Wall Street lifted by Italy

NEW YORK (CNNMoney)

U.S. stocks opened higher Monday, taking a cue from Europe, where investors cheered the formation of a new Italian government. Enrico Letta was sworn in as Italy's prime minister, ending weeks of political deadlock and uncertainty in a country mired by recession.

The news pushed Italian stocks up more than 1%, while Italian bond yields dropped to their lowest levels in more than two years.

The Dow Jones industrial average edged up 0.1%, the S&P 500 added 0.2%, and the Nasdaq gained 0.3%.

U.S. stocks are on track to end April with gains this week, which would mark the fourth straight positive month this year.

Click here for more on stocks, oil, gold, and bonds

Expectations of a further rate cut from the European Central Bank and continued monetary support from the Federal Reserve later this week were also lending support.

"The ECB meeting may be the most interesting event this week," wrote Marc Chandler, strategist for Brown Brothers Harriman, adding that the ECB indicated earlier this month that if economic data worsened, it was prepared to cut interest rates.

Related: World's five hottest stock markets

Investors also mulled a report on U.S. personal income and spending. At 10 a.m. ET, the National Association of Realtors will release data on pending home sales.

What's moving: J.C. Penney (JCP, Fortune 500) shares rose sharply after the struggling retailer officially said it had secured a $1.75 billion loan from Goldman Sachs. Shares were also boosted by a New York Post report that claimed "at least" two major hedge funds have taken significant stakes in Penney, with one's investment worth over $10 billion.

In other corporate news, JPMorgan Chase (JPM, Fortune 500) announced Sunday that another of CEO Jamie Dimon's key executives, co-chief operating officer Frank Bisignano, is leaving the firm.

Earnings continue to roll in, with controversial supplements company Herbalife (HLF) and gun maker Sturm Ruger (RGR) set to release their quarterly results after the close.

First Published: April 29, 2013: 9:45 AM ET

21.29 | 0 komentar | Read More

Legal marijuana's need for high security

The high value of marijuana, and the cash that businesses are forced to keep around, makes them a target for thieves.

SEATTLE (CNNMoney)

Without extensive security, a pot dispensary is nothing more than a giant target. A pound of weed goes for more than $2,000 wholesale. And federal pressure on banks forces growers and stores to rely almost entirely on cash.

A robber who swipes the jars on display alone could make away with $20,000 of product, plus whatever stacks of bills are behind the counter.

Dispensaries bulk up as much as they can.

A typical store has more than a dozen cameras, motion detectors, infrared sensors and flood lights. Some even line the ceilings with tripwire to avoid rooftop burglars sawing their way in. At most dispensaries, no one gets in without passing by three doors, showing identification and presenting a doctor's note.

But that security is hard to maintain. Some store owners who use ADT, the nation's largest security provider, say the company has dropped them in recent months. ADT told CNNMoney it won't "sell security services to businesses engaged in the marijuana industry because it is still illegal under federal law."

Related: Is marijuana legal or not?

Kevin Griffin, founder of West Coast Wellness, said ADT dropped him without warning in mid-April. He still has a silent panic alarm button Velcro-strapped beneath the front desk -- but it doesn't call anyone.

Griffin blasts ADT, saying, "They already knew what we were. We were completely transparent. It's not fair to put us in a jam and not give us any time to prepare."

The security needs create an opportunity for startups like Canna Security, a Colorado company currently expanding to Washington. It's founder, Daniel Williams, recalls the video cameras that catch footage of what pot stores and growers are up against.

There were teenagers who rammed an Audi into a warehouse, bursting through its door. They walk out having discovered that the marijuana plants they intended on stealing were actually moved elsewhere the previous day.

Then came the cat burglar who cut a hole in the roof of another marijuana warehouse and rappelled down from the rooftop. After filling a duffel bag full of the stuff, he realized the doors were locked from the outside. He couldn't climb back up to escape.

Next came the ninjas who robbed a dispensary in broad daylight then sped off on street bikes.

"We get the goofballs," Williams said.

But Williams stresses that the losses to these businesses are no joke. Demand for his services is on the rise. Williams' employees are working 12-hour shifts every day, installing cameras and alarm systems across both states.

His biggest concern is his inability to finance his company's rapid growth. Williams discovered that when his bank -- which gladly accepted his cash deposits -- recently denied him a credit line.

"I'm concerned that we'll get too much business and won't be able to manage it," he said. "It gets frustrating when I get a whole new channel of business and funding isn't there to adjust to it."

Related: Legal marijuana: An all-cash business

Meanwhile, dispensaries like West Coast Wellness have few options. For Griffin, this heightened level of risk is nothing new. It's an industry on the fringes of legality, and uncertainty is the name of the game. He reminds this reporter that he stands much to lose from robbers as from federal authorities eager to shut him down.

"They're worse than criminals," Griffin said. "They have the right to walk through the front door and take whatever they want."

First Published: April 29, 2013: 9:28 AM ET

21.29 | 0 komentar | Read More

Even when 'legal,' marijuana is risky business

Washington State legalized marijuana, but it's still illegal to the federal government. That makes growing it -- and selling it -- complicated.

SEATTLE (CNNMoney)

At the local level, pot businesses are often welcomed by politicians and sheriffs alike. Medical marijuana is legal in 18 states and the District of Columbia. Most recently, Colorado and Washington legalized it for recreational use too.

But pot is still listed in the nation's Controlled Substances Act. Federal raids of pot businesses in those states continue at feverish pace. In 2012 alone, federal agencies seized more than 2,500 indoor grow operations, killing close to 300,000 plants.

"The feds are saying one thing. The states are saying another," said Sean Cecil, a criminal defense attorney in Seattle. He is also a member of the Cannabis Defense Coalition, which raises awareness of pot laws.

The situation makes the so-called legal marijuana industry a risky one. A dispensary could be in full compliance with state laws, but the feds could still raid them.

Related: Marijuana: An all-cash business

Still, not every grower, seller and user is a federal target. Top U.S. Justice Department officials have issued two memos -- orders, essentially -- explaining how federal prosecutors are to deal with state-legalized marijuana.

One, in 2009, says U.S. attorneys shouldn't make it a priority to prosecute caregivers and seriously ill patients abiding by state laws.

"Prosecution of [patients and caregivers] in clear and unambiguous compliance with existing state law... is unlikely to be an efficient use of limited federal resources," it states.

But another memo, issued in 2011, clarified that those protections don't extend to business owners.

"Persons who are in the business of cultivating, selling or distributing marijuana, and those who knowingly facilitate such activities, are in violation of the Controlled Substances Act, regardless of state law," it says.

So, what happens to a raided business?

If a dispensary or grow farm is raided, plants are destroyed. Cash and equipment is confiscated. Business owners are jailed and often face mandatory minimum sentences of five years or more in federal prison.

Those on the periphery face dangers as well. Investors in a business could lose money they put into the operation. And banks that deal with cannabis businesses open themselves up to accusations of money laundering.

First Published: April 29, 2013: 9:28 AM ET

21.29 | 0 komentar | Read More

Health care spending growth is at a record low. Here's the catch.

NEW YORK (CNNMoney)

What's less clear is why -- the weak economy or cost-control measures, including the earliest provisions of the Affordable Care Act. Since health care spending is a major driver of the federal deficit, that's a pretty critical question.

The experts at the Kaiser Family Foundation and Altarum Institute are among the first to tease out how much each factor contributed to the slowdown. Their conclusion: about three-quarters is due to the lackluster economy. The rest stems from efforts to keep spending down, including measures introduced in the 2010 "Obamacare" law.

America's national health care spending grew by 3.9% each year from 2009 to 2011, the lowest rate since the federal government began keeping these records in 1960. That slow growth appears to have continued into 2012, when expenditures totaled an estimated $2.8 trillion.

