Men are buying up these $1,200 sneakers

The furry shoe from Giuseppe Zanotti sells for $1,395. Alejandro Ingelmo's Tron Leopard Bronze costs $575.

NEW YORK (CNNMoney)

Luxury spending is slumping this year, but one area continues to have a strong foothold: shoes. And while designer shoes tend to conjure up images of red-bottomed stilettos and pointy leather heels, much of the current demand is for men's sneakers in flashy styles.

Shoe designer Giuseppe Zanotti, who launched his first sneaker in 2012, said the demand for high-end kicks surprised him.

"When I started designing sneakers, I would have never imagined they would have been such a successful endeavor. I honestly think that nobody expected this boom," he said.

His line includes a high-top sneaker with snake skin print, gold-plated straps and side zippers. Another pair is a silver printed 3D calfskin high-top sneaker with black plates.

Zanotti's sneakers range from $500-$1,500, and he credits Kayne West as the first person to wear one of his styles. "That was proof I was going in the right direction." His men's sneaker sales increased 127% this year compared to last year.

Related: Why these sunglasses cost $150

Men have been a bright spot for retailers in the shaky economic recovery -- especially young men.

"They are increasingly becoming more affluent ... they have more disposable income and they're interested in attire," said Will McKitterick, an analyst at IBISWorld. He added that men's athletic shoes accounted for 29% of the total shoe market in 2014, just shy of the 31% women's non-athletic shoe sales made up. (Women's athletic shoe sales came in at 12%.)

It used to be men only strove to look good Monday-Friday from 9-5, but now they want to look stylish all the time, said Milton Pedraza, CEO of the Luxury Institute. "Men have finally caught up with women in fashion, style and desire to look good and express themselves."

Related: Rude sales people can boost luxury sales

New-York based designer Alejandro Ingelmo started designing men's sneakers for himself, and said it took a while for them to go mainstream. Now, his sneakers, which have an average price point of $500, are 60% of his business.

"We aren't talking about just a couple of guys. This is what's happening in men's fashion," he said. His customers come from different backgrounds, some work corporate jobs and want to maintain a polished looked outside the office, while others are looking for a way to express themselves.

Sneakers, even luxury ones, are often a cheaper way to make a statement than other designer duds.

The 'Jeddi Snake' shoe costs $750

And some of the loud new styles cater to men looking to really make a fashion statement.

It's about the best way to stand out in a crowd, said retail analyst Jeff Green. "Shoes have become more of an accessory, not a necessity."

He likened sneakers to a new tie. "This is why people are getting a whole bunch of them ... It's the coolest way to make a statement," Green said.

Zanotti said the men's shoe market has evolved a lot since he entered it. "It was very formal, black and a little boring from my perspective. The sneaker boom literally shook up fashion laws and etiquette," he said. "I like when I see men matching sneakers with different outfits -- from a jumpsuit to a pair of jeans to a formal tuxedo."

How to buy luxury clothes without losing your shirt

And while some of his shoes have gold leopard and neon snakeskin patterns, Ingelmo said he knows he has to walk a fine line when it comes to men's designs.

"You still want to follow some formality. You can be very creative, but you still have to follow a certain type of structure to stay within the bounds that men are used to."

First Published: October 30, 2014: 10:22 AM ET

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Movie theaters ban Google Glass and other wearables

NEW YORK (CNNMoney)

Don't even think about it, the movie industry says. It announced late Wednesday a "zero tolerance policy" towards wearable recording devices.

Hollywood has had an ongoing problem with the use of recording devices in movie theaters. Hand-held cameras have been the main culprits in traditional film theft, resulting in a black market for pirated DVDs with shaky recordings of just-released movies.

But that seems almost quaint compared to the advent of smartphones and other devices. Long-standing theater policies require that phones and recording devices must be silenced or shut off and put away at show time.

At ShowEast, an industry convention in Florida, this week, the Motion Picture Association of America and the National Association of Theatre Owners updated their policy "to fully integrate wearable tech in the rules" against illegally recording movies.

"Individuals who fail or refuse to put the recording devices away may be asked to leave," it reads. "If theater managers have indications that illegal recording activity is taking place, they will alert law enforcement authorities when appropriate, who will determine what further action should be taken."

Related: Is Verizon stalking you through your phone?

First Published: October 30, 2014: 8:33 AM ET

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Keurig Green Mountain is best stock of 2014

NEW YORK (CNNMoney)

Keurig Green Mountain (GMCR) is the best-performing stock in the S&P 500 this year. Shares are up nearly 100% and are near their all-time high.

