Price of stamps to go up 3 cents

The price of a stamp will go up 3 cents in January.

NEW YORK (CNNMoney)

A panel overseeing the U.S. Postal Service approved a three-cent hike from the current price of 46 cents. It will take effect on January 26.

That includes a one-cent increase -- to keep pace with inflation -- approved by the Postal Regulatory Commission last month. At the time, the cash-strapped Postal Service had sought the three-cent bump.

Related: USPS to rent mail vans

The additional two cents are intended to be temporary and to recoup losses the Postal Service suffered during the recession, the commission said.

It said the Postal Service must regularly report how much money the increase brings in and "develop a plan to phase out the rates once they have produced the revenue justified by their request."

Related: Postal Service delivers Amazon packages on Sunday

But the agency is in deep trouble with the shift away from mail and to the Internet. It reported a $5 billion loss in the most recent fiscal year, and a $16 billion loss in 2012. Those losses include expensive contributions to retiree health care required by Congress.

The Postal Service has considered paring back mail delivery and expanding the more profitable package delivery to bring in more revenue.

Related: Postal Service would love to ship you beer

Customers who purchase forever stamps before the new price takes effect will continue to pay 46 cents.

--CNNMoney's Jen Liberto contributed to this report.

First Published: December 24, 2013: 5:49 PM ET

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Dish and DirecTV hike prices for 2014

DirecTV and Dish Network subscribers can expect slightly higher bills next year.

NEW YORK (CNNMoney)

Following the trend from recent years, nearly every available package from the two satellite TV providers will increase in price, with fee hikes ranging between $2 and $5. Also in an annual tradition, both companies began notifying customers of the price hikes just before Christmas.

DirecTV's (DTV, Fortune 500) 4.4% average price increase is higher than last year's 3.2% hike, according to Nomura Equity analyst Adam Ilkowitz. Its base "Entertainment" package will cost $58 per month next year, up $3 from last year's price, and the top-of-the-line "Premier" package will cost $130, up $5 from a year ago.

Ilkowitz attributes a significant part of DirecTV's price hike to the rising cost of content and the desire to keep the satellite TV provider's operating profit flat.

Related: Would a Scripps deal mean more cash for Discovery?

Dish (DISH, Fortune 500) once again raised prices by more than DirecTV. The No. 2 satellite TV provider said it would hike fees by 5.5% next year following its steep 16.3% price hike at the beginning of 2013.

But unlike DirecTV, Dish isn't hiking fees on all of its plans next year. Dish's bare bones, $20 Welcome plan, and its $60 America's Choice 120+ plan will cost the same in 2014 as they did this year. But all of its other plans are getting $5 price hikes, except for the $30 "Smart Pack," which is going up to $33 next year.

This all comes at a point when both companies are figuring out what they want their identity to be in the future. DirecTV is exploring ideas for making an online TV service to compete with the likes of Hulu and Netflix (NFLX), while Dish is trying to build out a national broadband network.

Subscribers can expect Dish Network's new rates to go into effect on January 17, while DirecTV will kick in some time in February.

First Published: December 24, 2013: 1:47 PM ET

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AmEx refunding $60 million to customers

About 335,000 customers are getting refunds for deceptive and illegal practices from American Express.

NEW YORK (CNNMoney)

The CFPB, a federal agency that monitors how financial products and services work for consumers, said that American Express (AXP, Fortune 500) engaged in unfair billing tactics and deceptive marketing.

More than 335,000 consumers were affected. American Express said it started paying the remediation to customers earlier this year. The company wouldn't say exactly how much it has paid back so far.

Related: Chase relaxes limits on debit cards used at Target

According to the federal agency, American Express illegally marketed identity protection products and charged people without telling them that the services would be provided only after customers provided written consent.

The CFBP said that 85% of customers who enrolled in these services paid the full fee without receiving all of the advertised benefits.

Customers also paid interest charges on fees for services that were never received. In addition, the agency said that American Express charged unfair monthly fees that resulted in a card holder exceeding his or her credit card limit, which led to customers paying additional fees.

On top of the customer refunds, American Express will also pay an additional $9.6 million in civil penalties to the CFPB. The credit card company will pay another $3.6 million to the Federal Deposit Insurance Corporation and $3 million to the Office of the Comptroller of the Currency, who helped coordinate the action.

First Published: December 24, 2013: 12:06 PM ET

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3 ways to get picture-perfect photo prints

(Money Magazine)

Three options for making hard copies of your holiday memories:

Best for occasional printers: Mobile apps

What to look for: Many big-box retailers and drugstores now offer free smartphone and tablet apps that allow you to send photos directly from your device to a printing kiosk in a store (most require at least one hour for processing).

The pick: Walgreens' app connects users to more than 8,000 stores, where you can print images, as well as collages and posters, starting at 29¢ for a four-by-six-inch print. The app lets you edit and apply filters to your snaps, and, unlike most competitors, it can print directly from Facebook and Instagram.

The Walgreens' app works on Apple and Android tablets and phones, but Windows tablet and BlackBerry users are out of luck.

Best for scrapbookers: Online printing

What to look for: Want to create professional-looking custom photo books or turn your images into personalized holiday cards? Online printing companies offer a variety of ways to package your photos, and often run tempting two-for-one specials. But watch out for steep shipping charges, which are often "only revealed to customers on the last pages" of the checkout process, warns Simon Blanchard, an assistant marketing professor at Georgetown University.

Related: 6 ways you can use 3-D printers

The pick: Snapfish offers low prices and clearly displays shipping charges upfront. The site's 12-by-12-inch photo books start at $55, plus $8 for delivery -- a total of $27 less than a similar product from the competition.

Best for serious photobugs: Photo printers

What to look for: These days you can pay $30 for a super-basic printer to $400-plus for a professional model. The sweet spot, though, says Amy Machado, a senior research analyst with IDC, is the $150 to $200 range. At that price, you should be able to find a quality Wi-Fi-enabled inkjet with a per-page printing cost (paper and ink) of 30¢ to 35¢.

The pick: Epson's $150 Expression Premium XP-610 is a manageable 15-by-20 inches and can receive photos via Wi-Fi or cellular data from a computer, smartphone, or tablet. At a respectable 13 color pages per minute, this Epson prints more than 40% faster than its popular predecessor, the XP-600.

How to keep photos safe

Your favorite shots are priceless, right? Protect them with these three strategies.

Backup online: Many of the free photo-sharing sites also offer generous storage for your digital images. Yahoo's Flickr, for instance, got an impressive upgrade earlier this year and now allows users to keep up to one terabyte's worth of photos on the site (that's around 500,000 images). If you don't mind looking at photos at a lower resolution, MyShoebox offers unlimited storage.

Related: 4 ways to save your digital files

Burn a DVD: A single disc typically holds about 1,000 images. Do it yourself, or upload photos to an online photo site such as Shutterfly, which will do the job for you. Expect to pay between $10 and $20 per DVD.

Digitize old prints: Services like ScanDigital, GoPhoto, and DigMyPics will scan hard copies of your old photos for 38¢ to 88¢ each. Have them archived online or stored on a CD, DVD, or flash drive.

First Published: December 24, 2013: 1:23 PM ET

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25 apps you should download right now

VSCO cam is the best one-stop shop for photo taking, photo editing, photo organizing and photo sharing

NEW YORK (CNNMoney)

Sure, you know about Facebook (FB, Fortune 500), Twitter (TWTR), Instagram, Pandora (P), Yelp (YELP), Google (GOOG, Fortune 500) Maps and Netflix (NFLX). But what about the rest?

Lucky for you, we have some recommendations.

Whether you want new apps, essential apps, or apps specific to your new iPhone, iPad or Android device, we got you covered.