The biggest driver of the slowdown is that people spend less on health care in weak economic times, said Larry Levitt, senior vice president at Kaiser. Those who lose their jobs often lose coverage and hold off on seeing the doctor, and even workers with company-sponsored plans may still face large out-of-pocket costs that they'd rather avoid unless absolutely necessary.

"When people feel less secure, they are more hesitant to use the health care system," Levitt said.

Companies have tried to curb their spending, too, by raising deductibles and co-pays, as well moving toward high-deductible plans, through which enrollees must typically spend a few thousand dollars before coverage kicks in. A growing number of companies have also instituted disease management or wellness efforts that aim to cut costs by keeping workers healthier.

Related story: A doctor says 'I gave up on health care in America'

Most of Obamacare's provisions have yet to be implemented, but some of the early ones are already having an effect, Levitt said. Insurance companies, hospitals and other providers are seeing smaller payment increases, while insurers are limited in what they can spend on administrative costs and must submit any premium increases of more than 10% for review by state or federal experts.

Here's the catch: This dampened spending pattern is unlikely to last much longer. As the economy picks up, health care spending is expected to increase, rising to an annual growth rate of more than 7% annually by the end of the decade, Kaiser predicts. As their finances get better, Americans are likely to return to their more typical patterns of visiting doctors, getting tests done and the like.

New spending control measures, including Obamacare, may temper that looming increase. Further trimming of provider rate hikes, along with additional efforts to coordinate care and pay providers fixed rates for treating a given illness instead of paying per individual test or treatment, may also help, Levitt said.

The fact that Obamacare's early provisions have already had an impact is an encouraging sign, said Josh Gordon, policy director at the Concord Coalition.

"It shows policy levers can be pulled to slow health care spending down," he said.

First Published: April 29, 2013: 5:58 AM ET

19.33 | 0 komentar | Read More

Stocks: Starting week on a high note

Click on chart to track premarkets

NEW YORK (CNNMoney)

Expectations of a further rate cut from the European Central Bank and continued monetary support from the Federal Reserve later this week gave additional support to the market.

"The ECB meeting may be the most interesting event this week," wrote Marc Chandler, strategist for Brown Brothers Harriman. "The ECB indicated earlier this month that if economic data worsened, it was prepared to cut the refi rate."

Investors begin the week awaiting data on personal income and spending, after the government reported Friday that the U.S. economy grew at an annual pace of 2.5% in the first quarter.

U.S. stock futures were firmer Monday.

Stocks are on track to end April with gains this week, which would mark the fourth straight month of gains this year.

Consumer spending, which alone accounts for roughly two-thirds of GDP, rose at a 3.2% annual pace, the fastest pace since the end of 2010. But the data also shows that consumers funded that spending in part by saving less.

Investors will get another look at the issue when the Bureau of Economic Analysis releases data on personal income and spending for March at 8:30 a.m. ET. Personal income is expected to have increased 0.4% in March and personal spending is expected to have slipped 0.1%, according to a consensus of economist forecasts compiled by Briefing.com.

At 10 a.m. ET, the National Association of Realtors will release data on pending home sales.

Related: Fear & Greed Index, idling in neutral

In corporate news, controversial supplements company Herbalife (HLF) and gun maker Sturm Ruger (RGR) are set to release their quarterly results after the close.

JPMorgan Chase (JPM, Fortune 500) announced Sunday that another of CEO Jamie Dimon's key executives, co-chief operating officer Frank Bisignano, is leaving the firm and will be replaced by Matt Zames.

U.S. stocks finished mixed Friday.

European markets were mostly higher in morning trading after Enrico Letta was sworn in as Italy's prime minister, ending weeks of political deadlock and uncertainty in a country mired by recession.

Related: World's five hottest stock markets

Greek lawmakers agreed to cut thousands of government jobs to secure another $11.5 billion in bailout funds.

Markets in Hong Kong added 0.1%. Exchanges in Shanghai and Tokyo were closed for a holiday.

First Published: April 29, 2013: 5:19 AM ET

19.33 | 0 komentar | Read More

Italian markets cheered by new government

LONDON (CNNMoney)

Centre-left Prime Minister Enrico Letta was sworn in Sunday to head a broad coalition of ministers from his own party and members of Silvio Berlusconi's center-right party. Parliament was expected to pass a vote of confidence in the new government Monday.

The appointment ends two months of political stalemate and removes the prospect, for now at least, of a prolonged period of instability -- despite doubts about the coalition's durability and uncertainty over its economic reforms.

Italian markets rallied, with Milan's benchmark index gaining 1.5% and outperforming its European peers. The index has been the strongest of all major European markets over the past month, although it is still lagging so far this year.

Italy also sold three billion euros in 10-year bonds at a yield of 3.94%, down from nearly 4.7% a month ago and their lowest level since October 2010.

Related: If not now, when will ECB cut rates

Bonds in weaker eurozone states have been rallying for months, supported by the European Central Bank's backstop pledge last year and hyper-loose monetary policy in Japan and the United States, which has prompted investors to look for higher returns elsewhere.

"Italian sovereign debt is benefiting from the effects of central bank liquidity support and political stability of sorts," said Nicholas Spiro, managing director of Spiro Sovereign Strategy.

The eurozone's third-biggest economy was brought to the brink of collapse in late 2011 when yields on its huge debt pile climbed to unsustainable levels around 7%.

Tax increases and spending cuts by a technocrat government led by Mario Monti reassured investors. But they led to a backlash against austerity in February's elections, boosting support for Beppe Grillo's protest movement and leaving no party able to form a government on its own.

Related: Austerity debate rages in Europe

Letta has signaled a willingness to adjust Italy's unpopular austerity drive, and Berlusconi has campaigned for a tax on property to be reversed, but it is unclear how the new government would make up for the revenue shortfall and the backdrop continues to deteriorate.

"Post-crisis sentiment toward Italy has never been better, but the economic conditions have never been worse," said Spiro.

Italy's government borrowing totals about two trillion euros, equal to around 127% of gross domestic product, a ratio surpassed in the eurozone only by Greece. Its economy has barely grown for years, unemployment is near 12% and rising, and living standards for many are tumbling.

The priorities for Letta's government are likely to mirror those of 87-year old Italian President Giorgio Napolitano, who was persuaded to accept a second term after parliament failed to agree on an alternative.

Napolitano has established two expert committees to work on overhauling Italy's convoluted electoral system and political institutions, and making structural reforms to restore competitiveness, boost growth and make a dent in the debt mountain.

First Published: April 29, 2013: 8:16 AM ET

19.33 | 0 komentar | Read More

Tesla offers idiot-proof battery warranty

NEW YORK (CNNMoney)

The battery is covered even if an owner fails to follow charging guidelines laid out in the owners' manual. "Any product that needs a manual to work is broken," Musk said.

The only cases in which Tesla (TSLA) would not honor a battery warranty would be a case in which a customer deliberately attempted to damage or destroy the battery, he said.

"If you take a blow-torch to the battery pack or blow it up or use it for target practice" the warranty would be voided, Musk said. Also, of course Tesla would not cover battery damage resulting from a crash. Car insurance will have to pay for that.

The Model S batteries will continue to be covered by either an eight year, 125,000 warranty or an eight-year unlimited mile warranty depending on the size of the battery pack in the car. (The Model S is sold with two different size battery packs.)

So far, Musk said, Tesla has not had a single problem with the batteries themselves failing. Any failures that have occurred have been due to faulty computer chips and other components.

The automaker also announced other improvements to the service it offers Model S owners including nicer loaner cars. "Our service is OK and it needs to be great," Tesla CEO Elon Musk said in a conference call with reporters.

When the vehicles need service, rather than having owners bring their cars to Tesla service centers themselves, Tesla will pick up the cars and owners will be given loaner cars. Tesla's loaner car fleet will now include only top-of-the-line Model S cars, equipped with the 265 mile long-range battery packs, and Tesla Roadster sports cars.