But can the stock keep climbing? Sure, the company's doing a solid job. It's created a product that consumers clearly want and it is continuing to expand its K-Cup offerings.

Keurig's most recent big win was a deal to start selling some of Kraft's (KRFT) coffee brands, such as Maxwell House and Gevalia, in K-Cups. The partnership also covers K-Cups for the McCafé brand from McDonald's (MCD), which Kraft distributes to grocery stores.

Analysts expect sales and earnings to keep growing at a healthy clip.

Still, it seems that the main reason investors are so excited (and they just can't hide it) is because Coca-Cola (KO) is now the company's largest investor.

Related: Investors pour out of Coke

Coke purchased a 10% stake in February and raised it to 16% in May.

Now there is speculation that Coke could buy the rest of the company. There were some vague rumors about a takeover circulating earlier this week.

Betting on a takeover is always a risky move for investors. It's an even bigger gamble when the stock has already run up as dramatically as Keurig has. Shares now trade for 36 times earnings estimates for fiscal 2015. That's a Jamaican Blue Mountain or Kona type valuation.

Coke is having a lousy year. Purchasing all of Keurig might be a way to reinvigorate the pride of Atlanta.

Related: Why are America's biggest businesses struggling?

Merger good for all? Another benefit of blending coffee and cola would be bringing former Coke exec Brian Kelley back into the fold (he left to become CEO of Keurig Green Mountain in 2012).

With Coke's executive compensation plan being criticized by shareholders ranging from Oracle of Omaha Warren Buffett (Berkshire Hathaway (BRKB) is the largest Coke shareholder) to activist investor David Winters, Coke CEO Muhtar Kent is under a lot of pressure to get Coke back on track.

It doesn't help Kent that shares of Coke's top rival Pepsi (PEP) are up 14% this year and not far from an all-time high.

So Kelley could be an eventual successor to Kent that might satisfy shareholders. Kelley's not technically a Coke outsider, but he's been away from Coke for nearly two years.

Spokespeople for Coke and Keurig would not discuss the merger rumors. But both companies reiterated they are focused on developing products for the new Keurig Cold at-home beverage system.

That machine is expected to be released in Keurig's next fiscal year and should immediately challenge SodaStream (SODA), which has been struggling lately.

SodaStream is running a test in two Florida markets later this year to sell some Pepsi-branded products for its at-home beverage makers.

Investors are clearly betting that Keurig Cold will be a formidable foe. The only question is whether or not Keurig will be a fully-owned subsidiary of Coke by the time the machine hits stores.

First Published: October 30, 2014: 11:37 AM ET

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US economy chugging along at 3.5% growth

NEW YORK (CNNMoney)

Gross domestic product increased 3.5% between July and September, according to the U.S. Commerce Department. It exceeded analysts' expectations and offered more proof of an economy gaining momentum.

"This is a good number," says Jay Bryson, global economist at Wells Fargo Securities in Charlotte, N.C. "The economy has a fair amount of momentum."

Analysts had only projected GDP growth to hit 3% this quarter, according to data from FactSet.

Related: Fed ends 6-year effort to stimulate economy

The GDP report reflects a widely held view that employment is picking up. More jobs means higher incomes and spending, economists say.

Consumer spending is the largest factor for U.S. economic growth, and it rose 1.8% in this quarter, a slight drop from the same time a year ago, but better than the bleak first quarter this year.

The GDP report shows some bright spots. Government spending, often lagging behind in the recovery, hit its highest quarterly mark since 2009. Exports also showed a healthy gain in the third quarter compared to the same time a year ago.

"When you look at the underlying pace of the economy, we should continue to see solid numbers going forward," says Bryson. "The government won't be a drag on growth."

Related: 'Mediocre' growth plagues world economy

2014 had a dicey start. Economic growth dropped 2.1% the first quarter because the extremely cold winter (remember the Polar Vortex) kept many businesses and schools closed for days and people inside their homes. The weather also lowered exports to other countries.

Second quarter GDP rebounded well, posting 4.6% growth from the same time a year ago.

The GDP news comes on the heels of the Federal Reserve's announcement Wednesday to end its bond-buying stimulus program now that the economy is improving. Economists viewed the Fed's decision as a mostly positive sign that growth is picking up, even in the job market.

Related: Some countries are getting killed by cheap oil

What's next? The IMF forecasts that the U.S. will have 2.2% GDP growth for the year. So far, the nation appears to be on track for that. It's a lot higher than Europe and other parts of the world that have been hit by geopolitics and slowing growth such as Russia.

