IRS says taxpayers making fewer mistakes

NEW YORK (CNNMoney)

Last year, the IRS identified 2.7 million math mistakes made by 2 million taxpayers on their 2011 returns, according to new data from the agency. That's less than half of the 6.6 million errors found in 2011 on 5 million 2010 tax returns.

To avoid catching the attention of the IRS, beware of these pitfalls.

The most common error, which accounted for 24% of all mistakes last year, was calculating the amount of tax owed. About 15% of mistakes were made in reporting exemptions, and another 13% were made claiming the Earned Income Tax Credit.

In 2011, roughly half of the mistakes were related to the Making Work Pay Credit, which could be claimed on 2010 tax returns and provided up to $400 per worker. Many taxpayers failed to claim the credit because they didn't realize they qualified, so the IRS had to alter those returns and factor that amount into its calculations.

Related: 12 tax audit red flags

"As there are new laws or changes [to credits], the chance of math errors increases," said Brent Lipschultz, partner at accounting firm EisnerAmper.

But even without the 3.3 million errors related to the Making Work Pay Credit, last year's 2.7 million errors was still a considerable improvement from the year before.

The IRS can thank the growing use and availability of tax software programs, like H&R Block and TurboTax, for the decline in errors, said Thomas Cooke, a professor of accounting and business law at Georgetown University.

"One of the most common mistakes made by taxpayers is math -- calculating the numbers," said Cooke. "It is a lot harder to make a math mistake when a computer program is doing the work for you."

It's free to file a basic federal return with many tax filing programs, and you simply plug in numbers straight from your W-2, answer a handful of questions and your tax liability or refund is automatically calculated. Your return is then electronically filed straight to the IRS, which has its own screening system that scans returns for mistakes before accepting them. If something doesn't add up, it will kick the return back.

Related: 12 smart ways to cut your tax bill

Roughly 81% of individual tax returns were filed electronically last year, up from 77% in 2011 and 66% in 2009, according to the IRS. And it's not just taxpayers who e-file -- these percentages include tax returns filed electronically by tax preparers as well, said Dominique Molina, president of the American Institute of Certified Tax Coaches.

And while electronic filing may reduce math errors, there can be a downside to relying solely on software, she said.

"No matter how sophisticated the tax preparation program, it's never a substitute for judgment and it's not always going to tell you what you're missing or whether there are other opportunities you could take advantage of," said Molina. "But for those folks who have very simple returns, the software makes it so much easier."

How do you plan on spending your tax refund? Share your plans with melanie.hicken@turner.com.

Have you had a nightmare experience with your taxes? From tax preparer mistakes to audits -- or worse, e-mail blake.ellis@turner.com to share your story.

First Published: March 28, 2013: 6:27 AM ET

23.53 | 0 komentar | Read More

The new CNNMoney Portfolio

NEW YORK (CNNMoney)

You'll see that it is leaps ahead of the last portfolio you used, bringing together your entire investing life into one simple tool.

Check out some of what it can do and you'll see what we mean:

- Automatically sync all your brokerage, IRA and 401(k) accounts and show them in a single view.

- "Tell a story in an eye-blink" charts and graphs, instantly showing real-time performance and risk.

- Run more than 100 tests on your holdings and trading behavior to give the best possible personalized advice.

- Get up to the second quotes, breaking news and commentary from 500-plus sources.

With the markets at all-time highs, we know you demand and need this real-time utility paired with our latest news and analysis.

With the addition of our new portfolio, we aim to help you make even better investing decisions.

Welcome! And let us know what you think.

- Chris Peacock, Executive Editor / Vice President

First Published: March 28, 2013: 9:26 AM ET

23.53 | 0 komentar | Read More

Jobless claims rise slightly

The government said 357,000 people filed for unemployment benefits last week, up from 341,000 the week prior.

NEW YORK (CNNMoney)

For the week ending March 23, 357,000 people filed for unemployment benefits, the Labor Department said Thursday. That was up 16,000 from last week's upwardly revised figure of 341,000.

Analysts were expecting 335,000 people to have filed for unemployment benefits, according to Briefing.com.

One analyst called Thursday's number "disappointing," but wasn't particularly concerned.

"Given the volatility in these figures, particularly around the Easter and Passover holidays, we wouldn't read too much into a single data point," Paul Ashworth, chief U.S. economist at Capital Economics, said in a research note.

During the height of the recession, weekly claims for unemployment benefits surged to over 660,000, but now they're hovering back around pre-recession levels.

In total, there were just over 3 million people filing for their second week or more of unemployment benefits two weeks ago, the most recent data available.

Last month, the Labor Department's jobs report showed that unemployment had fallen to 7.7%, the lowest level since last 2008.

First Published: March 28, 2013: 8:59 AM ET

23.53 | 0 komentar | Read More

U.S. economy climbs off the mat

NEW YORK (CNNMoney)

Gross domestic product rose at a mere 0.4% annual rate in the quarter -- better than the previous estimate of 0.1% and the initial reading, which showed a 0.1% decline.

Among the reasons: Stronger construction activity. Investment in non-residential buildings grew at a 16.7% annual rate, nearly triple the previous growth estimate.

Stronger exports also helped raise the overall GDP reading.

On the flip side, businesses fearing the fiscal cliff cut back in the fourth quarter, trimming inventories of goods on hand. And the government slashed spending on defense.

Together those two factors eliminated nearly 3 percentage points of growth from GDP, and those readings didn't change in the latest report.

But the worst economic hit of the fiscal cliff was avoided. And growth appears to be fairly solid so far this year -- thanks to a strong housing recovery, improved hiring by businesses, and a pickup in car sales and consumer spending.

Economists are generally forecasting much stronger growth in the first quarter of 2013.

The consensus of experts surveyed by the National Association of Business Economics is for first quarter growth of 2%, while Goldman Sachs recently raised its first quarter forecast to 2.9% growth.

But how long stronger growth will continue remains a question.

A budget deadlock in Washington led the government to start cutting spending this month. The Congressional Budget Office estimates those cuts, known as the sequester, will trim 0.6 percentage points off growth and cost as many as up 750,000 jobs.

Federal Reserve Chairman Ben Bernanke has warned that the cuts will be a "significant" burden to the economy.

First Published: March 28, 2013: 9:13 AM ET

23.53 | 0 komentar | Read More

Furlough means I can't pay my student loan

Laurie Vroman, a single mom to three kids, including Micah, 8, will have to delay paying off $10,000 in student loans if furloughs cut her pay by 20%.

WASHINGTON (CNNMoney)

Laurie Vroman has already made her decision. She has three young children and makes $37,000 a year as a management assistant at an Army arsenal near Albany, N.Y.

Come May, furloughs will slice her pay by $410 each month, forcing her to cut back on expenses. One casualty would be the $250 monthly payment on the $10,000 she owes the government in Stafford student loans.

"I have to put a roof over my head, and I have to drive, so paying off my student loans is going on the back burner," said Vroman, 31, an Air Force veteran, who pays $985 in rent and $250 for her car each month.

Federal workers nationwide have been preparing months for the forced unpaid time off, triggered by the $85 billion in budget cuts that took effect earlier this month.

Furloughs are scheduled to kick in at government agencies like the Justice Department the week of April 21, and at Defense by May 6, at the earliest.

It's unclear, how many federal workers have student loans. But roughly 200,000 of some 2.1 million federal workers are in their 20s, according to the Office of Personnel Management.

Related: Federal defense workers fret over two-week furlough delay

Delaying student loan payments seems like an obvious option for defense employees, who are in the worst situation among federal workers. They've been warned to expect the longest furloughs -- up to 22 days between May and September, or a 20% pay cut for five months.

Joe Hyde has already filled out the forms to put his $13,000 in federal student loans into forbearance, where he would ask for more time to repay the debt.

Hyde, 25, a travel assistant at the Naval Postgraduate School in Monterrey, Calif., says he'll file the paperwork as soon as he gets his furlough notice.

