Elio Motors promises a weird $6,800 car

NEW YORK (CNNMoney)

Yes, $6,800.

It won't be a tiny little deathtrap, either. It'll have a five-star crash safety rating. At least, that's what Elio is promising.

That sounds like the wish-list of someone with zero contact with reality, but Elio Motors executives insist it's possible thanks to the car's odd lay-out and the complete lack of any new technology. Yes, these folks actually brag that their car has nothing new on it.

KBB's coolest cars under $25,000

Paul Elio, who founded Elio Motors from the crumbled remains of his auto parts design business, said this car isn't intended to replace the family car, and by the looks of it, clearly it's not.

"We want to be an 'and' not an 'or'" he said.

The Elio Motors car -- it has no model name and they plan to keep it that way -- is a three wheeler. There are two wheels out front, separated from the rest of the body, and one back wheel. The engine -- 3 cylinders producing 55 horsepower -- rides in the nose driving the front wheels.

The weird three-wheeled shape optimizes aerodynamics by cutting way down on frontal area and giving the car a nearly ideal "teardrop" body. Having only three wheels also allows the Elio car to be, in legal terms, a motorcycle.

That should let the company skate by on much looser safety requirements. But, Elio insists, they don't plan on taking advantage of that loophole. The car will be tested in regular automobile crash tests and, they insist, it will get top marks.

The prototype car I drove didn't feel like anything anyone would want to buy. But, it must be pointed out, it really was a prototype. It was noisy -- like sitting inside a blender -- had a harsh ride and didn't feel like it was particularly well put together. That's what you get with prototypes.

Most importantly, the engine was not the final production engine. Rather, it was one "borrowed" from an old three-cylinder Geo Metro subcompact. The new engine will be designed and built specifically for the Elio, and it's supposed to have advanced features like variable valve lift and timing.

Elio Motors says it's keeping prices low and chances for success high by keeping things simple. All the parts are being made by established automotive suppliers. The cars will be built in a factory that used to make Hummer H3s and Chevrolet trucks. Even the manufacturing process has been simplified, company executives say. The cars will be built with no options. Most options will be added on after the car is built.

The Elio reminded me of another car: the now defunct Aptera.

The Aptera was an electric car that also used a three-wheel design. It looked like a private aircraft fuselage that was driving itself to the airport. I drove the Aptera back in 2010. That was after years of starts, stalls as the company tried to actually produce its revolutionary new vehicles.

Then, less than a year after I tested the car, Aptera went down for the final time, never having made it to market.

On the other hand, while the Elio car seems crazy and weird, Tesla (TSLA) seemed like a long shot to me once, too. The fact remains, though, start-ups in the auto business have a tough road of them.

First Published: June 26, 2014: 10:31 AM ET

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GM expects to recall 33,000 Chevrolet Cruzes

GM is preparing to recall some newer Chevrolet Cruze cars for an airbag issue.

NEW YORK (CNNMoney)

The affected vehicles may have been equipped with an incorrect part.

The automaker is preparing for the recall after it told dealerships to stop selling all Cruzes from model years 2013 and 2014 on Tuesday. It lifted that stop-sale order late Wednesday, after identifying all the affected vehicles.

The part in question was manufactured by Japanese company Takata, a supplier tied to airbag problems in millions of cars that other automakers recalled earlier this week. Cain said that the Cruze problem is different than the one in those recalled vehicles.

The Cruze is GM's best-selling car model in the United States. It sold 248,000 last year.

The news comes as the automaker is already in damage control mode for delaying the recall of 2.6 million vehicles for an ignition switch defect that's been tied to at least 13 deaths. Some GM employees knew the part was causing trouble more than a decade before the recall was issued in February.

Now, GM (GM) is facing dozens of lawsuits and a number of investigations concerning how it handled that recall.

The company has also issued a number of additional recalls this year for problems unrelated to the faulty ignition switch. It has recalled more than 20 million vehicles worldwide since January.

First Published: June 26, 2014: 12:37 PM ET

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5 online privacy tips from an ex-FBI agent

Mary Galligan used to work for the FBI. She shares her tips on how to protect your privacy and online identity.

NEW YORK (CNNMoney)

Until recently, she led the cyber and special operations team at the FBI's New York office -- the agency's largest surveillance operation. That included catching hackers like the infamous "Sabu" and using him to hunt down other hackers.

Galligan is now a security and privacy consultant at Deloitte. Here's how she protects her privacy.

1. Change passwords once a month. Passwords are the keys into your life. If a criminal gets access to your email or any of your online accounts, it's surprisingly easy for them to worm their way into other aspects of your life.

Assume your passwords will periodically get compromised. Adobe, AOL, eBay, Kickstarter and Yahoo have all had major security glitches in the past few months.

2. Give the wrong contact information at checkout. Every time a store clerk asks for your zip code or phone number, that data gets aggregated. So retailers not only have databases that show where you live. They can find out much more about you, like your salary, credit history and birthday.

Check out CNNMoney's Flipboard on cybersecurity

Recent data breaches -- like last year's Target hack -- show that companies aren't responsible enough to safeguard that information. That's why Galligan said she always gives clerks a phone number and zip code that aren't hers.

But she laughed while recalling one time this backfired on her. She was shopping with her 7-year-old niece -- who called her out for lying.

3. Need photo ID? Don't show your driver's license. This is a general rule for privacy. Don't reveal more than you have to. A driver's license shows your birthday and address.

Next time your doctor's office asks for identification with a photo, show them something else, like your office building badge.

Related story: Why you'll keep getting hacked

4. No banking apps. Galligan is particularly careful about access to her bank account. Although most credit cards have fraud protection, your checking and savings accounts don't.

Because of how easy it is for a computer to get infected with a malware that spies on you, Galligan doesn't shop and bank on the same computer. That includes her phone.

5. Keep one email account for junk mail only. When companies demand an email address, Galligan gives them a dummy account reserved for marketing.

It gets bombarded with spam and annoying advertisements -- and shields her real email from the junk. And if those companies get hacked, her real account remains safe.

First Published: June 26, 2014: 7:02 AM ET

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Retailers score with $90 World Cup jerseys

NEW YORK (CNNMoney)

But World Cup fever has made the U.S. Men's National Team the new "boys of summer" -- and retailers are cashing in.

Just a few months ago, Modell's Sporting Goods in midtown Manhattan was packed with Super Bowl XLVII memorabilia. More recently, New York Rangers gear dominated the racks and shelves during the Stanley Cup Final.

Now it's a multicolored spread of soccer jerseys from around the world. And the number one seller? By far, it's USA, says Modell's CEO Mitchel Modell.

Compared with the 2010 World Cup, the CEO says Modell's "more than tripled the amount of merchandise we bought for this year."

If the U.S. moves into the round of 16, Modell is confident "it will be like Christmas in June."

Related: Tips for watching at work

The bold red, white and blue jerseys the U.S. team has been wearing are going fast, even at $90 apiece.

Only $65 youth sizes are available and Modell's store manager in the midtown Manhattan store said he's waiting for a FedEx delivery to replenish the sales racks.

The majority of the jerseys for sale don't have names or numbers on them. Some fans want to be able to wear them during the next World Cup without having to shell out more cash, even though Nike (NKE) and Adidas (ADDDF) will likely come out with dramatically different looking ones.

Shopper Frank Polizzi says wearing a generic jersey also adds to the excitement around the World Cup. "You're representing the country and not the player. So with no names, we're probably better off," he said.

Another hot seller has been jerseys from the African nations, especially Nigeria, Ghana and Cameroon. In fact, there was just one Ivory Coast jersey left in the midtown store.

Related: Cashing in on World Cup fever

Other item fans are obsessing over include official World Cup stickers, made by Italian company Panini.

"No matter where you go they're trading these stickers, it's just incredible" says Modell.

World Cup fever hasn't just spread across New York City -- watch parties from Los Angeles to Chicago have drawn tens of thousands of fans, and local businesses are reaping the financial rewards.

The match times are also helping. "It is easier for restaurants to boost some of the lunch, happy hour and dinner specials they already have in place and gear them to World Cup fans," said National Restaurant Association spokeswoman Christin Fernandez.

ESPN and Univision scored record ratings for broadcasts of the USA-Portugal game on Sunday. This year's tournament has also become the biggest event ever on social media.

Projections from Adobe Digital Index, which tracks online marketing, shows that the World Cup has already outpaced the 2014 Super Bowl and last winter's Sochi Olympics.

First Published: June 26, 2014: 7:37 AM ET

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How to tame your property bubble

LONDON (CNNMoney)

But that's the challenge officials took on Thursday in the face of mounting evidence of a property bubble in London and concerns that reckless lending could leave U.K. borrowers struggling when interest rates inevitably rise.

Mortgages make up more than 80% of household debt in the U.K. Larger loans (measured as a multiple of income) now account for a record share of new mortgage lending.

The trick is knowing just how hard to step on the brake to prevent the economy running off the rails in the future without jeopardizing the recovery now.

In a coordinated move, the Bank of England and U.K. government unveiled three measures aimed at curbing some of the excesses.

1. Loans worth more than 4.5 times income must make up no more than 15% of new mortgages.

2. Mortgages worth more than that will no longer qualify for government guarantees under its Help-to-Buy program.

3. Banks will have to assess whether borrowers could make their repayments if interest rates rise by three percentage points in five years.

