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Female gun instructors in hot demand

Written By limadu on Kamis, 24 April 2014 | 23.53

babes bullets instructors

Deb Ferns, Lisa Munson and Kay Miculek, co-founders of Babes with Bullets.

NEW YORK (CNNMoney)

The market for female gun instructors is booming as more women want to learn to shoot -- both for self defense and for sport, said Tina Wilson-Cohen, who owns She Can Shoot, an all-women firearm and self-defense training business in Fairfax, Va.

"When I started training women in 2007, there weren't many female instructors," she said. "Now you're not the only name in town."

The National Rifle Association, noting the burgeoning market opportunity, is trying to boost its ranks of 8,000 NRA-certified female instructors, said spokesman Andrew Arulanandam.

In 2009, the NRA organized 280 "Women On Target" training clinics nationwide, and 8,000 women signed up. In 2013, the group held 450 clinics for 12,000 women.

While Arulanandam said self protection is still the primary reason women take up gun training, he said they're increasingly realizing "that they'd like to pursue it for activities like target shooting or skeet shooting."

Related: For the gun industry, women are next big thing

Alecs Dean offers several NRA-certified courses at his range in Fort Myers, Fla. In the last two years, two-thirds of his clients have been women compared to just a third five years ago.

Since 2012, Dean has offered a 50% discount to women who enroll in his instructor training course.

"We need more women instructors," said Dean. "They bring a perspective that men don't have when it comes to their self defense. It could be something simple like knowing which side a woman typically carries her purse."

And the perspective is appreciated by his male students as well -- many even prefer a female instructor.

But many of the female-oriented shooting groups use a women-training-women model.

"There's no ego involved," said Deb Ferns, a co-founder of Babes with Bullets. "Women instructors demystify the language, they're more patient and more nurturing."

The company, which offers training camps across the country, was started in 2004, but its popularity has recently exploded, said Ferns.

"Since 2011, we started getting so many inquiries that we had to hire someone just to keep up with the demand," she said.

While she's now a competitive shooter, Ferns, 59, didn't pick up a gun until she was 45 and her daughters left for college.

"I wanted to take up something that my husband and I could do together," she said. "I wanted ballroom dancing, he wanted shooting sports."

Now, Babes with Bullets conducts 24 camps a year (a mix of three-day intensives and one-day sessions), and has over 4,000 alumni ranging from 24 to 74 years old. "80% of them have never touched a gun," said Ferns. "They're professional women, real estate agents, nurses and young divorcees."

In many states, the three-day camp (which costs $750) certifies participants for a conceal-carry permit.

Related: 7 hot startup ideas

Last month, Babes with Bullets held two camps for female oil workers and residents in Minot, N.D., a small town that's seen a surge in its population because of the oil boom. Ferns said 24 women attended the camps.

"When you get a lot of oil money to a tiny town and the population explodes, it also brings with it a sudden increase in crime," said Ferns.

Wilson-Cohen has also seen a huge spike in demand since launching She Can Shoot in 2010.

"I advertised it on social media. Within 24 hours I had 99 inquiries," said Wilson-Cohen, who had spent 22 years in law enforcement. In just four years, her business has ballooned into a franchise in 12 states with 4,000 alumni.

She estimates a 20% increase last year in the number of women who trained with her group.

"More women are financially independent now and they're staying single longer," said Cohen-Wilson. "They're not relying on a man in the house for protection." To top of page

First Published: April 24, 2014: 6:02 AM ET


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Stocks: Tug of war on Wall Street

dow 12

Click for more market data.

NEW YORK (CNNMoney)

The Dow Jones industrial average, the S&P 500 and the Nasdaq are all higher at midday, recovering from an early bout of choppy trading.

Tech talk

Both Wall Street and Main Street are talking about Apple (AAPL, Fortune 500) after its announcement late Wednesday that it was expanding its stock buyback program and increasing its dividend, while reporting quarterly results that beat expectations.

The iPhone maker also revealed a seven-to-one stock split, which will make it easier for individual investors to buy a slice of the tech giant. A single share in Apple currently costs over $500.

Apple was the top trending ticker on StockTwits, where investors were buzzing about the buyback and stock split. It was as if Apple's earnings were an afterthought. "pssst. did u hear? $AAPL reported earnings :-)," read a post by racernic.

Related: Apple shares soar on stock buyback news

Facebook also beat expectations, helped by strong mobile advertising numbers.

But not all the news in the tech sector was good. Shares of Xilinx (XLNX) sank after the maker of devices and software used in a variety of industries reported quarterly results that missed analysts' expectations.

Netflix (NFLX) shares were also down as investors continue to digest the company's plan to raise prices for its online streaming service.

Microsoft (MSFT, Fortune 500), Starbucks (SBUX, Fortune 500), Amazon (AMZN, Fortune 500) and Baidu (BIDU) are slated to report after the market closes.

Related: CNNMoney's Tech 30

The Ukraine factor

Stocks came under pressure earlier in the day amid new worries about Ukraine, where government forces clashed with pro-Russian fighters in the southeastern city of Slavyansk.

Russian President Vladimir Putin said any military action would "have consequences" for the government in Kiev. Russian forces are reportedly planning to conduct military drills in response to the action in Ukraine.

"$SPY the 'hot' shooting war in the eastern Ukraine has started. Putin getting ready to roll. Next up, sanctions! Ignore at your peril," read a post on StockTwits by BDF_NYC.

Gold prices jumped after the news broke, though the rally has since lost momentum.

Looking beyond tech

Thursday is a busy day for earnings reports as well. General Motors (GM, Fortune 500) reported a $1.3 billion charge relating to a massive recall involving faulty ignition switches linked to at least 13 deaths. But excluding that charge and other one-time items, GM's earnings easily topped forecasts.

Related: GM's $1.3 billion recall costs wipes profits

UPS (UPS, Fortune 500) blamed the snowy weather for weak first quarter results even though people have been sending more packages, especially e-commerce sites.

Caterpillar (CAT, Fortune 500)reported earnings that topped analysts' expectations and issued an upbeat outlook. The construction equipment maker, considered a bellwether for the global economy, reported solid growth in China.

"$CAT nice!!! after many many months red, Im going green again here in my long-term portfolio..." read a post by gabbs.

Related: Fear & Greed Index still shows fear

Merger Thursday

Zimmer Holdings (ZMH) announced plans to buy Biomet in a cash and stock deal valued at more than $13 billion. The combined company will be one of the largest makers of orthopedic devices. Zimmer shares surged 13%.

Shares of AstraZenec (AZN)gained after the firm reported better-than-expected earnings. AstraZeneca was in the spotlight earlier this week after it was reported that Pfizer (PFE, Fortune 500) had considered buying the company for £60 billion ($100 billion). Some think an offer may yet come.

Meanwhile, Alstom (ALSMY) shares surged by roughly 12% Thursday following a Bloomberg report that General Electric (GE, Fortune 500) may make a multi-billion dollar bid for the company. The French maker of turbines and trains said it was "not informed" of a takeover offer.

On the economic front, initial claims for unemployment benefits rose in the past week. But a report on new orders for long-lasting goods in March came in better than expected.

European and Asian markets ended with mixed results. To top of page

First Published: April 24, 2014: 9:56 AM ET


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Stocks: Buoyed by Apple, Facebook

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Click on chart to track premarkets

NEW YORK (CNNMoney)

Both Apple (AAPL, Fortune 500) and Facebook (FB, Fortune 500) reported strong quarterly earnings late Wednesday, boosting market sentiment and pushing U.S. stock futures higher Thursday.

Apple shares rallied after the company said it was expanding its stock buyback program and increasing its dividend, while reporting quarterly results that beat expectations.

Apple also revealed a seven-to-one stock split, which will make it easier for individual investors to buy a slice of the tech giant. A single share in Apple currently costs over $500.

Facebook also beat expectations, helped by strong mobile advertising numbers.

Related: Apple shares soar on increased buyback

Thursday is a busy day for earnings reports as well. General Motors (GM, Fortune 500) reported a $1.3 billion charge relating to a massive recall involving faulty ignition switches linked to at least 13 deaths. But excluding that charge and other one-time items, GM's earnings easily topped forecasts. Shares rose 2% in premarket trading.

UPS (UPS, Fortune 500) blamed the snowy weather for weak first quarter results while Caterpillar (CAT, Fortune 500) shares surged nearly 4% in premarket action after reporting earnings that topped forecasts.

Microsoft (MSFT, Fortune 500), Starbucks (SBUX, Fortune 500), Amazon (AMZN, Fortune 500) and Baidu (BIDU) are slated to report after the market closes.

Related: Fear & Greed Index still shows fear

Shares of AstraZenec (AZN)gained after the firm reported better-than-expected earnings. AstraZeneca was in the spotlight earlier this week after it was reported that Pfize h (PFE, Fortune 500)ad considered buying the company for £60 billion ($100 billion). Some think an offer may yet come.

Meanwhile, in Paris, Alstom (ALSMY) shares surged by roughly 12% Thursday following a Bloomberg report that General Electric (GE, Fortune 500) may make a multi-billion dollar bid for the company. The French maker of turbines and trains said it was "not informed" of a takeover offer.

