Clippers sale will bring many bidders, huge payday

Fans at the Clippers' playoff game Tuesday night.

NEW YORK (CNNMoney)

NBA Commissioner Adam Silver announced on Tuesday that he would ask the league's other 29 owners to force Sterling to sell the team after a recording of Sterling making racist comments surfaced. Silver also banned the owner from the league for life.

Sterling has not yet commented on his plans for the team, but several other owners have said they will back Silver's request.

It didn't take long for some potential high-profile buyers to confirm they are interested in buying the team. Media mogul David Geffen and former boxer Oscar De La Hoya each confirmed they want to own the Clippers.

"The league has made it known that it wants more minorities involved, and as a proud Mexican-American, I will bring a different perspective to the NBA in general and the Clippers in particular," said De La Hoya.

Related: What Sterling's ban means for Clippers' finances

Geffen had previously expressed interest in buying the Clippers in 2010, but Sterling did not sell at that time. Geffen's spokeswoman Priscila Giraldo confirmed to CNN that he is interested once again.

There have been numerous reports that former Lakers star Magic Johnson, who now is managing partner of the Los Angeles Dodgers and who formerly held a 4.5% stake in the Lakers, is interested in the Clippers. Silver, when asked about Johnson as a potential owner at Tuesday's press conference, welcomed the idea.

"Magic Johnson knows he's always welcome as an owner in this league. He's been a part owner in the past of the Los Angeles Lakers, and is always welcome and a close friend of the NBA family."

Related: Most Clippers sponsors take wait and see approach

Oracle (ORCL, Fortune 500) CEO Larry Ellison is another potential buyer. He made an unsuccessful run at the Golden State Warriors when that Oakland-based team was sold for $450 million in 2010. A spokesman for Oracle did not immediately respond to a request for comment.

According to Forbes, which tracks team valuations, the Clippers are worth $575 million, up from the $12 million Sterling reportedly paid in 1981. That valuation would mean a 12% annual gain.

But other experts put the fair-market value of the team much higher. Patrick Rishe, a professor of sports business at Webster University, says that the team is worth at least $750 million and that a bidding war could quickly take the sales price up to $1 billion or more.

Rishe points to the recent sales of the Milwaukee Bucks and Sacramento Kings, two of the lowest-revenue NBA teams, which each recently sold for about $550 million.

He also said that new NBA television rights deals are expected to command higher fees, which should in turn lift the prices of all franchises. With sports programming less prone to time-shifting and commercial skipping by viewers, advertisers and broadcasters are eager to get that programming, Rishe said.

He added that the most recent collective bargaining deal also benefits the NBA owners and franchise values.

"You almost have to be a crash test dummy not to make money in the NBA given that the cost structure and economics," he said.

The Clippers have traditionally been the second team in Los Angeles behind the richer and more popular Lakers. But the team has become far more popular in recent years. It has sold out every game since February 2011 and has two of the NBA's most marketable stars -- point guard Chris Paul and forward Blake Griffin.

First Published: April 30, 2014: 10:08 AM ET

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Stocks slide as all eyes turn to Fed

NEW YORK (CNNMoney)

The Dow Jones industrial average was flat, while the S&P 500 and the Nasdaq drifted lower.

Gross domestic product, the broadest measure of the U.S. economy, grew at just a 0.1% annual pace in the first quarter, the U.S. Bureau of Economic Analysis said. Economists had anticipated that winter weather would take a toll on growth, but the result was worse than most forecasts.

But not all the morning's economic news was bad. Payroll processor ADP (ADP, Fortune 500) said the private sector added 220,000 jobs in April. That's the strongest job growth since November.

Still to come, the Fed wraps up a two-day policy meeting with a decision on interest rates at 2 p.m. ET. The central bank is expected to reduce its asset purchases by another $10 billion.

Twitter tanks

Social media stocks were in focus after Twitter (TWTR) posted uninspiring first quarter results late Tuesday. Twitter shares were down more than 10% in early trading, while Facebook (FB, Fortune 500), LinkedIn (LNKD) and China's Weibo (WB) also fell.

But Energize (ENR)shares jumped 9% after the battery company announced plans to split into two companies, one for Energizer batteries and other household products and another for personal care brands such as Schick and Playtex.

In other corporate news, CNNMoney parent Time Warner (TWC, Fortune 500) reported earnings and sales that topped forecasts, helped by strong revenue from the Lego movie.

Related: Fear & Greed Index shows investors still gripped by fear

Shares of Royal Dutch Shell (RDSA) rose after the oil giant reported better-than-expected quarterly results and hiked its dividend. eBay (EBAY, Fortune 500) shares declined a day after the online marketplace reported disappointing earnings.

Yelp (YELP) is reporting after the bell.

More merger mania

Exelon (EXC, Fortune 500) agreed to acquire rival utility Pepco Holdings (POM, Fortune 500) in a $6.8 billion all-cash deal.

Takeover talk continues overseas, with shares of French company Alstom rallying 8% in Europe after General Electric (GE, Fortune 500) bid $13.5 billion to take over the firm's power divisions. German firm Siemens (SI) may make a counter offer as well.

Related: Five years later, TARP price tag hits $40 billion

U.S. stocks closed higher Tuesday, with the Dow logging its fourth-highest close ever.

Over the course of April, the Nasdaq has declined by just over 2%. The S&P and Dow have eked out minor gains.

Related: CNNMoney's Tech 30

European markets were mixed in morning trading. Asian markets ended with mixed results.

First Published: April 30, 2014: 9:44 AM ET

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Twitter stock tanks. It's not the 'next Facebook'

Click image for more data

NEW YORK (CNNMoney)

Shares of Twitter (TWTR) tumbled to their lowest post-IPO price yet on Wednesday after the micro blogging site revealed results that only reinforce jitters about its user activity and engagement.

For example, Twitter said its monthly active user growth ticked up just 6%.

Even worse, the number of monthly active users viewing the service's "timeline" -- the list of tweets people write -- remained flat from the fourth quarter and down 8% year-over-year. That's not a good sign for Twitter's influence.

Many companies make up ground with strong international growth, but Twitter is struggling there as well. Non-U.S. user growth decelerated to 27% in the first quarter, down from 34% at the end of last year.

"Twitter needed a perfect quarter, both financially and operationally, in order to put an end to the recent share pressure," Stifel Nicolaus analyst Jordan Rohan wrote in a note to clients.

Related: Twitter sinks as user growth underwhelms

While Twitter's financial results were "impressive," the company's user data "remained mixed despite management's insistence that significant progress has been made," he wrote.

The San Francisco-based company's revenue soared 119% year-over-year to $250 million, but it broke even on profits. Investors disregarded the stronger-than-expected results, choosing instead to look under the hood.

Twitter plunged 11.6% to $37.65 Wednesday morning, sending the stock below its prior intraday trading low of $38.80 that was set in late November, shortly after the company went public.

The stock remains above its $26 IPO price, but keep in mind the first trade on November 7 shot the stock price up to $45.10. Shares are well off that price.

Related: #WOW! Twitter soars 73% in IPO

Investors who bought at Twitter's all-time high of $74.76 in late December are now staring at a painful loss of about 50%.

Twitter CEO Dick Costolo defended the results, saying the company continues to "rapidly increase our reach and scale" He pointed to the integration of MoPub, which Twitter said makes the company one of the largest ad exchanges in the world on a mobile app.

After today's bloodbath, the next most telling event will come May 5 when the lockup expires and Twitter founders and executives can sell their shares. The question is whether any of the "insiders" will sell. If they do, it could flood the market with more Twitter shares.

Related: Twitter insiders aren't selling out yet

Analysts have been slashing their estimates of the the company's value.

Concerned by Twitter's user metrics, Rohan cut his estimate of the company's fair value to $43 per share, down a lot from $56. While Rohan raised his 2014 and 2015 revenue estimates slightly, the analyst dimmed his forecast for timeline views and trimmed 2017 user count projections by another 4%.

"We expect continued pressure on shares in the near term," Rohan wrote.

First Published: April 30, 2014: 10:20 AM ET

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This city's residents have the least debt

Detroit residents carry an average debt load of $23,604.

NEW YORK (CNNMoney)

The average debt load for a person living in Detroit is $23,604. That's the lowest of any major city and is down 7.1% from four years ago, according to Experian, which looked at credit card, auto, personal and student loan debt in the 20 largest U.S. metropolitan areas.

Other cities where residents carried the lowest overall amounts of debt included Los Angeles, Miami, New York and Boston (see table for full list below).