He makes $41,000 a year, and will make $683 less each month if furloughed. Hyde spends $1,400 a month on rent, which eats up most of his paycheck, and his student loan payments amount to $227 each month.

"If we only end up getting furloughed a few days, I think I can take it," said Hyde, who graduated from California University of Pennsylvania in 2010 with a degree in sports management. "But if we're going to get a 20% pay cut, see ya later student loans."

Vroman, meanwhile, is just five weeks away from getting a criminal justice associate's degree from the University of Phoenix. She hopes it will help her land a better-paying job in law enforcement, as an investigator.

Deciding to delay student loan payments wasn't easy, she said.

"There's no other way for me to support my family," said Vroman, an Air Force veteran. "It's not just a 20% pay cut, it's a complete lifestyle change."

She's already traded in her Hyundai Santa Fe for a more fuel efficient Sonata, and cut dinners out with her family.

"We're doing more free museums and things that don't cost," she said.

First Published: March 28, 2013: 9:36 AM ET

23.53 | 0 komentar | Read More

BlackBerry ships 1 million Z10 phones

BlackBerry sold 1 million of its new Z10 smartphones in the fourth quarter. But overall revenue missed forecasts.

NEW YORK (CNNMoney)

BlackBerry's (BBRY) fiscal fourth quarter, which ended March 2, was a transitional one. The company finally launched its long-delayed BlackBerry 10 operating system in January, and rolled out the first phone to run on the new software a few weeks later.

That phone, the Z10, launched in February in Canada, the U.K. and the United Arab Emirates -- only a few weeks before the end of the quarter. The Z10 went on sale in the United States at AT&T (T, Fortune 500) last Friday and hits Verizon (VZ, Fortune 500) stores today.

Overall, BlackBerry earned $94 million, or 18 cents per share, in the fourth quarter. Analysts polled by Thomson Reuters had expected a the company to lose 29 cents per share. The company said it was able to swing to a profit due to a cost-cutting initiative that began during the quarter, including making its supply chain more efficient. BlackBerry lost $118 million a year ago.

In prepared remarks, CEO Thorsten Heins credited "numerous changes at BlackBerry over the past year" with the company's return to profitability.

Still, BlackBerry's sales of $2.7 billion during the quarter disappointed. Wall Street analysts had expected the company to bring in $2.8 billion in revenue. The company shipped just 6 million smartphones in total, and its subscriber base fell to 76 million.

"To say it was a very challenging environment ... would be the understatement of the year," Heins added later, on a post-earnings conference call with analysts.

One analyst asked Heins how many of the 1 million Z10 phone shipments to stores have actually sold to customers. Heins put the figure "roughly" at two-thirds to three-quarters.

Investors knew BlackBerry's fourth-quarter results wouldn't say much about the success or failure of the newly launched Z10. For that, analysts will be looking to the company's first-quarter results. BlackBerry said it expects to break even during the current quarter, despite raising its marketing spending by 50%. Wall Street analysts had been expecting a small loss.

On the conference call, Heins said BlackBerry 10 is the "beginning, certainly not the end" of the company's turnaround. "Everybody at BlackBerry understands there is still more work to be done," he added.

Specifically, Heins sees several areas for potential revenue growth: autos, healthcare, security, defense, enterprise, and licensing of BlackBerry 10.

"Our vision is to expand from being a smartphone company to being a leader in mobile computing," Heins said.

Shares rose 2% in morning trading.

Related story: Inside BlackBerry's last stand

BlackBerry's stock has enjoyed a strong comeback since the company said last year that BlackBerry 10 would finally be unveiled in January after long delays. Shares are up 91% over the past six months, but the stock has been extremely volatile.

That's partly because many investors are still betting against BlackBerry. As of March 15, nearly one-third of shares were held by short-sellers who think that BlackBerry's stock will fall. That's a whopping percentage, and it has contributed to BlackBerry's wild swings as "shorts" are occasionally forced to buy up shares in order to cover their positions.

Ultimately, investors will want to see more evidence that BlackBerry's new phones can make a dent in what's a highly competitive mobile market.

Devices made by Samsung and others that run on Google's (GOOG, Fortune 500) Android operating system have become popular. Apple (AAPL, Fortune 500)is, of course, still a significant player. And Nokia (NOK) is also gunning for smartphone users with new Lumia phones that run on mobile software from Microsoft (MSFT, Fortune 500).

BlackBerry is hoping its new operating system will usher in a new era for the company. Meanwhile, another era is ending: Mike Lazaridis, who co-founded the company in 1984 and served as co-CEO until 2012, is stepping down from the board on May 1. Last week, Lazaridis announced he is starting a venture fund called Quantum Valley Investments.

First Published: March 28, 2013: 7:30 AM ET

23.53 | 0 komentar | Read More

Facebook's Mark Zuckerberg faces $1 billion tax bill

Facebook's IPO made founder Mark Zuckerberg a billionaire -- but left him with a tax bill likely to top $1 billion.

NEW YORK (CNNMoney)

Zuckerberg's whopping tax hit stems from his move last May to increase his stake in Facebook. On the day of Facebook's initial public offering, Zuckerberg exercised a stock option and purchased 60 million Facebook shares at a "strike price" of 6 cents each.

Even if those shares are never sold, the IRS treats them as ordinary income at the time the options are exercised. The rationale is that such options are a form of compensation, just like regular wages.

For Zuckerberg, that means reporting income last year of nearly $2.3 billion from his stock options alone. Add together the top 2012 federal tax rate of 35% and the top California rate of 13.3% -- the highest in the nation -- and you get a total tax rate of 48.3%.

Related story: The truth behind Phil Mickelson's California taxes

That's before factoring in some deductions and any other income Zuckerberg collected last year. Only Uncle Sam and California's tax agency know exactly what's in Zuckerberg's return, but three California CPAs that CNNMoney consulted ran the numbers and believe Zuckerberg's bill for the year will probably exceed $1 billion.

That's really unusual ... even for billionaires.

"With numbers that large, it's usually capital gains, not ordinary income," said Toby Johnston, a partner at tax firm Moss Adams LLP's Silicon Valley office who works with wealthy clients. Investors profiting off their gains paid a significantly lower tax rate last year than Facebook's founder will. The highest federal capital gains rate in 2012 was 15%. It goes up to 23.8% (including a Medicare surtax) this year.

The Internal Revenue Service doesn't comment on the returns of individual taxpayers, but each year it releases aggregate data on the 400 U.S. tax filers with the largest reported incomes. The average top earner had income of $202 million and a federal income tax bill of $41 million for 2009, the most recent data available.

A Facebook spokeswoman declined to comment on Zuckerberg's taxes.

To cover the giant bill he knew was coming, Zuckerberg dipped into his trove of Facebook stock. He sold 30.2 million shares during Facebook's IPO, taking in $1.135 billion. At the time, Facebook said in a regulatory filing that Zuckerberg planned to use the "substantial majority" of those proceeds to cover the taxes on his stock-option purchase.

Related story: 12 tax audit red flags

And Zuckerberg has another big tax hit looming: He is still sitting on 60 million unexercised options that expire in late 2015. At Facebook's (FB) current share price, those options would generate taxable income of $1.6 billion if he cashed them in. If he cashed then in today at current tax rates, that would amount to a $826 million bill.

The U.S. Treasury will benefit from Zuckerberg's taxes. So will California, which is getting a windfall as thousands of Facebook employees cash in on stock grants and options. California expects to collect roughly $1.5 billion in tax revenue tied to Facebook's IPO, according to the latest estimate from the state's Legislative Analyst's Office.

So how do you pay a tax bill that's bigger than some nations' entire annual GDP? (We're looking at you, Grenada.)

California requires an electronic payment for all tax bills larger than $80,000, but the IRS will take a paper check for any amount.

Watching a sum that big vanish from your bank account sounds scary, right? The flip side is that at least you can afford it.