On the economic front, investors are expecting the latest set of initial jobless claims from the U.S. Department of Labor at 8:30 a.m. ET. The Census Bureau will release durable goods orders at the same time.

Related: CNNMoney's Tech 30

European markets were all pushing higher in morning trading, while Asian markets ended with mixed results.

On Wednesday, Wall Street broke its six-day winning streak. All three U.S. indexes ended in the red. To top of page

First Published: April 24, 2014: 4:59 AM ET


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Regulators pave way for Internet "fast lane" with net neutrality rules

net neutrality fcc

FCC chairman Tom Wheeler, a former cable industry lobbyist.

NEW YORK (CNNMoney)

The news quickly drew condemnations from net neutrality activists, who say the proposal from the Federal Communications Commission will give large companies that can afford to pay for priority access a permanent advantage over smaller competitors.

The proposal follows a January court decision that struck down the FCC's previous net neutrality rules, which barred Internet service providers like Verizon (VZ, Fortune 500) and Comcast (CMCSA, Fortune 500) from blocking or "unreasonably discriminating" against online content. Those regulations were challenged in 2011 by Verizon, which claimed the move overstepped the commission's legal authority, and the FCC has since been working to craft new rules that will pass legal muster.

The rules to be proposed on Thursday, according to an FCC spokesman, will require ISPs to offer "a baseline level of service" to their subscribers while allowing them to "enter into individual negotiations with content providers." That means that companies like Amazon (AMZN, Fortune 500), eBay (EBAY, Fortune 500) and Netflix (NFLX) could conceivably pay ISPs to ensure that their sites load for Web users faster than those of competitors.

Related: How net neutrality fight may change your Internet

In all cases, the FCC proposal says, Internet providers must act in a "commercially reasonable manner," with agreements between ISPs and content providers subject to review by regulators on a case-by-case basis.

"Exactly what the baseline level of service would be, the construction of a 'commercially reasonable' standard, and the manner in which disputes would be resolved, are all among the topics on which the FCC will be seeking comment," the FCC spokesman said.

The commission will vote on the proposed rules May 15 before putting them out for comment. In the meantime, Net freedom activists are already crying foul.

"If it goes forward, this capitulation will represent Washington at its worst," Todd O'Boyle, program director of Media and Democracy Reform Initiative at Common Cause, said in a statement. "Americans were promised -- and deserve -- an Internet that is free of toll roads, fast lanes, and censorship -- corporate or governmental."

Craig Aaron, president of the media freedom group Free Press, said the FCC was "aiding and abetting the largest ISPs in their efforts to destroy the open Internet." He said the FCC proposal would create the incentive for Internet providers to manufacture congestion on their networks and then charge content providers for the ability to avoid it.

Verizon spokesman Ed Mcfadden declined to comment directly on the FCC proposal, but said his company is committed to letting customers "access the Internet content they want, when they want and how they want."

"Given the tremendous innovation and investment taking place in broadband Internet markets, the FCC should be very cautious about adopting proscriptive rules that could be unnecessary and harmful," Mcfadden said.

Comcast and AT&T did not immediately respond to requests for comment.

Related: New chapter begins in net neutrality fight

The FCC's planned rules relate specifically to broadband, which is used for most home Internet connections. They won't cover the mobile Web, which is much more lightly regulated.

Concerns about traffic discrimination have already arisen in the mobile world. Earlier this year, AT&T (T, Fortune 500) announced a "sponsored data" plan for mobile customers in which content from paying businesses won't count against monthly data caps. Verizon and AT&T have also previously blocked use of the Google (GOOG, Fortune 500) Wallet app, which competes with their own offerings.

The FCC rules also won't cover deals like the one reached earlier this year between Netflix (NFLX) and Comcast, in which the online video company reluctantly agreed to pay for a direct connection to Comcast's network to boost lagging streaming speeds. That's because the proposal only relates to what ISPs do with content in the so-called "last mile" of their networks, where they connect directly to the homes of customers.

Netflix CEO Reed Hastings has called for the FCC to implement "stronger" net neutrality rules that would also cover connections between networks. To top of page

First Published: April 23, 2014: 7:42 PM ET


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Obama fails to secure breakthrough in Japan trade talks

obama tpp

The Obama administration was seeking a breakthrough on trade talks during a trip to Japan.

HONG KONG (CNNMoney)

The unwieldy trade pact is a major priority for the Obama administration, but progress has stalled after 20 rounds of negotiations spread over a period of years have failed to produce a consensus.

The latest hang-ups are over Japan's efforts to protect agricultural products including beef, rice, sugar and pork. In the same vein, Washington is hoping to protect U.S. automakers from Japanese competitors.

Advisers from both countries had been engaged in negotiations in the lead up to President Obama's trip to Japan, and analysts suggested that if significant progress were made, details would be announced at Thursday's joint press conference.

Yet no breakthrough materialized, leaving both leaders to say only that the initiative remains a priority and talks will continue.

"We are closer to agreement on issues like automobiles and agriculture," Obama said. "Now is the time for bold steps that are needed to reach a comprehensive agreement, and I continue to believe we can get this done."

Twelve countries -- Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the U.S. and Vietnam -- are taking part in the TPP talks. Together they make up 40% of the global economy.

The agreement has the potential to knock down tariffs and import quotas, and open new Pacific markets to American companies. The U.S. and Japan -- the first and third largest economies in the world -- anchor the deal, which does not include China.

Related story: Russia looks to Asia for trade cushion

Yet the TPP remains highly controversial in many of the countries currently involved in negotiations.

Key members of the U.S. Congress say they are being kept in the dark about pact details, and some members of the president's own party have voiced concern over the treaty's impact on jobs.

Significant political opposition makes it unlikely that Obama will be able to push any agreement through Congress before the 2014 mid-term elections.

Analysts at the Eurasia Group said that Japanese Prime Minister Shinzo Abe is well aware of this dynamic, making concessions unlikely in the near term.

" [Abe] thus has little incentive to respond to U.S. demands that Japan open its agriculture, services, and auto sectors before Obama can ensure speedy U.S. ratification," the analysts wrote in a recent report. To top of page

First Published: April 24, 2014: 1:26 AM ET


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GM's $1.3 billion recall cost wipes out profit

NEW YORK (CNNMoney)

The cost of the recall and some other accounting charges left the company with a profit of only $108 million in the quarter.

The company recalled a total of 7 million vehicles during the quarter, most prominently 2.6 million with a faulty ignition switch tied to at least 13 deaths. GM said it would spend about $700 million to fix that ignition switch, and another $600 million on other recalls.

While most of those repairs did not start until this month, the company booked the full cost of the recalls in the first quarter.

Still, the nation's largest automaker will be able to afford the massive recall cost. The earnings, excluding the special charges, were better than expected by Wall Street analysts.

"It's an understatement to say the first quarter was challenging for General Motors," said GM CEO Mary Barra on a call with investors. "Nonetheless the company remained profitable and I'm very proud of the way the team has kept it's focus on the customers."

Shares of GM (GM, Fortune 500) are down nearly 16% so far this year, but they rose more than 2% in morning trading after the earnings report.

Sales of GM models, even in the United States, have apparently not been hurt by the recall crisis, Barra told investors.

"We continue to be optimistic about 2014," she said.

Revenue increased 1% to $37.4 billion, and the number of vehicles sold rose 2% to 2.4 million. It reported record sales in China, the largest market for car sales where GM sells more vehicles than it does in the United States.

The company ended the quarter with $27 billion in cash and marketable securities on its balance sheet, up 11% from a year ago. It was able to pay its first dividend in five years in the period.

Related: GM - Steps to a recall nightmare

The company had already warned of the charge to deal with a flood of recalls in the period. The company had originally estimated that it would need a $300 million charge to deal with the cost of a recalls. But as the extent of the problem grew larger and larger in the period, it raised its estimated cost to $1.3 billion. To top of page

First Published: April 24, 2014: 7:52 AM ET


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What stumps Warren Buffett? Minimum wage

NEW YORK (CNNMoney)

"I thought about it for 50 years and I just don't know the answer on it," Buffett told CNN Wednesday. "In economics you always have to say 'and then what?' And the real question is are more people going to be better off if it is raised," he said.

Buffett also said that the current federal minimum of $7.25 is not a living wage. If raising it didn't hurt employment he'd want it up significantly higher. "You do lose some employment as you increase the minimum wage, if you didn't I would be for having it $15 an hour," he said.

Many states and cities have recently raised their minimum wage rate above the federal minimum and President Obama is pushing for Congress to raise the nationwide rate to $10.10 an hour.

Buffett said he's not arguing against raising the minimum wage, but suggests that increasing the earned income tax credit may be a better way to attack the problem.

The EITC is an antipoverty program designed to encourage people to work by providing a credit on wages.

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

"I know that if you raise the earned income tax credit significantly, that would definitely help people who've gotten the short stick in life," Buffett said.

Buffett conducted media interviews in New York after a lunch that brought in a $1 million donation for a charity called GLIDE. The charity runs a number of anti-poverty and educational programs in San Francisco, a city with one of the highest levels of inequality in the country.

The booming tech industry and high-paid executives in the Silicon Valley area have been blamed for rising rent prices pushing some people out of their homes.