5 new apps

Ridiculous Fishing - There are very few games that are truly and uniquely suited for smartphones. Ridiculous Fishing is one of them. [iOS, Android, $3]

Dots - It's like Candy Crush, but better. [iOS, Android, Free]

Vine - Twitter's (TWTR) strange little video-sharing app is still figuring out exactly what it is, but it's growing legion of experimenters are beginning to answer that question. [iPhone, Android, Free]

Hangouts - After years of amassing Gmail chatters, Google FINALLY created a truly unified, cross-platform messaging solution for all its products. It also means iPhone users' days of using horrible third-party apps are over. [iOS, Android, Free]

VSCO cam - VSCO cam technically debuted in 2012, but the second generation of the app has been so thoroughly overhauled that it's essentially a whole new app. It's the best one-stop shop for photo taking, photo editing, photo organizing and photo sharing. [iPhone, Android, Free]

Related: Tips for getting started with your new mobile gadget

5 cross-platform apps

Snapchat - The self-destructing photo and video sharing app first appeared last year, but it wasn't until the second half of this year that the service really hit its stride. The fun is undeniable. [iPhone, Android, Free]

WhatsApp - This may not be the BEST chatting or texting app, but you won't find a service on more devices, used in more countries, with more active users. [iPhone, Android, Free]

SoundCloud - If you mixed the old MySpace Music with Twitter, you'd end up with SoundCloud. And it's so much better than it sounds. Follow your favorite artists, labels, publications or users, and every time they upload new music to their profile, it ends up in your music stream. This is radio for a new era. [iOS, Android, Free]

Dropbox - There's a very good chance that if you're using a cloud service, it's Dropbox. There's also a good chance that's what your friends are using too. Might as well have your account within tapping distance on your phone. [iOS, Android, Free]

Kindle - The Kindle app is not only the best and most flexible way to consume e-books on your phone or tablet, but is also great for reading other documents including PDFs. [iOS, Android, Free]

5 apps for iPhone

Google Search - Once upon a time this was maybe the most worthless app Google offered for an Apple (AAPL, Fortune 500) device. But once Google baked in its voice recognition technology and its Google Now predictive search, it's a must-have. Neither feature is quite as good as you'd find on a device like the Nexus 5 or Moto X, but it's close. [Free]

Fantastical 2 - If you don't like the stock calendar app on iOS 7 (and many don't), Fantastical may be the substitute that meets your needs. [$2 for a limited time]

Level - Level automatically sets up a daily, weekly and monthly budget for you, and then quickly and simply keeps you updated on your spending habits. [Free]

Mailbox - If you happen to be a mailbox zero devotee, you won't find a better mail client. [Free]

Figure - There is no easier way to make yourself sound like a musical genius when you have 10 minutes to kill. [$1]

5 apps for Android devices

1Weather - There's not really a great default weather experience baked into Android, so 1weather offers the best combination of usable information and clean design. [Free]

Google Now Widget - Google Now's contextual/predictive search is baked into the default search app that comes preloaded on most Android devices. But sticking the widget on your home screen gives you the info you want before you even know you want it. [via Android home screen]

SwiftKey 4 - Once you get the hang of it, gesture-based keyboards are faster and more accurate than tapping at the screen. And, though Android has its own default solution, Swiftkey is still the best of the bunch. [$2]

Aviate - The stock Android home screen is pretty good, but if you're looking for something different, give Aviate a try. It's certainly cleaner than anything you'd find on phone from Samsung, LG, or Sony. [Free]

Car Widget - If you commute to work every day, you should not be navigating your way through the normal Android UI. Car Widget puts the apps you need front and center. [Free]

5 apps for iPad

Paper - Hands down the best consumer-facing app for drawing, painting and sketching. It doesn't do everything under the sun, but it does what it does extremely well. [Free]

iA Writer - This is a no-nonsense word processor that provides minimal distractions. [$5]

Traktor DJ - If you've ever wanted to try your hand at DJing, but didn't want to drop a small fortune on the gear, just download this app and call it a day. [$10]

How to Cook Everything - Tablets are excellent aids in the kitchen and there are few books on cooking better than Mark Bittman's opus. [$10]

Superbrothers: Sword and Sworcery EP - Infinity Blade III might be the most technically impressive iPad game, but even three years after its release, Sword and Sworcery is the most original and engaging iPad game you'll encounter. [$2]

First Published: December 24, 2013: 2:11 PM ET

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Tesla stock spikes 5%

Click the chart to track Tesla's stock price.

NEW YORK (CNNMoney)

But the news from the National Highway Traffic Safety Administration appears unrelated to the federal probe into Model S fires -- a safety issue that has dinged Tesla stock in recent months.

In fact, Tesla (TSLA) also said that it is still "awaiting feedback from NHTSA regarding their investigation of recent fire incidents."

Tesla remains one of the hottest stocks of the year, up more than 350%, but it had lost momentum during the past few months due to a series battery fires.

Even though Tesla CEO Elon Musk reassured investors that there was "no reason for a recall," the stock tumbled more than 40% through October and November.

The stock has gained some ground in December, but is still 20% below it all-time highs.

Related: Tesla's stunning stock price

In November, federal investigators started a probe into the fire risk for a Tesla Model S and have yet to release their findings.

The NHTSA reaffirmed Tesla's 5-star safety rating late Monday. While the safety rating is important, it is based on crash tests -- not fires.

The agency has not replied to a request for comment. Tesla declined to elaborate on its statement.

Some traders on StockTwits, a social investing site, pointed out what they saw as misguided enthusiasm.

"$TSLA goes up on a months-old safety rating that was 'reiterated,'" said BullHorns. "Every company should reiterate positive news daily. LOL."

StockTwits user Fiftyfifty said that investors may be overreacting: "Knew people would confuse these ratings with the unrelated & ongoing investigation."

Tesla, in its press release, said it is "worth noting that a Tesla vehicle is over five times less likely to experience a fire than the average gasoline car and that there have been zero serious injuries or deaths for any reason ever, fire or otherwise, in a Model S."

--CNNMoney's Peter Valdes-Dapena contributed to this report.

First Published: December 24, 2013: 12:42 PM ET

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China debt grows to $4.6 trillion

China's local governments, like Anhui province, have borrowed too much in recent years, pushing debt up to $3.3 trillion.

HONG KONG (CNNMoney)

The world's second-largest economy has been struggling to arrest local government debt -- the result of easy credit and round after round of stimulus.

While it's hard to gauge the scale of the problem, a recent government think tank report may shed some light. The Chinese Academy of Social Sciences estimates local government debt reached 19.94 trillion yuan ($3.3 trillion) by the end of 2012. Local government debt accounts for most of total government debt, which is expected to have hit 27.7 trillion yuan ($4.56 trillion), or roughly 53% GDP.

The report puts local debt at double what it was three years ago, when China last conducted a nationwide debt audit. Results of the most recent government debt audit, launched in July, haven't been released.

Related story: Alarm bells ring over China's debt problem

For now, China's local government debt remains lower than that of many other advanced economies, such as the U.S., U.K., France, Japan, Germany and Spain. But what is scary is the pace at which debt has accumulated. China's increase in local government debt is part of a larger issue -- a credit explosion as regional governments borrowed to finance major infrastructure projects to combat a slowing economy.

Mushrooming credit is cause for concern as it has often been followed by financial crises in other emerging markets. In China, it has stoked fears that capital has been misallocated, and has further contributed to a run-up in corporate and government debt.

While the Chinese government has repeatedly said debt levels are manageable, resolving the problem is on its radar. Societe Generale economist Wei Yao said Beijing recently identified handling debt as a major policy goal.

At an economic meeting in December, the government "kept the prudent monetary policy stance for 2014 and set debt risk management as one of key policy tasks for the first time," Yao said.

"Given this, we do not expect China's domestic credit environment to improve anytime soon and as a result growth deceleration will probably resume."

Related story: China's bad debt breaks Hong Kong IPO logjam

Overall growth is slowing. China is estimated to post 7.6% GDP for 2013, just above the government's official target of 7.5%, state media reported. That compares with 7.8% last year, 9.3% in 2011 and 10.4% in 2010.

Reducing reliance on credit will remain one of China's greatest challenges as it seeks to find a sustainable growth path. The government was recently tested on this issue, with the central bank forced to pump nearly $50 billion into the financial system to prevent a second damaging cash crunch this year -- at the last minute. By then, China's benchmark index, the Shanghai Composite, had already tumbled for nine consecutive days.