Europe's slowdown could also be a drag for the U.S., although so far the impact has been modest.

"I think Europe by itself poses no real threat to the U.S. recovery or expansion," said Dr. Robert Shapiro, former Under Secretary of Commerce for Economic Affairs.

The big concern for next quarter is holiday spending. Americans are clearly buying more, but it's still not a level investors and economists want to see to feel confident that the worst is behind.

Falling oil prices could help shoppers and savers. The majority of Americans now have under $3 a gallon gas.

Although prices might adversely affect oil-producing states, they're a good sign for most, says Jeremy Lawson, chief economist at asset management firm Standard Life Investments.

"There will be some states that are disadvantaged by oil prices," says Lawson, "but for the overall economy it is a positive."

First Published: October 30, 2014: 8:44 AM ET

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Forget dating apps. These millennials want to save the world

Julie Lein, left, and Clara Brenner, cofounders of San Francisco-based accelerator Tumml.

SAN FRANCISCO (CNNMoney)

For a case in point, consider Clara Brenner and Julie Lein, cofounders of a two-year-old "business accelerator" known as Tumml. Brenner, 29, and Lein, 30, operate from a glamorously scruffy neo-industrial space that could be lifted from a movie about the start-up experience, with its location in San Francisco's trendy SoMa (South of Market) neighborhood, exposed pipes on the ceiling, and repurposed vintage diner booths in the communal kitchen. Brenner didn't even look up from her conversation the other day when one aspiring entrepreneur rolled by on a skateboard.

Most of the young people huddling at the long tables around Brenner and Lein in the sprawling office are dreaming of launching the next Facebook (FB, Tech30) or Uber. The two young women have a different goal: supporting a new generation of "urban impact start-ups" that aim to tackle civic problems, while turning a profit along the way. Their firm provides funding, mentoring, and practical guidance for start-ups that aim to address challenges from education to transportation to boosting local small business.

"You open TechCrunch or The Wall Street Journal, and you read about start-ups changing the world through the next dating app or on-demand butler service," Brenner says. "It's pretty disheartening. They're not solving problems that at least Julie or I particularly care about. We wanted to see more start-ups solving real problems like homelessness and transportation."

Related: How will Silicon Valley compete with New York?

In their instinct to tackle such civic problems by incubating start-ups, Brenner and Lein capture a profound generational shift that is changing the way many young people think about contributing to their communities. Two or three decades ago, it's easy to imagine that someone like these women concerned with say, homelessness, might have expressed her values by trying to elect a local or national politician who promised to confront the problem by passing new laws. Or she might have volunteered at a nonprofit organization that directly provided a service.

Brenner and Lein say they respect both of those options -- Lein, in fact, did try to elect politicians while working for a Democratic pollster after finishing her undergraduate degree. But each has concluded she can make a bigger and faster impact on the issues she cares about by nurturing private businesses that address them.

"I thought if you get involved in politics, that's how you effect real change," says Lein. "But it's clear that the people getting funding and having the most rapid take-up of their ideas are in the entrepreneurial world. That's what drew me, even though I'm a do-gooder, bleeding heart."

To Lein and Brenner, and the companies they are working with, starting a business isn't an alternative to civic engagement; it's a form of it.

"More money equals more impact," Brenner insists. "So making sure [these companies] have a robust revenue model is critical to their ability to be good social entrepreneurs. That's something social entrepreneurs don't talk about enough."

Brenner and Lein hatched the idea for Tumml when they met at the MIT Sloan School of Management. Brenner had spent four years working in real estate in Washington, D.C., before returning to business school, initially with the idea of acquiring the skills to launch her own real-estate development company. Lein worked in San Francisco for an economic consulting company, and then joined the firm of Stanley Greenberg, a prominent Democratic political pollster, before deciding on business school as well.

Related: What will it take for millennials to become homeowners

As they grew friendly at MIT, the two women became increasingly interested in companies that combined a social mission with the profit motive. During business school, Brenner worked for a firm that created a crowd-sourcing tool that allowed community residents to invest in local real estate; Lein worked for an Oakland company that provided healthy school meals while also training local residents to contribute.

"We were just so amazed by these companies in terms of the community impact they were having, but also their ability to scale really rapidly in a way that more traditional community organizations out there are just not capable of doing," Brenner recalled. "And we were wondering why there weren't more [of these] companies out there."

While many business accelerators exist to nurture start-up firms in an array of industries, the two women could not find anything comparable to help entrepreneurs who wanted to tackle civic challenges.