Related: A property bubble in 4 charts

Bank of England Governor Mark Carney said the 15% cap on the largest mortgages would start to bite within a year, mostly in London and the southeast of England, but acknowledged the market would continue to gather momentum in the meantime.

"If yesterday you were approved for a mortgage in a bank or building society, today you would still be approved for that mortgage," he told reporters.

The pound rose against the dollar, and shares in construction companies gained more than 5% in London, on relief that officials hadn't taken a tougher stance.

"However, while the measures announced are at the lighter end of expectations, the Bank of England is stressing that it can, and will, take further measures if need be," said Howard Archer, chief European and U.K. economist at IHS Global Insight.

Related: Least stressed out cities

Interest rates were cut to a record low of 0.5% in March 2009 during the financial crisis and haven't moved since. And it's nearly seven years since British borrowers had to cope with a rise in the benchmark rate.

Some economists expect the wider recovery and sharp fall in unemployment will force the central bank to increase rates as early as November, but say further targeted measures may yet be needed to avoid another property bust.

"We expect the [bank] to significantly curtail, and perhaps even cancel, the mortgage guarantee part of the government's Help-to-Buy scheme in September," noted Christian Schulz at Berenberg.

The program was introduced in 2013 to help Brits buy homes through generous equity loans and mortgage guarantees.

First Published: June 26, 2014: 9:50 AM ET

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Stocks head South on rate hike fears

NEW YORK (CNNMoney)

Here's the story today:

1. The numbers: The Dow Jones Industrial Average, S&P 500 and the Nasdaq all kicked off the trading session solidly lower. The Dow is down around 75 points (0.45%) with the other two indexes down around the same percent.

Trading volumes could take a hit during the middle of the day as investors turn their attention to the the soccer game, but it's not off to a good start for investors.

2. Fed fears: Stocks are slumping on concerns that the Fed will soon remove the easy-money punch bowl that's been juicing stock prices, according to key market players.

James Bullard, the president of the St. Louis Federal Reserve, warned that financial markets may not appreciate how close the central bank is to achieving its goals. Bullard told FOX Business on Thursday that a rate hike could come during the first quarter of 2015.

While the comments about a rate hike match Bullard's previous forecast, they appeared to take the market off guard because the Fed official is normally very dovish.

Block said traders may also just be repositioning their portfolios ahead of the end of the quarter on Monday.

Interestingly, the selling also occurred after FIFA announced a nine-game suspension of Uruguay's Luis Suarez after he bit an Italian opponent.

"Suarez suspension sends stocks reeling. $ES_F $YM_F $SPY," StockTwits user hap317 joked.

While stocks are solidly lower, the S&P 500 is still on track for its 49th consecutive day without a close of 1% higher or lower. That's the longest such streak since 1995.

Related: Where's the drama on Wall Street?

3. Barclays under fire: Shares of Barclays (BCS) crumbled 6.5% after the New York Attorney General unleashed a lawsuit late Wednesday against the British bank alleging a lack of transparency in some of its alternative trading platforms.

The attorney general claims the bank misled investors -- even going as far as lying in marketing materials -- about how much high-frequency trading firms were operating in Barclays "dark pool" trading platform.

"First it was gold, now it is HFT - poor $BCS just can't get away with any market rigging crime these days," StockTwits user flounder joked.

Related: NY Attorney General goes after Barclays

4. GoPro goes public with a bang: Camera maker GoPro (GPRO) has already shown it can withstand drops from space and close encounters with sharks. Now we'll see how the gadget company grapples with life on Wall Street. So far, so good.

GoPro kicked off life as a public company by popping 19% above its initial public offering price of $24. The consumer electronics company ithen surged even higher with shares trading around $31.

GoPro, which is trading on the Nasdaq under the ticker symbol "GPRO," raised about $425 million in the offering. The IPO priced at the high end of the expected range of $21 to $24.

Related: Fear & Greed Index

5. Movers & shakers - Alcoa, Bed Bath & Beyond, Philip Morris: It's shaping up to be an ugly day for Bed Bath & Beyond (BBBY). The home goods retailer tumbled 9% on after earnings came in lower than expected, and the retailer doesn't forecast it will get much better the rest of the year.

Philip Morris International (PM) was also stuck in reverse, losing almost 3%, after the cigarette maker dimmed its forecast for the year due to currency troubles and economic challenges in Europe.

On the other hand, Alcoa (AA) bounced 2% after unveiling a $2.85 billion cash-and-stock deal to acquire Firth Rixson, which makes jet-engine parts. The move should help Alcoa diversify amid anemic aluminum prices.

Nabors Industries (NBR) soared 7% after inking a $2.86 billion deal to combine one of its units with C&J Energy Services. Both companies are key players in getting oil and natural gas wells ready to go.

Nike (NKE) is scheduled to hit the earnings stage after the closing bell.

6. Economic data: Investors will keep an eye on consumer discretionary stocks after the government said consumer spending inched up just 0.2% in May, trailing forecasts for a 0.4% rise. Spending for April was upgraded from a contraction to a 0.1% increase. Personal income rose 0.4%, as expected.

Also, new data showed unemployment claims dipped to 312,000 last week from an upwardly revised 314,000 the week before.

Related: CNNMoney's Tech30

7. International markets looking chipper: European markets mostly retreated, while Asian markets largely ended with gains. The Hang Seng in Hong Kong was a standout performer -- rising by 1.4% during the day.

Gold prices were also declining by roughly 0.5%. Prices for the shiny metal tend to rise when investors are feeling nervous, and tend to fall when investors are feeling confident. Oil prices also dipped slightly.

First Published: June 26, 2014: 9:55 AM ET

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Fewer parents helping to pay for college

NEW YORK (CNNMoney)

About 77% of parents say they plan to help their child pay for college -- down from 81% last year, according to a Discover Student Loans survey of 1,000 adults.

Many of these parents say they would like to help but are worried about their own finances and simply don't have enough money to put toward college costs. About three in four families surveyed said they are "very" or "somewhat" concerned about having enough money to help pay for college.

Related: How much will that college really cost?

Instead, a growing number of college-bound kids are taking out loans to cover the costs or are being asked to pay for these expenses out of their own pockets.

In fact, 15% of parents said they believe their children should pay for every cent of college on their own -- up from 12% in 2012. Another 32% said their children should pay for most costs, compared to 27% in 2012.

The trend has been similar when it comes to repaying loans, with fewer parents saying they plan to help their kids make loan payments -- despite the fact that the vast majority of respondents said they are "very" or "somewhat" worried that student loan debt will make it harder for their children to make important purchases in the future, like buying a home.

"As students prepare to enter college this fall, it's important for parents to have clear and honest discussions with their children about how they'll pay for college," Danny Ray, president of Discover Student Loans, said in a statement. "Students need to understand the financial responsibilities they take on and, more importantly, who is responsible for repayment of loans upon graduation."

Related: Millennials 'overwhelmed' by debt

The majority of parents are still helping out with at least some college costs, however. And while some of them -- about 33% -- said they plan to limit their aid based on the major their child chooses, more than half said they will help out no matter what their child decides to study.

And nearly every respondent, or 96%, said they continue to view a college education as valuable -- explaining why 48% of parents say cost won't have an impact on the college decision-making process, up from 40% in 2013.

"It is promising to see families recognize the investment in a college education and are considering their children's long-term financial health beyond graduation," said Ray.

First Published: June 26, 2014: 6:09 AM ET

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Americans still hesitant to spend more

NEW YORK (CNNMoney)

Personal income rose 0.4% in May, according to the Bureau of Economic Analysis. It may not sound like much, but it marked the fifth straight month in a row that incomes rose. Not only that, but incomes are rising faster than inflation -- an encouraging sign that people are gaining more buying power.

After accounting for both taxes and inflation, disposable income is up 1.9% from a year ago. This is an important development because consumer spending drives the bulk of the U.S. economy.

But here's the catch: Consumers haven't been going out and spending. Instead, they're choosing to sock that money away.

Related: Wages are falling in Manhattan and L.A.

After accounting for mildly higher prices, consumer spending has actually fallen for two months in a row. In May, Americans cut back on eating out, going to the movies, and buying clothes. They spent less on necessities like groceries and utilities. Meanwhile, health care spending has fallen considerably since the beginning of the year, and has now been flat for two months in a row.

The few exceptions to these trends include spending on housing, gasoline and cars, which are rising.

"Consumers bought more homes and cars, saved a little more for a rainy day, and ...that was about it. Not much left for anything else," said Jennifer Lee, senior U.S. economist with BMO Capital Markets.

As of May, Americans were saving about 4.8% of their monthly income.

To put that number in perspective, consider two extremes: Before the recession in 2005, when many Americans were overextending their finances, they were saving less than 3% of their income each month, on average. At the height of the crisis in 2009, they became more conservative, saving about 6% of their income. We're now in between those two levels.

Looking further back through history, the savings rate was at its highest level on record in the early 1970s, when it was in the 12% to 14% range.

Related: Janet Yellen wants you to get a raise

What it means for the Fed: Prices are rising and the job market is improving, but the economy remains far from robust. Federal Reserve Chair Janet Yellen has made it clear that she's watching a variety of indicators, including wages, to determine when the Fed should start to pull back on its stimulus efforts.

In a press conference last week, she said that she expects to see wages rise faster than inflation this year, thereby increasing Americans' take-home pay. That, in turn, should boost consumer spending and the broader economy this year.