Some analysts criticized the central bank for acting late; an earlier move could have been more effective in countering the seasonal shortage of cash. Others said the central bank's apparent reluctance to inject emergency cash is the start of a more prudent policy approach as it's one way of reining in excessive lending.

First Published: December 26, 2013: 5:25 AM ET

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Stocks: U.S. futures tilt higher Thursday

Click on chart to track premarkets

NEW YORK (CNNMoney)

U.S. stock futures tilted higher early Thursday, pointing to a firm start when trading resumes after the Christmas holiday break. The Dow Jones industrial average added 0.4%, and the S&P 500 rose 0.5%.

Both indexes struck fresh all-time highs and the Nasdaq marked a new 13-year high, when markets last traded on Tuesday. The Dow hit its 49th record close this year.

On Thursday, investors returning from holiday will be watching initial job claims at 8:30 a.m. ET.

Related: Fear & Greed Index gets greedy again

Markets have certainly made big moves so far this year. The Dow and S&P 500 are both up more than 20%, while the Nasdaq has soared over 30%.

The broad rally puts the Dow on track for its best year since 2003 and the S&P 500 on pace for its best year since 1997.

This year's gains have been driven by ongoing economic stimulus from the Federal Reserve, increased confidence in the economy, solid corporate earnings growth, and more individual investors entering the stock market.

Related: China's $50 billion move to avert cash crunch

The Fed announced last week that it will modestly reduce its bond buying program in January. But many experts believe the bull market, which began in early 2009, will continue for a sixth year in 2014, albeit at a more modest pace.

Many European and Asian markets were closed for Boxing Day. Japan's Nikkei gained 1%, while China's benchmark index, the Shanghai Composite, dropped 1.6% on Thursday.

First Published: December 26, 2013: 7:21 AM ET

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Stocks: The gift that keeps giving

Click for more market data.

NEW YORK (CNNMoney)

The Dow Jones industrial average, the S&P 500 and the Nasdaq all gained in early trading Thursday. U.S. markets were closed Wednesday for the Christmas holiday break.

Trading volume is expected to be below average Thursday with many professional money managers taking the week off or working remotely.

Still, it's likely to be a good week for stocks, with not much bad news to stop investors from taking the market on an incredible year-end rally.

Over the past 100 years, the Dow has gained during the week of Christmas 68% of the time, according to Schaeffer's Investment Research.

The Dow and S&P 500 hit fresh all-time highs and the Nasdaq marked a new 13-year high when markets last traded on Tuesday. It was the Dow's 49th record close this year.

Related: Fear & Greed Index gets greedy again

Markets have made big moves so far this year. The Dow and S&P 500 are both up more than 20%, while the Nasdaq has soared over 30%.

The broad rally puts the Dow on track for its best year since 2003 and the S&P 500 on pace for its best year since 1997.

This year's gains have been driven by ongoing economic stimulus from the Federal Reserve, increased confidence in the economy, solid corporate earnings growth and more individual investors entering the stock market.

Related: China's $50 billion move to avert cash crunch

The Fed announced earlier this month that it will modestly reduce its bond buying program in January. But many experts believe the bull market, which began in early 2009, will continue for a sixth year in 2014, albeit at a more modest pace.

On the economic front, initial claims for unemployment benefits fell last week, according to government data released Thursday.

Shares of UPS (UPS, Fortune 500) and FedEx (FDX, Fortune 500) were little changed despite delays that caused both package delivery companies to miss holiday deadlines. Amazon (AMZN, Fortune 500) offered to refund shipping charges for customers who did not receive their packages on time.

Twitter (TWTR) continued a spectacular rally. Shares of the social media company were up 3%. The stock has gained 74% in December and has more than doubled in price since its November IPO.

Many European and Asian markets were closed for Boxing Day. The Nikkei gained 1%. Japan's stock exchange is up 51% for the year, making it the best performing global benchmark.

First Published: December 26, 2013: 9:38 AM ET

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Target credit card hack: The latest

NEW YORK (CNNMoney)

The discount retailer acknowledged on late last week that the hack began on Black Friday and stretched more than two weeks to December 15.

Here's what we know:

-- The breach: Hackers infected Target's payment systems with malicious software. The company is cooperating with federal authorities, including the Secret Service and Department of Justice, and is withholding additional details at the request of law enforcement.

-- Where did it happen: The hack was limited customers shopping in U.S. and Canadian Target (TGT, Fortune 500) stores with credit and debit cards. Online purchases were not involved.

-- What got stolen: Hackers stole customer names, credit or debit card numbers, expiration dates and card security codes, Target said. PIN numbers, other customer information like Social Security numbers, and employee records were not compromised, according to Target.

-- Target customers: The company has notified "millions" of affected customers for whom Target has email addresses. CEO Gregg Steinhafel said "the cause of this issue has been addressed and you can shop with confidence at Target."

-- Banks: Target also notified credit and debit card issuers, many of which said they were monitoring customer accounts for fraudulent activity. Chase initially set low daily withdrawal and spending limits on its cards, though it adjusted those limits late Monday.

-- Lawsuits: At least two dozen federal class action lawsuits have been filed in a handful of states alleging the retailer was negligent and did not adequately protect customer privacy.

-- State AGs: Target said its legal team held a conference call with most states' attorneys general on Monday afternoon.

-- More fallout: Target has hired a private firm to review its information security and two U.S. senators called for consumer protection agencies to investigate.

-- What's the risk: Thieves with access to your credit card or debit card data could make purchases using your account. Target officials say that PIN numbers on debit cards were not part of the breach. That means it is very unlikely that thieves would be able to withdraw money from ATMs.

You are generally not on the hook for fraudulent credit card purchases, as long as you quickly notify your bank. Consumers are protected from certain instances of debit card fraud as well, but cash withdrawals and purchases made with a PIN can be tricky to reverse.

-- What you should do: Consumer watchdogs say customers should check their credit card statements, including for small purchases that could indicate fraudsters are verifying an account is still active. Customers should also contact their banks to request a replacement card -- if one isn't already on the way -- and change their PIN.

-- How to contact Target: Customers concerned about the breach could call Target, and customer service teams would be available on Christmas, Snyder said. The company said additional information would be available at corporate.target.com, by phone at 1-800-440-0680, and on Twitter @Target.

First Published: December 24, 2013: 2:58 PM ET

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Will allowing more foreign workers shrink the salary gap?

(Fortune)

The policy prescriptions are just as familiar as the villains' names: Raise wages at the bottom. Raise taxes at the top. To those old debates, Alan Greenspan offers up a provocative new idea: Let firms recruit as many brainy foreign employees to American soil as they want. In other words, instead of raising the cap on specialty green cards and H-1B visas, as the Senate-passed immigration bill does, drop the limits altogether.

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Investors take a break after taper rally

Click the chart for more stock market data.

NEW YORK (CNNMoney)

After ending at record closing highs the previous day, the Dow and S&P 500 were down slightly in early trading. So was the Nasdaq.

All three indexes surged more than 1% after the Federal Reserve announced a modest scaling back of its stimulus program. Instead of pumping $85 billion per month into the markets through bond purchases, the Fed said it will scale the purchases back to $75 billion per month beginning in January.

Related: Federal Reserve finally tapers its stimulus

The Fed's decision to wind down -- or taper -- its stimulus program can be interpreted as a sign the economy is getting back on its feet and no longer needs as much assistance from the central bank.

That pleased investors all around, as the change isn't so drastic to start. But it also may satisfy Fed critics who believe the central bank would be in danger of creating runaway inflation if it did not begin to cut back on the accommodative polices that it instituted in response to the financial crisis.

Related: CNNMoney Fear and Greed Index moves out of Fear mode

Despite Wednesday's big gains, December has so far been a dud for the stock market. All three indexes are flat for the month. But a so-called Santa Claus rally still has time to transpire, especially now that investors have a lot more clarity from the Fed.

But even without any huge gains, 2013 has been a stellar year for stocks. The Dow and S&P 500 are up more than 20% for the year, while the Nasdaq has gained more than 30%.

Those gains put the Dow on track for its best year since 2003 and the S&P 500 on pace for its best year since 1998. The Nasdaq's gains would be the index's best since 2009.