"Most people are thrilled, to tell you the truth," said Stan Pollock, a San Francisco area accountant who specializes in handling tax issues for tech workers. "I have had very few clients that get these huge windfalls who have resented paying the tax. They know they got lucky."

First Published: March 28, 2013: 12:02 PM ET

23.53 | 0 komentar | Read More

Cyprus banks reopen with tough cash limits

LONDON (CNNMoney)

Cyprus became the first eurozone country since the currency was launched on Jan. 1, 1999, to place restrictions on how much money individuals and companies can take across its borders after confidence in its outsized financial system was shaken by the bailout terms.

Queues formed outside bank branches in the capital of Nicosia amid tight security but there was no evidence of panic. The stock exchange said it would remain shut until April 2 to give market participants time to adjust to the restrictions on financial transactions.

"I think there's been remarkable tolerance by the people of Cyprus," said Carl Bildt, foreign minister of Sweden, which suffered its own banking crash in the 1990s.

"I'm not particularly pessimistic about the long-term future for Cyprus - it's going to be difficult days now for some time but not for the long term," he told CNN.

Related: Calm, long lines as banks reopen

The banks had been shut since March 16 as it became clear that deposits would be raided as a condition of the 10 billion euro bailout.

The tiny island nation was brought to the brink of financial collapse and possible exit from the eurozone after its two biggest banks -- Bank of Cyprus and Popular Bank -- took big losses on Greek government debt, wiping out a third of their combined capital.

After months of negotiations, it signed up Monday for a bailout from its eurozone partners, backed by the International Monetary Fund, worth nearly 60% of gross domestic product.

In return, Cyprus committed to raise billions from big depositors to fund the winding down of Popular Bank and to recapitalize Bank of Cyprus. The EU wants Cyprus to shrink its banking industry to average size by 2018, which means shedding about half its assets.

Deposits above 100,000 euros have been frozen at both big banks. They could be wiped out entirely at Popular, while at Bank of Cyprus about 40% will be converted into equity.

Related: Tough times for Cyprus after EU bailout

All deposits of less than 100,000 euros are guaranteed. And the bailout does not affect smaller banks in Cyprus, which account for about 60% of the country's total deposits of 68 billion euros.

Many of those deposits belong to foreign investors, in particular Russians, and Cypriot authorities fear an uncontrolled flight of capital that would cause the economy to implode.

The use of controls breaks new ground for the EU, which is founded on the principle of free movement of capital and payments. Some economists argue that a partial break-up of the eurozone is underway as a euro held in Cyprus is no longer worth the same as a euro held in Germany.

Related: Bitcoin prices surge post-Cyprus bailout

Credit and debit card use abroad has been limited to 5,000 euros per month, and people leaving Cyprus can only take 3,000 euros in cash each trip.

Cyprus has banned the early withdrawal of funds on term deposits and transfers of more than 5,000 euros abroad, unless approved for trade purposes. Checks can be paid into accounts but not cashed, and a daily withdrawal limit of 300 euros has been set.

The European Commission said the controls were justified for an initial period of a week, but said they should be lifted as soon as possible.

"The commission will continue monitoring the need to extend the validity of, or revise, the measures," the commission said in a statement.

The longer the strictures remain in place, the greater the potential loss of confidence in other small eurozone states with large banking industries.

And even if it manages to stabilize the banking system and relax controls, Cyprus faces years of hardship as the shrinking of one of its main service industries plunges the economy even deeper into recession.

"A sharp contraction in Cypriot GDP of around 10% to 20% is likely in 2013-14 with only a weak recovery thereafter," noted forecasters at Oxford Economics. "It is difficult to avoid the conclusion that Cyprus will require additional bailouts in the future."

Development of natural gas deposits discovered offshore may ease the pain, but they're unlikely to begin generating significant revenue for several years.

"The EU deal was tough and what worries me is the next packet of measures they will try to impose,"said CNN iReporter George Georgiou. "Is it going to be worse or better? Nobody knows. Do we have a future with this deal?"

--CNN's Ivan Watson contributed to this report from Nicosia.

First Published: March 28, 2013: 7:10 AM ET

23.53 | 0 komentar | Read More

Samsung Galaxy S4 pre-orders start April 16 for $250

The Samsung Galaxy S4 will go on pre-sale for AT&T customers on April 16 for $250.

NEW YORK (CNNMoney)

The new smartphone will be available for pre-order on April 16 for AT&T (T, Fortune 500) customers, but there's still no word when the phone will actually hit shelves.

Surprisingly, you'll have to pay $250 for the Galaxy S4 with a new two-year contract. That's about 25% more expensive than most high-end carrier-subsidized smartphones, which typically sell for $200. The Galaxy S III and Apple's (AAPL, Fortune 500) iPhone 5 were both initially priced at $200.

It's not unheard of for smartphones to sell for more than $200 at their cheapest configuration, but the only notable phone -- if you don't count the Galaxy Note II -- to break that threshold in the past year was the Motorola Droid Razr Maxx, whose cost was mostly attributable to its battery.

Other phones to sell for more in the past include the HTC Thunderbolt and the Samsung Epic 4G. The Epic 4G was one of Samsung's more successful phones in 2010, but sold less than two million units. The Thunderbolt sold well initially due to the fact that it was one of the first LTE devices, but quickly fell into obscurity.

Of course, none of those devices had the pedigree of the Galaxy S4. It will be interesting to see how much the added cost will affect sales, and how quickly AT&T will cut prices if it is disappointed with the consumer response.

T-Mobile on Tuesday announced its plans to start selling Samsung's flagship device on May 1, so it's likely AT&T will do so as well in the same time frame. Samsung said the Galaxy S4 will also be available on Verizon (VZ, Fortune 500) and Sprint's (S, Fortune 500) networks, but neither has said when they will debut the smartphone.

The highly anticipated Galaxy S4 sports a five-inch screen, a 13-megapixel camera and a giant battery. Some of its most talked-about features include eye control, smart audio settings and an instant translation tool.

But for now, you'll have to keep waiting.

First Published: March 28, 2013: 11:30 AM ET

23.53 | 0 komentar | Read More

S&P 500 finally hits new record high

Click the chart for more stock market data.

NEW YORK (CNNMoney)

The benchmark index gained 5 points to rise as high as 1568.30, inching above its record closing high of 1565.15 reached in October 2007.

Despite the new milestone, trading was relatively calm as investors monitored the ongoing crisis in Cyprus and mulled over new economic data in the United States. The Dow Jones industrial average, the S&P 500 and Nasdaq were up between 0.1% and 0.2%.

But the first quarter of 2013 has been far from quiet. The Dow, which has been trading at record highs since early March, is up more than 11% and poised to book its best first quarter since 1998. The S&P 500 is up almost 10%. The Nasdaq is up 8%.

Despite the big run-up, experts argue that valuations remain attractive for U.S. stocks. The S&P 500 is trading at just 16 times 2012 earnings. At its all-time high in October 2007, the S&P 500's valuation was just above 17 times profits for the past 12 months.

And looking at earnings projections, stocks still appear reasonably valued. The S&P 500 is trading at just 14 times 2013 estimates.

Trading volume is expected to remain low Thursday, ahead of Good Friday, when markets will be closed in the United States and most of Europe

Related: What's next for the markets?

Winners and losers: The best-performing stock of the year in the S&P 500 is Netflix (NFLX). Shares have more than doubled in the last few months as investors have become optimistic about the company's growth prospects, despite a series of missteps over the last couple of years. Best Buy (BBY, Fortune 500) and Hewlett-Packard (HPQ, Fortune 500), struggling companies that are in the middle of turnaround efforts, are the next strongest performers, with shares up 87% and 65% respectively.

Some of the weaker links are JC Penney (JCP, Fortune 500), which is having more trouble than success with its makeover plan, as well as coal company Peabody Energy (BTU, Fortune 500) and mining firm Cliffs Natural Resource (CLF, Fortune 500)s.