Related: Big data knows you're broke

Dallas residents carried the biggest debt load, with an average of $28,240. That's up 7.8% from four years ago.

Houston, Washington, D.C., Seattle and Baltimore rounded out the five cities with the highest debt burdens.

Detroit was the only city out of the 20 that saw its average debt load decrease over the past four years. Nationwide, debt has climbed 5% to an average $25,927 since 2010.

Related: 3 simple ways to get out of debt

But growing debt isn't always a bad sign, says Michele Raneri, vice president of analytics at Experian.

"[It] could actually be signaling a recovery pattern as credit lending is opening up and consumers are becoming more confident," she said.

That could also be why Detroit was the only city to see debt levels decrease. Residents may not be able to access as much credit or are refraining from taking on debt as they try to get through their own financial troubles amid the city's economic crisis, said Raneri.

Detroit residents have decent credit scores on average, however. While the average VantageScore (which ranges from 300 to 850) is 665, Detroit averaged a 667 -- meaning residents are managing the credit they do have fairly well.

Where the debt is

Detroit	$23,604
Los Angeles	$24,361
Miami	$24,884
New York	$25,396
Boston	$25,413
Tampa	$25,537
Minneapolis	$25,626
San Francisco	$25,828
Philadelphia	$26,128
San Diego	$26,423
Chicago	$26,429
St. Louis	$26,721
Atlanta	$26,940
Denver	$27,090
Phoenix	$27,267
Baltimore	$27,271
Seattle	$27,279
Washington, D.C.	$27,668
Houston	$28,105
Dallas	$28,240

First Published: April 30, 2014: 5:56 AM ET

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China's economy bigger than believed, new study claims

By one measure, China's economy is approaching that of the United States.

HONG KONG (CNNMoney)

The basis for this claim is new data from a statistical program run by the World Bank that suggests China's rapidly-growing economy is much bigger than previously thought.

Caveats abound, however.

The data, published by the International Comparison Program, relies on a way of calculating the real cost of living known as purchasing power parity. The idea is to compare economies around the world while accounting for changes in exchange rates.

By this measure, China's economy was 87% the size of the U.S. economy in 2011, putting it on track to claim the top ranking in the near future.

But if a straight comparison of gross domestic product is used, the $17 trillion U.S. economy is around twice the size of China's reported GDP. While China's economy is growing fast, it will still take years for the U.S. to lose its top spot by this measurement.

China also lags far behind when its population of 1.4 billion is taken into account. The country ranked 99th in the ICP comparison of GDP per capita, while the U.S. came in 12th.

Related: World's largest economies

So what to make of all this? Probably not much.

Comparing the size of economies is difficult, in part because different countries maintain (and sometimes manipulate) their own currencies. Fluctuations in currencies can make economies appear larger, even if there has been no change in the quantity of goods or services produced.

For example, imagine two countries with identical GDPs. If one country's currency strengthens by 10%, it does not follow that its economy is now 10% larger than its counterpart.

Related: Finally! I got a job

By using purchasing power parities to calculate the size of economies, ICP tries to take these fluctuations into account in its comparisons.

This method has its advantages, and is often used to gauge poverty in the developing world. But it also produces a significant margin of error, and is not the final word on economic might.

First Published: April 30, 2014: 6:03 AM ET

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What to really look for in April's auto sales

To get the full auto sales picture, you need to read between the spaces.

(Fortune)

While it's good to have the sales numbers, it is equally important to know how to interpret them. The raw data requires experienced eyes to identify trends and spot inflection points. To paraphrase the old saying, there are lies, damn lies, and monthly auto sales.

It's complicated. For one thing, reported sales numbers don't represent final sales to retail customers but wholesale shipments to dealers. When newly assembled cars leave the factory, they are titled and become the property of a dealer, and the sale is counted. It will be several more months before a retail customer takes possession.

Manufacturers are experienced at gaming the numbers. One trick is to load unsold cars onto truck transporters and train carriers at month's end, so the vehicles can be counted as sold. Years ago, Chrysler had a habit of parking newly built cars on empty lots around Detroit and then selling them to dealers in fire sales at discounted prices. The practice, known as the "sales bank," nearly drove the company into insolvency in the late 1970s.

MORE: 10 things I learned at the New York auto show

Until the mid-'90s, sales were reported every 10 days, creating even more opportunities for gamesmanship. The last third of the month always saw a spike in sales. But once a month invites its own kind of sleight-of-hands. Here are some of the many ways to parse the monthly auto sales numbers:

Bulls vs. bears

For some analysts, the sales glass is always half full; others are typically less rosy. Take these divergent forecasts for April 2014:

At Kelley Blue Book, senior analyst Alec Gutierrez expects April "to continue with another solid month of sales, which will be supported by rising consumer confidence and improving employment conditions." Bah humbug, says independent consultant Warren Browne, who admits to not being a "natural optimist" when it comes to predicting economic growth. Browne believes the recession left deep scars and "consequently, it will take exceptional luck to keep vehicle sales growing in 2015 -- a small economic miracle, or the industry getting to crazy incentive levels."

I'd side with Browne, since Kelley could be conflicted by its mission of helping shoppers buy cars.

Three-card monte

Sales wars are fought on three levels. First, there are gross sales that count every customer: government and corporate fleets, daily rental car fleets, and retail buyers. These results tend to favor domestic makers who have lots of fleet customers -- sometimes as much as 40% of their volume. Import manufacturers that sell fewer fleet cars prefer to count retail sales only. But even though retail sales are a better measure of true demand, the numbers aren't published industrywide and don't get wide circulation. As a result, nobody can claim the award for most retail sales in a particular model.

Then there are sales adjusted for incentives, the so-called cash on the hood that automakers use to close deals. As in fleet sales, there is a whisper number as well as a published one, which allows a manufacturer to anonymously cast doubt on the sales results of a competitor. Honda (HMC), which eschews incentives, uncharacteristically went public a few days ago (without naming names) when it declared in its March sales report that Honda market share remained strong "despite heavy incentives from several major automakers."

Classic duels

Sales analysts like to report on the progress of several head-to-head sales battles, which vary widely in their economic significance. One of the most popular is Toyota Camry vs. Honda Accord because the winner is usually the bestselling car overall, a title that carries considerable bragging rights. In narrower segments, Mustang vs. Camaro and Chevy Volt vs. Nissan Leaf have followers, though low volumes make the outcomes inconsequential. The battle between BMW and Mercedes-Benz for the honor of bestselling luxury brand is also widely followed, even though large sales numbers don't correlate with premium exclusivity.

MORE: GM posts huge profit drop driven by ignition switch crisis

The most closely watched contest in 2014 -- and deservedly so -- is between two trucks: Chevy Silverado and Ram. Chevy has long been the runner-up in truck sales (Ford's (F, Fortune 500) F-series is way out front) but Ram passed it in March sales. At stake are the lushest variable profits in the business -- up to $10,000 per truck.

Quote wars

For auto sales insiders, there is another two-way spat going on: Edmunds.com vs. Kelley Blue Book. They fight not over sales, but over who gets more analyst quotes into print. After Edmunds started providing prepackaged quotes to journalists a few years ago, Kelley began doing the same. Now the two battle each month in an effort to gain visibility for their car shopping websites. Most of their comments are to the point, though they sometimes lapse into tautologies along the lines of "falling sales are a sign of declining popularity" and "if their sales keep going down, they could be in trouble."

U.S. vs. Japan

A popular stat that compares the market share of the old Big Three to the Japan Six went out of favor when Detroit's share seemed to stabilize, and it became almost unpatriotic to point out the shortcomings of domestic producers. Now it may be time to revive it. As Warren Browne points out in his latest report, Detroit's share has fallen 5.9 percentage points since the 2008-2009 financial crisis, and the Toyota (TM) brand may outsell General Motors' (GM, Fortune 500) Chevrolet this year. If the domestics keep losing sales like that, they could be in real trouble.

First Published: April 30, 2014: 6:09 AM ET

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Stocks open higher...of course, it's Tuesday

NEW YORK

The Dow Jones industrial average, S&P 500 and Nasdaq all enjoyed solid gains in early action. U.S. stocks ended mixed Monday. The Dow is up over 85 points.

April has been a tough month for investors, with the Nasdaq taking a sharp dive as investors soured on many tech and bio tech stocks. The S&P and Dow are up for the month, but only barely.

Attention is beginning to shift towards the Fed, which is set to wrap up a two-day policy meeting on Wednesday. The central bank is likely to dial back its bond buying program by another $10 billion in a bid to wean Wall Street off its easy money policies.