Related: Fortune 500: Worst-performing stocks of 2013

In corporate news, Target (TGT, Fortune 500)shares were down in early trading after the retailer said that as many as 40 million people who shopped at Target stores in the three weeks after Thanksgiving may be affected by a breach of credit and debit card data.

Facebook (FB, Fortune 500)fell slightly after the social media company filed to sell 70 million shares, mostly to index funds that will be buying the stock once it is added to the S&P 500. That includes more than 41 million shares from co-founder and CEO Mark Zuckerberg.

Darden Restaurants (DRI, Fortune 500) missed on earnings, as its quarterly profit plunged from a year ago. The company also announced plans to spin off the Red Lobster chain, which experienced a slump in sales.

Related: IPO market expected to stay hot in 2014

Looking at stocks around the world, European markets rose by roughly 1.5% in their first opportunity to react to the Fed tapering news. Asian markets ended mixed.

First Published: December 19, 2013: 9:52 AM ET

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Rebuilt stock, drives like new?

(Fortune)

The stocks look shiny and new, but you should hesitate before you drive one of them off the lot. Private equity managers have a simple method: They buy companies, overhaul them, then resell them for a profit. The firms replace management teams and ratchet down costs, and that can accelerate profits. That's great -- but the firms also borrow heavily to buy these companies and typically load them with a speed-inhibiting 20% more debt than their peers, according to S&P Capital IQ LCD. In addition, private equity managers make oodles -- Blackstone, for example, has an unrealized $8.5 billion gain on its Hilton stake based on the IPO price -- making one wonder whether the stock has maxed out before it lists shares.

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Venture capital will thrive even if tech IPOs don't

(Fortune)

In 2013, however, the negative narrative flipped with ferocious speed: more IPOs, rising returns, and broad-based success that included, but was not defined by, Bay Area Internet companies. The turnaround knocked nonbelievers upside the head with giant bags of money and will help enable the next great wave of innovation. Even if tech valuations sag or the stock markets sink, venture capitalists will have full wallets. By proving the cycle, 2013 has created something sustainable for 2014 and beyond.

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Party crasher: Tamping down some 2014 wishful thinking

(Fortune)

All of this represents the conventional wisdom on Wall Street, and I agree with some of it. But a note of caution is also called for. What we are looking at is an overdue correction in economic policy and economic growth. Like all corrections, this one could well have some pain associated with it, particularly for investors, who have recently been enjoying the best of all worlds.

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Gucci, Chanel, and ... Qeelin?

Qeelin BoBo pendant, $43,200

(Fortune)

From my perch on a sofa in Qeelin's sleek Hong Kong boutique, my luck continues. Co-founder and creative director Dennis Chan lets me model a diamond- and ruby-encrusted panda whose joints swivel and move (price: roughly $60,000), a lotus-flower ring that twists open to reveal an inner flower ($43,000), and many other pieces of jewelry with symbolic meanings in Asian culture. Named for a mythical Chinese creature, Qeelin has 19 stores in Asia and Europe, where -- now with the help of Kering -- it is trying to become one of the first successful luxury jewelry brands originating ... in the East. Such celebrities as Katy Perry and Kate Winslet are already fans of the jewelry, which teeters on the edge between sophisticated and kitschy and ranges in price from $440 for a tiny pendant to $600,000 for custom-made pieces.

But why, one wonders, would Kering, the $13.4-billion-in-2012-sales company that owns Gucci, Saint Laurent, and Bottega Veneta -- venerable European brands now increasingly dependent on the new Asian wealthy for their sales -- buy a 10-year-old upstart, especially one bent on proving that great quality isn't the sole provenance of European craftsmen? In part, Qeelin fits with Kering's strategy of buying top brands in areas where it doesn't already compete. But another major reason is that François-Henri Pinault, CEO and chairman of Kering, believes the new wealthy in China will increasingly support homegrown brands rather than always importing them. "[Qeelin] has all the components of a global luxury brand," Pinault says. "It is very demanding in terms of craftsmanship and has strong design. And let's not forget that China is one-fifth of the world population. So if a Chinese brand could succeed with the Chinese, then it's very interesting to take that bet."

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Saab stock soars 30% on Brazil deal

The Brazilian government announced Wednesday that it would buy 36 Gripen fighter jets from Saab.

LONDON (CNNMoney)

The deal came as a surprise to investors who had been expecting Boeing (BA, Fortune 500) to win the lucrative contract.

Boeing shares slipped 0.3% Wednesday, under-performing U.S. markets which posted big gains after the Federal Reserve announced plans to trim its economic stimulus program.

Local media have speculated that Boeing lost out because Brazil was angered by reports that the U.S. government spied on President Dilma Rousseff.

Brazilian officials sidestepped questions about how the spying scandal may have affected the decision.

Speaking at a news conference late Wednesday, Defense Minister Celso Amorim said Saab was chosen for three main reasons: cost, performance and the ease of completing technology transfers.

Related: Pentagon to cut jobs and contracts by $1 billion

The competition for the contract had dragged on for roughly a decade, with France's Dassault (DASTF) also in the running.

The deal will see Saab deliver 36 new Gripen aircraft to Brazil's air force by 2023.

The Brazilian air force said the Swedish fighter jets will replace older Dassault-made aircraft.

Countries already using the Gripen include Sweden, Hungary, Czech Republic, South Africa and Thailand.

-- CNN's Shasta Darlington contributed to this report.

First Published: December 19, 2013: 8:54 AM ET

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Home sales fall in November

Home sales slowed in November.

NEW YORK (CNNMoney)

It was the third consecutive month of falling sales, suggesting that higher mortgage rates are putting the brakes on the housing recovery.

The report from the National Association of Realtors showed that sales of previously-owned homes slipped 1.2% to an annual rate of 4.9 million homes sold.

Besides mortgage rates, which have been rising steadily since hitting a record low in the spring, tight supplies of homes for sale and continued tight credit are factors slowing sales, according to Lawrence Yun, the chief economist for the trade group.

"There is a pent-up demand, but the bottleneck is in limited housing supply, due to the slow recovery in new home construction," he said.

Related: 2014 real estate outlook

A government reading Wednesday showed housing starts were up 19% over the first 11 months of the year compared to a year ago. But even with a two-year rebound in building, the pace of home building is still 25% below the long-term averages.

Still, the recovery in the housing market has been one of the key areas of strength in the U.S. economy so far this year. A strong improvement in home prices and a drop in unemployment and home foreclosures have combined to feed the recovery.

The report shows the median home price of homes sold in the month was $244,500, up 7.3% from a year ago, although it was down slightly from October.

First Published: December 19, 2013: 10:46 AM ET

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4 things to do after your credit card has been hacked

NEW YORK (CNNMoney)

If you've visited a Target (TGT, Fortune 500) over the past several weeks, there are four steps you should take immediately to protect yourself.

1) Check your statement. It may seem obvious, but the first step you should take is looking for any charges you don't recognize on your statement.

Don't just look for large charges, either. Hackers often ping an account with micropayments of only a few cents to check the viability of the account. So if you see purchases of 6 cents or 11 cents, that could be a sign your information has been compromised.

2) Call your credit card company, bank and Target. Credit card companies generally offer customers fraud monitoring services at no cost, and customers aren't on the hook for any fraudulent charges. Typically, the card issuer or the merchant is responsible for those costs.

But don't wait for your card company or bank to call you. Let them know you've shopped at Target recently. All you have to do is call the number on the back of your card.

Related: 6 most dangerous cyber attacks

Target has also set up a phone line for customers who suspect there has been unauthorized activity on their accounts. Shoppers can call 866-852-8680.

3) Replace your credit card, change your PIN. If the bank didn't already do this for you, do it yourself. This will put an end to any more fake charges.

Once you receive your replacement card, make sure to update your new card information with any companies that have your account on file for automatic payments or monthly fees, like your Apple (AAPL, Fortune 500) iTunes account or cable provider.

4) Sign up for a fraud monitoring service. If you're concerned about credit card theft going forward, LifeLock and other similar threat detection services claim that they can monitor your card activities and alert you when your account has gotten into the wrong hands. Most credit card companies offer similar services for free, but threat detection services say they go above and beyond, including offering protection of credit card information on the Internet and even lost-wallet insurance.