Gallery - 8 collectible SUVs

The loaner cars will also be available for sale, at a discounted price, should a Tesla owner decide he or she likes the loaner better than the car he already owns. Tesla also made the previously-required annual service visit entirely optional. The warranty will now be honored even if a Tesla owner never brings the car in for service.

Tesla cars are repaired at service centers that are separate from the showrooms in which the cars are sold. It's a novel system that has brought Tesla into conflict with traditional auto dealers in some parts of the country.
"I've told the Tesla service division that their job is never to make a profit," Musk said. Most auto dealerships make a large portion of their profits from the service department which, Musk pointed out, creates a conflict of interest when it comes to product quality.

"I hate the idea of making money because our product broke," said Musk. "That's just wrong."

These changes to Tesla's service come shortly after Tesla announced new financing options for its electric cars. Tesla is working on improvements to the recently announced financing plan, Musk said in an interview.

"We're going to come out with a modified or improved version as soon as we can get things squared away with our banking partners," he said.

So far, Tesla has sold about 7,000 Model S cars since they went on sale late last year.

First Published: April 26, 2013: 4:05 PM ET

21.29 | 0 komentar | Read More

FAA furlough reprieve: 'No fair!'

Lawmakers effectively canceled the furloughs of FAA air traffic controllers in an effort to end airport delays. Critics say Congress shouldn't pick favorites for reprieve from supposed across-the-board budget cuts.

NEW YORK (CNNMoney)

But advocates for everyone else directly affected by the so-called sequester are miffed with the selective undoing of what were supposed to be across-the-board cuts.

"We've got to save the traveling public but I ask the question about 5,000 children in Texas that will lose Head Start or the millions of seniors or our military families that will lose the support because we've got the sequester," Rep. Sheila Jackson Lee, a Democrat from Texas, said Friday.

Joseph Beaudoin, a former federal air traffic controller who now heads the National Active and Retired Federal Employees Association, was glad to see Congress reverse his former colleagues' furloughs. But he is worried about all the other federal government workers who aren't so lucky.

"Last month, Congress took action to ensure that furloughs could be avoided for TSA agents, meat inspectors and border patrol agents. However, hundreds of thousands of federal employees providing services across the United States still face furloughs," Beaudoin said in a statement. "We've had enough of the reactionary legislative response. It is time for Washington to come together to agree to smart, sensible approaches to tackling the budget."

Weary air travelers to get break from furloughs

The liberal activist group MoveOn.org was more scathing, contending the reversal was "solely to appeal to wealthy contributors who fly frequently." It issued an online petition to "demand that any emergency legislation to eliminate airline delays caused by the sequester also restore cuts to Head Start, cancer clinics, housing assistance, food pantries, and unemployment insurance."

Meanwhile, NDD United -- a coalition of 3,200 groups focused on public health, medical research, education and other areas -- sent a letter to Congress before the FAA reprieve was passed. "Damage control is not a sound fiscal policy. We urge you to reject any efforts to pick favorites and instead fix sequestration, once and for all," the letter said.

First Published: April 26, 2013: 5:06 PM ET

21.29 | 0 komentar | Read More

50 million customers hit in LivingSocial hack

LivingSocial is requiring all customers to change their passwords after a cyberattack on its systems.

NEW YORK (CNNMoney)

The daily deals site recently suffered a cyberattack on some of its servers, and customer data for more than 50 million users may have been accessed, the company said late Friday. Credit card data was not affected.

Some users who attempted to log in on Friday were greeted with a message about the "unauthorized access," and were required to reset their passwords.

A LivingSocial spokesman sent CNNMoney a copy of an email that the company is sending to customers, which says the hackers may have accessed names, email addresses, encrypted passwords and the dates of birth for some users.

All LivingSocial users had some data stored on the hacked server, the spokesman said, except for customers in Korea, Thailand, Indonesia and the Philippines. Those countries use TicketMonster and Ensogo, which are on different systems.

The company declined to comment further on details of the hack, instead sharing an internal memo that CEO Tim O'Shaughnessy sent to employees earlier today about it. Tech blog AllThingsD first reported on the hack, citing that internal memo.

Related story: Stop hackers in their tracks

In the message that greeted users attempting to log in, LivingSocial said it is "actively working with law enforcement to investigate this issue."

News of the LivingSocial hack comes three days after the Associated Press Twitter account was compromised. The hackers sent a tweet falsely claiming an attack on the White House had left President Obama injured, sending stocks sharply lower for a brief moment.

First Published: April 26, 2013: 5:37 PM ET

21.29 | 0 komentar | Read More

Tesla offers idiot-proof battery warranty

NEW YORK (CNNMoney)

The battery is covered even if an owner fails to follow charging guidelines laid out in the owners' manual. "Any product that needs a manual to work is broken," Musk said.

The only cases in which Tesla (TSLA) would not honor a battery warranty would be a case in which a customer deliberately attempted to damage or destroy the battery, he said.

"If you take a blow-torch to the battery pack or blow it up or use it for target practice" the warranty would be voided, Musk said. Also, of course Tesla would not cover battery damage resulting from a crash. Car insurance will have to pay for that.

The Model S batteries will continue to be covered by either an eight year, 125,000 warranty or an eight-year unlimited mile warranty depending on the size of the battery pack in the car. (The Model S is sold with two different size battery packs.)

So far, Musk said, Tesla has not had a single problem with the batteries themselves failing. Any failures that have occurred have been due to faulty computer chips and other components.

The automaker also announced other improvements to the service it offers Model S owners including nicer loaner cars. "Our service is OK and it needs to be great," Tesla CEO Elon Musk said in a conference call with reporters.

When the vehicles need service, rather than having owners bring their cars to Tesla service centers themselves, Tesla will pick up the cars and owners will be given loaner cars. Tesla's loaner car fleet will now include only top-of-the-line Model S cars, equipped with the 265 mile long-range battery packs, and Tesla Roadster sports cars.

Gallery - 8 collectible SUVs

The loaner cars will also be available for sale, at a discounted price, should a Tesla owner decide he or she likes the loaner better than the car he already owns. Tesla also made the previously-required annual service visit entirely optional. The warranty will now be honored even if a Tesla owner never brings the car in for service.

Tesla cars are repaired at service centers that are separate from the showrooms in which the cars are sold. It's a novel system that has brought Tesla into conflict with traditional auto dealers in some parts of the country.
"I've told the Tesla service division that their job is never to make a profit," Musk said. Most auto dealerships make a large portion of their profits from the service department which, Musk pointed out, creates a conflict of interest when it comes to product quality.

"I hate the idea of making money because our product broke," said Musk. "That's just wrong."

These changes to Tesla's service come shortly after Tesla announced new financing options for its electric cars. Tesla is working on improvements to the recently announced financing plan, Musk said in an interview.

"We're going to come out with a modified or improved version as soon as we can get things squared away with our banking partners," he said.

So far, Tesla has sold about 7,000 Model S cars since they went on sale late last year.

First Published: April 26, 2013: 4:05 PM ET

19.33 | 0 komentar | Read More

FAA furlough reprieve: 'No fair!'

Lawmakers effectively canceled the furloughs of FAA air traffic controllers in an effort to end airport delays. Critics say Congress shouldn't pick favorites for reprieve from supposed across-the-board budget cuts.

NEW YORK (CNNMoney)

But advocates for everyone else directly affected by the so-called sequester are miffed with the selective undoing of what were supposed to be across-the-board cuts.

"We've got to save the traveling public but I ask the question about 5,000 children in Texas that will lose Head Start or the millions of seniors or our military families that will lose the support because we've got the sequester," Rep. Sheila Jackson Lee, a Democrat from Texas, said Friday.

Joseph Beaudoin, a former federal air traffic controller who now heads the National Active and Retired Federal Employees Association, was glad to see Congress reverse his former colleagues' furloughs. But he is worried about all the other federal government workers who aren't so lucky.