"My own expectation is that as the labor market begins to tighten, we will see wage growth pick up," she said.

But if that fails to happen and wages don't keep up with inflation, she would worry about consumer spending falling.

As of May, inflation is up 1.8% over last year, falling below the Fed's target for 2% inflation.

First Published: June 26, 2014: 11:43 AM ET

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Refugees cook for the masses

Muna Ali, a refugee from Sudan in Spice's inaugural class, serves food at the World Refugee Day in Salt Lake City.

NEW YORK (CNNMoney)

Kamal Sharma arrived in the United States in 2010, only to spend the last four years stocking at Wal-Mart, working at a meatpacking plant, and waiting tables at a Salt Lake City Indian restaurant. Now, the Bhutanese refugee and his family dream of starting a restaurant of their own.

Not only is money a challenge, but he's had to learn the basics of American customer service. In Bhutan, making eye contact with a stranger is seen as aggressive. Now Sharma, 46, knows it's what customers expect.

He learned that and everything "important with business" through the Spice Kitchen Incubator, a new Utah-based program for lower income refugees and immigrants who are aspiring food entrepreneurs. From a Burmese mom who hopes to start a restaurant to a Congolese grandma who wants to sell more hot sauce, the first class of eight participants was chosen largely for their entrepreneurial spirit.

Related: Solar lamps help rural villages

They spent six months learning everything from how to budget and manage cash flow to how to develop menus and estimate startup costs. Restaurant owners and food industry professionals volunteered their time and expertise for workshops and mentoring. The Women's Business Center in Salt Lake City ran classes and a culinary instructor on Spice's staff provided guidance.

Because no one in the first cohort is ready to launch, Spice will continue to work with them for anywhere from six months to several years depending on their training needs, finances and unique challenges such as language barriers. A new class of 10 participants will start in the fall, followed by another in the spring.

"The idea is we're moving people out of poverty," said Natalie El-Deiry, the Salt Lake City International Rescue Committee deputy director. "That could mean someone is making $30,000 or $40,000 per year."

Over the summer, participants, who don't pay for the training, will run food booths at festivals and the Salt Lake City farmer's market. Spice, which is a partnership between the nonprofit IRC and Salt Lake County, pays the entry fees and helps with menu selection and pricing. The program also connects the participants with catering jobs, a free commercial kitchen and guidance on how to describe and display the food to Americans who may be unfamiliar with the names and flavors. Spice helps fund itself with fees charged to catering clients.

Spice modeled itself after San Francisco-based La Cocina, another kitchen incubator aimed at helping minority and immigrant women start their own businesses. Since it began in 2005, the program has had 20 graduates, some of whom created products that are now sold at Whole Foods (WFM) and Wal-Mart (WMT) and five who will open restaurants in the San Francisco Bay Area this year.

Spice hopes to help its graduates achieve the same sort of success.

Before joining Spice, one Congolese immigrant was driving from Utah to Texas to sell her smoked chicken, which she'd like to sell in major grocery stores along with her hot sauce. Spice is helping her define her business goals and plan how to reach them.

"People love her food," said Ze Min Xiao, the community innovation manager for Salt Lake County. "It's not a matter of the right talent or customers -- it's that she doesn't have the right infrastructure."

Related: Create jobs, save a cow

Lucy Philip, a Burmese refugee, arrived in Utah in 2009 and soon took over her uncle's sushi delivery business. But with little experience or support, she struggled -- initially making the food from midnight to 3 a.m. at the only commercial kitchen she could find.

When she wanted to grow her business by supplying sushi to a major grocery chain, she worked with El-Deiry to prepare a pitch packet and rehearse her proposal, which succeeded.

As part of Spice's inaugural class, the 27-year-old now hopes to start a Burmese restaurant. After serving a three-course meal to a Spice-organized focus group this spring, she learned she will have to make her food less spicy.

"I just can't sell something and expect people to like it," Philip said.

First Published: June 26, 2014: 7:34 AM ET

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Ikea lifting minimum wage to nearly $11 an hour

Ikea plans to increase the minimum wage for its U.S. workers, who are seen here celebrating a store opening in Colorado.

NEW YORK (CNNMoney)

Ikea workers in Woodbridge, Va., will get the highest, at $13.22 an hour.

Workers in Pittsburgh and West Chester, Ohio, will get the lowest, at $8.69.

The changes go into effect on Jan. 1, 2015.

The federal minimum wage is $7.25, though some states and cities pay more.

Massachusetts is on track to have the highest state minimum wage, taking it to $11 per hour by 2017, up from $8 today.

Seattle plans to raise the minimum hourly wage to $15 from $9.32. Businesses with fewer than 500 workers have until 2021 to phase it in.

On average, Ikea's pay change will be a 17% increase, the company said.

Cost of living: See how far your salary will go in another city

Ikea will base the pay differences on the MIT Living Wage Calculator, which takes into account the cost of housing, food, medical, transportation and taxes.

Ikea is a Swedish company with 38 stores in the U.S., and plans to open three more before the end of 2015.

Related: Stressful jobs that pay badly

First Published: June 26, 2014: 9:12 AM ET

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Harley-Davidson unveils its first electric hog

Harley-Davidson unveiled the first electric motorcycle in its 111-year history.

NEW YORK (CNNMoney)

"The sound is a distinct part of the thrill," chief marketing officer Mark-Hans Richer said in a news release. "Think fighter jet on an aircraft carrier."

The electric Harley, dubbed Project LiveWire, isn't for sale yet. The iconic motorcycle manufacturer kicks off a promotional tour next week to give customers a chance to test the bike, which it says will have all the edge of a gas-guzzling hog.

Related: Top quality new cars - J.D. Power

Harley-Davidson (HOG)plans to incorporate consumer feedback into the final version of the bike.

The promo tour will kick off on June 23 at a Manhattan dealership, where the company will launch its entire electric fleet.

"We will have 33 LiveWire motorcycles riding the streets of New York next Monday," a company spokeswoman said.

The tour will stop at 30 Harley dealerships around the United States. It's slated to continue into 2015 in both Canada and Europe.

Related: Buy your own tank, or missile launcher

The bike runs on batteries that can be recharged by plugging into an electrical outlet, she said. The company plans to eventually establish "docking stations" around the country.

The spokeswoman would not say when the bike will go on sale or how much it would cost.

First Published: June 19, 2014: 9:43 AM ET

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Stocks sputter, gold shines

Click for more market data.

NEW YORK (CNNMoney)

The Dow Jones industrial average, the S&P 500 and the Nasdaq were all modestly lower in late morning trading with the Dow down about 0.2%.

The muted trading comes after Fed Chair Janet Yellen signaled that the central bank has no plans to raise interest rates anytime soon. That news sent stocks soaring. The S&P 500 closed at a record high of 1,957 while the Dow Jones industrial average jumped almost 100 points to its fourth highest close in history. The Nasdaq finished at its highest level in 14 years.

Yellen gold bounce: Yellen said the Fed is optimistic about the future of the American economy, but it isn't planning to raise interest rates in 2014.

Related: Fed says job market is getting a bit better

The outlook for continued easy monetary policy helped offset a number of simmering geopolitical concerns. Oil prices were down slightly even as Iraqi forces battle insurgents for control of the petrostate's main refinery.

But the gold market was sending a different signal. Gold futures gained 2% to trade at $1,298 per ounce, the highest level since mid-May. Investors who believe Fed policy will undermine the dollar view gold as an alternative currency.

Stock movers -- American Apparel, Amazon, BlackBerry: Meanwhile, shares in American Apparel (APP) rose after the company announced overnight that it fired its controversial CEO, though it didn't say why. Its shares, which topped $15 as recently as 2007, now trade for less than $1. Sources told the New York Post that the move could set the stage for American Apparel to be sold.

BlackBerry (BBRY, Tech30) is back from the dead...again. The ailing smartphone pioneer reported a smaller-than-expected loss, sending its stock up 13%. BlackBerry stock is up 24% so far this month, bouncing back from a rough patch during April and May.

Related: Meow! BlackBerry has more lives than a cat

Elsewhere in the smartphone space, Amazon (AMZN, Tech30) shares edged lower after the online retailer unveiled the Fire Phone, a high-end, 3-D smartphone. It is the first smartphone Amazon has produced on its own.

Facebook (FB, Tech30) suffered an outage that prevented users posting to the social media site "for a brief period of time." (Gasp!)The stock fell nearly 1%.

Related: CNNMoney's Tech 30 Index up today and year to date

Kroger (KR) shares jumped over 5% after the grocery store chain reported strong results and boosted its outlook. The stock hit an all-time high over $50.

Drug store chain Rite Aid (RAD) said net income fell in the latest quarter, sending its shares down slightly in early trading.

Markit IPO today: Markit (MRKT), which provides information on bonds and derivatives for traders and is considered a rival of sorts to Bloomberg, said late Wednesday that it had raised $1.3 billion in an initial public offering. The stock, which was priced at $24 a share, gained more than 10% after it began trading on the Nasdaq.

Related: Fear & Greed Index still extremely greedy

Good day for Europe: European markets were all rising in midday trading, getting a boost from the Fed news. Spain's IBEX index gained more than 1%, making it one of the top performers in Europe. But that may be cold comfort for a nation in mourning. The Spanish national team was eliminated Wednesday from the World Cup after a surprisingly poor performance.

Asian markets were mixed.