Over the past 14 years, Buffett has raised nearly $16 million for GLIDE by auctioning off the opportunity to have lunch with the investing guru. The bids have gone up and down over the years, but last year's was the lowest since 2007 and nearly $2.5 million less than the year before.

"I'm not rich because somebody is poor. But some people are poor because the system does not reward particular skills," Buffett said. "Some of them have very limited skills in terms of what it brings them in a market system," he said.

- CNN's Poppy Harlow contributed to this report. To top of page

First Published: April 23, 2014: 6:35 PM ET


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Apple shares soar on increased buyback

apple

Apple increased its buyback and posted a strong second quarter, sending shares soaring.

NEW YORK (CNNMoney)

Apple (AAPL, Fortune 500) said it will increase its share repurchase program to $130 billion, up from $100 billion. The company also announced an 8% dividend increase to $3.29 per quarter, up 24 cents from the previous $3.05.

Apple also announced a seven-to-one stock split, which will take effect on June 9. That would make the price of a single share of Apple significantly cheaper, paving the way for the company to possibly be included in the benchmark Dow Jones industrial average.

Activist investor Carl Icahn, who had a very public spat with Apple over the size of the company's share repurchase program, tweeted Wednesday that he was happy to see the company increase the amount it returned to shareholders.

"Agree completely with $AAPL's increased buyback and extremely pleased with results. Believe we'll also be happy when we see new products," Icahn tweeted.

Related: 3 best podcast apps

During a quarter when Apple was largely expected to slump, the company recorded 43.7 million iPhone sales, easily beating analysts' forecasts of 38 million smartphones. Apple also beat analysts' Mac estimates with 4.1 million sales. Strong sales growth in markets such as the UK and Japan, along with the introduction of the iPhone in China helped bolster Apple's numbers in this category.

But Apple missed iPad forecasts by a wide margin, recording just 16.4 million tablet sales, far below Wall Street's expectation of 19 million iPads sold during the quarter.

Apple CEO Tim Cook attributed the decrease in iPad sales to a reduction in channel inventory and a better supply-demand balance for the second-generation iPad mini from the start of its retail availability. iPad sales have not grown outrageously in recent quarters, but Cook remained optimistic about the future potential of

The Cupertino, Ca.-based company said its fiscal second-quarter net income rose 7% to $10.2 billion, or $11.62 per share, for the period ended March 31. Analysts polled by Thomson Reuters forecast earnings of $10.18 per share.

Sales rose 4.7% to $45.7 billion, topping analysts' forecasts of $43.6 billion.

For the current quarter, Apple forecast it would post sales of between $37 billion and $38 billion, roughly in line with Wall Street's estimates. To top of page

First Published: April 23, 2014: 5:05 PM ET


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Investors slam Barclays over bonuses

LONDON (CNNMoney)

Shareholders large and small lined up at Barclays' annual meeting to accuse the company of putting the interests of its investment bankers ahead of its owners.

A third of the bank's shareholders withheld their support for the board's executive pay plan for 2013, with nearly a quarter of those who voted choosing to oppose the board. Leading the rebellion was Standard Life Investments, which holds a 2% stake.

"We are unconvinced that the ... 2013 bonus pool was in the best interests of shareholders, particularly when we consider how the bank's profits are divided amongst employees, shareholders and ongoing investment in the business," said Standard Life director Alison Kennedy.

Barclays (BCS) shares have fallen nearly 8% so far this year, whereas London's FTSE 100 index has only declined 1%.

Barclays CEO Antony Jenkins, who took over in 2012 after Bob Diamond was forced out in the wake of the Libor scandal, has promised big changes in culture and behavior.

Jenkins launched a major overhaul more than a year ago to repair the bank's finances, withdrawing from some businesses while trying to restore its reputation.

Related: Big Wall Street bonuses are back

Barclays Chairman David Walker acknowledged the storm unleashed by the bigger bonuses.

"Bonuses up, profits down. Not a headline we would have chosen," Walker said.

But he said Barclays had no choice, faced with a potential exodus of staff in the United States, where total pay at some of its competitors was rising fast.

"Our resignation rate for senior employees in the U.S. almost doubled in 2013," Walker said.

Barclays' investment bankers shared a 2013 bonus pot of £1.6 billion ($2.7 billion), up 13% from 2012. The big jump followed a year in which investment banking profits fell by 40%, dividends remained flat and shareholders were asked to cough up £5.8 billion ($9.7 billion) in fresh capital.

And the poor performance appears to have continued in the first quarter of 2014. Barclays said its fixed income, currencies and commodities business saw a "significant" decline, which would result in lower pre-tax profits for the bank as a whole.

Barclays is scheduled to report quarterly results May 6.

Pressure to reign in excessive pay is coming from politicians, as well as investors.

Related: EU takes aim at CEO paychecks

A senior British government minister wrote to the 100 largest listed companies in the U.K. earlier this week, hinting at tougher rules if they fail to crack down on big pay awards.

"Unless business is seen to act responsibly, pressure for further action will inevitably result," business minister Vince Cable wrote. "Policies that reward executives out of proportion to the value they create are a clear dereliction of the duty to promote the success of the company for the long term."

The European Union is also drawing up plans to require big listed companies to hold binding votes on executive pay. To top of page

First Published: April 24, 2014: 11:58 AM ET


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Russia stocks fall as Ukraine crisis intensifies

ukraine russia clash

Ukrainian special forces have been active in the eastern Ukrainian city of Slavyansk, where five militants were killed. Russia has vowed there will be consequences for these actions.

LONDON (CNNMoney)

Ukrainian forces killed five militants during an operation aimed at taking down pro-Russian roadblocks in eastern Ukraine, prompting Russia's defense minister to tell a state news agency that Russia will begin military drills at the Ukrainian border.

Russian President Vladimir Putin said Ukraine's use of armed forces will result in consequences, calling the military operation a "very serious crime", according to Russian state TV.

Russia's benchmark Micex index, which had been ticking higher, quickly fell into the red and continued pushing lower in afternoon trading.

The Russian index has fallen by 13.5% since the start of the year, as investors worry about the cost of a full-fledged military confrontation.

Meanwhile, U.S. and European sanctions are putting pressure on the weakening Russian economy and sapping investor confidence.

The Russian ruble also took a hit Thursday, edging down by 0.2%. The currency has declined by roughly 8% since the start of the year.

Related: Time to rethink sanctions against Russia and aid to Ukraine

Ukraine and western countries maintain that Russia is trying to destabilize parts of eastern Ukraine. That's prompted limited sanctions against Russia, with threats of more to come. Russian officials have denied that they are working to aggravate separatist sentiment.

Last month, Russia took control of Ukraine's Crimea region, a move considered illegal by many in the international community.

Related: Germany outlook sours on Ukraine concerns

Markets in Europe also reacted to the rising tensions. Germany's stock market fell sharply before staging a modest recovery.

Germany has a massive trade relationship with Russia -- worth over €76 billion ($105 billion) last year -- and if European leaders opt to introduce further sanctions against Russia, that could hit Germany's economy.

More than 6,000 German companies do business with Russia. Germany also relies on Russia for nearly half of its natural gas, and concerns are rising that Russia may taper its gas supplies to Europe. To top of page

First Published: April 24, 2014: 12:49 PM ET


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Weibo shares pop 10% in IPO

Written By limadu on Kamis, 17 April 2014 | 23.53

weibo ipo

China's Weibo debuts on the Nasdaq.

NEW YORK (CNNMoney)

The Chinese social media company, which is often compared to Twitter (TWTR), priced its initial public offering late Wednesday at $17 per share. That was on the lower end of its price range and raised concerns about how it would trade today.

The stock, which trades on the Nasdaq under the symbol "WB (WB)," was above $18.50 a share shortly after trading started.

The deal is being closely watched as a gauge of investor demand ahead of the anticipated IPO of Alibaba, the giant Chinese e-commerce company.

Related: Here comes the Chinese stock invasion

Given the recent turmoil in technology stocks, Weibo appears to have been a tough sell for the deal's underwriters, including Goldman Sachs (GS, Fortune 500) and Credit Suisse (CS).

Weibo reduced the size of its offering of U.S. shares to 16.8 million from 20 million it initially hoped to sell. It also priced the stock at the low end of the expected range of $17-$19 a share.

The deal raised $286 million for Weibo, which has a market value of about $3.6 billion at the current share price.

Weibo, which claims to have 130 million active users, lost nearly $48 million in the first quarter. That was about double what it lost in the same period last year. The company generated $183 million in revenue in 2013, but there's concern it's past its peak.

Weibo was not the only Chinese internet company making its stock market debut Thursday.

Leju Holdings, an online real estate service that operates in 250 cities across China, began trading on the New York Stock Exchange.

The company priced its offering of 10 million U.S. shares at $10 apiece. The stock, which trades under the symbol "LEJU (LEJU)," was up about 4% in early trading.

The IPO market has been on a tear this year, though there are signs the boom may be slowing.

Related: Biggest week for IPOs in 8 years

According to IPO research firm Renaissance Capital, 64 companies went public in the first quarter, the most active first quarter since 2000.