"Last month, Congress took action to ensure that furloughs could be avoided for TSA agents, meat inspectors and border patrol agents. However, hundreds of thousands of federal employees providing services across the United States still face furloughs," Beaudoin said in a statement. "We've had enough of the reactionary legislative response. It is time for Washington to come together to agree to smart, sensible approaches to tackling the budget."

Weary air travelers to get break from furloughs

The liberal activist group MoveOn.org was more scathing, contending the reversal was "solely to appeal to wealthy contributors who fly frequently." It issued an online petition to "demand that any emergency legislation to eliminate airline delays caused by the sequester also restore cuts to Head Start, cancer clinics, housing assistance, food pantries, and unemployment insurance."

Meanwhile, NDD United -- a coalition of 3,200 groups focused on public health, medical research, education and other areas -- sent a letter to Congress before the FAA reprieve was passed. "Damage control is not a sound fiscal policy. We urge you to reject any efforts to pick favorites and instead fix sequestration, once and for all," the letter said.

First Published: April 26, 2013: 5:06 PM ET

19.33 | 0 komentar | Read More

50 million customers hit in LivingSocial hack

LivingSocial is requiring all customers to change their passwords after a cyberattack on its systems.

NEW YORK (CNNMoney)

The daily deals site recently suffered a cyberattack on some of its servers, and customer data for more than 50 million users may have been accessed, the company said late Friday. Credit card data was not affected.

Some users who attempted to log in on Friday were greeted with a message about the "unauthorized access," and were required to reset their passwords.

A LivingSocial spokesman sent CNNMoney a copy of an email that the company is sending to customers, which says the hackers may have accessed names, email addresses, encrypted passwords and the dates of birth for some users.

All LivingSocial users had some data stored on the hacked server, the spokesman said, except for customers in Korea, Thailand, Indonesia and the Philippines. Those countries use TicketMonster and Ensogo, which are on different systems.

The company declined to comment further on details of the hack, instead sharing an internal memo that CEO Tim O'Shaughnessy sent to employees earlier today about it. Tech blog AllThingsD first reported on the hack, citing that internal memo.

Related story: Stop hackers in their tracks

In the message that greeted users attempting to log in, LivingSocial said it is "actively working with law enforcement to investigate this issue."

News of the LivingSocial hack comes three days after the Associated Press Twitter account was compromised. The hackers sent a tweet falsely claiming an attack on the White House had left President Obama injured, sending stocks sharply lower for a brief moment.

First Published: April 26, 2013: 5:37 PM ET

19.33 | 0 komentar | Read More

Google can help you time the market

If you're Googling financial terms like "debt," "economics" and "inflation," that might mean it's time to sell your holdings.

LONDON (CNNMoney)

New research published in the journal Scientific Report shows that you can use Google Trends to track the search volume of important financial terms, which can indicate whether markets are set to rise or fall.

Researchers from the U.S. and U.K. found that, between 2004 to 2011, when search volumes rose for terms such as "debt," "money," and "unemployment," markets generally fell. When search volumes for those words declined, markets often rallied.

The report's co-author Helen Susannah Moat, a social scientist from University College London, explained that when people are Googling financial terms such as "inflation," "economics," "and "NASDAQ," it indicates that they're getting concerned about the markets and are likely to start selling.

When they're not searching those terms, they're probably feeling content and markets will push higher.

Related: Betting on boring stocks pays off

The researchers looked at nearly 100 different search terms and found that "debt" was one of the best terms for predicting market moves between 2004 to 2011, leading the researchers to a 326% profit when they tested out their hypothetical trading strategy on the Dow Jones Industrial Average.

Co-author Tobias Preis, a behavioral finance professor at Warwick Business School, said that when search volumes for the word "debt" started rising, the researchers would short the market for a week.

Then when search volumes fell, they'd go long for a week, Preis told CNNMoney. This weekly long-short trading strategy led them to the 300%-plus gain, but a long-only or short-only strategy would have also yielded some good returns, he added.

But investors shouldn't start trading with this strategy immediately, the researchers warned.

Preis said that times have changed and words like "debt" might no longer be useful at predicting market movements. The strategy needs updating as new keywords become more relevant to the markets.

Furthermore, Moat pointed out that now that their research paper has been released, other investors will try to use the strategy, diluting the impact in the long run.

This study follows research from 2010 that showed that weekly transaction volumes for S&P 500 companies were correlated with online searches related to those companies.

First Published: April 26, 2013: 9:31 AM ET

21.29 | 0 komentar | Read More

U.K. to honor Churchill with new £5 note

LONDON (CNNMoney)

Beginning in 2016, the U.K.'s smallest banknote -- the £5 note -- will feature a portrait of wartime leader Winston Churchill, commemorating his achievements as a politician, writer and orator.

"It seems entirely appropriate to put Sir Winston on what is probably our most popular note," Bank of England Governor Mervyn King said Friday. "Perhaps the note itself will become known as a Winston."

A former journalist and soldier, Churchill became prime minister in 1940 at the head of a national government, shortly after the outbreak of World War II when defeat by Nazi Germany seemed likely.

His stirring speeches were a source of national inspiration during the dark years that followed, and the new banknote will celebrate one of his most famous lines, made in a speech to parliament on the day he became prime minister: "I have nothing to offer but blood, toil, tears and sweat."

Related: The new $100 bill

Churchill was defeated in an election in 1945 but returned as prime minister in 1951. In recognition of his leadership, he was granted U.S. citizenship in 1963, two years before he died, and became the first Briton to have a U.S. warship named after him.

The Bank of England, which produces over one billion banknotes a year, began promoting eminent Britons from the past on the reverse side of its notes in 1970. The front is reserved for an image of the monarch.

Churchill will follow 19th century prison reformer Elizabeth Fry on the £5 note. Naturalist Charles Darwin is currently featured on the £10 note and economist Adam Smith's image is on the £20 notes.

First Published: April 26, 2013: 9:05 AM ET

21.29 | 0 komentar | Read More

Stocks stalled by lackluster economic growth

Click chart for more markets data.

NEW YORK (CNNMoney)

Gross domestic product -- a broad measure of what the economy produces -- increased in the first quarter but fell short of what economists expected.

That reading is the latest sign of what many investors see as a directionless economy that the Federal Reserve can't quite resuscitate. The Fed continues pumping billions of dollars a month into bonds and mortgage-backed securities to fuel the economy with lackluster results.

The Dow Jones industrial average rose 0.2%, while the S&P 500 and the Nasdaq dropped between 0.1% and 0.2%.

Meanwhile, investors continue to monitor a mixed bag of quarterly earnings reports.

Related: Fear & Greed Index still idling in neutral

Chevron (CVX, Fortune 500) traded up on better-than-expected earnings.

D.R. Horton's (DHI) stock price surged, after the home builder reported a near doubling of quarterly net income on Friday, riding the wave of the recovering housing market.

Burger King Worldwide (BKW) rose after its reported an increase in profits.

Starbucks (SBUX, Fortune 500) came under pressure after issuing downside guidance for the current quarter and reaffirming its revenue outlook for the year.

Amazon (AMZN, Fortune 500) shares fell precipitously, after the online retailer reported a profit decline.

J.C. Penney (JCP, Fortune 500) shares surged after hedge fund mogul George Soros said late Thursday that he had taken a 7.9% stake in the ailing retailer.

U.S. stocks closed slightly higher Thursday.

Related: 7 big winners in Nikkei surge

Asian markets ended mixed. The Shanghai Composite declined 1% and the Hang Seng added 0.7%.

The Nikkei lost 0.3% after the Bank of Japan said it would maintain its stimulus program. A separate report showed prices fell 0.5% last month in Japan, underscoring the monumental task facing policymakers as they attempt to reverse 15 years of deflation.

European markets fell in afternoon trading, on the heels of three consecutive trading days of significant gains. The Euronext 100 index declined by roughly 1%.

The dollar lost ground against the euro, the British pound and the Japanese yen.