Meanwhile corporate earnings reports continue to roll in. Sprint (S, Fortune 500) popped 2% as investors cheered a narrower than expected loss and strong sales.

Related: Fear & Greed Index still gripped by fear

Share of BP (BP) nudged 2% higher after the oil and gas firm hiked its dividend. Retailer Coach (COH) dropped 8% after the company missed sales forecast, even as it beat on profits.

Herbalife (HLF) struggled to find a post-earnings bounce despite logging stronger than expected profits and sale and announcing plans to scrap its dividend in favor of more stock buybacks. The company is the subject of several government investigations into its business practices.

Related: Herbalife profits continue to surprise

EBay (EBAY, Fortune 500) and Twitter (TWTR) are among the major companies that will share results after today's close. Twitter struggled yesterday in trading, ending the day down.

Aside from earnings, shares of Nokia (NOK) rose 5% after the tech company announced a new CEO and plans to spend billions on dividends and share buybacks. Nokia has just finalized the sale of its handset division to Microsoft (MSFT, Fortune 500), allowing it to focus on its networks business.

Inflight Internet provider Gogo (GOGO) tumbled almost 20% after AT&T (T, Fortune 500) revealed plans to launch a competing service.

Housing stocks such as Lennar (LEN) were little changed after the S&P/Case-Shiller 20-city index of U.S. home prices was unchanged in February, matching forecasts. Prices climbed 12.9% year-over-year, nearly mirroring estimates. The Conference Board will publish its consumer confidence index at 10 a.m. ET.

Related: CNNMoney's Tech30

European markets were higher in morning trading. Russian stocks rose and the ruble firmed against the dollar as investors shrugged off the latest round of U.S. and EU sanctions imposed this week over the crisis in Ukraine. The sanctions weren't as severe as expected.

The British pound pushed higher, trading at its highest level against the U.S. dollar since August 2009, as GDP data showed U.K. growth accelerated to 0.8% in the first quarter.

Asian markets closed mixed. The two major indexes in China logged gains, while the Nikkei in Japan declined by 1%.

First Published: April 29, 2014: 9:55 AM ET

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The biggest tax breaks in 2014

NEW YORK (CNNMoney)

But when it comes to how much revenue Uncle Sam gives up every year because of tax breaks, the greatest amount by far goes to individual taxpayers.

And "by far," think close to 90%.

More than $1 trillion of the estimated $1.4 trillion in so-called tax expenditures this year will benefit individuals, according to a new analysis from the Tax Policy Center.

By contrast, just $148 billion in tax breaks will go to corporations.

That represents less than half the cost of health-related tax expenditures -- the No. 1 category, costing an estimated $383 billion.

Related: $100,000 income: Three very different tax bills

The biggest player in this group is the exclusion for employer-sponsored health insurance, worth more than $300 billion. This is the tax-free compensation a worker enjoys when his employer pays for a portion of his health insurance policy.

Also in this group is the new premium assistance offered to low- and middle-income families under Obamacare, worth about $34 billion, according to the analysis, which was published in Tax Notes.

Housing is the next biggest category, accounting for $255 billion of the $1.4 trillion. Among the biggest players here are the mortgage interest deduction, the property tax deduction, and the tax-free treatment on the first $250,000 in capital gains ($500,000 for married couples) on the sale of a home.

Third up are the $160 billion in tax breaks offered for pensions and other types of income security, such as the deduction for 401(k) contributions and the tax-free treatment of Roth IRA withdrawals.

And fourth in line is the $117 billion tax break on investment income -- namely, capital gains and dividends, which are often taxed at a lower rate than ordinary income.

All told, the top 4 categories of tax expenditures account for more than 60% of the $1.4 trillion in forgone revenue.

And that $1.4 trillion is the equivalent of nearly half of the total federal revenue the government is likely to collect this year.

First Published: April 29, 2014: 9:25 AM ET

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Europe leans more heavily on Russian gas

LONDON (CNNMoney)

The European Union is accelerating efforts to bring in more gas from other sources, but alternative options are likely to take years to develop.

Russia's state controlled gas giant Gazprom (GZPFY) said export volumes to Europe rose by 15% to 174 billion cubic meters -- despite a slight fall in regional consumption to 538 billion. Those exports were worth about $51 billion.

The company, which has a 30% share of the European market, including Turkey, said it expects to pump a similar volume to the region in 2014.

The increase in gas trade highlights the difficulty Europe faces as it tries to punish Russian President Vladimir Putin for annexing the Ukrainian region of Crimea and failing to ease tensions in the country's eastern regions.

U.S. sanctions include 18 Russian companies, but the EU has limited its response so far to freezing the assets and restricting the travel of a few dozen Russian, Ukrainian and Crimean officials.

Europe and Russia have trade and investment links worth billions of dollars. Any severing of those ties -- especially in oil and gas -- would hurt both economies.

Related: Putin squares off against Europe over gas

"An expansion of the U.S., EU and other sanctions programs could adversely impact operations and financial condition of the Gazprom Group," the Russian company said in its annual report.

While Gazprom expects exports to Europe to remain steady this year, it is also looking for other customers in a bid to reduce the impact of the EU's energy diversification strategy and any future escalation in the trade dispute.

Much of its attention is focused on developing new markets for pipeline gas and Liquified Natural Gas in Asia.

Gazprom signed a deal with China National Petroleum last year that would see China import 38 billion cubic meters of natural gas each year.

Related: Russia looks to Asia for trade cushion

Gazprom also flagged the risk of disruption to European supplies because of Ukraine's inability or unwillingness to pay for current and past gas deliveries. Ukraine owes at least $2.2 billion in arrears.

Earlier this month, Gazprom hiked the price it charges Ukraine by about 80% to $485.50 per thousand cubic meters of gas. By comparison, Gazprom charged European countries an average of $377.50 per thousand cubic meters in 2013.

First Published: April 29, 2014: 9:54 AM ET

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Why did China force The Big Bang Theory offline?

The cast of "The Big Bang Theory" -- no longer viewable in China.

HONG KONG (CNNMoney)

"The Big Bang Theory," "NCIS," "The Good Wife" and "The Practice" were taken offline over the weekend. The orders came from the State Administration of Press, Publication, Radio, Film and Television, which gave no reason for their removal.

The shows -- especially "The Big Bang Theory" -- were extremely popular with Chinese users on legal video streaming sites including Sohu and Youku Tudou. The sites pay U.S. studios to license content, which is then streamed alongside local advertisements.

The crackdown hit Chinese Internet stocks. Youku Tudou (YOKU) shed 5.5%, Sohu (SOHU) declined 6.7% and search giant Baidu (BIDU) fell 7.4%.

While still dwarfed by state broadcasters, streaming Web content is gaining popularity in China -- especially with younger audiences and the middle class. "The Walking Dead" and "House of Cards" are among the biggest hits, racking up tens of millions of views.

The Internet and media are closely controlled in China. Services including Facebook (FB, Fortune 500) and Twitter (TWTR) are banned, and Beijing has invested heavily in a firewall that restricts access to controversial websites. Films are censored, and Beijing limits imports of Hollywood movies.

But the nascent Web streaming industry has managed to escape some regulatory scrutiny. The content is often racier or more controversial than shows broadcast on state-owned television channels such as CCTV. Foreign shows are much easier to find.

Related story: Meet four kings of Alibaba's online retail empire

Yet it remains unclear why innocuous programs like "Big Bang" were targeted in the crackdown, especially since other popular -- and controversial -- shows are still available. "The Walking Dead" is an ultra violent post-apocalyptic horror drama, and political corruption is a major theme on "House of Cards." The latest season of the Netflix hit even highlights the inner workings of a fictional Chinese Politburo.

So why are regulators allowing some shows to run, while denying Chinese consumers their seemingly innocuous "Big Bang" fix?

Sohu Chairman Charles Zhang wouldn't say why the four shows were removed when asked on Tuesday, but he suggested the move was not part of a broad policy change.

"I believe the policy for American TV shows is not tightening up," Zhang said during an earnings call. "We don't see any major change to stop this trend."

Related story: Netflix to increase subscription prices

Analysts have suggested that Beijing may be trying to protect the interests of broadcasters including CCTV, which have been challenged by upstart satellite and Internet content providers.

It wouldn't be the first time officials have tried to protect state media interests at the expense of private operators. Last year, programmers were warned to cut down on wildly popular reality television and talent shows that were stealing attention from CCTV programs.