First Published: June 19, 2014: 10:02 AM ET

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Can you inherit your dead parent's debts?

If your parents die before paying off their debts, you may worry creditors will come after you. Usually they can't, but not always. The rules are complex and much depends on state law.

NEW YORK (CNNMoney)

Who is on the hook to pay them?

Unless you cosigned one of your parent's loans or accounts, it's usually the estate, not you.

Usually. Not always. The rules are complex and differ depending on the type of debt and where your parent lived.

Creditors typically have a fixed period of time -- usually between two and six months -- to make claims against your parent's estate.

If there's not enough money to cover the debt, in many instances "[your parents'] debt will die with them," said certified financial planner Mari Adam of Adam Financial Associates.

But if there is money or other assets, they must be used to pay the debt before anything is distributed to heirs.

So even when you're not legally responsible to pay the debts, they may still reduce -- or wipe out -- what your parent intended to leave you.

For instance, an executor may need to sell some of an estate's assets to satisfy creditors' claims.

Or, say you expected to get the money in your mom's 401(k) or IRA. It will only be protected from her creditors if she listed you as a beneficiary on the account itself.

If you are not listed as a beneficiary, the money will be rolled into the estate, and creditors can make claims against it, said Steve Hartnett, associate director of education at the American Academy of Estate Planning Attorneys.

Credit card debt: Unless you're a cosigner on your parent's credit card, his or her Visa bills are not your problem.

That's not to say that debt collectors might not try to convince you otherwise.

But they're only allowed to call you requesting payment if you're the executor. (Here are federal rules governing who creditors may call regarding a deceased person's debts.)

The credit card company is often a low-priority creditor behind funeral homes, federal and state tax agencies and various lenders. So it may be willing to negotiate a lower payment, Hartnett said.

Medical debt: If your parent received Medicaid, the insurance program for people who can't afford care, the state where your parent died can recover the payments it made from the time your parent was 55 until death.

A house is the only substantial asset a person may keep and still qualify for Medicaid. So the state may place a lien on your parent's home to recover payments.

Some states, however, may be willing to negotiate and let the executor pay less than the total due, said attorney Howard Krooks of Elder Law Associates PA.

The state may not, however, ask you to use your own funds to pay the bill. Nor is the state allowed to pursue payments during the lifetime of a surviving spouse.

The state is also barred from collecting if you or an adult sibling lived in your parent's home for at least two years before his or her death and provided care that delayed your parent's admission to a nursing home or other medical facility.

If your parent wasn't on Medicaid, but died with unpaid hospital or doctor bills, the estate is responsible for paying them if it has the money.

But check state law. Close to 30 states have what's known as "filial responsibility" statutes. Those require adult children to pay for a deceased parent's unpaid medical debts, such as those to hospitals or nursing homes, when the estate cannot.

Mortgage debt: Inheriting a home with a mortgage is a very complex issue. So talk to an estate lawyer familiar with all state and federal laws governing the issue.

Generally, if you inherit your parent's home and it still has a mortgage on it, the lender may not demand that you pay off the mortgage immediately. In other words, the bank can't call the loan. But you will be responsible for making payments on it going forward.

If the mortgage is worth more than the property when you want to sell the home, ask the bank if it will agree to a short sale, said attorney and real estate expert Stuart Ebby. If it won't, you can tell the bank to foreclose.

Either way, you should not have to pay the bank the difference between the sales price and the money still owed on the loan. But, Ebby noted, in the event of a foreclosure, "the bank could go after the estate for the difference."

The foreclosure should not affect your credit score, either, so long as your name is not on the mortgage. But it all depends on how the mortgage company reports the transaction to credit bureaus. Wells Fargo, for instance, would not report the transaction under your name, even if it was listed on the title to the property, just so long as your name isn't on the loan itself.

You may also choose to disclaim your inheritance, in which case the house would go to the person designated if you had died before your parent. If no one was named, in many states the house becomes part of the general estate.

Taxes: The estate is responsible for paying any property taxes and income taxes, delinquent or otherwise. And tax agencies are usually given top priority as creditors.

Also, if federal estate tax is due but property is distributed before it's paid, the IRS can put a lien on the property and collect on it, said estate planning attorney Roger Levine.

Have you ever had problems with the debt of a deceased parent, spouse or even ex-spouse? Please tell us about your experience at #YourEconomy.

First Published: June 19, 2014: 7:21 AM ET

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Uninsured flock to Obamacare

NEW YORK (CNNMoney)

Some 57% of those who've signed up for plans on the exchanges were uninsured, according to a Kaiser Family Foundation survey released Thursday. Most people said they'd been without coverage for at least two years.

The uninsured figure is far higher than other surveys have found. McKinsey & Co., for instance, reported last month that only 26% of those selecting plans were previously uninsured.

Kaiser researchers attribute the difference to methodology. McKinsey, for instance, asked respondents' insurance status for most of 2013, while Kaiser focused on whether they were covered just before picking a plan.

The foundation surveyed people who bought Obamacare policies through federal or state exchanges, as well as those who purchased plans that meet the Obamacare standards -- such as providing more comprehensive coverage and limiting the amount policyholders must pay out of pocket annually -- directly from insurers or agents. It also talked to those who kept their previous plans that do not comply with Obamacare.

Other findings from the survey include:

Customers are pleased with their policies, but also find coverage costly: 71% of those in Obamacare plans said their coverage was good or excellent. But 43% of those in Obamacare plans said it is difficult to pay the monthly premiums. Looking to the future, some 62% of those with Obamacare or non-compliant plans are worried their premiums will become unaffordable.

"Affordability is still an issue," said Liz Hamel, director of public opinion and survey research at Kaiser. "Even though your premium may have gone down, it may still be difficult for you to afford it."

Those paying less for their policies edge out those paying more: The survey also shed some light on people who previously had individual coverage but switched this year to Obamacare policies.

Some 46% of these plan-switchers said they are paying less for their new policies -- likely thanks to the subsidies -- and 39% are paying more. The same number report that their deductibles are now lower and higher.

But this group is less likely to be satisfied with the plans' costs and to perceive the new policies as a good value compared to its peers who were previously uninsured.

Access to doctors and hospitals is an issue, but a slight majority have the same access: Just over half of the plan-switchers say they have the same access to primary care doctors, specialists and hospitals. But the remaining policyholders are much more likely to say they have less access than more.

Obamacare policies have been criticized for having so-called narrow networks. Restricting access to doctors and hospitals allows insurers to keep premiums lower.

When it comes to the health of those signing up for Obamacare policies, Kaiser also found that more reported they were in fair or poor condition (17%) than among those in non-compliant plans (6%). This may have an impact on premium prices in future years if insurers find themselves with sicker policyholders than expected.

First Published: June 19, 2014: 11:01 AM ET

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Latest victim of Amazon-Hachette fight: J.K. Rowling

Sales of J.K. Rowling's latest book, "The Silkworm" are being hindered by Amazon

NEW YORK (CNNMoney)

The phone's cameras recognize millions of products and allow people to place orders with the click of a button through Amazon's sprawling online store. But the promise of instant gratification is at odds with Amazon's battle with Hachette, publisher of "The Silkworm" and thousands of other books.

"The Silkworm," released Thursday, is expected to be one of the best-selling books of the year. Rowling, best known for the "Harry Potter" series, wrote it under the pseudonym Robert Galbraith. The book is a sequel to "The Cuckoo's Calling," the No. 3 adult book on Amazon (AMZN, Tech30) last year.

But "The Silkworm" is being hindered by the online retailer. Instead of being available in one to two days, as most new books are, Amazon says the hardcover edition "usually ships within 1 to 2 months." The e-book edition is not available at all.

"The Silkworm" is one of the most visible victims of the ongoing dispute between Amazon and Hachette, which is believed to be about terms for e-book sales.

Some Hachette books have suffered from lengthy shipping delays while others (including, full disclosure here, a book I wrote) have been stripped of the discounts that customers have come to expect from Amazon.

Related: 8 books Amazon is making it hard to buy

Hachette has asserted that it is working on behalf of authors to reach an agreement that "preserves our ability to survive and thrive as a strong and author-centric publishing company."

Amazon has portrayed the dispute as a common part of the supplier-retailer relationship.

"When we negotiate with suppliers, we are doing so on behalf of customers," Amazon said in late May. "Negotiating for acceptable terms is an essential business practice that is critical to keeping service and value high for customers in the medium and long term."

Related: Amazon stabbed me in the back

"The Silkworm" is arguably Hachette's biggest book release since the Amazon dispute started. It comes one day after Amazon's unveiling of the Fire, a phone that will go on sale in July.

The book was available for print and e-book pre-orders through Amazon months ago, but the retailer disabled the pre-order button last month. On Thursday morning, some Amazon customers expressed dismay via Twitter that the e-book copies they had preordered had not been fulfilled by Amazon yet.

Other booksellers have seized on Amazon's treatment of Hachette as an opportunity. Thursday morning, the Barnes & Noble (BKS) website featured "The Silkworm" on its home page; the book page said it "usually ships within 24 hours." Walmart (WMT) has also been promoting the book.

On both Walmart's and Barnes & Noble's sites, the hardcover price is $16.80, a 40% discount from its list price of $28. On Amazon, the price is $25.20.

First Published: June 19, 2014: 9:54 AM ET

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Try on glasses from the comfort of your couch

Kate Doerksen looks at Ditto's site with an employee.