Oil prices dipped, while gold prices jumped.

The yield on the 10-year Treasury rose to 1.71%.

First Published: April 26, 2013: 9:43 AM ET

21.29 | 0 komentar | Read More

Disaster donations: Texas lags way behind Boston

West, Texas was devastated by a fertilizer plant on April 17, two days after the Boston Marathon bombings.

NEW YORK (CNNMoney)

More than $26 million has been raised in the wake of April 15 Boston blasts. And it appears that donations for West total well under $1 million.

The Salvation Army, for example, has raised about $200,000 following the April 17 fertilizer plant explosion that killed 14 people, injured up to 200 and destroyed more than 100 homes. It has already spent about the same amount.

The needs in 2,800-person West are vast: food, shelter and transportation for displaced families, medical help for blast survivors, and eventually assistance rebuilding an entire community -- from houses and businesses to a school and nursing home. Property losses alone are expected to exceed $100 million, according to the Insurance Council of Texas.

CNN's Impact Your World: How you can help

Dan Ford, a resident of nearby Waco and the head of the McLennan County Salvation Army, understands the outpouring of support for Boston. But he said West is suffering.

"We've been greatly overshadowed by the Boston tragedy," said Ford. "We need help."

Another local group, the West, Texas Disaster Relief Efforts Fund has raised about $140,000.

Ashley Allison, executive director of the Waco Foundation, which helped establish the fund, said some of the largest donors indicated they gave because the media isn't paying enough attention to West.

"Families are hurting no matter how much media coverage is given," said Allison.

Meanwhile, Baylor University's West Relief Fund has collected a little more than $110,000, and another $50,000 has been raised between the United Way of Tarrant County, the Society of St. Vincent dePaul's and the National Fallen Firefighters Foundation.

The American Red Cross, as it does in most cases, is accepting general donations, some of which will be directed to West. It hasn't yet released an estimate of how much it has spent.

Related: Before and after: West, Texas plant explosion

GiveForward, a crowdfunding platform where anyone can set up a campaign and solicit donations for a cause, has been used for both of last week's tragedies.

But the site has had more than 24 crowdfunding initiatives pop up for Boston, raising $1 million so far -- compared to only six initiatives for West that have raised a mere $5,000.

The majority of the $5,000 raised on GiveForward for West victims has been dedicated to medical bills for a 2-year-old Texas survivor, Arianna Gassaway.

"Arianna has very extensive injuries including multiple broken bones, numerous lacerations and a severe head injury," the fundraiser says.

The $4,314 raised for Arianna so far is only 9% of her family's $50,000 goal.

Ethan Austin, co-founder and president of GiveForward, said the discrepancy between fundraising efforts for Boston and West likely has a lot to do with the differing emotions behind the giving.

"The explosion in Texas was an accident. The reaction was sadness. The bombings in Boston were a heinous and malicious act that brought back memories of 9/11. The reaction was anger," he said. "Stories inspiring high energy emotions like anger have a much higher likelihood of going viral. Stories inspiring low-energy emotions like sadness do not tend to go viral."

And as the media continues to focus intensely on the Boston bombing victims and suspects, people aren't hearing nearly as much about the devastation in West, said Stacy Palmer, editor of the Chronicle of Philanthropy.

"When you see a disaster get a lot of attention, you see a lot of giving ... and you really don't see as many stories that show the picture of what's happening [in Texas]," said Palmer.

First Published: April 26, 2013: 6:25 AM ET

19.33 | 0 komentar | Read More

Fitness gadgets: Cheaper than a personal trainer

The Garmin Forerunner 10 alerts you when you hit a personal best.

(Money Magazine)

Whether you're gearing up for a big race or trying to fit in a weekly power walk, there's a fitness device for you.

You want to walk more: Fitbug Air

What it tracks. Steps, distance covered, and calories burned

How it motivates. See your stats on this pedometer's easy-to-read display. The device holds two weeks of data and needs to be charged only every four to six months.

Related: 5 ways to prevent sports injuries

The Fitbug comes with one free month of online coaching; sync the device with newer iPhones and iPads to get personalized exercise and nutrition tips. If you like this optional service, you can continue it for $3.99 a month.

Cost: $29.99

You're an all-around fitness fanatic: Fitbit One

What it tracks. Steps, flights of stairs climbed, calories burned, and sleep cycles

How it motivates. Unlike a pedometer, this gadget senses altitude, so you'll get credit for climbing stairs. You can also use the device to monitor your sleep and find patterns that show when you're getting the best shuteye.

Related: 8 apps for staying fit

Sync it to a PC or smartphone to see your data, and go online to use Fitbit's free food-tracking tools.

Not a fan of clip-ons? The company plans to launch a bracelet version soon.

Cost: $99.95

You're an outdoor-sports nut: RunKeeper

What it tracks. Route, pace, distance covered, and calories burned

How it motivates. Download this iPhone or Android app to select from 14 runners' training plans or select a preset workout and track your run, hike, bike ride, or swim.

Set a goal, such as completing a cycling race, and RunKeeper will help you set up a training schedule, send workout reminders, and even give you pace and distance updates through your earphones.

Cost: Free

You run marathons -- or at least 5Ks: Garmin Forerunner 10

What it tracks. Running speed, distance covered, and calories burned

How it motivates. This light and thin GPS watch alerts you at the end of each mile or when you hit a personal best, without the need to stop and fumble with a phone.

Use the Garmin to build a custom run by, say, adding walking breaks, and compare your pace to the target you set. Plug it into a computer for a map of your run.

Cost: $129.99

First Published: April 26, 2013: 7:01 AM ET

19.33 | 0 komentar | Read More

Stocks: Caution ahead of GDP release

Click on chart to track premarkets

NEW YORK (CNNMoney)

U.S. stock futures edged lower ahead of the Bureau of Economic Analysis' first estimate of first-quarter GDP due for release at 8:30 a.m. ET.

Economists surveyed by Briefing.com are predicting it grew at a 2.8% annual pace in the first quarter, up from a measly 0.4% in the fourth quarter of 2012.

In corporate news, firms including Chevron (CVX, Fortune 500) are reporting quarterly results before the opening bell.

D.R. Horton's (DHI) stock price surged in premarket trading after the home builder reported a near doubling of quarterly net income on Friday, riding the wave of the recovering housing market.

Burger King Worldwide (BKW) reported a slump in revenue, including same-store sales, but an increase in net income.

Starbucks' (SBUX, Fortune 500) stock price fell in premarket trading, despite reporting an increase in quarterly revenue and operating income late Thursday, and raising its full-year earnings target. But investors were unimpressed, since the coffeehouse chain missed some of its expectations and lowered its guidance for the third quarter.

J.C. Penney (JCP, Fortune 500) shares surged in premarket trading after hedge fund mogul George Soros on Thursday revealed a 7.9% stake in the ailing department-store chain.

Amazon (AMZN, Fortune 500) dipped in premarket trading, after reporting quarterly earnings on Thursday that showed a slide in profit despite a surge in sales.

Related: Fear & Greed Index still idling in neutral

U.S. stocks closed slightly higher Thursday.

European markets were easing back in midday trading, on the heels of three consecutive trading days of significant gains. The Euronext 100 index declined by roughly 1%.

Related: Bank of Japan stands firm while deflation worsens

Asian markets ended mixed. The Shanghai Composite declined 1.0% and the Hang Seng added 0.7%.

The Nikkei lost 0.3% after the Bank of Japan said it would maintain its stimulus program. A separate report showed prices fell 0.5% last month in Japan, underscoring the monumental task facing policymakers as they attempt to reverse 15 years of deflation.

First Published: April 26, 2013: 5:10 AM ET

19.33 | 0 komentar | Read More

Jobless claims fall, point to improving job market

After rising as high as 670,000 during the jobs crisis, weekly jobless claims are now at around half that level.