The Wall Street Journal reported that a cleaned up version of "The Big Bang Theory" may soon appear on CCTV.

Regulators may also be using the episode to remind tech companies of Beijing's power -- the second such warning in days.

Officials said last week they would strip Sina.com of its video and audio publication licenses after finding lewd images on the website. The company immediately went on an apology tour, but it's not yet clear that contrition will help Sina avoid punishment.

First Published: April 29, 2014: 7:08 AM ET

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For entrepreneurs, cycling is the new golf

In Southern California, Michael Marckx spearheads a group of cyclists who regularly ride and network.

NEW YORK (CNNMoney)

"Unlike golf, cycling is also a great equalizer," said Andy Clarke, president of the League of American Bicyclists. "You're the same as the person riding next to you. So it makes people more approachable. "

Entrepreneurs also gravitate toward cycling because it's a better way to stay in shape, said Clarke. It's also less time consuming and relatively less expensive.

"The trend is gaining momentum in bustling business centers," he said. "But it's also taking root in the heartland of the country, in places like northwest Arkansas."

Related: Meet America's oldest bike maker

In 2007, Jason Kayzar founded the Midwest Cycling Network for those who enjoyed the outdoors but wanted a change from 18 holes.

"I wanted to draw decision-makers, business owners, c-level executives who are in charge of their own schedules," said Kayzar, the founder and president of Milwaukee, Wis.-based MC2, a telecom service provider.

The rides started with just a few people he knew. But today, the group has 500 members and meets once a month for a two-hour, 35-mile ride. It usually attracts between 10 and 40 people -- architects, web designers, builders and small business owners -- most from the the Milwaukee area, but some from cities like Madison and Chicago.

Kayzar actually struck one of his firm's most lucrative deals on a ride five years ago when he signed one of the largest scaffolding firms in the country as a client.

While Kayzar said there's a little chit-chat as they ride (it's legal to ride two abreast in Wisconsin), the big chance to network comes at the end when they stop at a Mexican restaurant for chips and salsa and a round of drinks.

"Unlike golf, we're not committing to a couple of hours and all kinds of expenses just to network," said Kayzar. "This is a free gathering, very informal and you're done in 2 hours."

Because the monthly rides are mostly male dominated, Kayzar recently launched a second group in the hopes of attracting more women.

"It's half the speed and half the distance," he said.

Related: Hot startup ideas

There's no escaping golf's influence in the Southern California city of Carlsbad. It's home to Callaway (ELY), the world's largest maker of golf clubs, Cobra Golf, a top maker of golfing equipment, and a number of top-notch golf courses.

But even here, many entrepreneurs are choosing cycling over golf.

"It's a better cardio workout. You can get a great ride done in one to two hours as opposed to hours on a golf course," said Michael Marckx, CEO of eyewear company Spy Optic. "And you can actively network with more people."

Marckx is the driving force behind a cycling group of 60 people who gather every Tuesday and Thursday for a 30-mile trek.

"We get CEOs, entrepreneurs, and division heads of biotech and pharmaceutical companies joining in," he said. "Cycling is absolutely becoming the go-to activity for 40- and 50-year-olds who find it's a better compliment to their lives."

Sometimes the rides result in business deals and new hires. On a January ride, Marckx met a fellow cyclist who he hired to run performance marketing at Spy Optic.

Related: This startup thrives on a four-day workweek

Brad Swope recently broke several ribs in a cycling accident, but he's itching to rejoin his cycling group in Louisville, Ky., which he says is a "phenomenal cycling town."

"You see people from all professions -- doctors, lawyers, firemen, business folks -- getting together for rides," said Swope, a marketing director.

Swope said many riders in his group have ditched golf for cycling because it keeps them more active and is easier on the wallet.

And sometimes a ride can turn into a networking bonanza. It was on a group ride a decade ago that Swope befriended John Schnatter, founder of Papa John's (PZZA). Their conversations during the rides eventually inspired Swope to enter the restaurant industry. He and his wife are now partners in a local chain called Wild Eggs.

"It's ironic that I gave him cycling tips years ago and he would give me tips about the restaurant industry," said Swope. "Cycling can be very effective for networking."

First Published: April 29, 2014: 5:56 AM ET

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Stocks: Emerging from a month-long funk?

Click on chart to track premarkets

NEW YORK (CNNMoney)

But U.S. stock futures were pointing higher Tuesday, lending some hope that the final days of April may make up some lost ground. U.S. stocks ended mixed Monday.

Earnings continue to dominate Tuesday's agenda. Sprint (S, Fortune 500) reported a narrower-than-expected loss and strong sales. eBay (EBAY, Fortune 500) and Twitter (TWTR) are among the major companies reporting after the close.

Related: Fear & Greed Index still gripped by fear

Share of BP (BP) nudged higher after the oil and gas firm hiked its dividend. Retailer Coach (COH) was taking a hit after the company missed sales forecast, even as it beat on earnings.

Aside from earnings, shares of Nokia (NOK) surged 8% premarket after the company announced a new CEO and plans to spend billions on dividends and share buybacks. Nokia has just finalized the sale of its handset division to Microsoft (MSFT, Fortune 500), allowing it to focus on its networks business.

In economic news, the S&P/Case-Shiller home price index will be published at 9 a.m. ET. The Conference Board will publish its consumer confidence index at 10 a.m. ET.

Related: CNNMoney's Tech30

European markets were higher in morning trading. Russian stocks rose and the ruble firmed against the dollar as investors shrugged off the latest round of U.S. and EU sanctions imposed this week over the crisis in Ukraine.

The British pound pushed higher, trading at its highest level against the U.S. dollar since August 2009, as GDP data showed U.K. growth accelerated to 0.8% in the first quarter. The economy grew by 3.1% during the same period a year ago.

Asian markets closed mixed. The two major indexes in China logged gains, while the Nikkei in Japan declined by 1%.

First Published: April 29, 2014: 5:24 AM ET

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Charter to buy some Comcast and Time Warner Cable customers

NEW YORK (CNNMoney)

The sale on Monday, to Charter Communications, would leave the combined Comcast and Time Warner Cable with just less than 30% of households that subscribe to cable or satellite TV.

Still, if the merger is approved, Comcast would have roughly 29 million subscribers -- well ahead of either the 20 million customers of DirecTV or 14 million Dish customers.

Following Monday's deal, Charter would rank No. 4 in pay-TV subscribers, and be the No. 2 cable company.

Regulators and consumer advocates are concerned over the reduced choice of cable providers posed by the proposed merger. The divestiture of customers announced Monday will only take place if the deal is approved by regulators.

Related: Comcast deal to face antitrust hurdles

In Monday's deal, Charter (CHTR, Fortune 500) is buying 1.4 million Time Warner Cable (TWC, Fortune 500) customers directly for $7.3 billion in cash.

In addition, 2.5 million current Comcast (CMCSA, Fortune 500) customers will be spun off into a new cable company that will be controlled by Charter.

Finally, Charter will swap 1.6 million of its customers to Comcast in return for 1.6 million current Time Warner Cable subscribers. The rationale for the swap is that it would cluster Charter and Comcast subscribers geographically following a merger.

Comcast spokeswoman D'Arcy Rudnay said that between the cash and stock in the deal, Charter is paying about $20 billion to acquire access to the 3.9 million subscribers.

Charter had been seeking its own purchase of Time Warner Cable, but Time Warner Cable rejected its $37 billion offer as a "grossly inadequate price." A month later Comcast stepped in with its own $45 billion deal for Time Warner Cable.

First Published: April 28, 2014: 8:31 AM ET

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Stocks: Markets up on all the deal talk

NEW YORK (CNNMoney)

The Dow Jones industrial average, the S&P 500 and the Nasdaq were all up about 0.5% in early trading, although the Nasdaq has since fallen back.

Takeover talk is swirling through the markets Monday as Pfizer said it has been looking at a $100 billion bid for AstraZeneca, and General Electric is reportedly attempting to buy Alstom's power turbines business.

The British pound pushed up against the U.S. dollar, trading at its highest level since late 2008, in response to the possibility of a Pfizer (PFE, Fortune 500) takeover of AstraZeneca (AZN), noted Kit Juckes at Societe Generale.

Shares in AstraZeneca surged, while Pfizer shares were edging higher.

Related: Pfizer eyes AstraZeneca for $100 billion acquisition

Both General Electric (GE, Fortune 500) and Germany's Siemens (SIEME) are reportedly looking to buy the power divisions of France's Alstom (ALSMY), though French government officials are said to be concerned about a U.S. takeover.