But there have been some notable flops recently. King Digital Entertainment (KING), maker of the popular Candy Crush Saga video game, saw its shares drop 15% on its first day of trading last month. The stock has yet to trade above its offering price.

The IPO market is strongest when volatility is low and stock valuations are high. But trading has been particularly choppy in recent weeks as prices for many high-flying technology stocks have come tumbling down.

The biotechnology sector has been particularly unsettled, which is sending a chill through the IPO market.

Shares of many of the biotech and pharmaceutical companies that went public earlier this year are now trading well below the offer price, including Biocept (BIOC), uniCure (QURE) and Galmed Pharmaceuticals (GLMD). To top of page

First Published: April 17, 2014: 12:17 PM ET


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Goldman Sachs investment banking roars back

NEW YORK (CNNMoney)

Goldman Sachs (GS, Fortune 500) reported first quarter earnings Thursday that handily beat analyst estimates

The firm said revenue from investment banking, which includes such activities as advising mergers and acquisitions and underwriting initial public offerings, was the highest since 2007 -- before the financial crisis.

"That's the kick we were looking for," said Marty Mosby, a bank analyst with Guggenheim Securities in Memphis, Tennessee. Acting as a strategic adviser to companies is "what Goldman really excels at," he said.

Shares popped in morning trading.

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

Goldman managed to outperform despite having overall revenues and profits that were down from a year ago.

Like its rivals on Wall Street, Goldman's revenue from bond trading, traditionally a money engine for the bank, fell as interest rates have stayed persistently low.

Still, investors seem pleased with the firm's earnings of $4.02 per share on revenues of $9.3 billion.

The bank was particularly good at keeping down expenses and boosting profit margins, although its revenue was down 7.5% compared to the first three months of 2013.

Every quarter the bank sets aside money to pay employees bonuses at the end of the year. It put aside roughly $4 billion for compensation in the first quarter, or 8% lower than the same period in 2013.

Related: Big Wall Street bonuses are back

There are signs that heightened regulation since the financial crisis is taking a toll even on Goldman.

The bank is not the trading powerhouse that it used to be. It has largely done away with riskier activities such as proprietary trading where it would trade with its own money for profit.

While such businesses have the potential to juice returns, investors now have a much more transparent bank with less volatility, Mosby said.

When asked about high-frequency trading, a hot topic on Wall Street after the release of Michael Lewis's new book "Flashboys", Goldman Sachs Chief Financial Officer Harvey Schwartz said his firm wasn't necessarily against it.

Related: New York Attorney General sends subpoenas to six high-frequency trading firms

The problem, he said, is that "market evolution speed has gotten ahead of the market infrastructure and market plumbing."

Goldman's earnings comes on the heels of Morgan Stanley's (MS, Fortune 500) solid earnings announcement Thursday that also beat forecasts. Morgan Stanley reported higher profits and revenues compared to a year ago, bolstered by strong performance in its investment banking and wealth management businesses. Shares of the firm bounced over 3% in morning trading.

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First Published: April 17, 2014: 8:29 AM ET


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Detroit pension cuts hit civilian workers hardest

detroit pension cuts

Retired Detroit worker Donald Smith, 69, is facing a 4.5% cut to his pension benefits.

NEW YORK (CNNMoney)

The city reached tentative deals with its two pension funds. One represents Detroit's non-uniformed workers, and the other covers police and firefighters.

The good news: Both pension plans are now facing much smaller cuts than those initially proposed.

But civilian employees are poised to take a bigger hit than their counterparts in the police and fire departments.

If the new proposals are approved, these retirees will suffer 4.5% cuts in pension benefits and lose cost of living increases going forward. In other words, pension checks will get smaller and then lose purchasing power in future years because of inflation.

On the other hand, retired police and firefighters won't see any change in their pension benefits. And they will keep getting annual cost of living increases, although the bump-ups will be reduced by about half.

Related: Detroit reaches deal limiting pension cuts

Retired police and firefighters received average payments of $30,607 in 2012, and general city workers got $19,213.

Under the proposed cuts, the general workers' average payments would be reduced by almost $1,000.

One difference between the two groups of retirees: Civilian retirees typically receive Social Security, while most cops and firefighters do not.

The city's emergency manager, Kevyn Orr, has said civilian retirees are facing steeper cuts because their pension fund is facing a larger funding hole after years of mismanagement.

But to the retirees who'll be affected, that's not much consolation.

"I didn't think it's fair that [police and fire] are going to get a better deal," said Donald Smith, 69, who receives an annual pension of less than $11,000 a year for the 29 years he served as a civilian detention officer and in other city jobs. "The fact was, they were working for the city just like we were working for the city."

The separate deals threaten to drive a wedge between the two groups as the city prepares to send ballots to tens of thousands of workers, retirees and other creditors to vote on the proposed cuts. Orr has said a "no" vote would result in deeper pension cuts.

Arthur Versace, a 62-year-old retired fire captain who currently receives around $45,000 a year from his pension, said he will be voting in favor of the plan.

He said the cuts make sense since the benefits come from two separate, independently managed funds.

"Their investments haven't done as well as ours," he said. "I feel for them, but we're separate from them as far as our pensions system."

Related: Just how generous are Detroit's pensions?

Meanwhile, 63-year-old retired housing department supervisor Dorothea Harris, who receives around $20,000 a year from her pension, said she will vote against the proposal, in part because she doesn't trust the city's overall plan for exiting bankruptcy.

"I already did the work," she said. "The state Constitution guaranteed my pension." To top of page

First Published: April 17, 2014: 11:16 AM ET


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Beer, grilled cheese and really clean clothes

wash house

Michael Gordon and Joe Bouvier, co-managers of New York's Wash House.

NEW YORK (CNNMoney)

"Our coffee shop is a bar, cafe and a laundromat. It's a winning formula," said 31-year old Lee Kerzner, a native New Yorker who opened the Wash House in the East Village last month. "The response from the local community has been amazing. We're doing more laundry than we ever expected and selling out of coffee."

The Wash House, the first laundromat-bistro of its kind in Manhattan, features local wood flooring and mirrors from an Upstate New York estate. It's one of several new boutique-style businesses around the country offering food and laundry under one roof.

These hybrids are a contemporary spin on Duds 'n Suds, a national laundry chain popular in the '80s that featured beer and big-screen TVs. But these come with a local touch and inexpensive fine food.

Related: 7 hot businesses you can start now

Sean McNeal, 38, opened the Bar of Soap in Asheville, N.C., in December 2012. McNeil drew inspiration from the Duds 'n Suds he frequented as a college student in Chapel Hill, N.C., during the mid-1990s.

"There are several well-known laundromat bars around the country, and I was surprised that Asheville didn't have one," said McNeal, who worked as a wildlife firefighter before opening Bar of Soap.

Asheville is known for its love of beer, and McNeal wanted a space that showcased that. Bar of Soap offers 80 different craft beers, 24 coin-operated machines, wooden seats and handmade folding tables.

"Most laundromats have plastic seating and plastic tables," McNeil said. "This place is all wood, metal and handcrafted -- and there is even this beautiful maple bar that I made."

McNeal spent a year looking for a space with a kitchen that would lend itself to three separate entities -- and that was located in an area with a high rental population.

"You need a demographic and housing stock that lends itself to laundromats," said Jeff Zalles, who owns the well-known BrainWash, a laundromat and bistro in San Francisco that's been open since 1987.

"We're a full cafe and we have live entertainment, dry cleaning and professional laundry," said Zalles. "The business sales are more 2-to-1 with the cafe and laundry."

Related: Meet America's oldest bike maker

Despite the many moving parts, McNeal said having different types of services under one roof has its advantages.

He operates the bar and laundromat and rents out part of the space to a local Italian restaurant, which serves inexpensive sandwiches and pizzas.

"I had lots of people who wanted to rent the space, but they all wanted something fancy," McNeal said. "I wanted something a little more blue collar. I liked their pizza and it went really well with my customer base."

Most of Bar of Soap's laundromat customers buy at least one beverage and around half of them order food, said McNeal.

"As opposed to the other industries in Asheville, we don't have seasons," McNeal said. "The laundry is solid month-to-month, which is great in a town where people have slow seasons."

Robert Cassi, a classically trained chef from Florida, strategically picked a downtown laundromat in Charleston, S.C., as the location for his gourmet sandwich shop.

"I was looking for a place with high foot traffic and population density," Cassi said. "I wanted to do a menu that you would have at any full-service restaurant."

Patrons at the Persimmon Café, a sit-down space at the front of the laundromat, enjoy fine food with Low Country flare, such as lump crab paninis and fresh basil limeade.

"Around 10% of the laundromat customers order food or coffee at the cafe," Cassi said.

Related: Brooklyn startup plays manufacturing matchmaker

Before launching their hybrid venture, the Wash House's owners had opened a coffee shop in the neighborhood so they were familiar with running a café. They spent $250,000 on the laundromat-bistro -- most of it on renovations.

Later this year, they'll open a coin-operated laundry room in an adjacent space, and Kerzner said they're also planning for a location in Brooklyn. Long term, they want take the business nationally.

Location will be a huge factor in expanding to other cities, and it was the main consideration for The Wash House, Kerzner said.