Related: How not to get hacked

First Published: December 19, 2013: 10:23 AM ET

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Facebook and Zuckerberg to sell shares

Click on chart for more information on Facebook shares.

NEW YORK (CNNMoney)

The company, in a Securities and Exchange Commission filing Thursday, said it will sell 27 million shares. And Zuckerberg will exercise an option to purchase 60 million shares and then sell 41.4 million shares to pay the taxes on that transaction. Other existing shareholders will sell the remaining 1.6 million shares.

Zuckerberg also plans to donate an additional 18 million shares of Facebook, worth about $1 billion, to charity by the end of the year, according to the company. Zuckerberg and his wife Priscilla Chan were the second-biggest charitable donors in the United States last year, according to a ranking from The Chronicle of Philanthropy. Billionaire investor Warren Buffett was number one.

The shares will be donated to the Silicon Valley Community Foundation, which also received 18 million shares from Zuckerberg last December. But they are worth twice as much this year.

Shares of Facebook (FB, Fortune 500) fell 2% in early trading.

Related: Facebook's 'teen problem'

Facebook will be added to the Standard & Poor's 500 index after the close of trading Friday, which will further drive up demand for shares.

But Thursday's filing means that current shareholders' stake will be diluted in value.

In September 2012, when Facebook shares were down more than 50% from the IPO price, Zuckerberg said in a filing he would hold onto his shares for at least a year. Shares since then have more than tripled in value.

Zuckerberg currently holds 425 million class B shares, which give him a majority of voting rights. The shares he is selling will be converted to Class A shares to reduce their voting rights.

Related: Facebook launches video ads

At Wednesday's closing price, the sale will raise $2.3 billion for Zuckerberg and $1.5 billion for the company.

The company did not identify any specific purpose for the money it will raise. Facebook has been on an acquisition binge in recent years, most notably paying $1 billion for photo sharing network Instagram just ahead of Facebook's May 2012 IPO.

That IPO turned into a debacle for the company and its underwriters. It attracted record trading volumes, but prices soon plunged in value and lawsuits followed. Nasdaq agreed to pay out $40 million due to trading problems that occurred.

First Published: December 19, 2013: 8:04 AM ET

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Lululemon shares plunge on poor outlook

It's been a bumpy ride for Lululemon stock this year.

NEW YORK (CNNMoney)

Shares of Lululemon (LULU) fell more than 10% in early trading after the yoga apparel maker lowered its earnings and sales outlook.

Lululemon expects to earn between 78 cents and 80 cents per share in the current quarter, while revenue is estimated between $535 million to $540 million. Analysts had been expecting earnings of 84 cents per share on revenue of $572 million. The company also gave earnings and sales guidance for the upcoming fiscal year that was below Wall Street's consensus estimates.

Store traffic has been slow in November and December. The company is also expecting same-store sales to be flat in the fourth quarter, said Lululemon chief financial officer John Currie in a conference call with analysts. The company has also been experiencing supply issues as it beefs up quality controls, he added.

Lululemon has been a fast-growing success story over the past few years. But the company has had several setbacks this year.

In March, Lululemon announced a recall of yoga pants that were unintentionally see-through. The episode hurt Lululemon's bottom line. CEO Christine Day also announced plans to step down, making investors even more nervous about the company's future.

This week, Lululemon said Laurent Potdevin, who had been the president of shoe company TOMS, would replace Day next year. In a surprise move, the company also said founder and non-executive chairman Chip Wilson will resign in June 2014.

Related: Lululemon in an uncomfortable position

Wilson came under fire last month for saying in an interview that "some women's bodies just don't actually work" for Lululemon's pants.

Currie acknowledged that Wilson's comments and the quality issues may have contributed to the recent sluggishness in sales.

"Let's face it, we've had a lot of PR issues this year," he said. "There is undoubtedly some impact on traffic and therefore the business."

Day said in a written statement that 2013 "has been a year of challenges, learning, and growth" for the company. But she argued that the investments Lululemon is making will ultimately pay off.

Lululemon said it earned $66.1 million, or 45 cents per share, in the third quarter. That's up from last year and better than analysts' had predicted.

The company's stock, which has soared more than 1,700% over the past five years, has missed this year's rally. Including Thursday's big drop, Lululemon shares are now down nearly 20% so far in 2013.

First Published: December 12, 2013: 9:37 AM ET

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Uber: From taxis to deliveries on demand

Uber's app allows customers to request rides from nearby taxis and limousines, bypassing traditional taxi services.

PARIS (CNNMoney)

The fast-growing company is considering a big push into local deliveries, after experimenting in U.S. cities over the past year with a service that brings ice cream, kittens, Christmas trees and bouquets of roses to customers with very little notice.

Uber has built an extensive network of taxis in 60 cities around the world, and its backers believe it could challenge established players such as FedEx (FDX, Fortune 500) and UPS (UPS, Fortune 500) if the firm decides to get serious.

"We're in the business of delivering cars in five minutes. And once you can deliver cars in five minutes, there's a lot of things you can deliver in five minutes," Uber founder Travis Kalanick told CNNMoney at the LeWeb technology conference in Paris.

Kalanick said previous delivery services were not just promotional gimmicks, but experiments in an area that could drive future growth.

Bouquet deliveries on Valentine's Day were a real hit, taking husbands and boyfriends from "zero to hero" in just a few moments, he said. Ice cream was also popular.

"People really lose their minds on ice cream. You become an 8-year-old all over again," he said.

Related: Uber delivers kittens for National Cat Day

Since launching Uber in June 2010, the company has experienced explosive growth. Uber is reported to be worth roughly $3.4 billion, and the company boasts a number of heavyweight investors, including Jeff Bezos and Google (GOOG, Fortune 500).

The company's success has many people wondering if an initial public offering is around the corner, but Kalanick doesn't seem to be in a hurry to float, saying he wants to focus on running and growing the business.

The San Francisco-based firm has built a strong presence in North America and is now expanding into international cities at a rapid pace, launching in Santiago, New Delhi, Abu Dhabi and Guangzhou in just the past month.

Related: Airbnb wins legal victory in New York City

But the company also faces challenges.

Several cities are taking legal action to try to shut the firm down as they worry that the service poses too big a threat to the traditional taxi industry.

"We have three attorneys on staff at Uber and then we have law firms around the world that we work with. Probably 50 different law firms," said Kalanick.

First Published: December 12, 2013: 9:29 AM ET

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Vatican's finance clean-up not over yet

Pope Francis has accelerated efforts to clean up the Vatican's finances.

LONDON (CNNMoney)

However, more work needs to be done quickly to reduce the risk of money laundering and other crime, European experts said Thursday.

Since his election as pontiff in March, Pope Francis has accelerated efforts to introduce tougher financial regulation of the Vatican bank and other organizations, building on work started by Pope Emeritus Benedict.

Pressure has been growing on the Vatican since 2012, when an independent group of European finance experts -- Moneyval -- found it fell far short of international standards on efforts to combat money laundering and the financing of terrorism.

Moneyval published a progress report Thursday, acknowledging the wide range of measures taken over a short period to address the shortcomings but noting that regulators had yet to conduct a formal inspection of the Vatican bank.

"These inspections should be completed as soon as possible and should include risk-focused sample testing of customer files," Moneyval said.

Related: Vatican may widen bank corruption probe

In May, the Vatican's Financial Intelligence Authority issued its first ever report on money laundering in a move to improve financial transparency in the city state. And in October, the Vatican bank -- formally known as Institute for the Works of Religion -- published its first annual report.

Pope Francis gave the authority new powers in August and established a committee to coordinate the work of Vatican authorities to prevent money laundering. External experts including consultants from Promontory Financial Group and a Harvard law professor have been drafted in to help.

The Vatican bank serves thousands of Catholic charities, religious orders and dioceses around the world, in addition to roughly 500 people living in the city state.

It is trying to shake off a reputation for murky dealings that date back decades.

Two top bank officials resigned in July in the midst of a three-year investigation into the bank by Italian prosecutors.