Trading in Alstom shares has been suspended. The company promised to make a statement by Wednesday at the latest. General Electric has made no comment.

Siemens said it has proposed to discuss strategic options with Alstom, but declined further comment.

In other international news, the White House unveiled new sanctions against Russian officials and businesses in response to the escalating crisis in Ukraine. The sanctions target seven Russian officials and 17 entities, including banks and companies tied to Russia's energy industry.

Related: Fear & Greed Index still in fear zone

In a major challenge to Kiev's new leaders, armed rebels aligned with Moscow have captured towns and government buildings across eastern Ukraine and are holding a team of European monitors hostage.

The Russian ruble, which has plunged versus the U.S. dollar recently, regained some ground as the sanctions appeared to be less severe than some had expected.

Meanwhile, shares of Bank of America (BAC, Fortune 500) fell after the Federal Reserve required the bank to resubmit its 2014 capital plan because BofA incorrectly reported data used to calculate its capital levels. BofA said it was suspending plans to hike its dividend and increase its share repurchase program.

Related: Bank of America's big math error

Other early stock movers include Netflix (NFLX), which is down over 3% today after losses last week when the company announced strong earnings but said its costs are rising. Microsoft (MSFT, Fortune 500), on the other hand, is up 1.5% this morning, another nice pop after its earnings last week and finalization of its deal with Nokia.

Corporate earnings continue to roll in from some major companies. Herbalife (HLF) is one of several companies set to report quarterly results after closing bell.

Related: CNNMoney's Tech30

European markets were higher in afternoon trading. Most major Asian markets declined Monday.

First Published: April 28, 2014: 9:55 AM ET

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Bank of America's big math error

NEW YORK (CNNMoney)

The Federal Reserve required BofA (BAC, Fortune 500)on Monday to ditch its plans to return cash to shareholders after the bank said it incorrectly reported capital ratios in recent stress tests.

The second largest U.S. bank by assets said the error was caused by an "incorrect adjustment" related to the treatment of certain structured notes assumed when it acquired Merrill Lynch in 2009.

It's the latest in a series of regulatory and legal setbacks for the bank's shareholders after it acquired mortgage lender Countrywide and Merrill Lynch during the financial crisis.

Related: Legal costs hit Bank of America's bottom line

The Fed is requiring the BofA to resubmit its data templates and new capital action plans. BofA said it has engaged an unspecified third party to "review processes and the materials prior to resubmission."

As BofA tries to come up with a new game plan, the Fed ordered the bank to suspend its plans to buy back $4 billion of common stock and boost its dividend from 1 cent a share to 5 cents.

BofA said it will "expeditiously" resubmit its data templates and capital plans to the Fed, but warned it anticipates the new dividend and buyback plans to be less than previously announced.

The bank noted its downward revision of capital amounts and ratios does not impact its historical financial statements or shareholder equity.

Related: BofA to pay customers $727 million over credit card

Still, investors reacted negatively to the news, driving BofA's shares 4% lower in premarket action Monday morning, and the stock was down over 5% in early trading after the opening bell. It marks the biggest stock drop for the bank since 2012.

While the stress test process has been credited with restoring faith in big banks, some companies have struggled to convince regulators to approve capital plans. There are also questions about why the Fed process didn't catch the error.

Earlier this year, Citigroup suffered an embarrassment after the Fed rejected its capital plan, part of the stress test process to ensure banks are healthy. It was the second miss for Citi in three years, and Citi was the only top tier U.S. bank to "fail" this year.

First Published: April 28, 2014: 9:43 AM ET

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Google Now and Cortana are the future, not Siri

NEW YORK (CNNMoney)

Based on the investments Big Tech companies are making, the next tech wave will likely be powered by contextual and predictive technologies.

In plain terms, contextual and predictive technologies are designed to get our devices to do exactly what we want without us having to ask over and over again.

Microsoft's (MSFT, Fortune 500) new Cortana feature for Windows Phone can dive into a handful of apps and anticipate when and where you'll need certain bits of critical information. For example, Cortana can offer up your flight info and boarding pass as you travel to the airport. It can then prominently present that information to you without you doing anything. In some cases, it could even automatically relay information to another app.

What's particularly interesting about Cortana is how much attention Microsoft has given it. Cortana was the star of the show at this year's Microsoft Build developers conference, overshadowing substantial Windows and Windows Phone updates.

Microsoft is not alone, either.

Related: Meet Cortana, Microsoft's Siri

Google (GOOGL) offers a similar service called "Google Now" for Android devices. Earlier this year, Yahoo! (YHOO, Fortune 500)paid a cool $80 million for Aviate, an Android app that changes the look of users' homescreens based on where they are, what time of day it is, and what they're doing. Nest's thermostats learn your habits and the most efficient way to manage the temperature in your house.

The lack of contextual services is also what makes Apple's (AAPL, Fortune 500) Siri feature more of a gimmick than a digital assistant. Apple has spent years polishing its voice recognition technology, which works pretty well. But aside from things like dictating text messages, setting alarms, and checking the weather, there's not much to it that is actually useful.

Why all this attention to context and predictions? As new categories of technology, including wearable devices, grow more popular, services such as Cortana and Google Now will only rise in importance.

Contextual and predictive technologies, if done right, will streamline and improve the process of interacting with a phone, watch, headset, television and cars. Smarter software inside a car could help keep our focus on the road. Embedded within a video streaming service, it could determine each person's likes and dislikes in a room and recommend something everyone will want to watch. And it could mean less interaction with devices that have limited physical space, particularly watches or Google Glass-like wearable displays.

That's why Google prominently mentioned Google Now features when introducing its forthcoming Android Wear platform for smartwatches. With Google Now, Android-powered watches have the potential to determine where you are, and to a certain extent, what you're doing. They could also predict what you're most likely to go tapping and swiping for and then display that on the watch's screen.

Related: Windows 8 will soon be more like Windows 7

How well this will work in real life remains to be seen. But without the predictive powers of Google Now, any Android watch would have struggled to be more than a clone of Samsung's woeful Gear smartwatches that force you to swipe and swipe and swipe to accomplish anything.

As cool as this not-so-distant future sounds, the thought of technology constantly tracking you and collecting data can seem a bit dystopic. The rise of these services will require a certain level of caution and responsibility from their creators.

Marcus Ash, the program manager for Microsoft's Cortana project, stressed how important it was to approach the issues of data collection and privacy with extreme sensitivity.

Cortana, for example, has a built-in dashboard where users can see exactly what the software is tracking and the the types of data it is saving. Ash says that outside apps have no access to any personal data collected, and the user has complete control over changing or removing any settings or collected data.

"When it comes to new technologies like this, you only get one chance to win people over," said Ash. "And if you mess that up, it's a hard thing to recover from."

So far, these services have avoided any of the major pitfalls that could detract from mass adoption of these technologies. And that's a good thing, because without them, technology would be much more boring right now.

First Published: April 28, 2014: 6:24 AM ET

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NFL Cheerleaders: We're not even making minimum wage

A lawsuit against the Oakland Raiders was the first of several this year filed by cheerleaders against their NFL teams.

NEW YORK (CNNMoney)

Several current and former cheerleaders are suing their NFL employers over pay.

Three separate suits filed against the Oakland Raiders, Buffalo Bills and Cincinnati Bengals describe contracts that don't guarantee the minimum wage and claim the cheerleaders are vastly underpaid.

The suits say cheerleaders also aren't compensated for equipment they must buy, practices they must attend and community appearances they must make. Cheerleaders must meet exacting hair, makeup and uniform standards set by the team and keep up with physical fitness requirements, according to court documents.

One former cheerleader for the Cincinnati Bengals, Alexa Brenneman, said she was paid no more than $90 for each game and worked 10 games. Including $75 for a public appearance, she said she was paid $855 for the 2013 season and worked "well over 300 hours a year."

Including the games, practices and other events, she calculated her hourly wage at $2.85.

Team spokesman Jack Brennan responded, "The Ben-Gals cheerleading program has long been a program run by former cheerleaders and has enjoyed broad support in the community and by members of the squad." The team's attorneys filed documents in federal court which argued Brenneman "has been paid all wages allegedly due" under state and federal law.

The case against the Raiders, which was filed in January, is tied up in court over a stipulation in the cheerleading contract that disputes be settled in arbitration, said attorney Sharon Vinick, who represents a former Raiders cheerleader named Lacy T.