NEW YORK (CNNMoney)

"I have a small head," she said. "It's always been hard to find exactly the right fit for my skinny face."

That eventually helped inspire her to found Ditto, an online retailer that sells designer specs.

With a background in investment banking and private equity, Doerksen didn't have a natural bent toward retail. But conversations with clients got her thinking about the future of online shopping -- particularly those products that people still hesitated to buy without trying on first. Her own experience made her zero in on eyewear.

"I had been buying almost everything else online for years, but never glasses, because there was no way to tell whether the frames would fit," Doerksen said.

About 225 million people in the U.S. wear glasses, so she figured she wasn't alone. When Doerksen entered Stanford Business School in 2009, she told two classmates that she wanted to find a way to let people try on frames virtually.

Related: Women take on manufacturing

Sergey Surkov and Dmitry Kornilov, engineers at Google (GOOG) and Nokia, were so intrigued with the project that they dropped out of Stanford and started working on it full-time, living on their savings and investments from friends and family. Doerksen stayed in school and worked three days a week with her cofounders in Kornilov's living room.

Over the next three years, Kornilov and Surkov developed patented technology that lets customers virtually try on glasses and shows how they would look from every angle. Doerksen, meanwhile, worked on the business plan and on introducing the idea to eyewear makers.

With $3 million in seed funding from August Capital, Ditto launched in April 2012 with 350 styles from eight designer brands.

"We were lucky at the beginning because the virtual try-on tool got a lot of attention from the press," Doerksen recalled.

Each customer profile, called a "ditto," takes about 15 seconds to create. First, the site records a brief video of the customer from the neck up. Then, the customer holds a credit card (or any plastic card that size) to his or her forehead for scale. The video shows customers how they'd look wearing any glasses on the site.

Ditto keeps track of each customer's prescription, and sells glasses that range from $100 up to $900, largely depending on the price of the frames. To cut costs, Ditto carries no inventory and orders directly from the eyewear companies.

Related: The best countries for female entrepreneurs

Ditto also controls costs by doing very little advertising or marketing.

"We get most of our new customers by word of mouth," Doerksen said. Ditto regularly surveys customers to ask how they heard about the site. Many people say they were sent by "a friend who mentioned our cool try-on tech," she said.

Doerksen declined to disclose sales figures, but pointed to Ditto's employees as a sign of the company's fast growth. Based in San Mateo, Calif., Ditto has 14 employees, and there are plans to double that in the next 12 months.

Doerksen added that the company has a high conversion rate (visitors who actually make a purchase) and a low exchange rate -- both measures that put them far ahead of their online competitors.

Ditto currently carries frames by about 1,500 designers and is adding about 200 new ones a month, from "megabrands like Ray-Ban and Oakley" to boutique names like Westward Leaning, Linda Farrow and The Row. Best of all, "we've made sure the designers we work with can make plenty of sizes" -- even for people with hard-to-fit faces.

First Published: June 19, 2014: 7:26 AM ET

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Russian markets: They're baaack!

Russia's stock market and currency has bounced back since mid-March.

LONDON (CNNMoney)

The benchmark Micex stock market index plunged by 21% between January and mid-March but has since recovered those losses, and is now back to where it started the year.

The ruble has also regained some poise, after falling by roughly 11% versus the U.S. dollar over the same period. By Thursday, those losses had been trimmed to 4%.

Experts say investors have come back to Russian assets as worries over Ukraine, and the possibility of tough trade sanctions, have faded.

"The situation in Ukraine has not been solved but the worst case scenario hasn't played out," said Marcus Svedberg, chief economist at East Capital.

Relations between Moscow and the West hit their lowest ebb since the Cold War as Russia took control of Ukraine's Crimea region and pro-Russian separatist militias seized control of parts of eastern Ukraine.

In response, the U.S. and Europe slapped sanctions on some Russian companies and individuals.

Even though fighting continues in east Ukraine and Crimea remains under Russian control, the risks of a dramatic escalation in the conflict -- which would trigger tougher sanctions aimed at sectors of the Russian economy -- appear to have receded.

Related: See full list of sanctions

Russian President Vladimir Putin and Ukraine's newly elected President Petro Poroshenko have been talking about the possibility of a ceasefire in eastern Ukraine.

"I can't say there's no risk of further sanctions. But the likelihood has fallen," said Svedberg, adding that he's seen institutional investors getting back into Russia.

And some hedge funds were increasing their exposure to Russia at the height of the crisis. Data from FactSet shows hedge funds were buyers of U.S.-listed shares in VimpelCom (VIP) and Mobile TeleSystems (MBT), two Russian telecoms firms, during the first quarter.

Meanwhile, the Western sanctions that have been imposed -- asset freezes and travel bans -- have not yet had a significant impact.

"They didn't have a direct impact on the economy," said Liza Ermolenko, an emerging markets economist at Capital Economics.

Russia's economic growth slowed to 0.9% in the first quarter of the year, from 2% in the fourth quarter of 2013, but the economy is defying some of the gloomier predictions.

Sentiment towards Russia has been helped by the broader recovery in emerging markets, and rising oil prices. Russia relies heavily on energy exports.

The so-called Fragile Five -- Indonesia, India, Brazil, South Africa and Turkey -- have all seen big stock market rallies this year. India and Turkey have gained 20%.

Continued liquidity and loose monetary policy from the U.S. Federal Reserve has helped prop up markets and encouraged risk taking, said Svedberg.

Related: Concerns remain over Ukraine's gas supply from Russia

But it's not necessarily smooth sailing ahead.

NATO Secretary General Anders Fogh Rasmussen said Thursday that more Russian troops have recently been deployed to the Ukrainian border.

"I consider this a very regrettable step backwards," he said. "So the international community would have to respond firmly if Russia were to intervene further. That would imply deeper sanctions which would have a negative impact on Russia."

First Published: June 19, 2014: 11:03 AM ET

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Chelsea Handler to host Netflix talk show

NEW YORK (CNNMoney)

The streaming TV service said Thursday that Handler has signed up to host a talk show that will premier in early 2016, and will stream in every region where Netflix has subscribers.

The deal is significant because it gives Netflix (NFLX, Tech30) -- currently best known for "Orange is the New Black" binges and a library of older shows and movies -- topical programming that will, at least in theory, keep people coming back for more.

And it gives Handler, who made no secret of her unhappiness at E!, a new outlet for her edgy comedy.

In a national late-night field dominated by men, Handler is the only woman with a daily talk show, named "Chelsea Lately." E! said last month that "Lately" would end on August 26. However, Handler's representatives were already talking to Netflix and TV networks about something new, even before that announcement.

In a statement, Netflix chief content officer Ted Sarandos said "the Internet has disrupted many of the conventions of traditional television and together with Chelsea Handler, Netflix is looking forward to reimagining the late night talk show for the on-demand generation, starting with the late night part..."

Indeed, Thursday's announcement was met with a flurry of questions: what will a Netflix "talk show" look like? Will it be scheduled at the same time every weekday like "Chelsea Lately"? Without a traditional TV network home, will she lose some clout?

Netflix and Handler have more than a year to figure out the answers. For now, Netflix said the unnamed show "will feature an updated format that still encompasses Chelsea's unfiltered opinions on topical entertainment and cultural issues, as well as her signature guest interviews."

Related: The ladies of late-night

A Netflix spokeswoman confirmed that the arrangement is exclusive, which means Handler cannot develop a talk show for a traditional TV network.

Handler will produce the show along with Tom Brunelle and Brad Wollack, two of the executive producers of "Chelsea Lately." The trio will also produce one stand-up comedy special for Netflix this year and four specials next year. (The first one, scheduled to premiere on October 10, is being taped Friday in Chicago. The other four will be "docu-comedy specials," Netflix said.)

Related: The future of media

Handler's wit was on display in her statement about the Netflix deal.

"If I was going to continue working in this industry, I knew I had to do something outside the box to keep myself interested," she said. "I wanted to sit with the cool kids at lunch so I approached Netflix to make sure they were as cool as I thought they were, and when I confirmed my suspicions, like with any other future lover, I made my move."

"I'm more excited than I've been in awhile, and the team at Netflix is the most forward thinking, alert group I've sat down with in ages. No offense to the 'Shahs Of Sunset,'" she added. ("Shahs" is a reality show on Bravo.)

Correction: an earlier version of this story said that "Shahs of Sunset" is an E! reality show. It is on Bravo, which like E! is owned by NBCUniversal.

First Published: June 19, 2014: 8:58 AM ET

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Porsche 911 Turbo S: Crazy expensive and worth it

NEW YORK (CNNMoney)

Now, every time I get into a car I have some idea of the price but that's usually based on the sticker price plus, you know, some reasonable amount for options.

Porsche owners are laughing already. In Porsch-ese, a "reasonable amount" for "options" means "insane money" for "things you'd expect to be standard." Things like cruise control, navigation, a back-up camera, a logo on the center wheel caps. This is how a $60,000 Porsche Boxster turns into a nearly $100,000 car that still seems like it's missing some stuff.

But, somehow, after a spending a couple days with the most expensive, loaded up Porsche 911 you can buy -- a car with a total price tag that just hops over $200,000-- I thought, "Yeah, this car's worth it."

Mind you, I didn't think that right away.

Gallery - Buy your own tank... or missile launcher

You're in Bentley and Aston Martin territory with that kind of money. So as I drove this Porsche 911 Turbo S Cabriolet I thought "I could be driving something exotic for this much money that would get much more attention."

