMM) first-ever Super Bowl commercial, and while the company didn't say how much it spent, Super Bowl broadcaster CBS (CBS, Fortune 500) previously told CNNMoney that 30-second spots are going for a record high of at least $4 million.

RIM will unveil the BlackBerry 10 platform at events on Wednesday, as well as the first two devices to run on the new platform. It's been a long time coming: The software had previously been slated for release in early 2012, which was pushed to late 2012, and again to the first quarter of 2013.

While delays in tech do happen, the news was damning for the struggling RIM because BlackBerry 10 is meant t to be the crown jewel of the company's turnaround plan. Critics wondered if RIM would even survive long enough to launch the OS.

Now that launch day is nearly upon us, RIM is doing all it can to market BlackBerry 10. In addition to the Super Bowl ad, RIM said it will push BlackBerry via online ads and on social networks before and after the game. Launch day on Wednesday includes BlackBerry events around the globe.

Related story: RIM's fate hangs on BlackBerry 10

So RIM will survive to see BlackBerry 10 launch, but the delay has left the company stuck in a holding pattern. Everyone from Apple (AAPL, Fortune 500) to Nokia (NOK) to Microsoft (MSFT, Fortune 500) released new gadgets in the fall, but RIM was essentially forced to wait for the BlackBerry 10 software before selling any significant new hardware.

The company has said BlackBerry 10 will run on a smaller number of devices with essential smartphone features: a much-improved camera, a modern Web browser and social-networking integration. The software will allow customers to access e-mail with one swipe from any app, and it will shift automatically between personal and corporate modes.

RIM's main problem is its lost stronghold in the corporate market, where it once dominated. Rather than issuing company BlackBerries, many employers now have workers bring their own devices into work, usually Apple's (AAPL, Fortune 500) iPhone and Google's (GOOG, Fortune 500) Android devices.

First Published: January 25, 2013: 5:32 PM ET

19.33 | 0 komentar | Read More

China's growth to hit 8% in 2013

Davos, Switzerland (CNNMoney)

"I think China's growth rate will be about 8% this year," Yi Gang said during a debate at the World Economic Forum in Davos, Switzerland. He said consumer price inflation could reach 3% or slightly higher.

The world's second-biggest economy grew by 7.8% last year, well below the average 10% growth seen in the past three decades but better than the government's own target of 7.5% and above analyst expectations.

The annual figure was boosted by a recovery in industrial production and exports in the fourth quarter, which grew 7.9%, prompting economists to forecast a slow but steady recovery in 2013

The acceleration in the last three months of 2012 followed seven quarters of slowing growth as China felt the impact of weak activity in the United States and Europe, as well as its own efforts to control a real estate boom and contain inflation.

Related: China's hottest companies

China's manufacturing sector showed more signs of improvement this month, with a preliminary reading of purchasing managers' sentiment rising to its highest level in two years.

Inflation rose to 2.5% in December, as a spurt of extremely cold weather drove food prices higher. That compared with 2% in November, but still represents tame inflation -- the government aims to keep annual inflation below 4%.

China is trying to rebalance its economy, placing greater emphasis on consumption. Yi said domestic demand was playing an ever more important role in the economy as growth in incomes outpaced GDP growth.

"Consumption is very robust," he said.

China would continue to aim for a reduction in its current account surplus as a percentage of GDP, he said. The figure stood at 2.8% of GDP in 2012.

First Published: January 26, 2013: 11:42 AM ET

19.33 | 0 komentar | Read More

Chicago mayor asks banks to cut off gun makers

Chicago Mayor Rahm Emanuel wants banks to stop lending to gun makers.

WASHINGTON (CNNMoney)

Emanuel, mayor of the nation's third-largest city and former chief of staff to President Obama, wrote the CEOs of Bank of America (BAC, Fortune 500) and TD Bank (TD), since they finance gun makers that lobby against federal and local efforts to toughen gun control laws.

Bank of America gives Sturm, Ruger & Company Inc. (RGR) a $25 million line of credit and TD Bank gives Smith & Wesson (SWHC) a $60 million line of credit, according to the letter.

"I ask you to use your influence to push this company to find common ground with the vast majority of Americans who support a military weapons and ammunition ban, and comprehensive background checks," Emanuel wrote to Bank of America CEO Brian Moynihan. He wrote a similar letter to TD Bank CEO Bharat Masrani.

Both Bank of America and TD declined to comment.

Smith & Wesson and Sturm, Ruger make a wide variety of firearms, including the semiautomatic rifles that are known variously as assault weapons or modern sporting rifles.

Related: Gun industry thrives in face of ban proposal

Emanuel pushed for tougher gun control measures long before the slayings of children and teachers at a Newtown, Conn., elementary school last month. Two years ago, the Supreme Court overturned the city's handgun ban, forcing the city to rewrite its laws. Chicago maintains some of the nation's toughest gun control laws, including registration of any kind of gun and a ban on assault weapons.

"Doing business with gun manufacturers might benefit the banks' bottom line, but they put our police officers, our children, and our communities at risk," Emanuel said in a Friday statement.

His office has also ordered city pension and retirement funds to divest shares in gun makers. This week, the Chicago Municipal Employees Annuity and Benefit Fund agreed to shift $1 million from manufacturers of assault rifles, including Freedom Group, Smith and Wesson and Sturm, Ruger.

- CNN's Todd Sperry contributed to this report.

First Published: January 25, 2013: 2:56 PM ET

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