Related: Cheerleader sues Oakland Raiders over wages

"This is our dream job, we work extremely hard to be on this team and to maintain our spot on this team," Lacy T., who is suing the Raiders, told CNN. The team declined to comment when the suit was filed and didn't respond to a new request for comment last week.

The lawsuit against the Bills, filed by five former members of its cheerleading organization the "Jills," said "each individual Jill provides approximately 20 hours of unpaid labor per week ... This equals 840 hours of unpaid work per woman, per year."

They claimed they were paid only a few hundred dollars for an entire season, which includes about eight regular season games, plus some preseason play.

A spokesman for the Bills said the team was aware of the lawsuit but would not comment on it publicly.

Related: FCC considers scrapping 'blackout rule'

The central legal question in the disputes is if the cheerleaders were properly categorized as independent contractors, who aren't subject to certain regulations like minimum wage, or should have been considered employees.

Several experts said it's likely the cheerleaders weren't paid fairly.

"If it had been my client, I never would have told them to make (the cheerleaders) independent contractors," said Deborah Kelly, a partner at Dickstein Shapiro a law firm that typically represents companies in employment disputes.

"Cheerleaders are certainly employees," said Justin Swartz of Outten & Golden. "They're providing a benefit that directly entertains the fans, just like the players," Swartz, who typically represents people who sue their employers, said.

Stewart Schwab, a dean and professor at Cornell, said the distinction between an employee and contractor is the amount of supervision and direction that the employer provides.

"The more they're required to do and the more they're required to show up at particular times and work with others in a coordinated fashion and listen to a boss, the more they're sounding like employees," Schwab said. "I think there's quite a bit to that suit."

Even if the cheerleaders should have been considered employees, there are are some narrow exceptions to the federal minimum wage, such as for seasonal employees and small businesses.

First Published: April 28, 2014: 6:35 AM ET

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Guerrilla marketing for books

Author John Shors (second from right) with a group of readers in front of a Bangkok temple.

NEW YORK (CNNMoney)

He leads tours of the Southeast Asian temples and hidden jungles that inspired his books. The idea: Get people excited about his work, and sell books -- a lot of them.

Today's authors don't always lock themselves away for two years to write. Tighter publisher budgets, fewer booksellers, more competition and the rise of ebooks has put more pressure on novelists to aggressively market their books.

Writers now travel with readers, Skype with book clubs, create products based on fictional characters and produce online trailers. Competition is fierce: An estimated 301,642 books were published in 2012 alone, almost 100,000 more than in 2002, according to Bowker Market Research.

"Every author feels this pressure and thinks, 'How can I make my book stand out?'" says M.J. Rose, author of 14 suspense novels.

Traditional publishers often provide just a few thousand dollars for marketing, which means much of the responsibility falls on authors. Yet authors reap just a small amount from book sales -- about 15%, which about $1 to $2 per book.

Related: From farmers' markets to mass market

To boost buzz for her novels, Rose hired an Etsy artist for $350 to make necklaces like those featured on the covers of her recent books "The Collector of Dying Breaths" and "Seduction." And she asked New York perfumer Frederick Bouchardy to create a fragrance based on a fictional character, whose Parisian family was perfume makers.

"I was lucky that Frederick fell in love with the book and the idea of creating a perfume for my character," says Rose, who invested nothing and draws no royalties from the sales. Bouchardy sells the perfume online and in designer boutiques across the country. Rose buys $28 bottles to give away at promotional events.

The creativity paid off: Rose has sold more than a million copies of her books.

Shors, who has written six novels, started book tours last year after readers said his bestselling book, "Beneath a Marble Sky," inspired them to visit India's Taj Mahal. (CNNMoney parent company Time Warner purchased the rights for a TV miniseries.)

In February, he took a dozen readers on an 11-day tour to Thailand and Cambodia locations that inspired two of his novels. He has two more Asia trips set for this year and next.

By traveling with a few dozen readers, Shors hopes to build loyal fans who spur word-of-mouth buzz. Plus, the 11-day trips, which cost nearly $6,000 per person, offer extra income at a time when many authors need second jobs.

"It gets people excited," says Shors, who has spoken to 3,000 book clubs over the past decade. "If it wasn't for these programs, I would have sold a fraction of the books I've sold."

Related: Orange buttons boost online sales

Thriller writer Steve Berry took a similar tack, traveling with 25 readers last fall through Prague and Vienna to discuss his book "The Columbus Affair." Next year, he'll go to Southern France with readers of "The Templar Legacy."

Meanwhile, Maryland author Melissa Foster boosted her book sales with a supercharged production schedule, publishing one book a month since the start of 2013 and releasing some as free ebooks. It's made her a New York Times bestselling author who draws six-figure sales each month from her 18 books.

Foster works with a six-person editorial team to finalize drafts and says she once rewrote a 300-page novel because she didn't feel it captured the essence of her main character.

"I don't just rush through books," she says. "I'm feeding my own obsession, since nothing outside of my family makes me as happy as writing."

Foster says authors who get to know readers in book clubs and on social media will have an edge.

"Book sales are not about selling, they're about building relationships," she says. "People talk. People read. Put the two together, and there's your answer to getting noticed."

First Published: April 28, 2014: 6:42 AM ET

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Taco Bell tests new restaurant aimed at Chipotle crowd

A rendering of a U.S. Taco Co. shows an eatery that could compete with chains like Chipotle and Qdoba.

NEW YORK (CNNMoney)

How far is Taco Bell branching out? The Mexican Car Bomb isn't even a taco. It's a vanilla shake with Guinness, tequila caramel sauce and chocolate flakes.

U.S. Taco Co is set to open in Huntington Beach, Calif., this summer, with a taco-focused menu -- but not the same tacos you can buy for a buck or two at Taco Bell.

The "Brotherly Love" will be like eating a Philly cheese steak stuffed inside a flour tortilla. The "Winner Winner" adds a southern twist, with crispy chicken and gravy.

The southern California location is a test-run, but it could be the first of dozens across the country, Taco Bell CEO Greg Creed told the Orange County Register.

The eatery won't offer Mexican restaurant favorites like burritos or tortilla chips, and instead it will sell steak fries with tacos.

Related: Why McDonald's is offering free coffee

U.S. Taco Co. aims to fit in with other "fast-casual" chains like Chipotle, Qdoba Mexican Grill and Panera, said Morningstar analyst R.J. Hottovy.

Those chains offer higher quality food at the same speed as a fast-food joint.

U.S. Taco Co's menu will offer steak fries and milk shakes along with tacos.

It's a growing industry so it makes sense that Taco Bell, owned by Yum! Brands (YUM, Fortune 500), would want to enter the field.

"The cost to operate isn't as high as casual restaurants, but they can still charge higher prices. It's very lucrative," Hottovy said.

The tacos will cost $4 at the new restaurant, while most cost under $2 at the nearly 6,000 Taco Bell locations in the United States.

First Published: April 25, 2014: 4:39 PM ET

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Elon Musk's SpaceX will sue U.S. over rocket contract

Musk claims his aerospace company SpaceX was unfairly shut out of a contract for rocket launches he says he can do for less money.

WASHINGTON (CNNMoney)

SpaceX plans to sue the U.S. Air Force to challenge a $7.2 billion contract awarded to a company called United Launch Alliance, Musk said at a news conference on Friday.

The alliance, a venture of Boeing (BA, Fortune 500) and Lockheed Martin (LMT, Fortune 500), is set to use rocket boosters to launch things like GPS satellites into space for the federal government.

The contract, Musk charged, "essentially blocks companies like SpaceX from competing for national security launches."

"This really doesn't seem right to us," added Musk, whose electric car maker Tesla (TSLA) is challenging established auto companies.

The Air Force did not respond to a request for comment.

United Launch Alliance spokeswoman Christa Bell said the contracting process began in 2011. She said the ULA contract was able to deliver $4 billion worth of savings compared to past contracts.

"ULA recognizes the DOD plan to enable competition and is ready and willing to support missions with same assurance that we provide today," Bell said.

Related: Elon Musk's ventures

SpaceX has filed notice that it plans to sue the Air Force, the first step before a federal contract can be challenged. The suit will be filed late Friday or Monday, a spokesman said.

Musk alleged the United Launch Alliance contract is costing taxpayers "billions of dollars, for no reason" because SpaceX could provide launch rockets more inexpensively.

SpaceX has a $1.6 billion contract to launch a dozen unmanned cargo ships to the International Space Station, delivering equipment and supplies.

First Published: April 25, 2014: 3:13 PM ET

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Stocks: Federal Reserve to the rescue?

Click image for more market data.