"We scoped out the neighborhood and staked out the space for two months, watching people carrying their laundry for five or 10 blocks," Kerzner said of their search to find the perfect spot. "We felt we could open a coffee shop just about anywhere." To top of page

First Published: April 17, 2014: 6:54 AM ET


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Cruise companies on hunt for China's tourist dollars

HONG KONG (CNNMoney)

The ship, Quantum of the Seas, will make its home in China in 2015, after spending its inaugural winter season sailing out of New York. The ship will ferry travelers from Shanghai to South Korea and Japan.

Royal Caribbean (RCL) already has two ships in Asia, sailing to destinations including Kuala Lumpur, Singapore, Tokyo and Hong Kong.

But the addition of Quantum of the Seas, which boasts 18 decks, 2,090 staterooms and a skydiving simulator, shows how seriously the company is taking Asia, and China in particular.

"Consumers in China have grown to expect the best the world has to offer," Royal Caribbean president Adam Goldstein said in a statement. "We are ready to accelerate the growth of this vital market."

Chinese citizens have gone from being an afterthought in terms of purchasing power to the world's top travel spenders in a matter of years.

In 2012, the most recent year for which data is available, Chinese spending on international tourism jumped 40% to $102 billion, according to the United Nations World Tourism Organization. By way of comparison, the United States and Germany tied with spending of $84 billion.

Related story: Chinese tourists boost U.S. businesses

Yet there is plenty of room for the cruise industry to grow in Asia, a region that accounted for only 3.4% of capacity in 2013, according to industry group Cruise Lines International Association.

And no country in Asia -- not even China -- made the group's list of top 10 booking sources. That ranking is dominated by the United States, which provided more than 50% of passengers.

Related story: Rich Chinese overwhelm U.S. visa program

In a bid to attract more business, Hong Kong last year opened a cruise terminal on the former site of Kai Tak airport, famous for its hair-raising approach.

Yet there have been some growing pains, and a relatively small number of ships have docked at the new facility.

Earlier this year a group of passengers refused to leave a Carnival Corp (CCL) cruise ship that ended its voyage in Hong Kong.

The Costa Victoria was unable to stop in Vietnam's Ha Long Bay as promised, and passengers demanded compensation from the company. To top of page

First Published: April 17, 2014: 7:12 AM ET


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China's spending crackdown hits drinks giants

remy martin china

Remy Cointreau said the Chinese government's "anti-extravagance policy" is hurting sales of premium spirits.

LONDON (CNNMoney)

Diageo (DEO) and Remy Cointreau -- the companies behind brands such as Smirnoff vodka and Cointreau liqueur -- said Thursday that China sales were down sharply over the first three months of the year.

Since taking office a year ago, Chinese President Xi Jinping has ordered an end to excessive spending by officials on everything from luxury hotels to lavish funerals, and made tackling corruption a priority.

Luxury auto makers, catering firms and pharmaceuticals groups have already felt the pinch, and the push for moderation is now affecting sales of drinks -- in particular premium spirits.

Related: Five global liquors about to go big

Sales of specialty cognac Remy Martin fell by more than 20% in the first three months of 2014.

"Remy Martin was adversely affected throughout the financial year by the Chinese government's anti-extravagance policy," Remy Cointreau said. It warned that operating profit for the year to March 31 would fall by as much as 40%.

Diageo said its Shui Jing Fang business, which sells a high-end Chinese liquor called baijiu, did particularly poorly in the last quarter of 2013. And group sales in the Asia Pacific region remained weak during the first quarter of 2014, falling by nearly 20%, it said.

Shares in Diageo fell 4% in London, while Remy Cointreau shares were also down 4% on the Paris stock exchange.

Other drinks stocks suffered too. Pernod Ricard fell 3% in Paris. The distiller is due to report quarterly sales next week.

Related: China's anti-corruption drive eats into growth

China has been a big growth market for many international distillers in recent years as sales stalled in Europe and North America.

Diageo said it still believed in the long term potential of China and other emerging markets, and would continue to invest to build its brands. To top of page

First Published: April 17, 2014: 9:31 AM ET


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GM's recalled Cobalt was a failure from the start

chevrolet cobalt

General Motors never really wanted to build the Cobalt, and it showed.

NEW YORK (CNNMoney)

The automaker never really wanted to build the compact sedan, and it showed. Critics and car buyers alike reacted with little enthusiasm for the vehicle.

"They couldn't stop making them," said Kelley Blue Book analyst Karl Brauer, "but they stopped caring about doing a good job on them."

GM (GM, Fortune 500) now admits it should have fixed a faulty ignition switch in the Cobalt and similar models a decade ago when it was first discovered. At least 13 deaths have been tied to the problem, which can shut off the cars when they're on the road.

But the models involved in the recall were built to solve two company-wide problems, rather than to meet consumer demand.

First, regulations required automakers to hit certain fuel economy averages across all the cars they sold. For overseas automakers with competitive, fuel efficient cars, that was no problem. But Detroit automakers like GM and Ford Motor (F, Fortune 500) depended on sales of bigger, more profitable models like pickups and SUVs. For them, the compact cars were just something they had to sell, regardless of whether anyone wanted to buy them, much less if they could be sold profitably.

Related: GM - Steps to a recall nightmare

Another factor: A labor agreement with the United Auto Workers union that forced manufacturers to keep paying autoworkers whether they were on an assembly line or laid off. Such contracts made it expensive for carmakers to align production with demand. It made more sense financially to keep factories open and churning out the cheapest vehicles possible.

"The Cobalt wasn't designed to be the best compact car. It was done to make sure that GM met fuel economy standards and utilized manufacturing capacity that was already there," said Jesse Toprak, analyst with Cars.com.

So it's not that surprising that the Cobalt, and the versions of the car sold by GM's Pontiac and Saturn brands, weren't great cars. That's undoubtedly what GM CEO Mary Barra was referring to when she referenced the "cost culture" that governed what is now referred to as the old GM, prior to its 2009 bankruptcy, during Congressional hearings on the recall.

Related: The 57-cent part at the center of GM's recall crisis

Consumers responded accordingly. So in order to sell the 200,000 or so Cobalts that General Motors was building every year, it offered large cash incentives to buyers, and it sold them in bulk to rental car companies which bought them at rock-bottom prices.

By 2010, the Colbalt's last full year on the market, fleet buyers accounted for more than 42% of its sales.

The rental car companies kept the cars for a short period of time, typically less than a year, then dumped them onto the used car markets, where they were bought by buyers looking for cheap transportation in a relatively new car. That drove down prices on the new cars even more, exacerbating GM's growing financial problems.

"When you put heavy incentives to sell to retail customers, and sell them to rental companies, you damage your prices," said independent auto analyst Michelle Krebs. "That's something Honda and Toyota didn't have to do."

Related: GM sales unscathed by recall crisis

The Cobalts that were bought by actual consumers were concentrated in the parts of the country where there was little competition from Toyota's (TM) Corolla or Honda's (HMC) Civic.

"It might have done OK in the Midwest, but it'd be tough to find a Cobalt purchased retail in Los Angeles," Toprak said.

The good news is that GM has since figured out how to produce a competitive, small car. The Chevy Cruze, the car that replaced the Cobalt, is selling well around the world and in the U.S.

"The Cobalt was part of an evolutionary process," Krebs said, "that helped them get to the Cruze," she said. To top of page

First Published: April 17, 2014: 10:43 AM ET


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NBA player to open Hooters in Russia

andrei kirilenko hooters

Brooklyn Nets player Andrei Kirilenko, aka AK-47, is introducing Hooters to his native Russia.

NEW YORK (CNNMoney)

Kirilenko, a player for the Brooklyn Nets, told CNNMoney his first restaurant will open in Moscow on April 26.

Hooters spokeswoman Kelly Propst confirmed that the 6-foot-9 player is a franchisee, who is bringing Hooters to Russia for the first time. After the Moscow debut, he plans to open four more Hooters restaurants in Russia over the next three or four years, she said.

Kirilenko, 33, signed on with the Nets as a free agent last year and is now in a contract lasting through 2015. His nickname stems from the initials of his name and the numeral 47 on his jersey.

The AK-47 is the well-known assault rifle invented in the former Soviet Union by Mikhail Kalashnikov, who died last year.

Related: Playing college sports a tough job with long hours

Hooters is an international chain of sports bar restaurants owned by Chanticleer Holdings (HOTR).

The chain is also known for the so-called Hooters Girl waitresses, who serve masculine-friendly fare like beer and wings while wearing skimpy orange shorts. As part of its aggressive branding, the company offers a calendar of Hooters Girls and once had an airline called Hooters Air.

The company on its website says that it is proud of its 300,000-plus alumnae who graduated to become "mothers, wives, career-minded businesswomen and entrepreneurs, many becoming doctors, lawyers, authors, government officials and community leaders."

Related video: From Hooters Girl to corner office

The chain originated in Clearwater, Fla., and has 430 restaurants located throughout the U.S. as well 27 other countries, including Mexico, China, Japan, Singapore and South Africa. To top of page

First Published: April 17, 2014: 10:56 AM ET


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Stocks fight back from morning drop

NEW YORK (CNNMoney)

There's hope that the rebound rally this week could continue. The Dow soared 162 points on Wednesday, while the S&P 500 and Nasdaq both rose by more than 1%.