First Published: December 12, 2013: 9:57 AM ET

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The remarkable renaissance of Land Rover

The 2014 Range Rover Sport

(Fortune)

For a long while, Land Rover seemed headed in the same direction. For most of the '90s and the 00's, it made do with manufacturing operations that were antique and engineering -- four different platforms for four different models -- that was laughably inefficient. Land Rover quality was a joke. A succession of owners, including Rover Group, BMW, and Ford (F, Fortune 500) had tried to revive it, but, finding themselves unable to, sold it off to the greater fool. Land Rover was traded more often than frozen pork belly futures.

When Ford sold the 65-year-old British based maker of off-road vehicles to India's Tata along with Jaguar in 2008, the end seemed near. The existing product lines consisted of outmoded, overweight, gas hungry off-road vehicles that seemed to have little future in a world of product engineering dictated by fuel economy and emission standards. Newer competitors from Mercedes, Lexus, and even Porsche began to make inroads. Even dyed-in-the-wool Land Rover fans were losing patience with constant trips back to the dealership for repairs. U.S. sales, which had peaked in 2007 at 49,550 slid all the way to 26,306 in 2009.

Through all those trials however, Land Rover has shown remarkable staying power and has managed to turn itself around. Without deviating from its original mission -- delivering the ultimate in off-road driving machines -- the automaker has expanded its product line at the low end and reengineered its high-end vehicles that sell for six figures. Customers have noticed, and Land Rovers have become cool again, along with Prince William, Kate Middleton, and the cast of Downton Abbey.

MORE: GM's new CEO Mary Barra is no 'car girl'

In the U.S., Land Rover has boosted sales 15% this year in an industry that overall is up 8%. Exclusivity is key. There are still vast swaths of the country where you never see one on the road or off. When sales reached an all-time November high last month, they still amounted to only 4,601 units. Ford sells that many F-series trucks in little more than two days.

But while its volume is scant, Land Rover makes every sale count. Discounts are rife among luxury SUVs, but Land Rover has been able to hold prices. With the introduction of the redesigned Range Rover in January, the average transaction price leapt from $93,451 to $101, 436, and it has remained above $100,000 ever since. "I've been watching for awhile now and am very surprised they've been able to keep their prices so high," says Jessica Caldwell of Edmunds.com.

Moreover, the vehicles are selling almost as fast as they can be unloaded at dealerships. Edmunds figures that Land Rover's days-to-turn in November was less than 10 days vs. nearly two months for its competitors. Caldwell is sympathetic: "I imagine there are a lot of frustrated people in the Land Rover dealerships since these are hot sellers are not easy to get."

Land Rover buyers are unusually well-heeled. For the vast majority who never take their vehicles farther off-road than the parking paddock at a polo match, they are buying far more mechanical capability than they will ever need. Many pay cash, and lease rates are exceptionally low. And for deep wallets, mileage is not an issue: The Range Rover Sport gets just 14 miles per gallon.

MORE: Bentley not backing down from luxury SUV

The Land Rover revival began with the launch of the Evoque in 2011, the first new model produced under Tata's ownership. With its tapered roof shrinking the side window glass, the Evoque's design sacrificed some utility but more than made up for it in style. Rather than taking the compact SUV on safari to demonstrate its off-road capabilities, Land Rover positioned it as a hip, urban vehicle and photographed it in Times Square. The new association resonated, and 80,000 Evoques were sold worldwide during its first year of production.

Next came the redesigned flagship Range Rover, the first makeover since 2002 and only the fourth since it was introduced in 1970. The time was well-spent: Engineers knocked off as much as 900 pounds from its three-ton weight by making it largely from aluminum. Some of the design details from the Evoque were carried over, but the new Range retained the familiar upright stance and clamshell roof of its forbears. "People looking to spend $100,000 want a distinctive vehicle, and the new Range Rover looks more distinct than ever," says Caldwell. "It is easy to spot in a crowd." The redesign attracted a new generation of celebrities, including Christine Aguilara, Jessica Simpson, and Ludacris.

Land Rover completed a trifecta in August with the launch of the Range Rover Sport (above). Smaller and lighter than its namesake, it split the design difference between its two predecessors and went on to become the brand's bestseller because of its blistering performance. On a drag strip, testers found that it could outperform a Ford Mustang GT that weighs 1,800 pounds less.

MORE: Sneak preview: 10 new car models for 2015

The Land Rover renaissance has come despite a legacy of quality problems that has left its older models at the bottom of the J.D. Power reliability ratings for three-year-old vehicles. Land Rover executives insist that quality is improving and point to the latest Power survey of complaints after 90 days of ownership, in which it climbed from 28th to 21st , close behind BMW and Volvo The survey came too soon to include results from the new Range Rover and Sport, so Land Rover's ratings should continue to climb.

Given the fickleness of fashion, Land Rover will have to permanently put to rest its issues with reliability and fuel economy in order to build a solid foundation for future growth. Just now, it is headed in a different direction. The company recently staged a lavish Beverly Hills event at which it introduced the Long-Wheelbase (LWB) Autobiography Black edition Range Rover with more rear-seat legroom and elaborate comfort controls. Its base price: $185,000. It is a creation the Earl of Grantham and the rest of the Crawley family might have enjoyed in their salad days.

First Published: December 12, 2013: 8:41 AM ET

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No, Virginia. There is no Santa Claus rally

Click here for more market data.

NEW YORK (CNNMoney)

The Dow Jones Industrial Average, the S&P 500 and the Nasdaq were down in mid-morning trading.

Stocks dropped sharply Wednesday as investors worried that a new U.S. budget deal raised the chance that the Federal Reserve might start to scale back its support for the economy soon. And investors continued to focus on economic data Thursday in an attempt to gauge the Fed's sentiment ahead of its policy meeting next week.

The Department of Labor said initial jobless claims rose to 368,000 last week, higher than what economists were expecting.

Retail sales ticked up from the previous month, according to the Census Bureau, slightly beating Wall Street estimates.

Stocks often enjoy a nice rally in December but after a record-breaking run for the Dow and S&P 500, the so-called Santa Claus rally has yet to materialize. The S&P 500 has fallen 1.5% so far this month.

In another sign that December may not deliver strong returns, CNNMoney's Fear and Greed index, which tracks the VIX (VIX) and six other gauges of market sentiment, slipped into Fear territory. It was in Greed mode just a week ago.

See also: Will the market actually cheer tapering?

What's moving: Hilton Worldwide (HLT) popped 7% once it began trading on New York Stock Exchange. The hotel chain raised $2.4 billion through an initial public offering. Food services company Aramark (ARMK) also went public, raising $725 million. Shares jumped over 6%.

Shares of Lululemon (LULU) tanked more than 10% after the yogawear producer reported earnings and revenue that beat forecasts, but dimmed its outlook.

Facebook (FB, Fortune 500) bounced 3% after Standard & Poor's announced late Wednesday that the social networking giant will be added to its benchmark S&P 500 index later this month.

European markets were mixed to slightly weaker in morning trading. while Asian markets ended lower.

First Published: December 12, 2013: 9:52 AM ET

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FICO opens up credit scores to small businesses

FICO is about to make its small business credit scores available to owners for the first time.

NEW YORK (CNNMoney)

FICO (FICO) scores are used as tools for lenders to determine the creditworthiness of applicants. Its general scores have been available to individual consumers for years, but its small business scores have only been disclosed to lenders.

Now, the service is partnering with companies like Creditera, an online credit monitoring system, to bring more transparency to the process. It won't be free, like many of its consumer scores are, but come January, business owners who subscribe to Creditera will be able to see FICO's Small Business Scoring Service measurement.

The change will allow small business owners to see how they're being judged by lenders, giving them a better idea of what kind of credit and rates they should expect.

Related: Credit score killers

"The change definitely offers some value to the mid-sized small businesses, but it's not the greatest thing since sliced bread," said John Ulzheimer, a credit expert at CreditSesame.com.

While FICO's scores have a solid reputation and are used by a number of banks and credit unions, it's not the only player in the credit scoring game. Dun & Bradstreet's (DNB) Paydex score is more widely used for small business lending, Ulzheimer said. Plus, lenders don't have to rely on scores at all, and often pull credit reports on their own.