NEW YORK (CNNMoney)

After a bonanza of corporate report cards dominated recent headlines, investors will likely refocus on the state of the U.S. economy and the Federal Reserve's delicate dance to curtail its stimulus measures without roiling markets.

They will be looking for positive news to turn things around after the market downturn last week and a lot of choppy trading so far this year.

Related: Stocks end week in red as tech gets hammered

The early attention will clearly be on the Fed, which is widely expected to dial back its bond-buying exercise by another $10 billion following a two-day meeting that concludes on Wednesday.

Investors will sift through the central bank's policy statement for clues on when Yellen and Co. might embark on their first interest rate hike, a thought that has spooked some on Wall Street.

The Fed may also hint at whether it believes the recent uptick in economic data will persist. A brightened outlook could signal the central bank will continue, if not accelerate, its exit of quantitative easing.

There's no scheduled press conference following this meeting, meaning Wall Street doesn't need to worry about a repeat of last month when Yellen inadvertently riled the markets by fumbling a question about rate hikes.

But the clearest evidence on the health of the U.S. economy will come later in week in the form of the April jobs report.

Forecasters believe the government will report that U.S. nonfarm payrolls jumped by 204,000 jobs in April, improving upon March's estimate of 192,000. But watch for revisions to prior months and the unemployment rate, which could tick down to 6.6% from 6.7% in March.

Related: Many low-wage workers not protected by minimum wage

Wall Street will also take a look at GDP figures, which offer the broadest view of economic health. Due to weather-related headaches, first-quarter growth is seen tumbling to just 1.3%, down from 2.6% in the fourth quarter.

All of this U.S. economic news could easily be superseded if the situation between Russia and Ukraine intensifies. World markets, especially in Europe, fell on Friday thanks to the deteriorating economic -- not to mention political -- situation in Russia and Ukraine.

Related: The top three risks from the Ukraine crisis

Investors will weigh all of this economic and geopolitical news against more corporate earnings reports. Top consumer brands including Buffalo Wild Wing, (BWLD) Domino's Pizza, (DPZ) Expedia (EXPE)and Sprint (S, Fortune 500) will reveal their latest numbers.

PayPal owner eBay (EBAY, Fortune 500) is also scheduled to hit the earnings stage on Tuesday. The e-commerce behemoth is expected to log per-share earnings of 67 cents, down from 70 cents the year before. EBay recently ended a war with Carl Icahn over the billionaire activist investor's push to spin off PayPal.

The activist investing community will certainly tune in when Herbalife (HLF) logs quarterly results on Monday. The controversial nutrition company, which recently disclosed a probe from the Federal Trade Commission, has been under assault from billionaire hedge fund giant Bill Ackman.

Related: 5 reasons to care about Ackman's Botox bet

Twitter (TWTR) is scheduled to report earnings for the second time as a public company on Tuesday, with analysts expecting the micro-blogging site to narrow its loss to 3 cents per share, down from 8 cents a year ago. Twitter shares have shed a third of their value this year as investors back away from momentum Internet and biotech names.

Related: Investors are done with sexy stocks

Investors will also get a glimpse into the world of energy producers this week. Chevron (CVX, Fortune 500) and ExxonMobil (XOM, Fortune 500), the world's largest public energy company, are scheduled to log results on Thursday and Friday, respectively.

Other notable earning reports on tap for the week include Ameriprise Financial (AMP, Fortune 500), Bristol-Myers Squibb (BMY, Fortune 500), Goodyear Tire & Rubber (GT, Fortune 500), British soccer club Manchester United (MANU)and Standard & Poor's parent company McGraw-Hill Financial (MHFI).

Wall Street will also be digesting the latest real estate data, including an industry group's report on March pending home sales and the S&P Case-Shiller's look at February metro home prices.

As if there isn't already enough on investors' radar, the manufacturing sector will also be in the headlines. The Institute for Supply Management's closely-watched PMI index is expected to show on Thursday that activity improved slightly in April, while the government's factory orders report is set for release on Friday.

First Published: April 27, 2014: 9:20 AM ET

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Under Armour scores invite to S&P 500

NEW YORK (CNNMoney)

That puts it in the ranks of the largest largest companies on U.S. stock exchanges -- call it the "varsity league" of stocks.

Under Armour (UA) stock has been on the kind of winning streak that the Yankees would envy. It has skyrocketed 850% over the past half-decade. It will replace Beam (BEAM) in the S&P lineup once the alcohol company's $13.6 billion buyout from Japan's Suntory Holdings is completed next week.

Related: Under Armour's crew of star athletes

But the Baltimore-based company didn't get much of a victory lap. Under Armour shares fell on Friday, which is somewhat unusual since new additions to the S&P 500 typically enjoy a bounce as funds that track the broad benchmark buy shares of the companies in the index.

The problem is the athletic-gear maker is a member of the "momentum crowd", a group of stocks that has quickly gone out of style on Wall Street as investors increasingly shift their money into stocks of more boring, but stable companies.

Under Armour experienced that shift first hand on Thursday, when the company's shares tumbled over 7% despite revealing a 73% leap in profits and indicting a lot of optimism about the rest of the year.

Still, the addition to the S&P 500 highlights the ability of Under Armour in recent years to challenge industry leaders Adidas (ADDDF) and Nike (NKE, Fortune 500), the latter of which was added to the even more exclusive Dow Jones industrial average in 2013.

Under Armour sports strong profit margins and impressive growth overseas, where sales surged 92% in the first quarter from the year before. The company has also boosted sales by expanding into new categories, including hunting and golf.

Earlier this year, Under Armour scored a 10-year deal to become the official sports apparel outfitter of Notre Dame's varsity teams. Terms were not disclosed but the blockbuster deal is estimated to be worth around $100 million.

So far Under Armour has been able to weather the storm stemming from the Winter Olympics, where the U.S. speed-skating team blamed the company's high-tech suits for slowing them down in Sochi. The speed-skating team even extended its exclusive contract with Under Armour.

Shares of Under Armour fell over 1.5% on Friday, trimming their 2014 gains to below 15%.

On the other hand, LinkedIn (LNKD) dropped about 5% as the professional social network was snubbed from the S&P 500 despite ample speculation earlier in the week that it would get the bid to join the lineup.

First Published: April 25, 2014: 11:44 AM ET

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Elon Musk's SpaceX will sue U.S. over rocket contract

Musk claims his aerospace company SpaceX was unfairly shut out of a contract for rocket launches he says he can do for less money.

WASHINGTON (CNNMoney)

SpaceX plans to sue the U.S. Air Force to challenge a $7.2 billion contract awarded to a company called United Launch Alliance, Musk said at a news conference on Friday.

The alliance, a venture of Boeing (BA, Fortune 500) and Lockheed Martin (LMT, Fortune 500), is set to use rocket boosters to launch things like GPS satellites into space for the federal government.

The contract, Musk charged, "essentially blocks companies like SpaceX from competing for national security launches."

"This really doesn't seem right to us," added Musk, whose electric car maker Tesla (TSLA) is challenging established auto companies.

The Air Force did not respond to a request for comment.

United Launch Alliance spokeswoman Christa Bell said the contracting process began in 2011. She said the ULA contract was able to deliver $4 billion worth of savings compared to past contracts.

"ULA recognizes the DOD plan to enable competition and is ready and willing to support missions with same assurance that we provide today," Bell said.

Related: Elon Musk's ventures

SpaceX has filed notice that it plans to sue the Air Force, the first step before a federal contract can be challenged. The suit will be filed late Friday or Monday, a spokesman said.

Musk alleged the United Launch Alliance contract is costing taxpayers "billions of dollars, for no reason" because SpaceX could provide launch rockets more inexpensively.

SpaceX has a $1.6 billion contract to launch a dozen unmanned cargo ships to the International Space Station, delivering equipment and supplies.

First Published: April 25, 2014: 3:13 PM ET

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Taco Bell tests new restaurant aimed at Chipotle crowd

A rendering of a U.S. Taco Co. shows an eatery that could compete with chains like Chipotle and Qdoba.

NEW YORK (CNNMoney)

How far is Taco Bell branching out? The Mexican Car Bomb isn't even a taco. It's a vanilla shake with Guinness, tequila caramel sauce and chocolate flakes.

U.S. Taco Co is set to open in Huntington Beach, Calif., this summer, with a taco-focused menu -- but not the same tacos you can buy for a buck or two at Taco Bell.

The "Brotherly Love" will be like eating a Philly cheese steak stuffed inside a flour tortilla. The "Winner Winner" adds a southern twist, with crispy chicken and gravy.