NEW YORK (CNNMoney)

About 339,000 people filed for their first week of unemployment benefits last week, down from 355,000 a week earlier, the Labor Department said Thursday.

The figure is slightly lower than expected. Economists had forecast jobless claims would fall to 351,000, according to Briefing.com.

The data can be choppy from week to week, but nevertheless, the initial claims report is considered one of the most important gauges of the job market's strength. During the height of the financial crisis in 2009, jobless claims rose as high as 670,000.

Now they're at half those levels, showing that fewer employers are laying off workers. That said, hiring hasn't necessarily been robust.

Meanwhile, about 3 million people filed for their second week or more of unemployment benefits two weeks ago, the most recent data available.

First Published: April 25, 2013: 8:57 AM ET

21.29 | 0 komentar | Read More

Stocks get early boost

NEW YORK (CNNMoney)

The Dow Jones Industrial Average rose 0.1%, the S&P 500 added 0.5% and the Nasdaq gained 0.3%.

Good news about the job market gave stocks an early boost. The U.S. government announced that initial jobless claims dropped to 339,000 in the latest week, significantly lower than the 351,000 claims that economists were predicting.

Several companies reported earnings before the market opened.

Exxon Mobil (XOM, Fortune 500) beat earnings forecasts but shares still fell in early trading. UPS (UPS, Fortune 500) also reported a jump in quarterly earnings.

Shares of Safeway (SWY, Fortune 500) tumbled more than 11%, as investors focused on weaker-than-expected sales even though the grocer reported a higher quarterly profit.

Dow Chemical (DOW, Fortune 500) reported better-than-expected earnings, fueled by sales of agricultural products.

Shares of Zynga (ZNGA) fell nearly 9%, a day after the online gaming company issued a gloomy forecast.

Amazon (AMZN, Fortune 500) and Starbucks (SBUX, Fortune 500) report their results after the close.

Related: Fear & Greed Index idles in neutral

In other corporate news, Verizon Communications (VZ, Fortune 500) may draw attention after Reuters reported the company had hired advisers to look at a possible $100 billion bid to take full control of Verizon Wireless from Vodafone Group (VOD). Vodafone declined to comment.

General Electric (GE, Fortune 500) edged higher, a day after finance subsidiary GE Capital decided to nix lending programs for gun purchases in the wake of last year's Newtown massacre.

U.S. stocks ended mixed Wednesday.

European markets were mixed in afternoon trading, following a report that the British economy dodged a triple-dip recession, according to preliminary estimates.

At the same time, Spanish unemployment rose a record to 27.2%, and European car sales sunk to their lowest level since the mid-1990s.

Related: Austerity debate rages in Europe

"With the eurozone recession deepening and global climate looking gloomy in general, I don't think many people are expecting UK growth to kick on from here," said Caxton FX analyst Richard Driver. "Major risks still hang over the UK economy but this certainly brightens the outlook for sterling a little."

Asian markets also ended mixed, with Hong Kong's Hang Seng gaining nearly 1% and Japan's Nikkei up 0.6%. The Shanghai Composite finished 0.9% weaker.

First Published: April 25, 2013: 9:48 AM ET

21.29 | 0 komentar | Read More

15-year mortgage rate hits record low

NEW YORK (CNNMoney)

The 15-year fixed rate fell to 2.61% this week from 2.64%, The previous record low of 2.63% was set the week of Nov. 21, 2012.

An adjustable-rate mortgage, the 5/1 ARM, also bottomed out at 2.58%. The most popular mortgage, the 30-year fixed-rate, came in at 3.4%, 0.09 percentage point above its record low.

"The housing market is getting a boost with mortgage rates hovering at or near record lows," said Frank Nothaft, Freddie's chief economist.

He cited a pick-up in the pace of existing home sales to nearly 5 million a year during the first quarter of 2013, the most since the fourth quarter of 2009.

Related: 3 reasons the housing recovery may not last

The low 15-year rate meant that homeowners could book substantial savings by refinancing from their current 30-year fixed rates. For example, homeowners with 5% 30-year mortgages who switch to 2.6% loans would pay $21,000 in interest for every $100,000 borrowed over the course of the loan, compared with $93,000 in interest on the 30-year loan.

First Published: April 25, 2013: 10:11 AM ET

21.29 | 0 komentar | Read More

When energy stocks look like bargains

Caterpillar and other heavy-equipment makers stand to gain from expanding mining and drilling operations.

(Money Magazine)

The Dow and S&P 500 have already risen more than twice that, besting their 2007 records and prompting the question, "Now what?"

Valuations don't suggest a snarling bear is about to pound at the door, but after a 120% run-up since March '09, stock prices clearly are no longer low.

Even the bullish money manager Laszlo Birinyi, who correctly shouted "buy" at the nadir of the financial crisis, admits that he'll "reassess" stocks when the S&P 500 gets to 1600. As of early April that was a mere 30 points away.

Related: 4 ways the market could really surprise you

One game plan for the cautiously bullish is to invest in stocks that pay dividends, especially those that have a record of growing their payouts. Dividend stocks have outperformed the broader market over time, and consistent dividend growers tend to have strong balance sheets and dependable cash flows. Investing in such stocks is a sound long-term strategy, but for now they've had a good run that you can't assume will necessarily continue.

Think cheap

So here's another option: Find a deal. Search for a beaten-down corner of the market that could be poised to play catch-up.

The prices of energy-related stocks were hit by the slowdown in global growth last year, but as the U.S. economy improves and America's energy boom gains traction, energy service firms look like a bargain.

National Oilwell Varco (NOV, Fortune 500) provides mechanical components for land and offshore oil rigs, and it stands to benefit as oil and gas exploration and production companies ramp up. The stock's price/earnings ratio is 12, less than the industry average and the market as a whole. Annual long-term earnings growth is projected to be 14%.

Caterpillar (CAT, Fortune 500) and other large-equipment companies should gain from expanded mining and drilling operations. With more than half the company's sales coming from outside the U.S., the stock has seesawed through the post-recessionary period as important markets such as China and Europe stalled. But with a P/E ratio of only 10, CAT appears to be undervalued.

"The heavy equipment segment will come back when capital spending commitments pick up again," says Ned Riley of Riley Asset Management in Boston. "The short-term disappointments have been discounted already, and the stocks are now better buys than they were before."

Related: Money 70 - Best mutual funds and ETFs

To diversify your exposure to energy services firms, look to the SPDR S&P Oil & Gas Equipment & Services ETF (XES). Holdings include all the major players, such as Halliburton and Helmerich & Payne. The fund charges 0.35% of assets, so it's an inexpensive way to buy into an inexpensive sector.

First Published: April 25, 2013: 6:29 AM ET

19.33 | 0 komentar | Read More

The best job you never thought of

Actuary consistently ranks among the top jobs in the United States. Do you know what they do?

NEW YORK (CNNMoney)

It's in high demand, can pay six-figures a year, and your employer often foots the bill for on-the-job training. No grad school required!

It's an actuary, and for the past several years, it's been highly ranked as one of the best jobs in America on various lists, the most recent of which was compiled by CareerCast.

Despite all the good publicity, I can tell you from personal experience that most people still don't have an inkling what an actuary does.

My husband is an actuary, and when I introduce him to others as such, blank stares are common. Occasionally someone may say, "Oh, like the Ben Stiller character in Along Came Polly?"

The next inevitable question: "Can he predict when I'll die?"

So what is an actuary?

The job entails using statistics to estimate risks, usually for insurance companies. Actuaries set prices for insurance contracts and advise insurance companies just how much money they should set aside to pay out for future claims. They can also design pension and healthcare plans.

For example, an actuary may try to predict how much money an insurance company would have to pay out to cover damage from future hurricanes.

Insurance companies and insurance-related consulting firms are their largest employers, but actuaries are also scattered throughout academia and the government (they're crucial in the Social Security Administration, for example).