Fear & Greed Index gets greedy

Cyprus banks back to business: Banks in Cyprus reopened Thursday morning after being closed since March 16. The island nation plans to limit the amount of money that depositors can withdraw in an attempt to prevent bank runs.

Cyprus agreed early Monday to raise billions of euros from big depositors at the Bank of Cyprus and Popular Bank of Cyprus, and to shrink its banking sector in return for a €10 billion European Union bailout.

Related: Bitcoin prices surge post-Cyprus bailout

U.S. economy humming along: Back in the United States, the government released its weekly data on initial jobless claims and its final reading on fourth-quarter GDP.

Jobless claims totaled 357,000 in the week ended March 23, an increase of 16,000 from the prior week and much worse than expected. The forecast called for a total of 335,000, according to a consensus of economists complied by Briefing.com.

The final government report for fourth-quarter GDP showed an annual increase of 0.4%, slightly higher than the expected increase of 0.3%. The prior reading showed the economy grew at a 0.1% pace.

What's moving: shares of Blackberry (BBRY) rose after it reported a surprise profit. Sales of struggling smartphone maker however fell short of expectations.

Shares of Pinnacle Foods (PF), owner of brands including Duncan Hines and Birds Eye, rose 13% in their stock market debut. Pinnacle raised $580 million in its initial public offering after pricing shares at the high ends its range. The company is backed by private equity firm Blackstone (BX).

Shares of Deckers Outdoor, which owns the Ugg boots brand, jumped after an analyst at Jefferies upgraded the stock and gave it a price target of $100 a share, nearly double its current price.

Dollar pulls back: European markets finished with solid gains, while Asian markets ended lower.

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

Oil priced gained slightly, while gold prices edged lower.

The price on the 10-year Treasury slipped, pushing the yield up to 1.86% from 1.85% late Wednesday.

What's buzzing: Wall Street strategists are betting the rally will continue. Wells Fargo Advisors increased its year-end 2013 target range for the S&P 500 to 1575-1625 from an earlier forecast of 1525-1575.

"Investors now appear to be more focused upon the potential for continuing global economic growth, said Scott Wren, senior equity strategist at Wells Fargo Advisors. "We anticipate investor confidence will continue to lift, slowly catching up with consumer confidence."

First Published: March 28, 2013: 9:58 AM ET

23.53 | 0 komentar | Read More

Mississippi's great green hope

(Fortune)

The plant is the first commercial-scale facility for KiOR, a Pasadena, Texas-based startup bankrolled by Vinod Khosla, the billionaire clean-tech investor. After nearly a decade of coming up short, he's hoping he has finally struck on an earthmoving innovation, one that will break the grip that fossil fuels hold on the transportation market. And in the process he hopes to restore rural communities across the country devastated by the decline of paper mills. "My dream would be that there are 500 communities, 15 years from now, that are all back in business using the wood chips in the forests around them, and that forestry is a lively business -- not moving to Brazil," he says.

23.53 | 0 komentar | Read More

The U.S.A.: Still unrivaled

(Fortune)

Isn't it amazing how much of what you read and hear turns out to be nonsense? To this category let us now consign the whole "End of the American Dream" story line. It's a new century. And as we consider in this issue the entire question of historic competitions, one thing stands clear: This particular macro-corporation is still unrivaled.

23.53 | 0 komentar | Read More

J.C. Penney cut 27% workers in 2012

J.C. Penney cut 43,000 workers last year as the department store chain tries to overhaul its image.

NEW YORK (CNNMoney)

The department store chain slashed 43,000 jobs, according to its annual report filed with the Securities and Exchange Commission Wednesday. J.C. Penney reported a total of 116,000 full-time and part-time workers at the end of its fiscal year that ended February, down from 159,000 workers last year.

While it's not a surprise that J.C. Penney has had a tough time lately, the sharp decline in the number of workers was much higher than management has reported. Earlier this month, J.C. Penney CEO Ron Johnson said in a New York court that the company had let go of 19,000 workers since he came on board in Nov. 2011.

J.C. Penney (JCP, Fortune 500) did not immediately respond to requests for comment on the discrepancy, or the news, which was first reported by The New York Post.

Related: J.C. Penney's friend list grows by one

After struggling to increase sales in recent years, the 111-year-old retail chain has been fighting to overhaul its image since Johnson joined the company from Apple (AAPL, Fortune 500).

Johnson has implemented a series of new initiatives such as redesigning the store, changing its clearance strategy and even offering free haircuts for kids.

So far, the changes haven't paid off. Last month, the J.C. Penney reported a fourth-quarter loss of $427 million and badly missed analyst expectations. Sales were down 28% from a year earlier.

Investors haven't been impressed with Johnson's efforts. Shares have tumbled 56% from a year earlier, and nearly 18% so far this year. The stock is was down 0.6% in early trading Thursday.

First Published: March 21, 2013: 9:37 AM ET

23.53 | 0 komentar | Read More

Jobless claims point to layoffs at lowest level since 2008

Jobless claims rose slightly last week, but are still hovering at 2008 levels.

NEW YORK (CNNMoney)

Initial jobless claims rose to 336,000, from an upwardly revised 334,000 the previous week, the Labor Department said Thursday. The minor increase is not unusual, since the initial claims report is notoriously choppy.

Meanwhile, a four-week moving average -- which smooths out the volatility -- shows that initial claims are at their lowest level in five years. Jobless claims are considered a proxy for layoffs, and their recent lows coincide with other data indicating that layoffs at the start of 2013 were back at pre-crisis levels.

"Layoffs have dropped. That's important," said Ward McCarthy, chief financial economist for Jefferies. "We're also getting hiring. There are two sides of that equation."

A separate report on job openings and labor turnover, known as JOLTS, showed last week that there were 1.5 million layoffs in January, representing 1.1% of total U.S. employment.

That is a low layoff rate, consistent with normal turnover in the job market. Contrast that to the worst month for layoffs on record, January 2009, when there were 2.6 million layoffs, representing 2% of U.S. employment.

Related: Workers don't share in companies' productivity gains

During the recession, employers cut their payrolls to the bare bones. Productivity per worker continued to increase steadily, reaching a post-World War II high.

Low layoffs signal that employers may finally be out of cost-cutting mode and ready to ramp up hiring at an even faster pace, said Jonathan Basile, U.S. economist with Credit Suisse.

Thursday's jobless claims report also showed that about 3.1 million people filed for their second week or more of unemployment benefits two weeks ago, the most recent data available.

First Published: March 21, 2013: 9:00 AM ET

23.53 | 0 komentar | Read More

Louisville tops NCAA dollar rankings too

Louisville basketball coach Rick Pitino doesn't have much to be unhappy about. His school is the top ranked in the NCAA tournament, as well as in profits and revenue.

NEW YORK (CNNMoney)

The school, which also has the No. 1 ranking in the March Madness tournament, earned a profit of $26.9 million from its men's basketball program last year, according to figures that schools have to file with the Department of Education and analyzed by CNNMoney. That's about 60% more than the $16.9 million profit at the University of North Carolina, whose men's hoops team had the second largest profit.

Louisville turned that profit on revenue of $42.4 million. Syracuse came in second with $25.9 million in revenue.

Louisville's profit margin is a whopping 63% -- enough to make any NBA owner green with envy. The pros pay just over half of their revenue to the players.

But Louisville's profit margin is only the fourth fattest. North Carolina rules on that measure with a 70% margin. The basketball programs at Minnesota and Ohio State also have higher margins than Louisville.

Watch NCAA games live

Of course, not every school is churning out cash from their basketball teams. Three dozen schools out of the 345 Division 1 programs that reported figures to the DOE posted losses. But all told the Division 1 schools reported a combined profit margin of 25% on $1.3 billion in men's basketball revenue.

Louisville and Syracuse are both members of the soon-to-be gutted Big East conference. Conferences are the major source of money for the various schools, because each school's share of the $700 million pie the NCAA gets from TV broadcast partners CBS (CBS, Fortune 500) and Turner Sports each year is based on the success of all the teams in its conference over a number of years, not an individual school's record that season. (Turner Sports is owned by CNNMoney parent Time Warner (TWX, Fortune 500).)