The southern California location is a test-run, but it could be the first of dozens across the country, Taco Bell CEO Greg Creed told the Orange County Register.

The eatery won't offer Mexican restaurant favorites like burritos or tortilla chips, and instead it will sell steak fries with tacos.

Related: Why McDonald's is offering free coffee

U.S. Taco Co. aims to fit in with other "fast-casual" chains like Chipotle, Qdoba Mexican Grill and Panera, said Morningstar analyst R.J. Hottovy.

Those chains offer higher quality food at the same speed as a fast-food joint.

U.S. Taco Co's menu will offer steak fries and milk shakes along with tacos.

It's a growing industry so it makes sense that Taco Bell, owned by Yum! Brands (YUM, Fortune 500), would want to enter the field.

"The cost to operate isn't as high as casual restaurants, but they can still charge higher prices. It's very lucrative," Hottovy said.

The tacos will cost $4 at the new restaurant, while most cost under $2 at the nearly 6,000 Taco Bell locations in the United States.

First Published: April 25, 2014: 4:39 PM ET

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Under Armour scores invite to S&P 500

NEW YORK (CNNMoney)

That puts it in the ranks of the largest largest companies on U.S. stock exchanges -- call it the "varsity league" of stocks.

Under Armour (UA) stock has been on the kind of winning streak that the Yankees would envy. It has skyrocketed 850% over the past half-decade. It will replace Beam (BEAM) in the S&P lineup once the alcohol company's $13.6 billion buyout from Japan's Suntory Holdings is completed next week.

Related: Under Armour's crew of star athletes

But the Baltimore-based company didn't get much of a victory lap. Under Armour shares fell on Friday, which is somewhat unusual since new additions to the S&P 500 typically enjoy a bounce as funds that track the broad benchmark buy shares of the companies in the index.

The problem is the athletic-gear maker is a member of the "momentum crowd", a group of stocks that has quickly gone out of style on Wall Street as investors increasingly shift their money into stocks of more boring, but stable companies.

Under Armour experienced that shift first hand on Thursday, when the company's shares tumbled over 7% despite revealing a 73% leap in profits and indicting a lot of optimism about the rest of the year.

Still, the addition to the S&P 500 highlights the ability of Under Armour in recent years to challenge industry leaders Adidas (ADDDF) and Nike (NKE, Fortune 500), the latter of which was added to the even more exclusive Dow Jones industrial average in 2013.

Under Armour sports strong profit margins and impressive growth overseas, where sales surged 92% in the first quarter from the year before. The company has also boosted sales by expanding into new categories, including hunting and golf.

Earlier this year, Under Armour scored a 10-year deal to become the official sports apparel outfitter of Notre Dame's varsity teams. Terms were not disclosed but the blockbuster deal is estimated to be worth around $100 million.

So far Under Armour has been able to weather the storm stemming from the Winter Olympics, where the U.S. speed-skating team blamed the company's high-tech suits for slowing them down in Sochi. The speed-skating team even extended its exclusive contract with Under Armour.

Shares of Under Armour fell over 1.5% on Friday, trimming their 2014 gains to below 15%.

On the other hand, LinkedIn (LNKD) dropped about 5% as the professional social network was snubbed from the S&P 500 despite ample speculation earlier in the week that it would get the bid to join the lineup.

First Published: April 25, 2014: 11:44 AM ET

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Taco Bell tests new restaurant aimed at Chipotle crowd

A rendering of a U.S. Taco Co. shows an eatery that could compete with chains like Chipotle and Qdoba.

NEW YORK (CNNMoney)

How far is Taco Bell branching out? The Mexican Car Bomb isn't even a taco. It's a vanilla shake with Guinness, tequila caramel sauce and chocolate flakes.

U.S. Taco Co, set to open in Huntington Beach, Calif., this summer, with a taco-focused menu -- but not the same tacos you can buy for a buck or two at Taco Bell.

The "Brotherly Love" will be like eating a Philly cheese steak stuffed inside a flour tortilla. The "Winner Winner" adds a southern twist, with crispy chicken and gravy.

The southern California location is a test-run, but it could be the first of dozens across the country, Taco Bell CEO Greg Creed told the Orange County Register.

The eatery won't offer Mexican restaurant favorites like burritos or tortilla chips, and instead it will sell steak fries with tacos.

Related: Why McDonald's is offering free coffee

U.S. Taco Co. aims to fit in with other "fast-casual" chains like Chipotle, Qdoba Mexican Grill and Panera, said Morningstar analyst R.J. Hottovy.

Those chains offer higher quality food at the same speed as a fast-food joint.

U.S. Taco Co's menu will offer steak fries and milk shakes along with tacos.

It's a growing industry so it makes sense that Taco Bell, owned by Yum! Brands (YUM, Fortune 500), would want to enter the field.

"The cost to operate isn't as high as casual restaurants, but they can still charge higher prices. It's very lucrative," Hottovy said.

The tacos will cost $4 at the new restaurant, while most cost under $2 at the nearly 6,000 Taco Bell locations in the United States.

First Published: April 25, 2014: 4:39 PM ET

21.29 | 0 komentar | Read More

Elon Musk's SpaceX will sue U.S. over rocket contract

Musk claims his aerospace company SpaceX was unfairly shut out of a contract for rocket launches he says he can do for less money.

WASHINGTON (CNNMoney)

SpaceX plans to sue the U.S. Air Force to challenge a $7.2 billion contract awarded to a company called United Launch Alliance, Musk said at a news conference on Friday.

The alliance, a venture of Boeing (BA, Fortune 500) and Lockheed Martin (LMT, Fortune 500), is set to use rocket boosters to launch things like GPS satellites into space for the federal government.

The contract, Musk charged, "essentially blocks companies like SpaceX from competing for national security launches."

"This really doesn't seem right to us," added Musk, whose electric car maker Tesla (TSLA) is challenging established auto companies.

The Air Force did not respond to a request for comment.

United Launch Alliance spokeswoman Christa Bell said the contracting process began in 2011. She said the ULA contract was able to deliver $4 billion worth of savings compared to past contracts.

"ULA recognizes the DOD plan to enable competition and is ready and willing to support missions with same assurance that we provide today," Bell said.

Related: Elon Musk's ventures

SpaceX has filed notice that it plans to sue the Air Force, the first step before a federal contract can be challenged. The suit will be filed late Friday or Monday, a spokesman said.

Musk alleged the United Launch Alliance contract is costing taxpayers "billions of dollars, for no reason" because SpaceX could provide launch rockets more inexpensively.

SpaceX has a $1.6 billion contract to launch a dozen unmanned cargo ships to the International Space Station, delivering equipment and supplies.

First Published: April 25, 2014: 3:13 PM ET

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Taco Bell tests new restaurant aimed at Chipotle crowd

A rendering of a U.S. Taco Co. shows an eatery that could compete with chains like Chipotle and Qdoba.

NEW YORK (CNNMoney)

How far is Taco Bell branching out? The Mexican Car Bomb isn't even a taco. It's a vanilla shake with Guinness, tequila caramel sauce and chocolate flakes.

U.S. Taco Co, set to open in Huntington Beach, Calif., this summer, with a taco-focused menu -- but not the same tacos you can buy for a buck or two at Taco Bell.

The "Brotherly Love" will be like eating a Philly cheese steak stuffed inside a flour tortilla. The "Winner Winner" adds a southern twist, with crispy chicken and gravy.

The southern California location is a test-run, but it could be the first of dozens across the country, Taco Bell CEO Greg Creed told the Orange County Register.

The eatery won't offer Mexican restaurant favorites like burritos or tortilla chips, and instead it will sell steak fries with tacos.

Related: Why McDonald's is offering free coffee

U.S. Taco Co. aims to fit in with other "fast-casual" chains like Chipotle, Qdoba Mexican Grill and Panera, said Morningstar analyst R.J. Hottovy.

Those chains offer higher quality food at the same speed as a fast-food joint.

U.S. Taco Co's menu will offer steak fries and milk shakes along with tacos.

It's a growing industry so it makes sense that Taco Bell, owned by Yum! Brands (YUM, Fortune 500), would want to enter the field.

"The cost to operate isn't as high as casual restaurants, but they can still charge higher prices. It's very lucrative," Hottovy said.

The tacos will cost $4 at the new restaurant, while most cost under $2 at the nearly 6,000 Taco Bell locations in the United States.

First Published: April 25, 2014: 4:39 PM ET

19.33 | 0 komentar | Read More