Or would it? The 911 looked hotter than Satan's sunburn with a big wing on the back, nice race rims and bright yellow seatbelts. Plus, it sounded mean. But it was still "just a 911."

But, oh my, did it drive.

That's the thing that finally did me in. Porsche engineers should get a Nobel for pulling 560 horsepower from a 3.8-liter 6-cylinder engine. Yes, you probably do need a race track to get the full potential out of this car but, honestly, a good freeway on-ramp or cloverleaf is enough to experience much of the thrill. In addition to glorious acceleration, this car has monstrous brakes which easily bring you back to sane speeds.

It also has all-wheel-drive so, when accelerating hard and cornering hard, it holds the road like a dog holds a tennis ball. With that engine hanging out over the rear axle it does have that peculiar butt-heavy feeling 911 owners love but that I find takes some getting used to. I don't really feel like the car is centered around me. I feel like it's centered around my wallet.

Wait... There's that money thing again.

Interactive - Porsche 911 Turbo S. Click and drag to move the top.

I drove a little while in the Pennsylvania countryside. I took a couple of detours, the top was down, the engine was roaring and I had the car swooping through curves. The seven speed automatic transmission (there's no manual option) flipped up and down through perfectly timed gear changes. Even the optional high-end stereo fought gamely against the engine noise and still came out a winner.

Now, how, exactly, would this be better in an exotic car? Is it faster? More fun? Not really. Would I be smiling any wider in a Bentley or an Aston? Nope.

And, really, it still looks pretty darned wicked.

First Published: June 19, 2014: 11:55 AM ET

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BlackBerry stock surges on surprise profit

NEW YORK (CNNMoney)

Shares of the struggling smartphone maker surged more than 14% in mid-morning trading and are at their highest level since late March.

The company earned $23 million in the quarter. Excluding certain charges though, BlackBerry (BBRY, Tech30) did post a loss of 11 cents per share. But analysts were expecting results to be much worse. The forecast of analysts polled by Thomson Reuters was for a loss of 26 cents.

Sales for the Waterloo, Ontario-based company fell 1% to $966 million, but that was better than Wall Street's consensus estimate of $963 million.

BlackBerry has been fighting an uphill battle to stay relevant in the world of mobile devices. It has lost market share to Apple (AAPL, Tech30), companies like Samsung (SSNLF) that offer gadgets running on Google's (GOOGL, Tech30) Android operating system and Microsoft (MSFT, Tech30).

But John Chen, who took over as CEO in November, has injected new life to the company.

"I hope you share in our small celebration of a successful quarter," Chen said during the company's earnings call. "Right now, the main thing I'm focusing on is laying the groundwork for growth," he said. BlackBerry's new leader is confident that the company will return to profitability for a full year in 2016.

Related: BlackBerry running out of lives

Chen, who says BlackBerry is getting close to breaking even on its hardware business, has steered the company's focus more towards software. He's made several product announcements that Wall Street has cheered. Last month, the company launched its Project Ion, an initiative to develop more connected devices ... a trend dubbed the Internet of Things.

On Wednesday, BlackBerry reached a deal with Amazon that will let users of BlackBerry's newest operating system access Android apps in Amazon's (AMZN, Tech30) appstore later this fall.

Chen called the partnership a "win, win," saying that it will boost Amazon's subscriber numbers, while allowing BlackBerry to spend less time on the consumer side of its business and concentrate more on its corporate and government customers.

Related: BlackBerry gets lifeline from Amazon app store

Chen added that focusing on value-added services like its BBM messaging app is going to be more important. BlackBerry plans to roll out new BBM Meetings and BBM for Windows in the second quarter. Following Facebook (FB, Tech30)'s $19 billion acquisition of WhatsApp, BlackBerry's once-popular BBM app was thrust back into the spotlight. Some investors felt that BlackBerry could also try and find a buyer for BBM.

But these new iterations of BBM and Chen's emphasis on businesses using the service show the company is attempting to reap the benefits of a BBM revival, not sell off the messaging service.

QNX12, the latest version of the company's operating system that has become the favored technology in the connected car market, is also coming out in the second quarter.

And it looks like Chen will have more breathing room to execute the turnaround plan. The company ended last quarter with $3.1 billion in cash, up from $2.7 billion in the previous quarter. There have been growing concerns about how much cash BlackBerry has been burning. But the company was able to boost its cash position thanks to a tax refund and sale of real estate.

First Published: June 19, 2014: 7:49 AM ET

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Oil prices up, stocks down

Click for more market data.

NEW YORK (CNNMoney)

The Dow Jones industrial average, the S&P 500 and the Nasdaq were all down around 0.3% in midday trading. The Dow dropped more than 100 points on Wednesday after the World Bank lowered its outlook for global economic growth and House Majority Leader Eric Cantor lost his re-election bid.

Now the focus is Iraq.

Investors watch Iraq: Oil prices jumped more than 1% this morning after Islamist militants in Iraq took control of the nation's second-largest city. Crude futures on the New York Mercantile Exchange were trading above $106 per barrel, a high not seen since Sept. 2013.

The brazen attack by fighters from a group called ISIS is making commodity traders nervous as they consider how the turmoil could affect the country's large oil-producing areas.

While the fighting in Iraq probably won't derail the market, "It is enough to trigger some position-trimming and a pause," said Kit Juckes, a strategist at Societe Generale.

Related: Oil prices spike as Iraq violence flares

Latest economic news: The government said retail sales rose 0.3% in May, falling short of what economists had forecast. Separately, the number of Americans filing first-time unemployment claims rose more than expected, according to the Labor Department's weekly report.

Still, many are likely to be more interested in the World Cup, which begins at 4 p.m. ET. The tournament in Brazil is expected to be the most watched sporting event ever, and Americans are becoming increasingly interested in the game.

Related: Fear & Greed Index still shows extremely greed

What's moving -- Yoga, Tesla and furniture: Shares of Lululemon (LULU) plunged nearly 15% after the maker of yoga apparel lowered its earnings outlook for this year. The company's board also approved a plan to buy back $450 million worth of stock, but that didn't appear to be helping much.

Lululemon also announced that chief financial officer, John Currie, will retire at the end of this fiscal year. On Wednesday, Chip Wilson, the yogawear company's founder and largest shareholder, said he voted against the re-election of two of the company's board members.

The selloff raised speculation on StockTwits that Lululemon could be a takeover target. But one trader said the stock will need to fall further before a sale would make sense.

"$LULU needs to be back in the 20's for it to be even remotely interesting as a buyout candidate. $6B simply too much for a yoga pant maker," read a post by AgentZero. Shares were trading around $38 on Thursday.

Shares of Tesla Motors (TSLA) gained after CEO Elon Musk said on Twitter that "some news" about the company would be coming soon.

Restoration Hardware (RH) shares soared almost 13% after the company reported earnings that beat analyst expectations. It's the latest luxury brand benefiting from increased consumer spending at the high end.

Tech stocks shuffle as key executives move around: Twitter (TWTR, Tech30) shares jumped over 4% after the social media company said its chief operating officer, Ali Rowghani, had resigned. Twitter has struggled -- it's down over 41% this year -- but several analysts upgraded the stock this week.

Infosys (INFY) slid on news that a new CEO was appointed to lead the IT services company.

Related: CNNMoney's Tech30

European markets ended narrowly mixed. Asian markets mostly closed with losses, though Indian markets were buoyant.

First Published: June 12, 2014: 10:03 AM ET

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Starbucks to offer wireless recharging

NEW YORK (CNNMoney)

The coffee retailer will team with Duracell to offer wireless recharging of some smartphones.

The system, Duracell Powermat, allows phones and tablets to be charged by simply laying them on pads, which will be installed in Starbucks counters and tables.

But only limited number of smartphones have the technology that works with the charging spots today. For most device owners, they will have to have a special case, costing about $20 to $30, in order to work with the wireless charging system.

Related: How to max our you phone battery

Still, Starbucks (SBUX) says it believes the offering will be something that its customers will want.

"From WiFi and the in-store Starbucks Digital Network to mobile payment and digital music downloads, we have always tried to anticipate our customers' needs early in the adoption curve," said Adam Brotman, chief digital officer at Starbucks.

Starbucks plans a national rollout of the free service beginning with stores in the San Francisco area.

Duracell is hoping that the visibility from being in Starbucks stores will jumpstart demand for the Powermat system, which is a joint venture between Duracell, a unit of Procter & Gamble (PG), and Powermat Technologies.

Related: Charge your cell phone in 30 seconds

"Starbucks is transforming the way consumers get power to their phones, in much the same way it made WiFi a standard amenity in public places," said Duracell President Stassi Anastassov. "When Starbucks introduced WiFi in their stores in 2001, 95% of devices didn't have WiFi, and multiple standards hampered the industry. The rest is history."

The Powermat complies with an open standard that is being used by the Power Matters Alliance, a trade group which includes AT&T, (T, Tech30) Blackberry (BBRY, Tech30), HTC, Huawei, LG, Microsoft (MSFT, Tech30), Qualcomm (QCOM, Tech30), Samsung (SSNLF), Texas Instruments (TXN) and ZTE (ZTCOF).

But Apple (AAPL, Tech30) is not included in the group, meaning iPhone users will have to use a separate charging case for the foreseeable future. And despite Samsung's participation, the current version of the Samsung Galaxy also does not work with system without a special cover.