Read Bleacher Report's NCAA Tournament coverage

But Louisville and Syracuse are likely to stay near the top of the basketball revenue rankings next year even as they leave the Big East. That's because they are moving to the ACC, the powerhouse conference that is home to North Carolina and Duke.

The conferences also split the football bowl game payouts each year evenly between their members. The chase for dollars has so many schools changing conferences in recent years that keeping track of who's going where has become as difficult as hitting a half-court shot.

Related: Notre Dame football tops Alabama - in dollars

So even winning the NCAA title is not a guarantee of a financial whirlwind.

The University of Kentucky, a member of the SEC and last year's NCAA men's champion, brought home only about half the revenue as its in-state rival Louisville.

The SEC, while a football powerhouse, has not done as well in March Madness as some of the other major conferences. So Kentucky finished only 21st in the ranking of the most profitable basketball programs, just behind Big 10 member Northwestern University, which has never made it into the basketball tournament but benefits from the success of other Big 10 schools.

First Published: March 21, 2013: 10:13 AM ET

23.53 | 0 komentar | Read More

Meet Washington State's new marijuana expert

Washington has named its marijuana consultant: Mark Kleiman and his think-tank, Botec Analysis Corporation.

NEW YORK (CNNMoney)

The job is the first of its kind: help the state develop its new legal recreational marijuana industry. That task now belongs to Mark Kleiman and his think-tank, the Botec Analysis Corporation.

Kleiman, a graduate of Harvard's Kennedy School of Government, teaches public policy at the University of California, Los Angeles. His team is made up of 30 policy experts, scientists and seasoned cannabis growers. It includes a Nobel Prize winning economist, former President Nixon's drug czar and a Harvard professor.

"We've been telling each other for 30 years that we know how to do drug policy right," Kleiman said. "And now we get our chance to find out if we're right."

The term "Pot Czar" isn't quite appropriate for Botec. The team will provide advice to the state's Liquor Control Board, but the board itself will be making the rules for the new industry. What the state needs is help understanding four aspects of weed: harvesting, quality testing, pricing and rules.

Related: Don't expect a marijuana boom

For now, Kleiman has more questions than answers. For instance, what will the industry look like?

Likening it to the world of beer, Kleiman wondered aloud whether the cannabis industry will more closely resemble craft beer brewing or whether large players will dominate the market -- think Budweiser, Coors and Miller.

"People are already talking about the dangers of Big Marijuana: heavy marketing, lobbying, driving small businesses out of existence," he said.

Also, will brand names matter? Kleiman said marijuana might be treated like a nameless commodity, such as wheat, napkins or paperclips. Conversely, it could end up in the realm of connoisseurship, like wines.

The level of regulation -- and its effect on price -- will also play a major role.

"You don't want the price to be so high that it generates a black market inside the state," Kleiman said. "You don't want the price to be so low that it generates an export black market."

One challenge is that there's no precedent. Aside from Washington and Colorado, no other state has completely legalized the farming and consumption of cannabis. And even at that, players are operating on the fringes of legality. The federal government continues to prosecute growers and dispensaries, even in states where marijuana is legal for medicinal or recreational use.

Still, Kleiman, 61, calls this "the best opportunity we've ever had."

State regulations must be in place by Dec. 1. The state set aside $100,000 for the pot consulting job. Botec has offered to do it for $292 an hour. The deal won't be finalized for another two weeks or so.

Related: California's marijuana industry under attack

Kleiman's team is part academia, part industry. One half includes Harvard criminal justice policy expert Mark Moore, Nobel Prize-winning economist Thomas Schelling, Nixon's former drug czar Jerome H. Jaffe, and researchers at the nonprofit RAND Corporation.

The other half includes Luigi Zamarra, the accountant who kept the IRS from closing the nation's largest pot dispensary, Harborside Health. There's also Rose Habib, a chemist with four years experience infusing cannabis in beverages and foods; David Lampach, a lab owner who packages and labels the stuff; as well as NMS labs, which tests marijuana for the Drug Enforcement Agency.

"I'm looking forward to seeing the consumer be aware of what it is they're consuming," Lampach said.

First Published: March 21, 2013: 9:26 AM ET

23.53 | 0 komentar | Read More

Stocks: Investors step back

Click that chart for more stock market data.

NEW YORK (CNNMoney)

The Dow Jones industrial average and S&P 500 slipped 0.5%, while the Nasdaq fell 0.8%. The decline was broad, with all but four of the Dow's 30 components trading lower, and more than 80% of the S&P 500 in the red.

Oracle (ORCL, Fortune 500) was the biggest laggard in both the S&P 500 and Nasdaq 100. Shares of the software giant tumbled almost 10% after its third-quarter sales fell short of forecasts.

On the economic front, investors mulled the latest readings on initial jobless claims, existing home sales and the Philly Fed's monthly business outlook.

Jobless claims totaled 336,000 last week, according to the U.S. Department of Labor. That's up 2,000 from the prior week, but less than the 345,000 forecast by Briefing.com consensus.

The National Association of Realtors said that existing home sales in February edged up 0.8% to an annual rate of 4.98 million, a 3-year high but slightly lower than expectations.

The Philly Fed's index rose to 2 in March from -12.5 the prior month. Readings lower than zero signal contraction in the area covering eastern Pennsylvania, southern New Jersey and Delaware. Economists were expecting a reading of -3 for March.

Related: 5 reasons the bull market has room to run

A report on Chinese manufacturing showed activity expanded at a faster clip than expected by many economists, which may quell worries about the country's economy slowing down.

While Cyprus continues to heat up, investors have become less concerned about contagion spreading to other financial markets. Early Thursday, the European Central Bank told the troubled nation it had until Monday to sort itself out or face the consequences of a potential financial collapse and/or exit from the euro.

Meanwhile, the latest bond auction in Spain drew strong demand, even as European markets trended lower in afternoon trading.

Related: Google vs. Apple. Which is your favorite?

Just days after recalling see-through yoga pants, lululemon athletica (LULU) reported earnings and sales that squeaked past estimates and said it was working closely with manufacturers to resolve the yoga pant issue. The company also said its current quarter and full-year earnings would come in below analysts' forecasts.

KB Home (KBH) shares edged higher after the homebuilder reported that sales surged 59% in the first quarter, as more homes were delivered and prices increased.

Shares of Scholastic (SCHL) sank after the the children's book publisher lowered its forecast for the year a second time as sales of the Hunger Games books remained below last year's levels.

Related: Fear & Greed Index edges into extreme greed

Asian markets ended mixed. The Shanghai Composite added 0.3% and the Nikkei increased 1.3%, while the Hang Seng declined 0.1%.

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

Oil prices edged lower, while gold prices gained.

The price on the 10-year Treasury rose, pushing the yield down to 1.93% from 1.94% late Wednesday.

First Published: March 21, 2013: 9:49 AM ET

23.53 | 0 komentar | Read More

Office supplies, grocery stores among government cuts

Pentagon-run groceries are slated to be closed one day a week starting in late April thanks to forced federal budget cuts.

WASHINGTON (CNNMoney)

The Environmental Protection Agency and U.S. Customs and Border Protection have already started buying fewer office supplies. And at the Department of Interior, employees have had to cancel previously-approved conferences they were planning to attend.

These are just some of choices federal agencies are making on the edges to tighten their belts. By doing so, they hope to minimize harsher cuts like layoffs and furloughs, triggered by the $85 billion worth of forced budget cuts that took effect on March 1, also known as the sequester.

In a small effort to cushion the cuts, the Senate on Wednesday agreed to prevent furloughs of food inspectors and to fund a program that paid some tuition for service members in a bill that would fund the government through the end of September.

Many federal agencies are already working under hiring freezes, no bonuses and curtailed overtime, according to a memo compiled by a union group.