Investors spent the morning sorting through a mixed batch of earnings that showed strength in banking and consumer companies, but weakness in technology.

Ed Yardeni, president and chief investment strategist at Yardeni Research, wouldn't be surprised if stocks trade sideways today.

"Traders want to enjoy the weekend and not have to worry before they get back to work," he said. Markets are closed tomorrow in observance of Good Friday.

The sell-off in momentum stocks, mostly tech and biotech, has been the key story this month, and it's playing out again today.

Google (GOOG, Fortune 500) is down nearly 3%. Ad volume surged 26% in the most recent quarter. While that would impressive for just about anybody else, Wall Street is now conditioned to see anything less than spectacular as a "meh" when it comes to Google.

"Old tech" bellwether IBM (IBM, Fortune 500) is also sliding. The company was refuge when the momentum stocks relentlessly sold off last week, but its earnings were down again in the first quarter and that obviously bothered some investors.

Related: CNNMoney's Tech 30

One area leaving a better taste in investor mouths today: restaurant and food companies.

Traders can't see to get enough of Chipotle (CMG). The stock is surging (up 5%). The restaurant chain missed earnings estimates but revenue came in higher than Wall Street had predicted. Even the winter weather didn't keep people from getting their Tex-Mex fix.

Pepsico (PEP, Fortune 500) share also have some fizz today after the company's reports of growth in its snack businesses.

Related: Chipotle's burrito boom continues

Banks are another bright spot today. Goldman Sachs (GS, Fortune 500) is sharply higher after strongly outperforming Wall Street expectations. Investment banking revenue the highest since 2007.

Fellow financial Morgan Stanley (MS, Fortune 500) is also having a good day after reporting that first quarter earnings surged 63% and revenues grew 10%.

Related: CNNMoney's Tech30

China's Weibo begins trading today. Some have called Weibo the Twitter of China, but the company had to cut its offering from 20 million shares to just under 17 million shares, raising less money than expected.

Weibo is being watched closely as a warm-up for China's Alibaba, which is expected to start trading in the U.S. in the coming months. Alibaba is China's version of a hybrid Amazon.com/eBay.

Related: Weibo IPO: Not looking good for Chinese stocks debuting in the U.S.

In Europe, rising tensions in eastern Ukraine were adding to the unsettled tone. European, U.S., Russian and Ukrainian officials are meeting in Geneva today to try to find ways to resolve the crisis.

President Obama has warned of new sanctions against Russia if the talks fail. European markets are slightly higher.

China GDP data published Wednesday showed the world's second largest economy is slowing, but not as dramatically as some had feared. Asian markets ended mixed. To top of page

First Published: April 17, 2014: 10:06 AM ET


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The Divergent trend: Bad for stocks

divergent stocks

There's a divergent trend going on in the stock market. It could signal the end of the current bull market.

NEW YORK (CNNMoney)

So what does that have to do with the stock market?

There's a "divergent trend" happening right now, and some think it signals the end of the bull market is near.

One of them is Frank Gretz, the technical analyst at Wellington Shields.

Gretz follows a simple theory: When the bull market is in full force, you see a lot of new highs for both individual stocks and the overall market indexes.

To put that in plain speak, when the stock prices of companies like Google (GOOGL), Yahoo (YHOO, Fortune 500) and Coke (KO, Fortune 500) are reaching new highs, you would expect to see lots of record setting days for the S&P 500 and Nasdaq as well.

Everyone wins, basically.

But a telling trend happens at the end of a bull market: We still see the overall indexes like the S&P 500 hitting new highs, but we don't see as many individual stocks peaking anymore.

That's the divergence factor. It's a sign the market upswing is losing steam.

Here's where it gets scary: The number of individual stocks hitting new highs peaked last May when there were over 900.

Last month there were only 500.

"The bull market is tired," Gretz says.

Those of you who watch the market closely will recall that the overall market hasn't slowed down just yet.

The Nasdaq closed at a 14-year high on March 5, and the S&P 500 closed at an all-time peak on April 2.

History backs up this divergence theory.

Ned Davis Research looked at 15 stock market highs since 1962 and says the peak in new highs for individual stocks precedes the peak in the overall markets by 9 to 11 months.

If that holds true this time around, we're about done with the bull run.

We're 11 months past the May 2013 peak of new highs in individual stocks.

Beatrice Prior in the "Divergent" film would be looking worried with dark mood lighting about now.

Gretz adds that the current climate is somewhat out of synch.

"Usually stocks like Caterpillar and the oil companies come down before the averages, but in this market the leaders like Netflix are coming down first. Leaders usually come down last, but now they're first," he says.

Of course, nothing is ever as straightforward as investors would like.

The market never puts out a sign that says "Sell now, before everyone else does".

To add to the confusion, two other important trend lines aren't displaying the divergence trend: 80% of stocks are still above their 200-day and 50-day moving averages. That's getting pretty technical, but Gretz emphasizes that the divergence we're seeing in new highs vs. the overall market may not develop into a major problem right now.

But he's watching.

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First Published: April 17, 2014: 11:38 AM ET


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Jobless claims at lowest since 2007, but...

Written By limadu on Kamis, 10 April 2014 | 23.53

initial claims data 041014

First-time claims for unemployment benefits suddenly plummeted last week, but don't get too excited. It's probably just a statistical quirk.

NEW YORK (CNNMoney)

But the drop in jobless claims may be more the result of statistical quirkiness than a dramatic improvement in the job market.

Roughly 300,000 people filed for their first week of unemployment benefits last week, the Department of Labor reported Thursday morning. That was a 32,000 decline from the prior week.

The problem is the numbers are notoriously volatile around March and April.

Last year, for example, initial claims spiked during this same week as schools in many states observed spring break around Passover and Easter. In some states like New York, contract employees like cafeteria workers and school bus drivers are allowed to file for unemployment benefits whenever school is not in session.

This year, Passover and Easter are falling later in the year than usual. The Department of Labor adjusts the numbers for seasonal trends but it often can't fully account for holidays that move around the calendar from year to year.

"Easter floats to new weeks, and the start of the quarter make this a challenging time to adjust the seasonal data," a Department of Labor analyst said.

In all likelihood, claims will spike in the coming weeks when schools are off for spring break this year.

"The dip to 300,000 looks very nice. However we should expect volatility to continue in the next few weeks," said Tom Simons, money market economist with Jefferies, in a note to clients.

Related: New businesses aren't creating enough jobs

Initial claims are seen as a good gauge of layoffs in the job market, and recently, they've been hovering around pre-recession lows.

The four-week moving average, which smooths out some of the volatility, was 316,250 last week -- a level consistent with the number of weekly claims filed back in 2007, before the recession began.

In short, firms are laying off far fewer workers than they were during the depths of the recession, which is good.

But the real news Americans want is job creation. There are still plenty of people looking for work.

The next step in the jobs recovery needs to come from firms stepping up their new hiring -- a trend Federal Reserve Chair Janet Yellen has said she will be watching closely, as the Fed evaluates how to aid the recovery. To top of page

First Published: April 10, 2014: 9:47 AM ET


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"GMA" adds another man: ESPN's Tony Reali

tony reali

ESPN's Tony Reali will join "Good Morning America." He could help replace the star power that was lost when Josh Elliott left for NBC.

NEW YORK (CNNMoney)

Reali's role was first described by The Hollywood Reporter on Thursday. Reali, the host of "Around the Horn" on ESPN since 2004, is expected to appear on "GMA" two or three days a week as a part of the show's social media segments.

The program named a corner of its studio the "Social Square" earlier this year in an attempt to connect social media conversations to the live broadcasts. NBC's "Today" show has a similar set-up, "The Orange Room," and Carson Daly frequently leads segments from there.

The "GMA" position is part of a new contract for Reali that also extends his time at ESPN. (Both ABC and ESPN are owned by Disney (DIS, Fortune 500). Reali, who also appears on the ESPN show "Pardon The Interruption," will leave that program. "Around the Horn" -- which is currently taped in Washington, D.C. -- will move to New York.

Reali's new role on "GMA" is noteworthy because the show now only has one man at the anchor desk: George Stephanopoulos.

Long-time weather anchor Sam Champion left in December for a job at The Weather Channel. Elliott departed last month to take a job at NBC Sports, a move that some feel could lead to Elliott eventually getting a more prominent role on "Today," which is "GMA"s" top competition. (NBCUniversal, a subsidiary of cable giant Comcast (CMCSA, Fortune 500) ,owns NBC and is also part of a joint venture that owns The Weather Channel.)

Related: How things got ugly between ABC and Josh Elliott

Network morning shows rise and fall on how they appeal to women viewers, and the 35-year old Reali's looks are, well, appealing to women.

But like Elliott, he also will bring a sports junkie's sensibility to "GMA." That's important given the prominence of ESPN in the Disney empire. It's worth noting that "GMA" lead anchor Robin Roberts also has a background at ESPN ... and was a star college basketball player. The program is also expected to add former football star Michael Strahan to the mix in the weeks to come.