According to the companies, getting into Starbucks should lead to a significant increase in the number of devices that will be able charge wirelessly without any extra equipment or cases.

"Starbucks plans to offer Powermat nationally is likely to settle any lingering standards question, and usher wireless power into the mainstream," said Anastas.

First Published: June 12, 2014: 8:17 AM ET

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Twitter COO resigns

Twitter COO Ali Rowghani resigned after failing to significantly grow user numbers.

NEW YORK (CNNMoney)

The former Pixar executive joined Twitter (TWTR, Tech30) in 2010 as chief financial officer and became COO in 2012.

"Goodbye Twitter. It's been an amazing ride, and I will cherish the memories," Rowghani tweeted.

"Thank you for being an incredible executive & partner. Twitter could not have succeeded without you." Twitter CEO Dick Costolo responded.

Rowghani helped the company through its successful initial public offering in 2013, but Twitter has since failed to significantly grow its user numbers. That tepid growth has worried investors, leading to Twitter's woeful stock performance -- down 42% this year, making it the second-worst performer on the CNNMoney Tech 30, just behind China's Sina (SINA, Tech30).

Shares of Twitter have rebounded more than 20% from their all-time low set last month, and the stock was up 4% on the news Wednesday.

In a regulatory filing, Twitter said Rowghani will continue as a Twitter employee, acting as strategic adviser to the CEO. Twitter doesn't intend to hire a replacement for Rowghani, the filing notes. The former COO's responsibilities will be taken on by other Twitter managers.

The management shakeup was initially reported by Re/code.

Twitter is no stranger to management shakeups. The company's management has played a game of musical chairs over the years with the co-founders departing and returning. Co-founders Evan Williams, Biz Stone, and Jack Dorsey have all taken a step back from active roles at Twitter.

First Published: June 12, 2014: 11:39 AM ET

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In-state students getting squeezed out at public universities

The University of California at Berkeley said it plans to increase the percentage of out-of-state students it accepts to 23% from 20%.

NEW YORK (CNNMoney)

The student had a near-perfect grade point average, took the maximum number of advanced placement classes, joined extracurricular clubs and was in the National Honor Society.

But the University of California at Berkeley turned her down.

"I thought, 'Wow, a couple of years ago, she would've gotten in,'" said Barnes, who works at Hanford West, a Central Valley high school.

Barnes and other counselors have seen the public University of California system steadily enroll more out-of-state and international students, while the number of in-state students are declining.

Related: Few to benefit from Obama's student loan program

Coveted for the higher tuition they pay, the number of non-resident students enrolled at the University of California's 10 campuses rose from 23,000 in 2009 to 32,000 in 2012 -- an increase of nearly 33%. Meanwhile, the number of in-state students has fallen 1.3% to 197,000.

After all, resident students paid an average of $8,893 for tuition and fees at public, four-year institutions nationwide this year, while out-of-state students paid $22,203, according to the College Board.

"You're basically auctioning off spaces for people with more money," said Patrick M. Callan, president of the National Center for Public Policy and Higher Education, a California-based think tank. "In-state students have less of a shot at public universities."

After years of state budget cuts, "tuition from out-of-state and international students is crucial," said Berkeley's chancellor Nicholas Dirks in a statement.

In April, Dirks announced that Berkeley would boost enrollment of nonresidents to 23% from 20% over the next three years.

That means next year it will add another 100 out-of-state students, who will bring in $2.2 million more in revenue than in-state students, who are eligible for in-state tuition subsidies, would.

Meanwhile, the number of California residents enrolling at Berkeley will continue to shrink, falling from 3,800 in 2006 to 3,100 in 2013, according to UC figures.

Related: Half of college grads still relying on parents' money

At such large public universities as the University of Virginia, the University of Colorado at Boulder, and the University of Michigan at Ann Arbor, nonresidents make up 30% or more of enrollment, according to the Center for College Affordability and Productivity, a Washington, D.C. think tank.

Colorado law dictates that at least 55% of the student body be composed of residents, said Kevin MacLennan, director of admissions at the University of Colorado at Boulder. Since the law was passed in 1992, the university has been able to offer admission to every qualified resident who applies, he said.

At the University of Michigan, all decisions "are based on the imperative to enroll the best possible incoming class," said spokesman Rick Fitzgerald. He said the percentage of non-resident students has not varied much in the last four years, going from 40.1% to 41.2%.

The University of Virginia did not respond to requests for comment.

MacLennan and Fitzgerald both said the growing percentage of out-of-state students is due in part to the shrinking number of high school graduates in their states.

But money is part of it, too. MacLennan said his university has pushed to increase the proportion of international students among the out-of-state population in the last few years, "for geographic diversity and due to the revenue piece."

Pushback may be looming. "All of these schools have political pressure to make room for domestic students," said Richard Vedder, director at the Center for College Affordability and Productivity and an economist at Ohio University.

Related: Community college grads out-earn bachelor's degree holders

The idea that out-of-state students are taking spots from in-state ones is "more of a perception than a reality," said Daniel Hurley, associate vice president for government relations and state policy at the American Association of State Colleges and Universities.

The only place this may be happening is at "more select, public research universities," where competition for admission is particularly fierce, he said.

University officials say there's also a lack of data to show definitively that one group has been displacing the other.

But research released last year by professors Bradley Curs and Ozan Jaquette of the universities of Missouri and Arizona, respectively, found that increases in the number of nonresident students at flagship public universities led to decreases in the number of low-income and minority students.

Related: College savings gap widens between rich and poor

As nonresident enrollment at Berkeley rose, for instance, the number of black and Hispanic freshmen fell, the research showed. The same thing happened at the University of Illinois at Urbana-Champaign and the University of Wisconsin at Madison.

The study didn't directly address whether all in-state students are being crowded out. But it stands to reason that "public universities with selective admissions and targeted enrollment that are pursuing out-of-state students are doing so at the expense of in-state students," said Curs.

"It's a balancing act," said Anne De Luca, associate vice chancellor for admissions and enrollment at Berkeley. "We strive to preserve access and maintain excellence in the undergraduate experience, and pull a number of levers to make this happen... one of them being non-resident tuition from out-of-state students," she said.

First Published: June 12, 2014: 7:14 AM ET

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Uber CEO: 'Our growth is unprecedented'

NEW YORK (CNNMoney)

That's worth more than Hertz (HTZ), Whole Foods (WFM), and Mattel (MAT). Unlike those household brands, Uber has been around for just four years.

Having taken the company through the startup grind -- including a growing crop of lawsuits and regulatory battles -- Kalanick's hair is a bit more salt than pepper these days than it was in 2010.

Kalanick sat down with CNNMoney to talk what he calls Uber's "unprecedented" growth and the future of the company.

What makes Uber worth $18 billion?

Kalanick said the company is growing at an alarming rate, quadrupling its sales every year on the back of hundreds of thousands of drivers and millions of riders.

"It's about what we are and its growth ... you don't have to make a hard sell if your numbers back it up," Kalanick said. "The bottom line is lots of rides, hundreds of millions of trips happening and that number is growing really, really fast over time at a level in almost any case you can say is unprecedented."

Is Uber a tech company or a car service?

Kalanick describes Uber as more than just an app. For instance, Uber has already started testing out a courier service called Uber Rush in New York, and Kalanick says "stay tuned" to see expansion.

"It's a technology platform that connects riders and drivers," he said. "So you want a ride, we are going to connect you to all the transportation providers that are available in a market, and we're going to get you the quickest pick up time, highest quality ride, and get it to you at the lowest cost that's possible."

What do you envision for the future of transportation?

Uber has been criticized for being too expensive, particularly when demand peaks. But Kalanick thinks that Uber can save people money by ultimately replacing car ownership entirely.

"Many of our customers are already in that group," Kalanick said. "We get customer feedback everyday saying, 'Hey I just sold my car; I don't need to pay for parking at home or work.' Lets say that's $500 a month for both. We just saved them $6,000 a year. ... I think that's why so many people are using Uber and getting rid of their cars."

Why did Uber just team up with American Express?

The rewards program will allow AmEx users to pay for Uber rides with AmEx points, and Uber riders get double points when they pay by card. Uber previously partnered with AT&T, and Kalanick hinted more well established sponsorships could happen in the future. American Express has experimented with tech partnerships for quite some time, recently cutting deals with Twitter (TWTR, Tech30) and Facebook (FB, Tech30). Last year, American Express card members spent hundreds of millions of dollars using Uber.

"There's hundreds of millions of people that are card members at AmEx -- all of them should be using Uber," said Kalanick. "Just like were introducing Amex to a lot of our users, AmEx will be introducing Uber to a number of their customers and really powering future growth for Uber."

How much of a risk factor would you say some of these regulatory issues are to Uber?

Thousands of taxi cabs protested Uber in London on Wednesday, and the company was recently handed a cease and desist from the state of Virginia. But Kalanick notes that despite regulatory hurdles, it still operates in 130 cities around the globe, pulling out of just one city (Vancouver). He likens Uber's efforts to break down existing barriers in incumbent industries is akin to a political campaign. For instance, he says Uber's low-cost taxi service, UberX, costs as much as 40% less than a standard taxi.

"The taxi industry [is] trying to protect a monopoly that has been granted them by local officials, so they're trying to slow down competition," he said. "So we try to get the story out there about accessibility of transportation, lower cost transportation, higher quality, and I think that story wins over at the end of the day."