It's still a relatively small occupation, employing about 22,000 people in the United States, but it's expected to grow quickly. (By comparison, there are about 190,000 accountants in the country.)

The Labor Department forecasts the actuarial field will grow 27% between 2010 and 2020, adding 5,800 jobs during that decade. That's more new jobs than are expected from the economist, statistician and mathematician occupations combined.

That said, it's not an easy job to land, and it's certainly not the best fit for everybody.

The key to becoming a full-fledged actuary lies in passing an intense series of seven to nine exams, which can take between six to eight years to complete.

The good news is that employers often pay for the studies. Employers will often hire math, statistics or business majors with starting salaries around $45,000 to $50,000 a year, and then give them paid time off to study and take their exams, said Tom Miller, principal of Pinnacle Group Actuarial Recruiting.

Related: Top-paying jobs

Usually the salary increases with each passed exam. By the time all the exams are completed, the salary could have doubled, to around $90,000 a year, plus a bonus, Miller said.

The exams are notoriously difficult, and even among these math whizzes, it's not uncommon to fail one or two.

"These are people who have probably never failed an exam in their lives. They've gotten straight A's their whole life, and the failure rates can run as high as 60% on these exams. It's very, very challenging," Miller said.

Just go to a bar with a young actuary, and all they'll talk about is studying. The standard practice is to study 300 to 400 hours per exam.

If you can pass all the exams, the job is considered high paying and secure. One study, by the Georgetown University Center on Education and the Workforce, finds that actuarial science graduates had a near-zero unemployment rate in 2010.

"It's a great job and one of the reasons why is the stability of the profession. Demand is greater than supply, and it's been that way for 30-plus years. There's no expectation that will change," Miller said.

The few occupational hazards entail sometimes working 10-hour days, and of course, the occasional jokes about being a math nerd.

As an accountant put it to me last month -- "an actuary is someone who wanted to be an accountant, but didn't have the personality for it."

Actuaries often like to tell it the other way around.

First Published: April 25, 2013: 6:32 AM ET

19.33 | 0 komentar | Read More

Teens (and their parents) spending hundreds on prom

Sarah Hoffer, an 18-year-old high school senior in St. Louis, spent $259 on her prom dress, which required an extra $220 in alterations.

NEW YORK (CNNMoney)

On average, families expect to spend $1,139 on prom this year -- up roughly 40% from 2011's $807 average and a slight increase from last year, according to a Visa survey.

Families in the Northeast expect to pay the most, an average of $1,528, while Midwestern families were the most frugal, at an average of $722, according to the survey of more than 1,000 parents of prom-aged teens.

With traditions like debutante balls falling out of fashion and young people getting married later in life, prom has grown in importance and people are willing to spend more on the big night, said Kit Yarrow, a consumer research psychologist.

"Prom is the new wedding," Yarrow said. "I think that every society has to have a rite of passage into adulthood for young people, and prom has become that."

The increase in prom spending is also being driven by the popularity of photo-oriented sites like Facebook and Instagram, she said. Prom is "a post-able moment" which has heightened the pressure around appearances.

While parents still foot a majority of the bill, teens pay for about 41% of the costs, Visa's survey found.

Related: I had 10 jobs before age 25

Sarah Hoffer, an 18-year-old senior at Webster Groves High School in St. Louis, saved roughly a month's worth of pay from her job at a local car wash to help pay for her prom.

Her biggest expense was a $259 vintage-inspired dress that she fell in love with online. Her mother, Martha Valenta, agreed to pay for an additional $220 in alterations.

"The dress was real drama," said Valenta, who wore a borrowed dress to her own prom. "I don't recall that ever in my youth."

Hoffer also spent $50 on a ticket, $20 on shoes, $43 on a manicure and pedicure and $35 on makeup -- bringing her grand total to $627, of which she paid about two-thirds.

To save money, she used a free trial visit for a spray tan, had a friend's mom style her hair and drove herself to prom, unlike many of her classmates who she said spent hundreds on limos and party buses.

When Patti Manoogian, from Hackettstown, N.J., took her 17-year-old son Alex Galbreath to Men's Wearhouse, she wasn't expecting to pay more than $100 to rent a tux for prom night. But the designer Vera Wang tux her son picked out cost $200 to rent.

The school requires students to ride a bus to prom, which saves on limo costs, but once she adds on the $90 prom ticket, the corsage for his date and photos, the total bill will likely exceed $400. Other parents, she said, are spending much more.

"I love the idea that the kids have an opportunity to dress up like adults," she said. "But if we could take down the competition on what people look like, I think you could get the same nice adult evening for something that doesn't cost a mortgage payment."

For some families, the costs are especially daunting.

Families with household incomes below $50,000 a year plan to spend an average of $1,245 on prom this year, compared to $1,129 for those with incomes above $50,000, the Visa survey found. And single parents plan to spend $1,563, nearly double the amount of married parents.

Related: Bieber launches prepaid debit card

Noel D'Allacco founded the nonprofit Operation Prom to provide donated prom dresses to low-income teens nearly a decade ago. This year, the group expects to distribute more than 5,000 dresses nationally.

"Years ago we used to require a copy of their parents' tax return, but ever since 2009, we stopped doing that because chances are if you are coming there is some sort of financial need," she said.

A dialysis patient awaiting a kidney transplant, Brenda Cruz has been unable to find work for years. Living on monthly disability checks of less than $1,000 a month, the Brooklyn, N.Y. resident had no clue how to afford to send her 19-year-old daughter, Rachel Gantt, to senior prom in June.

But at Operation Prom's giveaway in Queens, Gantt was able to pick out a dress for free. Cruz is still worried about paying for shoes and a prom ticket, but she is determined that her daughter not miss out.

"I'm going to try everything I can," she said. "If that means that I can't pay rent for this month coming up so she can get her ticket, then I'm just going to have to do it and deal with the consequences later."

First Published: April 25, 2013: 6:42 AM ET

19.33 | 0 komentar | Read More

Ford earnings rise

Ford reported improved earnings helped by a record quarter in its home market.

NEW YORK (CNNMoney)

Ford said a 20% jump in sales in North America helped it post the largest quarterly profit in its home region since the automaker started breaking out those numbers in 2000.

But the company losses in Europe more than tripled from its year-earlier loss, to $462 million. Ford has announced plans to close two U.K. plants, along with a third plant in Belgium, to try to stem European losses. But those plant closings won't take effect until later this year or in 2014.

The problems are not unique to Ford. A worsening European recession has resulted in the worst industry-wide auto sales on the continent in 20 years.

On Wednesday, German carmaker Daimler AG (DDAIF) forecast that earnings for 2013 will be below 2012 levels, after reporting a 60% drop in net profit for the first quarter. Volkswagen (VLKAF) also warned it is struggling with what it called "ongoing uncertainty in the economic environment." But it said it still hopes to match 2012 operating profits this year.

Related: Ford and Toyota feud over whose bigger

The problems for Ford weren't only in Europe. South America swung from a profit a year earlier to a loss in the quarter. But it went from a loss in the Asia/Pacific/Africa region into a narrow profit, and earnings also improved at Ford Credit.

Overall, Ford, second in U.S. sales behind rival General Motors (GM, Fortune 500), earned $1.6 billion in the first three months of the year, up 15% from a year earlier. Its revenue rose 10.5% to $35.8 billion, as the number of cars sold worldwide rose to 1.5 million.

Shares of Ford (F, Fortune 500), which have lagged broader U.S. markets so far this year, were down in early trading following the results, after being slightly higher at the open.

-- CNNMoney's Alanna Petroff contributed to this report

First Published: April 24, 2013: 7:21 AM ET

21.29 | 0 komentar | Read More

High speed trading fueled Twitter flash crash

The Dow dropped more than 140 points Tuesday.

NEW YORK (CNNMoney)

The Dow quickly bounced back. The sharp sell-off highlights just how disruptive computer-driven high-frequency trading can be.

The S&P 500 lost $121 billion of its value within minutes.