Anticipating the cuts, the White House budget office last month ordered "increased scrutiny" for all new hires, bonuses and travel, even for those who don't work directly for the government.

Related: Defense worker furlough notices hit Friday

Whether the hiring freezes and travel cuts really prevent furloughs of other workers depends on the agency.

Paul Lester, director of federal fiscal policy at the watchdog group Center for Effective Government, said some larger agencies, like the Government Accountability Office, have been able to prevent furloughs just by enacting a hiring freeze.

Agencies like the Transportation Security Administration have been able to absorb the cuts better than other agencies, just by cutting overtime.

"So TSA can cut overtime and that's one way they can avoid furloughs," Lester said. "It really depends on how agencies are structured. In some cases, a hiring freeze just isn't going to get the job done."

In the last five months, the Food Safety and Inspection Service cut travel and conferences for employees and even closed five district offices to prepare for budget cuts, said Michael Young, a budget director at the U.S. Department of Agriculture during a Tuesday House hearing.

Despite the cuts, the agency couldn't stop food inspectors from facing a furlough for 11 days between April and September. Only the Senate's funding measure, which passed Wednesday, could stop the furloughs.

First Published: March 21, 2013: 11:23 AM ET

23.53 | 0 komentar | Read More

Cyprus is sitting on a natural gas gold mine

NEW YORK (CNNMoney)

The field is modest by international standards. Noble estimates it could yield between 5 trillion and 8 trillion cubic feet of gas. For comparison, fields being developed off the Israeli coast have four times as much gas. Qatar, one of the world's largest gas holders, has nearly 900 trillion cubic feet.

But for a country roughly as large as Connecticut, with about the same population as Manhattan, that's a lot of gas.

"It was the third largest conventional discovery in 2011," said Michael Stoppard, chief strategist for global gas at the consultancy IHS. "It dwarfs local demand for the next 50 years."

That means Cyprus, currently trying to secure a European bailout to cover huge budget deficits and bad bank holdings, could start exporting the gas to raise money. There's also the possibility that some energy companies might offer the country cash upfront in return for a share of the gas.

Related: Europe gives Cyprus until Monday to agree to bailout

So how much can Cyprus make off its gas? That's hard to say.

Some of it would likely be used for local consumption. Cyprus currently gets most of its energy from burning oil -- an expensive proposition. The rest of the gas would probably be liquified, loaded onto to tankers, and sent to markets in Western Europe and Asia.

That's all pretty pricey. Wells need to be drilled, and pipelines have to be built from the gas field itself -- some 100 miles offshore -- to the Cyprus mainland. A liquefaction plant costs billions to construct. Ultimately, it would probably take $10 billion in investment and seven or eight years to get the gas flowing, according to Laszlo Varro, the head of gas, coal and power at the International Energy Agency, a research organization funded by energy importing countries.

By 2020, under the most optimistic conditions, Varro said Cyprus' natural gas could be injecting $3 billion a year into the economy and generating perhaps $1 billion in tax revenue. The country's current economic output is around $24 billion a year, with $11 billion in government spending.

"It will be a great help," said Varro. "But can Cyprus sit back and rely on this? No. This isn't Qatar."

Varro stressed that those revenue projections are optimistic. In addition to the financial hurdles to developing Cyprus' gas, there are political obstacles. Turkey, engaged in a decades-long territorial dispute with Cyprus, is loathe to see the fields developed as purely Cypriot property. It dispatched warships to monitor Cyprus' recent exploration attempts.

Given its current financial woes, Cyprus may be tempted to cash in on the gas early. Russian energy giant Gazprom has offered the county assistance in exchange for some of the gas rights, according to the New York Times. That might make the Europeans nervous, given Russia's already large influence over Europe's gas market and its propensity to use energy for geopolitical leverage. Varro said there are probably plenty of other cash-flush organizations -- everything from oil companies to banks to pension funds -- that might offer a similar deal.

But Cyprus should be cautious about auctioning off its future wealth. If structured properly, a cash-for-gas deal could be beneficial for the country, Varro said. But there are examples from recent history -- Venezuela and Mexico included -- where countries have mortgaged their energy wealth only to find themselves, years later, on the losing end of the deal.

First Published: March 21, 2013: 12:27 PM ET

23.53 | 0 komentar | Read More

Home sales hit highest rate in 3 years

Home sales shares post best month since November 2009 as rising prices brought both buyers and sellers back to the market.

NEW YORK (CNNMoney)

The report Thursday from the National Association of Realtors was the latest sign of a housing recovery that has become a major positive force for the economy.

The February rate of 4.98 million homes was up 10% from a year earlier, although it was only 1% higher than the revised January pace.

It was the best month since November of 2009. But that early spike in sales was caused by a temporary $5,000 tax credit for home buyers in place at that time. The current strength is due to improved fundamentals, including a drop in foreclosures and near record low mortgage rates. A decline in the nation's unemployment rate is also helping.

The median sales price in the month was $173,600, up nearly 12% from a year ago and in keeping with the trend of rising home prices. The rising prices may have prompted some more people to put their homes on the market as the supply of homes for sale rose for the first time since July. But the supply was still very tight -- only about a 4.7 month supply at the current sales pace.

"The real news is the rise in the inventory," said Paul Diggle, property economist with Capital Economics in a note Thursday. "This is the first increase in supply of any real significance for more than two years. It's too early to say if the trough in supply is behind us, but we get the sense that it's close."

Distressed home sales, which include foreclosures and short sales sold for less than is owed on the mortgage -- accounted for 25% of February sales, up slightly from January but well below the 34% share of the market a year ago.

First Published: March 21, 2013: 10:26 AM ET

23.53 | 0 komentar | Read More

IRS has $917 million in unclaimed 2009 tax refunds

Taxpayers who haven't filed 2009 tax returns are missing out on federal tax refunds totaling $917 million.

NEW YORK (CNNMoney)

About 984,400 taxpayers haven't submitted returns for 2009, the agency said. Some people may not have filed because their income was low enough that they weren't required to, but they could still qualify for refunds if taxes were withheld from their paychecks.

Even if taxes weren't withheld, certain credits like the Earned Income Tax Credit -- which can total nearly $6,000 -- are available for low-income taxpayers. And roughly half of the unclaimed 2009 refunds amount to more than $500 per person, the IRS estimates.

Related: More than 600,000 tax returns delayed due to filing errors

But if you haven't filed yet, you're running out of time to claim your refund. 2009 tax returns must be submitted by April 15 of this year. If you miss that deadline, your money will be handed over to the U.S. Treasury.

You won't be dinged with a late filing penalty if you're indeed owed a refund. But if you owe taxes for other years, your refund will first be applied to those amounts -- along with other debts like unpaid child support or past-due federal student loans.

Related: $58 billion unclaimed: Is some of it yours?

While you check on your 2009 tax refund, make sure you aren't owed any extra cash from the federal government or other organizations. There's currently more than $58 billion in unclaimed money floating around in the form of abandoned bank accounts, stock holdings, insurance payouts and pension benefits.

First Published: March 14, 2013: 11:50 AM ET

23.53 | 0 komentar | Read More

For banks, bigger isn't better - opinion

The former chairman of the Federal Deposit Insurance Corp. argues that breaking up the nation's biggest banks could make our financial system safer -- and may even deliver a better return to shareholders.

(Money Magazine)

If so, now might be the time to look at the stocks of our largest banks. Nearly five years after the financial crisis, they appear undervalued. The risk of failure seems remote, the banks have made progress in working off troubled mortgage assets, and they're reporting much higher levels of equity capital, suggesting a welcome shift from their excessive reliance on debt.

And yet...

Those reports of higher capital can be misleading. Regulators allow big banks to partially calculate capital strength using complex mathematical models, and models, as we learned during the crisis, are unreliable. Further, regulators in my view don't require banks to adequately take into account all of their off-balance-sheet risks, like those pesky credit derivatives that caused such pain in 2008.

What's more, as an investor your bar is presumably higher than the mere expectation that a bank will remain solvent.