How do you respond to criticism that Uber's business practices are too aggressive?

Uber's rival Gett claimed earlier this year that Uber employees in New York ordered and canceled over a hundred of its cars during a span of three days in January. The aim: collect the drivers' cell phone numbers and recruit them to work for Uber. The company since apologized, but Kalanick said the company's "aggressive" behavior has been misinterpreted as inappropriate.

"If you call an employee at another company, that's normal, but if that falls in the car business, the sky is falling," said Kalanick. "I think what we found is we are aggressive at getting as many cars on the road because when there's a lot of cars on the road your pick up time goes down. Every once in a while a team in Shanghai or New York might get really aggressive about recruiting drivers, but we have really strong principles and feel good about how we act in the marketplace."

After allegations of sexual harassment and assault by Uber drivers, can you assure customers that Uber is safe?

A Illinois woman filed a lawsuit against Uber in March, claiming her driver fondled her. And a Daily Beast reporter alleged her creepy Uber driver stalked her. Kalanick said Uber has the highest safety standards in the industry, including the most thorough background checks. But when incidents happen, the company deals with them forcefully.

"Safety is number one at Uber ... so we make sure the system is in place so riders get the safest ride possible," Kalanick said. "With that said, Uber is in the limelight. When things happen, if there's claims of any kind in any city in any car, we take those claims very seriously."

How do you deal with the stress?

Startups years are like dog years. A lot happens in a short amount of time. Founders who deal with the roller coaster of running a startup that transforms into a billion dollar company often have routines to help them stay sane. Kalanick is no different.

"The way I try to simplify my job is that I have two lists -- I have a list of all the crazy interesting problems that I get to solve every day or that need to be solved, and I have a crazy list of things I'd like to invent," Kalanick said. "And I kind of just prioritize them and work my way down, and try to simplify what I do when managing a big company. I try to make that my day every day. And today it feels similar today as it did way back when, and it's fun."

First Published: June 12, 2014: 7:09 AM ET

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Biggest losers: The 5 worst state economies

NEW YORK (CNNMoney)

The first five states on that list are in a particularly bad funk with their economies far below where they were back in 2007.

Call it the lingering curse of the housing bubble burst. Many of these states are still trying to restart their real estate and construction industries, and it's a road block to economic daylight.

Here's a rundown on America's 5 biggest economic losers and what's holding them back:

Nevada (Down 10% from 2007)

• Drains: Construction, Tourism, Real Estate
• Gains: Education and Health Services, Mining

Nevada's economy is still about 10% short of where it was in 2007. About half of that shortfall can be chalked up to construction's slow ascent from the depths of the recession, when the state lost more than half its construction jobs. Additionally, tourism and real estate continue to slow things down.

There have been a couple of bright spots in education, health care and mining, but the jobs there aren't nearly enough to replace everything's that's been lost. And Las Vegas' reputation as the nation's playground means that when things turn sour nationwide, sectors like tourism, responsible for about 14% of the state's economic output, declines.

"There's too much reliance on construction and tourism in general," said Mehmet Tosun, chair of the economics department at the University of Nevada, Reno.

Related: On the other hand, North Dakota's economy has doubled since 2002

Florida (Down 7% from 2007)

• Drains: Construction, Real Estate, Wholesale Trade
• Gains: Health Care

Like Nevada, Florida's construction and real estate industries have been impediments to its economic recovery. There are signs of a turnaround in 2014 thanks to a boom in building in places like Miami and Orlando.

Len Mills, executive vice president of the South Florida chapter of builders trade group Associated General Contractors, said he's heard from other builders that there's been a skilled labor shortage.

"If they're in the trades, we could use them down here," he said.

Like other states and the nation as a whole, health care continues to grow much faster than almost every other industry, with 10% more health care jobs in Florida than December 2007. In fact, job growth in the sector never stopped.

The state's economy actually grew a robust 2.2% in 2013, but the Sunshine State started in such a hole that there's a tough climb to go.

Connecticut (Down 5% from 2007)

• Drains: Chemical Manufacturing, Insurance
• Gains: Real Estate, Telecommunications

The long-term decline of Connecticut's chemical manufacturing sector, where employment peaked back in 2000, continues to dog the state, and the 2007 recession only exacerbated the problems that were already there. Additionally, the slowdowns in wholesale trade, insurance and yes, construction, have also conspired to hamper the state's recovery.

Of the five states furthest from a full recovery, Connecticut is the only one whose real estate sector is currently doing better than before the recession, though jobs in the industry are still 8% lower than they were in December 2007.

Related: These 10 state economies grew the fastest last year.

Arizona (Down 4% from 2007)

• Drains: Construction, Real Estate, Wholesale Trade
• Gains: Insurance, Computer Manufacturing

Arizona's construction industry was cratered in the recession. Building jobs have fallen 41.5% since the recession, though employment in the area began falling more than a year in advance. Things were in such bad shape that an industry trade group filed for bankruptcy, and the Arizona Contractors' Association, a building industry trade group, filed for bankruptcy last month.

Wholesale trade has also fallen short of its economic output before the downturn.

On the other hand, finance and electronics manufacturing are doing their part to help the state economy rebound. Though finance and insurance jobs are 4.5% higher than even the pre-recession peak in April 2007, electronics manufacturing jobs are still 16% lower than when the recession began, suggesting not all of the industry's gains have translated into higher employment.

Related: I've been priced out of downtown Detroit

Michigan (Down 3% from 2007)

• Drains: Autos, Construction, Local Government
• Gains: Health Care

The struggles of Michigan's auto industry are no secret, and the sector's continues to hold the state's recovery back. Its peaks are still behind it, with parts topping out in 2000 and vehicle manufacturing reaching its height 24 years ago.

Though vehicle manufacturing is still 28% lower, the larger car parts business is employing just 7% fewer folks than before the recession.

Construction and local government are also hampering a full comeback.

A bright spot in Michigan, the state among the five slowest to recover that is the closest to actually getting back to speed, is its heath care industry. Health and social assistance jobs are up 6% to 560,000.

First Published: June 12, 2014: 9:23 AM ET

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CEOs make 296 times more than workers

CEO pay was 295.9 times workers' earnings in 2013.

NEW YORK (CNNMoney)

That means the pay gap between employees and their bosses continues to widen, according to the Economic Policy Institute's latest report released Thursday.

Average CEO compensation came in at $15.2 million in 2013, according to the left-leaning think tank. That includes salary, bonus, restricted stock grants, options exercised and long-term incentive payouts for chiefs at the top 350 U.S. firms by sales.

Private-sector, non-supervisory workers, meanwhile, earned an average of $52,100.

To calculate the pay gap, EPI looked at the ratio of a CEO's package and the average compensation of a worker in that company's main industry.

Related: Rich, really rich, and ultra rich

That gap started growing again after contracting during the Great Recession, when the stock market collapsed. The market recovery -- the S&P 500 gained 29.6% in 2013, its biggest jump since 1997 -- has boosted executive compensation.

CEO pay rose 21.7% since 2010, while workers' earnings fell 1.1%.

"CEOs have done a lot better in this recovery than have workers," said Lawrence Mishel, EPI's president.

Soaring CEO pay is one reason behind the rise in income inequality in recent decades, Mishel said.

First Published: June 12, 2014: 10:59 AM ET

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Oil prices spike as Iraq violence flares

LONDON (CNNMoney)

Light crude oil futures touched $106 a barrel, up nearly 2% and the highest price since September 2013.

The price of oil is one of many factors that determine gas prices. Gas futures rose by 1.7% to $2.95 a gallon, signaling a possible rise in prices for consumers.

Oil prices have been climbing all year on strengthening global demand, reduced output from OPEC nations and other producers, and fear that the Ukraine crisis could disrupt Russian energy exports.

The latest gains were triggered by this week's dramatic advance across northern Iraq by extremist Islamic insurgents.

Related: Latest on Iraq violence

An al Qaeda splinter group occupied Iraq's second biggest city -- Mosul -- and threatened to head south towards Baghdad. The group is trying to establish an Islamic state straddling the Iraq-Syria border.

Iraq produces about 3.3 million barrels of oil a day, making it the second biggest producer in OPEC after Saudi Arabia. It is also sitting on the world's fourth largest proven reserves.

The immediate impact of the insurgents' territorial gains on oil prices is likely to be limited, however.

Exports from the country's northern oil fields had already dwindled to a trickle since early March after attacks closed a pipeline carrying crude to the port of Ceyhan on Turkey's Mediterranean coast.

And much smaller volumes of exports by road to Jordan have also been halted by the violence.

Related: Russia to supply China with gas for 30 years

Still, Iraqi exports rose in April to about 2.5 million barrels per day as shipments from the country's main oil producing region in the south hit a record high, according to the International Energy Agency.

The upsurge in violence will keep a lid on exports from the north, but some experts say overall shipments from Iraq could rise further this year, driven by new production coming on stream in the south.

"Despite violence in the north, Iraqi exports based entirely on production from the southern fields are likely to hit a record 2.8 million [barrels per day] by the end of 2014," noted Ayham Kamel, Middle East and North Africa director at Eurasia Group.

The longer term impact is harder to gauge.

The insurgents could use techniques acquired in battle with the Syrian government to attack more oil facilities in the north, and the deteriorating environment could undermine new investment by international oil companies, Kamel added.

First Published: June 12, 2014: 8:39 AM ET

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