Reali's new contract was announced on the same day that Disney appointed a new president of ABC News, James Goldston. He will succeed Ben Sherwood, who last month was named the next president of the Disney/ABC Television Group. Goldston has been one of Sherwood's top deputies for the past two years. To top of page

First Published: April 10, 2014: 11:54 AM ET


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Icahn settles with eBay over PayPal

NEW YORK (CNNMoney)

Though Icahn's proposal will no longer be presented to shareholders at eBay's annual meeting next month, Icahn hasn't completely backed down on his idea of eBay selling off its payments business.

"I continue to believe that eBay would benefit from the separation of PayPal at some point in the near future and intend to continue to press my case through confidential discussions with the company," Icahn said in his statement about his deal with eBay.

In return for Icahn's agreement to drop the proposal to shareholders and withdraw his two nominees to the company's board, eBay (EBAY, Fortune 500) agreed to appoint to David Dorman, founding partner of venture capital firm Centerview Capital Technology, to the board.

Dorman was CEO of AT&T (T, Fortune 500) when the company merged with SBC Communications and was also chairman of Motorola's (MSI, Fortune 500) board when that company split into two separate businesses.

"As chairman of Motorola, Mr. Dorman ... guided the company through the successful separation of its mobile device and home businesses, which greatly enhanced shareholder value," Icahn said. "We are happy to have reached this détente with eBay and believe that Dave Dorman will be a great addition to the company's board of directors."

Related: Carl Icahn is losing another tech fight

But Dorman said he won't look to shake things up and that he is committed to "helping drive growth for PayPal and eBay together."

Icahn said he has met with eBay CEO John Donahoe several times over the past week and found a number of his ideas to be "extremely compelling." He said he'll continue to speak with Donahoe when the CEO visits New York. EBay also said it will allow Icahn to continue discussions with the board.

"This is a clear win-win for shareholders," Donahoe said on CNN International's World Business Today Thursday morning. "Carl saw the real long-term opportunity of keeping our company together."

Donahoe said he continues to believe that the best path forward for eBay is to keep PayPal completely under its umbrella.

"That's the best path to grow shareholder value," he said. "If that changes, we'll pursue that."

Icahn first proposed that eBay split off PayPal back in January. Icahn subsequently accused the company of mismanagement, and alleged that there were conflicts for two board members: influential venture capitalist Marc Andreessen and Intuit (INTU) co-founder Scott Cook.

This is the second time this year that Icahn has relented in a fight against a big tech company. He had been pushing Apple (AAPL, Fortune 500) CEO Tim Cook to do a bigger stock buyback, but he backed off from that push in February. To top of page

First Published: April 10, 2014: 10:13 AM ET


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Watch out for those hidden fees in prepaid debit cards

(Fortune)

Financial products are a different animal. They are often named one thing when they are something quite different. In the late 1990s, banks and credit unions started marketing "free" checking accounts to consumers when in fact those accounts were subject to hefty fees. Overdraw your account? Thirty dollars a pop. Fall below your minimum account balance? Ante up another $10. Tens of billions in profits have been made on fees from these supposedly free accounts, paid mostly by lower- and middle-income depositors who can ill afford them.


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Greek bonds fly off the shelves

greek strikes

Public and private sector workers went on strike Wednesday to protest at harsh austerity measures even as Greece was marketing its first international bond issue in four years.

LONDON (CNNMoney)

The Greek Finance Ministry said Thursday that it raised €3 billion ($4.2 billion) by selling 5-year bonds, its first debt issue since the eurozone country received €240 billion of bailout loans from the European Union and International Monetary Fund.

Demand was robust. Investors were ready to buy as much as €20 billion, analysts said.

It's been a long and painful road to recovery for Greece. In a bid to stabilize its finances, the government has implemented deep spending cuts, sending unemployment rocketing to 27% -- nearly six in every 10 workers under the age of 24 are without a job.

Related: Greek bonds: Europe's hidden gem?

The economy has shrunk by more than a fifth since the crisis began, and prices are falling for a second year running.

Social and political tensions are still running high. Many workers took part in a nationwide strike Wednesday to protest against the austerity measures, and a car bomb exploded outside the country's central bank Thursday.

The tough approach will have to continue for years, given Greece's debt burden is expected to hit 175% of GDP this year. That's way above the level the IMF considers sustainable in the long term.

Still, the successful bond sale is the latest example of the dramatic change in fortune for Greece, and other weak eurozone economies, at least in the eyes of international investors.

Analysts said Greece had promised investors a return of 4.95% on the bonds sold Thursday, just a fraction of the peak yields seen during the crisis. Borrowing costs for Ireland, Portugal, Italy and Spain have also plummeted recently, slashing the premium they need to offer over 'core' eurozone countries, such as Germany.

Related: Europe sees first growth since 2011

Although Greece's sovereign debt rating is deep in junk territory, investors appear willing to buy the 5-year notes because they will mature way before any of the bailout loans start to come due, and also because there's much less risk of a repeat of 2012's haircut for investors.

Furthermore, the bonds also offer a decent yield in a low interest rate world.

"Central banks around the world have turned investors into desperate yield junkies, so 4.95% seems worth it," noted Kathleen Brooks, research director at Forex.com.

Ireland, which last December became the first eurozone country to exit its bailout program, sold €1 billion of 10-year bonds at a record low yield of 2.9%. Demand was nearly three times the amount offered.

National economic reforms, together with Europe's resolve to hold the single currency together and the European Central Bank's readiness to use Fed-style quantitative easing if necessary, have helped drive the sentiment turnaround. To top of page

First Published: April 10, 2014: 7:59 AM ET


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Ally Financial: From bailout shame to lame IPO

NEW YORK (CNNMoney)

Ally Financial (ALLY), the auto loan giant that received taxpayer assistance during the depths of the financial crisis, fell over 1% in its public debut Thursday.

At an IPO price of $25 per share, the deal raised $2.4 billion, making it the biggest IPO of the year. All 95 million shares offered in the IPO were sold by the U.S. Treasury. The proceeds from the sale went directly to the government (or, to put it another way, to taxpayers).

Related: It's the biggest week for IPOs in 8 years

The company is trading on the NYSE under the symbol "ALLY." Citigroup and Goldman Sachs were among the lead underwriters of the IPO.

Formerly known as GMAC, Ally was once the financing arm of General Motors (GM, Fortune 500). In addition to auto loans, the company had a mortgage arm, which folded under the weight of the financial crisis.

Ally was the recipient of $17.2 billion in bailout funds from the government's controversial Troubled Asset Relief Program (TARP) in 2008. It had already paid the Treasury back $15.3 billion, so with the IPO, the government milked a small profit of its investment.

But the government still owns roughly 17% of Ally, down from 37% before the IPO. That means Uncle Sam -- and taxpayers -- still have a vested interest in the fate of the company going forward.

Related: Ally Financial IPO is a taxpayer win, but don't buy the stock

The IPO priced at the lower end of its $25 - $28 range, suggesting relatively soft demand for the stock, and the fact that shares are now trading around $24.50 isn't a great sign for the government exiting the rest of its stake.

Ally reported a net profit of $361 million in 2013, down sharply from $1.2 billion 2012. Part of that drop was because the company agreed to pay a $98 million fine in December after the Justice Department and Consumer Financial Protection Bureau said it charged minorities higher auto loan interest rates.

-- CNNMoney's Paul La Monica contributed to this story

To top of page

First Published: April 10, 2014: 10:26 AM ET


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It pays to work at Ferrari

ferrari employees

Ferrari employees in Italy all received a "production bonus" worth just over €4,000 ($5,700) for 2013 as the company increased sales and profits.

LONDON (CNNMoney)

The luxury Italian automaker is paying record bonuses to reward workers for helping increase sales and profitability to record levels in 2013.

This comes as Ferrari has been purposefully selling fewer cars to maintain its "exclusivity" -- capping production at 7,000 cars per year.

In 2013, the firm shipped 6,922 cars -- a 400-car reduction from the previous year -- but still increased revenue by 5% to €2.3 billion ($3.2 billion), and boosted profits by 8%.

In turn, Ferrari employees each received a bonus worth roughly three months of their salary as part of a three-year bonus plan. On top of that, Italian workers are set to receive just over €4,000 ($5,700) "in recognition of the excellent financial results achieved last year ... in addition to other parameters, such as levels of quality," the automaker said.

Related: 1967 Ferrari sells for record $27.5 million

Ferrari, which is majority-owned by Fiat (FIADF), is considered the most powerful brand in the world, surpassing larger brands such as Apple (AAPL, Fortune 500) and Google (GOOGL), according to Brand Finance.

Its AAA+ rating is based, in part, on its decision to cap sales, along with brand desirability, consumer loyalty and employee satisfaction, said Brand Finance.

The Ferrari brand is worth roughly $4 billion, up 12% from the previous year, according to the brand rating company.

Related: Exotic car sales surge to record high

Even as it reins in auto production, Ferrari is still capitalizing on its top notch brand through licensing activities. Last year, licensing profitability jumped by nearly 4% to €54 million ($75 million), as Ferrari signed big deals with video game companies Electronic Arts (EA) and Codemasters.

Ferrari also has licensing deals with Puma, Microsoft (MSFT, Fortune 500) and luxury watchmakers Hublot and Movado.