Related: FICO wants your score to be free but credit bureaus don't

Applicants already have access to their Paydex scores. They can sign up to be alerted to any changes for free, or pay $49 a month to see the actual score and details. Once Creditera integrates FICO's Small Business Scoring Service, it will charge $49.99 a month to monitor your FICO score, Experian (EXPGF) business score and personal scores from Experian, TransUnion and VantageScore -- all of which can be accessed directly from credit bureaus.

The score may not be worth the cost for smaller businesses with just a few employees, however. In these cases, lenders often weigh the business owner's personal credit score, which is something they already get for free.

First Published: December 12, 2013: 10:44 AM ET

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Investors book a stay with Hilton stock

Hilton returned to the public markets Thursday. Private equity firm Blackstone had bought the chain in 2007.

NEW YORK (CNNMoney)

Shares of Hilton (HLT) surged 8% out of the gate from their offering price of $20. The company raised $2.4 billion from the offering.

"It's a sign of good things in the hotel industry, the fundamentals are favorable," said John Staszak, an analyst with Argus Research.

Investment giant Blackstone (BGB) bought the McLean, Virginia-based hotel chain in 2007 for $26.7 billion and took it private.

Citing high demand, Blackstone raised the amount of the offering last week and moved the IPO up by a day.

"This is a blue chip company so people are very excited," Staszak said.

Related: AMC offers stock to loyal movie fans

Blackstone bought Hilton at the height of the real estate bubble, and the recession took a toll on the travel industry. But hotel occupancy rates have improved with the economy. According to Staszak, the sector is benefiting from limited supply.

Blackstone's hotel strategy seems to be bearing fruit.

The firm took Extended Stay Americ (STAY)public in November for $565 million.

Hilton, one of the world's largest and most recognizable brands with over 670,000 hotel rooms in 90 countries, counts DoubleTree, Hampton Inn, and Waldorf Astoria among its brands.

Blackstone plans to use the proceeds from the deal to pay down debt, according to its SEC filing.

Deutsche Bank (DB) and Goldman Sachs (FADXX) served as the lead underwriters on the offering.

Related: China's bad debt breaks Hong Kong IPO logjam

Hilton's foray back into the public market comes amidst a red hot year for IPOs.

Twitter is arguably the most well-known company before Hilton to go public this year. Shares of Twitter (TWTR) soared 73% on their first day of trading and have continued to climb since last month's IPO.

There have been 218 initial public offerings in 2013, according to Renaissance Capital. That's the highest since the 2000 tech bubble.

Another notable IPO Thursday was food service supplier Aramark (ARMK). Its stock rose nearly 10% in late-morning trading.

First Published: December 12, 2013: 11:15 AM ET

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How much market risk are you willing to take?

Riskalyze gives financial advisors and investors an easy way to determine just how much volatility they can stomach.

NEW YORK (CNNMoney)

Riskalyze, which CNNMoney just named one of the top 15 financial sites and apps for consumers, uses a web-based questionnaire to find how much people are willing to invest in stocks and what type of losses might prompt them to sell.

Picone, who runs Picone Financial Partners in Bonita Springs, Fla., said that Riskalyze has allowed him to avoid pigeonholing his clients and putting them in certain asset allocation programs based mostly on their age or other factors. That's because while most risk tolerance assessments ask questions based on how psychology affects investment decisions, Riskalyze's approach is rooted in math.

Riskalyze asks up to a dozen questions to quantify exactly how much risk an investor is willing to take -- a process that typically takes about 10 minutes and removes the "subjectivity and guesswork out of risk analysis," said Riskalyze CEO Aaron Klein.

At the end of the assessment, Riskalyze assigns a so-called risk fingerprint, which is a number between 1 and 99. A score of 1 is a sign that investors want to avoid almost any risk while a 99 indicates a strong willingness to accept volatility if it meant that there was also a chance of huge gains.

Related: 15 best financial sites and apps

The Riskalyze questionnaire helped Picone learn that one of his clients is actually a lot more comfortable with risk than he initially thought.

The assessment concluded that this client, a 64-year-old nearing retirement, had a risk fingerprint of 65. With that in mind, Picone was able to suggest a model portfolio that focuses on growth with income, which has a 60% allocation in stocks and 40% in bonds.

Prior to using Riskalyze, Picone had his client's portfolio focused on generating income with moderate growth. That may sound similar. But that allocation had 40% in stocks and 60% in bonds. So it was a more conservative portfolio than this client actually needed.

And thanks to this year's huge stock market rally, the client's returns have been better than if he had stuck with a portfolio weighted more towards bonds.

"Now my client and I can both see he's willing to be more aggressive, and we're on the same page about his expectations," Picone said.

Riskalyze also lets investors test scenarios for individual stocks.

That's how financial advisor and Riskalyze co-founder Mike McDaniel persuaded one of his clients to reduce her 22% stake in Apple (AAPL, Fortune 500) when it was trading near its all-time highs last year.

"At the time, Apple looked like it was going to the moon, so it was hard justify to clients why they shouldn't add more," said McDaniel, who is based in Nevada City, Calif.

But he was able to show his client how her entire portfolio would react to various scenarios with Apple's stock.

"The risk that such a large stake in Apple at all-time highs posed stuck out like a sore thumb," said McDaniel. "Seeing the math, she was able to take her emotion out of the process and make a rational decision."

Related: Bonds: Tweak your mix in 2014

McDaniel also used Riskalyze to convince many of his customers to reduce their bond exposure last year. He showed them the risks their bond-heavy portfolios would carry if the 10-year Treasury yield rose by a percentage point.

"My typical client is 72 and retired, and conventional wisdom suggests they should be heavily invested in bonds," he said, adding that he thought interest rates would rise this year. So investors with a big chunk of bonds stood to lose a lot of money.

Sure enough, long-term bond yields spiked to nearly 3% at one point this year from about 1.7% a year ago due to expectations that the Federal Reserve will begin to pull back on its stimulus measures.

"I was able to convince my clients to increase their exposure to stocks and cash, and that's been huge in terms of protecting what they would have lost in bonds," said McDaniel.

First Published: December 12, 2013: 11:22 AM ET

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Instagram launches direct messaging

The new Instagram Direct feature is a direct messaging platform for photos.

NEW YORK (CNNMoney)

"Sometimes you want to be able to share not with everyone, but just a specific group," Instagram founder Kevin Systrom said at the company's announcement in New York.

An update to the Facebook-owned Instagram mobile app released Thursday includes a new tab labeled, "direct," Users can tap that tab to send photos specifically to their friends and have conversations around those photos. There will also be a new option to "send to 1" on the app.

The direct messaging feature will work in real time, enabling users to tell which of their friends have viewed the photo. They'll also be able to chat with friends in real time.

Related story: What is Snapchat?

"It's like you're gathering people around a photo or moment and being able to have a conversation around them," Systrom said.

Unlike the copious rival messaging services, including Twitter (TWTR), WhatsApp, Google (GOOG, Fortune 500) Hangouts, Facebook (FB, Fortune 500) Messenger and scores of others, Instagram users can only direct-message text along with photos. Messaging private texts only isn't an option.

Systrom noted that the feature is in its earliest stages. Right now, users can choose which friends they want send directly to. In the future, there could be the opportunity to create groups or send multiple pictures directly.

Systrom dismissed rumors that Instagram would launch a Snapchat-like, feature, enabling users to let their direct images and messages disappear after a set time.

"What we're best at is archiving and sharing with their friends," he said.

Systrom also addressed Instagram's ongoing effort to advertise. Instragram launched ads on its service for the first time this year, but -- at least for now -- Instagram Direct will remain ad-free.

"It's way too early to advertise on Instagram Direct," he insisted.

First Published: December 12, 2013: 11:24 AM ET

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Military retirees: You betrayed us, Congress

Military retirees are outraged that Congress would trim their pensions for a budget deal, after they served 20 years or more.