High-speed computer trading accounts for roughly 50% of all trading. That's down slightly from a few years ago, but traders on the ground say it feels more dominant.

And mini flash crashes have become an all too familiar daily occurrence.

"This shows the Achilles' heel of a market structure that has high-frequency trading as its backbone," said Sal Arnuk, co-head of trading at Themis Trading.

Related: False tweet roils markets

Traders and analysts say that at the first sign of crisis (and sometimes in the absence of a crisis), high-frequency traders pull out of the market, leaving a void of buyers and sellers.

In fact, liquidity dried up even faster after the false tweet Tuesday than it had during the infamous Flash Crash of 2010.

Eric Hunsader, the founder of Nanex, a firm that tracks trading behavior. said Tuesday's market reaction shows that trading has become even faster in recent years.

Related: Mini flash crashes: A dozen a day

"One tweet can do more damage to our market's liquidity than the flash crash," said Hunsader. Certain trading pools were overloaded, and trades weren't reported for four minutes, he added.

Within the past year and a half, disruptions in the market marred the IPOs of the BATS exchange and Facebook.

Just Monday, Google (GOOG, Fortune 500) had an inexplicable flash crash. It only lasted a few seconds but still signals the fragility of markets in a high-speed trading world.

The SEC, Nasdaq and NYSE all declined to comment on Tuesday's flash crash.

A spokesperson for BATS called the drop a "non-issue for the trading community" and said the exchange had not received any calls from customers.

First Published: April 24, 2013: 7:45 AM ET

21.29 | 0 komentar | Read More

Stocks falter in early trading

Click chart for more market data.

NEW YORK (CNNMoney)

The Dow Jones Industrial Average, the S&P 500 and the Nasdaq dropped between 0.2% and 0.4%.

Investors were spooked by a report on durable goods orders that showed orders fell by 5.7% in March -- much worse than analysts had predicted.

Another batch of earnings also gave investors pause.

Boeing (BA, Fortune 500) was the biggest gainer on the Dow, after it reported an increase in profits, even as revenue was dinged by its grounded Dreamliners.

But AT&T (T, Fortune 500) and Procter & Gamble (PG, Fortune 500) offset those gains. AT&T's sales came up short, while Procter & Gamble cut its guidance.

Apple (AAPL, Fortune 500) beat expectations and announced it would raise its quarterly dividend and boost its stock buyback program. But the company still struggled with lower profits on the iPhone and iMac.

Ford (F, Fortune 500) also reported a jump in earnings, helped by sales in North America.

Related: High speed trading fueled Twitter crash

Shares of Juniper Networks' (JNPR) fell more than 7% after the company projected "continued weakness" in its earnings outlook late Tuesday.

Shares of Yum Brands (YUM, Fortune 500) jumped more than 6% after the fast-good restaurant operator reported earnings that topped Wall Street's low expectations.

Related: Fear & Greed Index, Drifting into neutral

Even with the errant tweet, U.S. stocks finished higher Tuesday.

European markets rose in afternoon trading, supported by continuing talk of a ECB rate cut following weak eurozone data. The Ifo German business climate index for April was weaker than expected.

Asian markets ended higher, with Japan's Nikkei adding 2.3%. Hong Kong's Hang Seng added 1.7% and the Shanghai Composite increased 1.6%.

The dollar rose against the euro and the Japanese yen, but fell against the British pound.

Oil and gold prices jumped.

The yield on the 10-year Treasury stayed flat at 1.70%.

First Published: April 24, 2013: 9:57 AM ET

21.29 | 0 komentar | Read More

Reduce the steep cost of diabetes

Diabetes is expensive to monitor and control. Here are some ways you can save money on your medical expenses.

(Money Magazine)

Some 26 million Americans suffer from the disease, in which sugar builds up in the blood: 7 million of those are undiagnosed. Another 79 million are prediabetic, or at risk for developing the ailment.

Says Dr. Ron Loeppke, vice chairman of U.S. Preventive Medicine: "It's a national crisis."

And a costly one; diabetes patients can spend as much as several thousand a year out-of-pocket on treatment, says Loeppke.

If you have the disease or are in a high-risk group (have a family history of the illness and/or are overweight), try these strategies to keep the costs in check:

If you don't have diabetes...

Take precautions. Make sure your doctor includes a blood-sugar screening in your physical; insurance will pick up the tab in almost all cases.

Related: Crack open your own genetic code

High-risk patients should get screened at least once a year, says Philadelphia-area primary-care doctor Charles Cutler.

And move more: In people with prediabetes, losing 5% to 7% of body weight and getting 150 minutes of exercise a week decreases the risk of developing diabetes by almost 60%, according to the Centers for Disease Control.

Struggle with your diet? Ask your doctor for a prescription to see a nutritionist -- if you've been diagnosed as prediabetic, your insurer may cover the cost.

If you have diabetes...

Stick to older meds. Drug companies are touting new medications such as Januvia and Onglyza, designed to control blood sugar, but the drugs that have been around for years are just as effective for most people and often have fewer side effects, according to a 2011 report by the federal Agency for Healthcare Research and Quality.

Related: 10 things to know about health insurance

Those who have a large co-pay for name-brand drugs or are on a high-deductible plan might pay a couple hundred dollars a month for the latest meds, while drugs such as metformin and glipizide are sold as generics and usually cost under $20 a prescription.

Save on supplies. Private insurance generally doesn't pay for the home monitor, lancets, and testing strips needed to test blood-sugar levels multiple times a day.

Opt for the monitor that uses the cheapest testing strips, says Cutler, and order supplies in bulk from online wholesale supply firms.

Pay for supplies with pretax dollars via your work flexible spending account or see if you qualify for a medical tax deduction (you get a break on costs that exceed 7.5% of your adjusted gross income).

Seek support. Studies show that diabetics who join support groups better maintain normal blood-sugar levels.

Almost every large employer offers some sort of chronic-illness management program with access to nurses and support classes, according to the benefits consulting firm Towers Watson. Most major insurers do as well. Call your HR department or insurer and ask.

First Published: April 24, 2013: 6:11 AM ET

19.33 | 0 komentar | Read More

High speed trading fueled Twitter flash crash

The Dow dropped more than 140 points Tuesday.

NEW YORK (CNNMoney)

The Dow quickly bounced back. But the sharp sell-off highlights just how disruptive computer-driven high-frequency trading can be.

High-speed computer trading accounts for roughly 50% of all trading. That's down slightly from a few years ago, but traders on the ground say it feels more dominant.

And mini flash crashes have become an all too familiar daily occurrence.

"This shows the Achilles' heel of a market structure that has high-frequency trading as its backbone," said Sal Arnuk, co-head of trading at Themis Trading.

Related: False tweet roils markets

Traders and analysts say that at the first sign of crisis (and sometimes in the absence of a crisis), high-frequency traders pull out of the market, leaving a void of buyers and sellers.

In fact, liquidity dried up even faster after the false tweet Tuesday than it had during the infamous Flash Crash of 2010.

Eric Hunsader, the founder of Nanex, a firm that tracks trading behavior. said Tuesday's market reaction shows that trading has become even faster in recent years.

Related: Mini flash crashes: A dozen a day

"One tweet can do more damage to our market's liquidity than the flash crash," said Hunsader. Certain trading pools were overloaded, and trades weren't reported for four minutes, he added.

Within the past year and a half, disruptions in the market marred the IPOs of the BATS exchange and Facebook.

Just Monday, Google (GOOG, Fortune 500) had an inexplicable flash crash. It only lasted a few seconds but still signals the fragility of markets in a high-speed trading world.

The SEC, Nasdaq and NYSE all declined to comment on Tuesday's flash crash.

A spokesperson for BATS called the drop a "non-issue for the trading community" and said the exchange had not received any calls from customers.

First Published: April 24, 2013: 7:45 AM ET

19.33 | 0 komentar | Read More