North America is Ferrari's biggest market, accounting for nearly 30% of global sales, while China comes in second place with 10%.

But Ferrari demand in China could wane as the government looks to crack down on state officials who are known for buying pricey cars.

Aston University professor David Bailey, a specialist in industrial strategy, said Ferrari's plan to cap global production is likely a reaction to lower sales expectations in China.

"Ferrari can see the way that things are going ... this is clever marketing for them and it's a reflection of reality," he said. To top of page

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


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GM puts 2 engineers on paid leave over ignition recall

mary barra engineers

GM Chief Executive Mary Barra put two engineers on paid leave because of the massive recall over faulty ignitions linked to at least 13 deaths.

NEW YORK (CNNMoney)

GM Chief Executive Officer Mary Barra confirmed Thursday that the engineers were placed on leave following a briefing from Anton Valukas, the former U.S. attorney overseeing an independent investigation into a recall of 2.6 million cars with ignition defects.

"This is an interim step as we seek the truth about what happened," Barra said.

GM has traced a defect in an ignition switch to at least 13 deaths. The defect caused the car to shut off while driving, disabling the airbags, power steering and anti-lock brakes.

GM (GM, Fortune 500) knew of the problem as early as 2004, and now federal investigators, Congress and attorneys representing GM vehicle owners are asking why the company didn't issue a recall years ago.

Related: GM's tough call: How to pay recall victims

In February, GM recalled all years of the Chevrolet Cobalt, Pontiac G5, Pontiac Pursuit and Saturn Ion, as well as 2006 to 2007 Chevrolet HHRs, 2006 to 2007 Pontiac Solstices and the 2007 Saturn Sky.

Meanwhile, the National Highway Traffic Safety Administration is fining GM $7,000 a day for failing to answer 107 questions about its ignition switch recall by the regulator's April 3 deadline.

GM has recalled nearly 7 million vehicles so far this year. To top of page

First Published: April 10, 2014: 9:07 AM ET


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So much for that rally. Stocks open down

Dow 1230

Click for more data

NEW YORK (CNNMoney)

The Dow and S&P 500 are sharply lower, but the Nasdaq is once again the biggest loser with a drop of over 2% by lunchtime.

There was hope that a two-day rally would extend into Thursday, but the bulls simply haven't shown up today.

Related: Fear & Greed Index still running scared

Marquee Nasdaq names like Googl, (GOOG, Fortune 500) Amazon.co, (AMZN, Fortune 500)Yaho, a (YHOO, Fortune 500)nd Tesl ar (TSLA)e all down 2% or more.

In the biotech sector Biogen Idec (BIIB, Fortune 500), Celgene (CELG, Fortune 500), and Vertex (VRTX) are falling about 3%. Gilead Sciences (GILD, Fortune 500) is plunging more than 4%.

If there's any good news, it's that "old tech" standby IBM (IBM, Fortune 500). It is up for the day and up year to date, unlike many of the other tech names.

Related: CNNMoney Tech 30

Another area of strength is consumer staples with the Consumer Staples Select Sector ETF rising today. Consumer staples are sometimes seen as a haven in a choppy market.

Economic news this morning seemed to lift the mood on Wall Street, but that faded quickly. Jobless claims fell to a 7-year low last week, but economists note that there's often a lot of variation this time of year that might not accurately reflect the true health of the jobs market.

Related: Jobless claims at lowest since 2007, but don't cheer yet

In corporate news, eBay (EBAY, Fortune 500) and activist investor Carl Icahn have buried that hatchet, but the stock is trading lower. The two sides reached a deal to end a contentious proxy battle. Icahn will withdraw his proposal to spinoff eBay's PayPal unit and relent on his request for two board seats.

For its part, eBay has agreed to appoint David Dorman as an independent director. Dorman is currently chairman of CVS Caremark (CVS, Fortune 500)

Retailers are in the midst of reporting their earnings. Rite Aid (RAD, Fortune 500)shares are surging after the drugstore chain reported better than expected fourth quarter results.

It was also a pretty picture for home decor retailer Pier (PIR)shares are higher after announcing earnings that surprised on the high end of Wall Street expectations.

In contrast, shares in retailer Bed Bath & Beyond (BBBY, Fortune 500) are tumbling after the company warned that it expects first quarter earnings to miss expectations.

Related: Biggest week for IPOs in 8 years

The biggest IPO to hit Wall Street so far this year started trading this morning, but Ally Financial (ALLY), is now below its $25 offering price. The old GM finance arm that was bailed out by the government doesn't seem to be exciting investors much.

Major European markets closed mostly lower with the FTSE finishing slightly higher.

Investors across Europe are watching as Greece returns to the bond market for the first time in more than four years. The country is looking to raise money by issuing five-year bonds, and demand is reported to be strong.

Greece was shut out of international markets in 2010 when its economy collapsed, leading to two rescues by the European Union and International Monetary Fund.

Meanwhile, in Asia, nearly all the major stock markets ended with gains. The Hang Seng in Hong Kong shot up by 1.5% and the Shanghai Composite added 1.4%. To top of page

First Published: April 10, 2014: 10:06 AM ET


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Change theses passwords right now

NEW YORK (CNNMoney)

As sites fix the bug on their end, it's time for you to change your passwords. The Heartbleed bug allowed information leaks from a key safety feature that is supposed to keep your online communication private -- email, banking, shopping, and passwords.

Don't change all your passwords yet, though. If a company hasn't yet updated its site, you still can't connect safely. A new password would be compromised too.

Many companies are not informing their customers of the danger -- or asking them to update their log-in credentials. So, here's a handy password list. It'll be updated as companies respond to CNN's questions.

Related story: Heartbleed Bug explained

Change these passwords now (they were patched)

Don't worry about these (they don't use the affected software, or ran a different version)

Don't change these passwords yet (still unclear, no response)

  • Amazon
  • (AMZN, Fortune 500)
  • American Express
  • (AXP, Fortune 500)
  • Apple (AAPL, Fortune 500), iCloud and iTunes
  • Capital One (COF, Fortune 500) bank
  • Citibank
  • LinkedIn
  • PNC bank
  • Twitter (TWTR) (the company said Twitter's servers weren't affected but also noted that Twitter used the affected software in some capacity.)
  • Wikipedia
To top of page

First Published: April 10, 2014: 12:31 PM ET


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Dow, S&P 500 retreat after setting records

Written By limadu on Kamis, 03 April 2014 | 23.53

dow 1030a

Click the chart for more markets data.

NEW YORK (CNNMoney)

The Dow and S&P 500 are now in negative territory after their record highs. The Nasdaq also fell.

US markets have been on a roll this week. On Wednesday, the S&P 500 closed at a new high, it's eighth of the year. But the question remains as to whether this momentum will continue.

Investors are keeping an eye on U.S. jobs and Europe's economy. The big March unemployment report is due tomorrow, but there was modestly good news yesterday from the ADP release, and the Labor Department will share the latest figures on jobless claims today.

Across the pond, the European Central Bank said it will keep its key interest rate unchanged at 0.25%, as widely expected. But the central bank is facing growing pressure to do more to stimulate the Eurozone economy as risks of deflation rise and the euro remains stronger than some would prefer.

ECB President Mario Draghi tried to use words to calm the markets. He affirmed in a press conference the bank's commitment to keep inflation at a healthy level, but he didn't announce any new measures to prop up the economy.

Still, he said said the ECB's governing body is considering a quantitative easing strategy similar to that deployed by the Federal Reserve.

European markets were mixed in afternoon trading following the announcement.

Related: Fear & Greed Index in neutral mode

In corporate news, newly issued Google shares started trading Thursday as a result of the tech giant's long-anticipated 2-for-1 stock split. The new class C shares, which trade under the original "GOOG," symbol and have no voting rights, rose in morning trading. Old Google class A shares, which retained their voting rights and trade under the new symbol, "GOOGL," were also up.

Shares of both classes of Google began trading at around $570 -- roughly half the value of Wednesday's closing price, but the A shares are trading slightly higher, as expected.

Related: Google's (share) class divide

Barnes and Noble (BKS, Fortune 500) plunged almost 10% after one of its largest shareholders, Liberty Media Corporation (LMCA), announced that is reducing its stake in the struggling book seller. Barnes and Noble has bounced back over 30% this year after being one of the worst performers in the S&P 500 in 2013.

Shares of Pandora (P) popped after the internet radio service released figures showing notable jumps in its number of active listeners in March. The number of hours listened for the month also rose.

Netflix (NFLX)continued its slide Thursday. After a huge run, shares of the entertainment site have pulled back about 20% in the past month as the company faces growing concerns about its high valuation and increasing competition.

Yelp (YELP) shares ticked downward after falling more than 5% Wednesday after the Wall Street Journal reported that the review site receives around six subpoenas each month, often relating to business owners suing the company.

Related: CNNMoney's Tech 30

Asian markets ended mixed, shrugging off news of a mini-stimulus package in China. After an initial boost, the Shanghai Composite closed 0.7% lower. Hong Kong's Hang Seng finished narrowly firmer. To top of page

First Published: April 3, 2014: 10:06 AM ET


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