Will these apparently cheap stocks deliver good value over the long run? A recent analysis by the well-respected bank analyst Mike Mayo gives a surprising answer.

Mayo looked at the long-term performance of the 50 largest banking organizations. By virtually every measure, the largest three -- Bank of America (BAC, Fortune 500), Citigroup (C, Fortune 500), and J.P. Morgan Chase (JPM, Fortune 500) -- turned in the worst results as a group. They had the worst stock returns, the worst returns on equity and assets, the worst revenue growth -- you get the idea.

Related: The Money 70: Best mutual funds and ETFs

Stock price declines since 2000 were 55%, 91%, and 15%, for BofA, Citi, and J.P. Morgan Chase, respectively, compared with a 49% increase for the remaining top 50. To be sure, J.P. Morgan Chase was best in class, but well-managed regional banks that follow simpler business models did better.

Their record of underperformance leads Mayo to think that all three are too big and complex to manage and that at least Citigroup and BofA could be worth a lot more if broken up.

A shareholder group led by Trillium Asset Management has petitioned Citigroup's board to analyze whether a breakup would release shareholder value. For the first time in five years, Mayo even recommends Citi stock based on the benefits of deconsolidation.

So if you own a megabank stock, your best bet may be to join the activists and demand a breakup analysis.

Citigroup holders can vote their proxy in favor of the Trillium proposal, which should be issued in early March.

After all, many bank watchers -- including me -- think that smaller, simpler institutions would make our financial system safer. Breaking up these behemoths could benefit your country and your wallet.

Sheila Bair is the former chairman of the FDIC and a longtime critic of bank bailouts and too-big-to-fail institutions. The opinions expressed in this commentary are solely hers.

First Published: March 14, 2013: 6:19 AM ET

23.53 | 0 komentar | Read More

Jobless claims fall again as labor market improves

Initial claims have fallen sharply from their peak during the Great Recession, a good sign for the health of the labor market.

NEW YORK (CNNMoney)

Initial jobless claims fell to 332,000, from an upwardly revised 342,000 the previous week, the Labor Department said Thursday.

That was less than the 350,000 claims economists expected, and is considered a sign of further strengthening in the job market.

"Even extracting from the ups and downs in the weekly data, it's clear the job market is steadily healing," said Mark Zandi, chief economist at Moody's Analytics.

During the height of the recession, weekly claims for unemployment benefits had surged to over 660,000, but now they're hovering back around pre-recession levels.

A four-week average, which smooths out some of the volatility, has also been falling recently.

Related: Check the unemployment rate in your state

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

A separate monthly report, released last week, showed the unemployment rate fell to 7.7%, as employers created 236,000 jobs in February.

First Published: March 14, 2013: 8:42 AM ET

23.53 | 0 komentar | Read More

Three big banks expand bonus clawback policy

Citigroup is one of three banks announcing tougher clawback policies after pressure from New York City pension funds.

NEW YORK (CNNMoney)

The boards of Citigroup (C, Fortune 500), Wells Fargo (WFC, Fortune 500) and Capital One (COF, Fortune 500) will be able to demand the return of performance bonuses are returned to the company if the executives are responsible for misconduct that causes serious financial or reputational harm to their company, according to New York City Comptroller John Liu, who oversees the pension funds. The misconduct can either be through their own actions or through a failure to supervise others.

Previously, the banks' policies only called for clawbacks from executives who committed intentional or gross misconduct, a higher threshold that generally also results in termination, or in the event of a financial restatement. The new tougher rules basically bring the banks in line with rules at Goldman Sachs (GS, Fortune 500),JPMorgan Chase (JPM, Fortune 500) andMorgan Stanley (MS, Fortune 500).

Capital One also agreed to disclose clawbacks that take place as long as the underlying event has been disclosed to investors. Citigroup and Wells Fargo committed to consider disclosure of their clawbacks on a case-by-case basis.

"The problem with even the strongest clawback policy is whether they actually use them," said Michael Garland, an assistant New York City comptroller who overseas corporate governance for the office. "We want to see some transparency."

How strictly the clawback policies will be applied is still a question.

Earlier this year, even after Morgan Stanley strengthened its clawback rules, it did not claw back the pay of a top banker whose actions in the Facebook (FB) initial public offering resulted in the financial firm being fined $5 million and sued by shareholders.

Related: Clawbacks rare on Wall Street

When the city's largest bank, JPMorgan Chase, was hit with a $5.8 billion trading loss, last year, chief investment officer Ina Drew agreed to give up two years worth of pay. CEO Jamie Dimon said two years' pay was all that was allowed under the bank's clawback policy.

Drew also retired from the company, and the bank fired the traders responsible for the losses and said that their pay was subject to clawbacks. But while Dimon's bonus for 2012 was slashed, the bank has not disclosed any clawback of Dimon's pay.

Related: Executive pay bonuses just a shareholder pacifier?

Liu had filed shareowner proposals at the three banks who announced the latest changes, but withdrew them after the banks changed their clawback policies. He said the banks have each paid hefty fines in recent years to settle allegations of deceptive or improper business practices.

The pension funds he oversees have 20 million shares spread between the three banks, worth a total of about $867 million.

"Executives need to be held financially accountable for misconduct that harms the company, and that includes improper behavior and reckless risk-taking by those they manage," Liu said. "This is a vital step toward reining in out-of-control executive pay based on short-term gains."

First Published: March 14, 2013: 9:34 AM ET

23.53 | 0 komentar | Read More

Central banks souring on the dollar

Central banks may start favoring currencies from China, Japan and Australia as the dollar fall out of favor.

NEW YORK (CNNMoney)

While the dollar remains the world's main reserve currency, the WGC said in a research report that its "optimal" strategy would involve, what else, but gold.

Along with the dollar and the euro, gold is one of the traditional reserve assets that central banks hold.

But the WGC said central bankers should also consider a number of alternative assets, including those priced in the currencies of Canada, Australia and China.

Central banks in emerging markets have been diversifying away from the U.S. dollar for some time, as the outlook for the currency remains uncertain. According to the International Monetary Fund, the dollar's share of total central bank reserves has decreased to 54% from 62% over the past 12 years.

"This analysis looks at the optimal allocation for emerging market central banks as they continue to reduce their allocation to dollars and euros," said Ashish Bhatia, manager for government affairs at the World Gold Council.

In its study, the council assumes that central banks hold 65% of their reserves in dollars and euros, the second-largest reserve currency.

The remaining 35% is made up of a mix of assets, which traditionally has included investments priced in Japanese yen and the British pound, as well as gold.

Related: World's 40 best performing stock markets

Japanese government bonds and gold are both "practical and sound solutions for central banks," said Bhatia. But he said there is no clear evidence that central banks have increased their exposure to Japanese assets, "whereas they have been buying gold."

Beyond that, the council said assets priced in Australian and Canadian currencies are good candidates for central bank reserves. Unlike the United States and most euro area economies, both Canada and Australia still have AAA credit ratings.

Related: BlackRock sees hidden value in CASSH

The Chinese renminbi is another asset that central banks could add to their portfolios, said the WGC. Following years of robust growth, China supplanted Japan as the world's second largest economy in 2011.

"China's rise in the global economy has forced central banks to seriously consider renminbi denominated assets," said the council in its report.

However, the Chinese market remains difficult to access and there is "significant uncertainty" regarding Beijing's foreign exchange policies, noted the WGC.

In addition, the Canadian and Australian markets are comparatively small, said Bhatia.

The market for Australian assets, for example, is worth about $500 billion, he said. That compares with more than $2 trillion in assets held by central bank overall.

"The central banks could buy the entire market in a few days," said Bhatia.

First Published: March 14, 2013: 10:02 AM ET

23.53 | 0 komentar | Read More

Dow on 10-day winning streak

Click the chart for more stock market data.