WASHINGTON (CNNMoney)

The Military Coalition, some 27 military groups, wrote to leaders in Congress and President Obama late Wednesday about their "strong objection" and "grave concern" over the budget deal.

The deal cuts pension cost of living raises by 1% for military retirees who aren't disabled and not yet 62 years old. Cost of living hikes are automatic raises intended to keep up with inflation.

The problem is, most military retirees are a lot younger than private sector retirees. They enlist in their 20's and retire in their 40's. Very few stay on till they are 62 -- those who may be lucky enough to escape major injuries at war, or rose to higher echelons in the military system.

The 1% cut could result in about a 20% cut in retiree pay over the course of 20 years.

The average pay cut for an Army Sergeant first class, who retires this year would be $3,700 each year, according to the Military Officers Association of America. Over 20 years, the losses balloon to more than $80,000.

Related: 5 things the budget deal doesn't do

"While portrayed as a minor change, a 20% reduction in retired pay and survivor benefit values is a massive cut in military career benefits," wrote groups, including the Air Force Sergeants Association, Iraq & Afghanistan Veterans of America and the Marine Corps League, among others in the letter.

The change is infuriating to military retirees like Army Col. Mike Barron, who retired nearly 4 years ago, after 30 years of service, which included being deployed to both Iraq wars.

"It's not fair at all. I spent a 30 year career in the military. I clearly understood what the (cost of living increases) would be," said Barron, deputy director of government relations for the Military Officers Association of America. "This is the worst kind of example of a shady, back-room deal."

Military groups say the cut is unfair because the changes will affect those who have already put in their years of service.

"To tax the very men and women who have sacrificed and served more than others is simply a foul," according to the letter.

Related: A new normal for government retirees

Washington leaders, and House Republicans, in particular, have been worried about the cost of military retiree benefits.

In 2012, the Pentagon spent $52.4 billion on 2.3 million military retirees and survivors, a cost that is expected to rise over the next few decades, according to the Department of Defense Office of the Actuary.

House budget chief Rep. Paul Ryan's website states that military retirement "provides an exceptionally generous benefit, often providing 40 years of pension payments in return for 20 years of service," as it explains why benefits should be trimmed.

"Current levels of military compensation are incompatible with the overall demands on the defense budget," according to a House Committee on the Budget Report.

Military groups say they're open to reforms, but they'd like such changes to go through the normal legislative process that allows time to review and "assess any recommendations that could significantly impact retention and readiness."

Barron said groups like his were "blindsided" by the cuts to military pensions.

The 1% cut, along with other changes to civilian pension benefits, ends up saving the budget $6 billion, according to the Congressional Budget Office. Newly hired civilian federal workers will have to contribute 1.3% more of their paychecks to pensions if the budget deal becomes law.

The Department of Defense wouldn't comment on the Military Coalition letter and pointed to a statement by Defense Secretary Chuck Hagel saying the budget deal provides greater "budget certainty," while reducing the impact of massive cuts from so-called sequester.

First Published: December 12, 2013: 11:48 AM ET

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GDP revised up, but not as good as it looks

NEW YORK (CNNMoney)

But here's the buzz kill: That number is not nearly as good as it looks.

The main reason that growth in the nation's gross domestic product was so strong was because businesses are stockpiling larger inventories. Once you factor out the impact from the inventory boost, GDP growth would have been just 1.9%.

"Overall, the report still paints a picture of subdued underlying growth," said Yelena Shulyatyeva, U.S. economist with BNP Paribas.

Why are businesses adding to their inventories so dramatically? It's not clear. It could be a sign that companies expect demand will pick up in the future -- so they are stocking their shelves in advance. Or, it could be an indication that demand is weaker than expected, and goods are lingering on the shelves longer than planned as a result.

Some evidence points to the latter theory, which would be discouraging news. Consumer spending, for example, grew at a slower pace in the third quarter than originally reported.

Meanwhile, after revisions, both residential and commercial real estate contributed slightly less to economic growth than they had in the original GDP report.

Related: New home sales surge 25% in October

What's more, economists expect the fourth quarter GDP numbers to be weaker, as inventories are unlikely to contribute to growth in the next quarter.

"The pace of inventory building is clearly unsustainable and there will have to be some slowing in coming quarters," said Jim O'Sullivan, chief U.S. economist with High Frequency Economics.

It's also possible that the fourth quarter GDP numbers will be impacted by the government shutdown in October.

That said, there are other more recent signs of economic strength -- most notably in the job market.

Claims for jobless benefits fell last week, as 298,000 people filed of their first week of unemployment insurance. That's the lowest number since September. It's possible that seasonal factors could be at play, as Thanksgiving fell later in the year. But claims have consistently been hovering around pre-recession levels for the past few months. Lower levels of claims are an indication that layoffs are waning.

And on Wednesday, payroll processor ADP reported that private-sector job growth was much stronger than expected.

This data comes ahead of the government's key monthly jobs report due Friday. Economists surveyed by CNNMoney expect that report to show the economy added 183,000 jobs and the unemployment rate fell to 7.2% in November.

First Published: December 5, 2013: 9:35 AM ET

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Obamacare: You're not insured until you pay

You must pay your first month's premium before you are insured under Obamacare.

NEW YORK (CNNMoney)

If you want to be insured come Jan. 1, you have to pay your first month's premium by your insurer's due date, often Dec. 31.

Sounds simple enough, but federal officials and insurers are concerned that many consumers don't realize they have to take this last step and will remain uninsured. What's more, those who don't pay by then may have their Obamacare applications terminated, forcing them to re-enroll via healthcare.gov for coverage that will begin later in 2014.

The tight deadline and continuing errors with consumers' applications being sent to insurers also risk leaving some folks uncovered. Obama administration officials are advising consumers to check with their insurer of choice to make sure it received their application and payment and that coverage will begin Jan. 1.

Here's the timeline: Consumers have until Dec. 23 to pick an insurance plan on healthcare.gov, the federal Obamacare exchange handling enrollment for 36 states, if they want to be covered at the start of the new year. Once they do, a final screen confirms they've completed their application, but warns that they have to pay their first premium for coverage to be activated.

The site then provides a payment button that takes them to their insurer's website. Some companies accept online payments, but others give consumers information about how to take care of the bill.

Those who live in the 14 states (plus the District of Columbia) with their own exchanges face different deadlines. In Oregon, for instance, residents had to submit initial applications by Dec 4, while Californians have until Jan. 6 to make their first payment. Those planning to sign up this month should check the deadlines of both their exchange and their chosen insurer.

Share your story: Are you signing up for Obamacare?

While the Obama administration has reported that more than 100,000 Americans picked plans in October, the first month of open enrollment, it's not known how many of them have paid.

One insurer, Physicians Health Plan of Northern Indiana, has received payments from only about 20% of applicants, nearly all using the firm's online portal, said Jim Brunnemer, the chief financial officer. It is sending invoices and email reminders to those who haven't yet sealed the deal. If payment isn't made by New Year's Eve, PHP has been told by federal officials that it must void the application.

Another complication is that insurers also don't have a lot of time to process applications and send out ID cards. The timeline, particularly over the holiday week, will prove "challenging" for some companies, one industry executive said.

It usually takes 10 days for Scott & White Health Plan to activate an applicant, said Allan Einboden, chief executive of the Texas-based insurer. But the company will work with new enrollees to make sure that their prescriptions and other medical needs are covered in the early days of the new year.

"We have mechanisms to get people by," he said.

The process is being further complicated by the fact that insurers are receiving applications from healthcare.gov that contain errors, such as missing data. Some applications aren't getting through, so insurers don't know to follow up with these folks. Both of these problems are slowing down the enrollment process.

The issue is serious enough that federal officials are reaching out to applicants via phone and email to make sure they pay for a plan and contact their insurer to confirm enrollment.

"We will also make a concerted effort to reach consumers who selected a plan over the course of these past several weeks so that they know what their next steps would be," said Julie Bataille, a spokeswoman for the Centers for Medicare & Medicaid Services, which is managing healthcare.gov.

For those who miss gaining coverage starting Jan. 1, there's still time to sign up in 2014. Enrollment runs through March 31.

First Published: December 5, 2013: 7:30 AM ET

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