NEW YORK (CNNMoney)

The Dow Jones industrial average rose more than 50 points, or 0.4%, climbing to a fresh record high above 14,500. The gains mark the Dow's 10th straight up day -- matching the winning streak in 1996, the year of former Fed Chairman Alan Greenspan's "irrational exuberance" speech.

The S&P 500 added 5 points, or 0.3%. The broad index is less than 0.5% from its all-time closing high of 1,565.15, set in October 2007. The Nasdaq also gained 0.3%.

The daily grind higher in stocks "is acting like water torture for both bulls and bears," said Sam Stovall, chief equity strategist at S&P Capital IQ.

On one hand, the bulls are worrying about slowing momentum in the stock rally, on the other, the bears are spooked by the daily, albeit minor, increases in the S&P 500, according to Stovall.

"Investors are in search of a new catalyst to trigger the next move," he said, adding that the S&P 500 will remain in a long-term bull market but will likely pull back briefly before it reaches a new high.

Related: Dow's best run since 1996

In economic news, investors were encouraged after a Labor Department report showed that initial jobless claims fell to 332,000 last week, coming in below economists forecasts for 350,000 and signaling ongoing improvement in the labor market.

On the corporate front, Men's Wearhouse (MW) soared 16% after reporting earnings, a $200 million share buyback and new guidance.

Shares of Blackberry (BBRY) pulled back Thursday, a day after rallying on the announcement that the company received one million orders for its Blackberry 10 device from an unnamed partner.

E*Trade (ETFC)shares fell after a major shareholder said it planned to sell its entire stake in the company.

Related: Fear & Greed Index moves into extreme greed

European markets were higher in afternoon trading, with Germany's DAX leading the way. A two-day summit of European leaders kicks off Thursday.

Asian markets ended firmer. Japan's Nikkei was up 1.2% but the Shanghai Composite and Hong Kong's Hang Seng continued to lag on talk of efforts to control rising prices.

"We shall take measures, including monetary policy adjustments, to stabilize prices, and lower inflation expectations," Zhou Xiaochuan, China's central bank governor, said Wednesday.

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

Oil priced edged higher, while gold priced slipped.

The price on the 10-year Treasury fell slightly, pushing the yield up to 2.06% from 2.02% late Wednesday.

First Published: March 14, 2013: 9:46 AM ET

23.53 | 0 komentar | Read More

Honda recalling 180,000 vehicles for brake problem

The 2005 Acura MDX is among the vehicles Honda is recalling o fix a problem with the electronic stability control system.

NEW YORK (CNNMoney)

The problem is with the vehicles' electronic stability control system. These computerized systems help drivers to maintain control during abrupt maneuvers, especially on slippery surfaces. They work by automatically reducing power to the wheels and briefly applying the brakes at individual wheels to bring a skidding car back into line.

In some Honda (HMC) vehicles, however, the system can malfunction, causing the brakes to be applied unnecessarily. The vehicles being recalled in the United States are 2005 model year Honda Pilot SUVs, 2005 Acura RL sedans and 2006 Acura MDX SUVs. Acura is Honda's luxury division. The Honda Odyssey minivan is being recalled in markets outside the United States.

Related: Subaru recalls 50,000 zombie cars

The problem is caused by an electrical capacitor that, in some vehicles, was damaged during manufacturing. In these vehicles, the system can apply a small amount of brake force for a moment without driver pressing the brake pedal. Or, if the driver does press brake at the same time this braking glitch occurs, the brakes can be applied with more force than the driver intended.

No accidents or injuries have been reported as a result of the problem, according to Honda.

Inside Ferrari's hybrid supercar

To fix the problem, Honda dealers will install a new electrical part at no charge and, in some the vehicles, inspect an electrical grounding bolt. Vehicles owners will be notified by mail in mid-April or, in the meantime, owners can find out for certain if their vehicle is involved by going to the Web site www.recalls.honda.com or www.recalls.acura.com or by calling (800) 999-1009 for Honda owners or (800) 382-2238 for Acura owners.

First Published: March 14, 2013: 10:40 AM ET

23.53 | 0 komentar | Read More

McDonald's to launch egg-white McMuffin

Starting in April, McDonald's will offer an egg white sandwich to try and attract healthy customers and boost flat sales.

NEW YORK (CNNMoney)

McDonald's (MCD, Fortune 500) will release the Egg White Delight, an egg white version of the Egg McMuffin breakfast sandwich, nationwide on April 22, said company spokeswoman Danya Proud.

The new sandwich, which contains bacon and white cheddar on a whole grain English muffin, totals 250 calories, according to Proud. She added that egg whites will also be offered on the other breakfast sandwiches sold at McDonald's.

According to the U.S. Department of Agriculture, an egg yolk contain 5 grams of fat, 2 grams of saturated fat and 213 milligrams of cholesterol, as well as 60 calories, Egg whites, however have no fat and 15 calories. The USDA recommends that egg yolk consumption should be limited to four yolks per week.

Related: McDonald's shamrock shake goes nationwide

McDonald's will release the Egg White Delight on the heels of last month's sluggish sales. On March 8, McDonald's announced that U.S. same-store sales slipped 3.3% in February. The company blamed the decline, in part, on the fact that February 2012 included an extra day because of Leap Year, which threw off the year-to-year comparison.

In its earnings release, the Oak Brook, Ill.-based company touted the recent release of two other new products -- the Grilled Onion Cheddar burger and the Hot n' Spicy McChicken -- that helped bolster sales.

Related: KFC's Double Down fails to take off

Additionally, as St. Patrick's Day approaches, McDonald's is offering its cult-favorite Shamrock Shake. The minty green shake has been a staple since 1970, but the franchise only started selling the shake nationwide last year.

At 530 calories, 15 grams of fat and 86 grams of carbohydrates, the extreme-green shake is not for the egg white crowd.

First Published: March 14, 2013: 11:40 AM ET

23.53 | 0 komentar | Read More

Solar power has record year despite bankruptcies

Solar power has record year in 2012, with total U.S. capacity surging 40%, despite persisting bankruptcies.

NEW YORK (CNNMoney)

Over 3.3 gigawatts of solar power were installed last year, according to a report Thursday from the Solar Energy Industries Association, a trade group. That's enough to power about 500,000 homes, and it was a 76% increase from 2011.

The industry credited the jump to the declining price of solar panels, stable tax incentives and better financing options.

"We've brought more new solar online in 2012 than in the three prior years combined," SEIA head Rhone Resch said in a statement. "And every one of these panels was bolted down by a member of the U.S. workforce."

The industry estimates it now employs 119,000 people in the United States -- a 13% jump over last year. It's expecting another record year for solar installations in 2013.

Related: SolarCity CEO talks the future of solar power

The price of solar panels has declined 60% since the beginning of 2011, according to SEIA. Lower prices for silicon -- a main ingredient in the panels -- and massive investments in manufacturing capacity, especially by the Chinese, have helped push down prices.

These price declines have squeezed profit margins for solar panel makers. Several have filed for bankruptcy over the past couple of years, including Solyndra, Abound, Evergreen and Q-Cells.

Analysts expect more bankruptcies in the years ahead, as prices continue to fall and smaller, less efficient companies get pushed out. The situation is sometimes compared to the dawn of the auto age, when there used to be dozens of carmakers before consolidation led to just the Big Three.

But falling prices are clearly a boon for consumers and companies that specialize in the sales and instillation of solar panels, such as Solar City (SCTY), Sunrun and a host of others.

While solar power still represents a small fraction of the nation's overall electricity generation -- under 1% in 2012, according to the engineering and consulting firm Black & Veatch, it's expected to grow substantially over the next couple of decades.

The cost of solar power is competitive with other energy sources in some U.S. markets, such as California and New Jersey, where subsidies are generous and the price of electricity is high. But if you exclude the big subsides and mandates the industry enjoys, the U.S. Energy Information Administration says the cost for new solar electricity nationwide is still more than twice that of the nation's cheapest power source -- natural gas.

First Published: March 14, 2013: 12:02 PM ET

23.53 | 0 komentar | Read More