"If you want to solve a problem in your own community, in your own backyard, there isn't really a place for you to go," says Brenner. "Where would you go find money to do that? I couldn't have told you two years ago. So we decided an organization to try to change that."

Interest became avocation after the two women finished business school in 2012: With funding initially from the charitable arm of the Blackstone Group, they formed Tumml and moved to San Francisco. Since summer 2013, they have selected three groups of young companies (some 17 in all) from hundreds of applicants based everywhere from Kansas City to France and Germany. For each firm that makes the cut, Tumml provides some initial funding, a place to work, access to mentors, a curriculum that offers guidance on the usual challenges of business formation -- and, most distinctive of all, opportunities to interact with local government and nonprofit leaders working on the same issues that the entrepreneurs are tackling.

"They have a wonderful network of entrepreneurs, investors, civic leaders that were introduced to us once or twice a week," says Ali Vahabzadeh, cofounder and chief executive of Chariot, one of the firms Tumml has supported.

Related: The woman who turned Obamacare into neighborhood self-help

Though slightly older, Vahabzadeh, 37, embodies the same generational shift in perspective as Brenner and Lein. When he saw a problem in his community, he concluded that the best way to address it was not to lobby government, but to start a company that directly addressed the need.

The problem that motivated Vahabzadeh was public transportation in San Francisco, which didn't match his previous experiences in London and New York City. After relocating to the Bay Area in 2010, he recalled, "The first thing I realized was, I can't get around this town." He bought a bicycle, but recognized that wasn't an option for everyone.

And so, last winter, after leaving a job at a real-estate start-up, Vahabzadeh founded Chariot, a private transportation company that runs vans along crowded commuting corridors in the city.

"I just decided that most likely it was not going to be the city or transit agencies that [would] overnight have an awakening and improve all of our commutes, and I didn't see any private options addressing this need either," he says. "So I took it under my own hands, and I thought an entrepreneurial solution was the fastest way to alleviate the commuting issues we had."

Only about six months after launching, Vahabzadeh is now ferrying 2,000 riders a week and expanding to a second route that he devised with crowd-sourcing input from potential riders.

Tejal Shah, the founder of KidAdmit, another company Tumml has supported, paralleled Vahabzadeh's experience and response. When Shah, 37, sought to enroll her child in a private preschool a few years ago, she grew frustrated at how the process seemed frozen in the pre-digital age.

"Each school had a paper application; it was the same thing over and over again," she recalled. "There was a lot of time being spent with very few questions being answered."

The thought of working through local government to encourage or compel preschools to streamline the process never crossed her mind; instead, after recruiting a cousin to join her, she formed a company to create an on-line common application for preschools in the area, much as colleges use. Now she is working with 152 San Francisco private schools -- providing parents not only a common application but also more easily accessible data about the schools -- and expanding into eight counties surrounding the city.

Related: The case for trailer parks

Neither Vahabzadeh nor Shah see themselves as supplanting government or nonprofit organizations; their goal is to supplement them with companies they believe can respond more nimbly to community needs. That's the perspective Brenner and Lein share as well.

"This is certainly not a libertarian operation, we are not looking to replace government," says Brenner. "Many of the individuals who have gone through our program wouldn't think of themselves as particularly politically active or civically savvy. ... I think this is a way of making people feel like they actually can exert some control over the problems they encounter every day. And that's good, but it's not like they're trying to take over the job of a politician or put nonprofits out of business. It's more that whatever we have done so far has not been adequate to solve the problem, so why not add another tool to the tool kit."

Not all challenges facing America's cities may respond to this hybrid approach of private profit and public purpose (though one start-up that Tumml has supported provides a way for people to contribute directly to the homeless). And doing well may collide with doing good more often than these young entrepreneurs now anticipate. But Tumml and the like-minded young entrepreneurs in its orbit are remixing characteristic millennial-generation attitudes of social responsibility, skepticism of big institutions, trust in technology, and a preference for direct action -- and, in the process, redefining civic activism for the digital age.

This article originally appeared on The Next Economy, a joint project of The Atlantic and National Journal.

First Published: October 30, 2014: 10:44 AM ET

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Ca-Ching! Visa, MasterCard surge again

NEW YORK (CNNMoney)

Shares of the card giants popped Thursday after both logged strong quarterly profits and China announced it will open up its credit card and payment market.

"People are using their credit cards a little bit more. That's actually healthy. Consumers have been extremely debt averse -- too much so," said James Friedman, an analyst who covers both companies at Susquehanna Financial group.

Visa (V), the largest credit and debit card company in the world, said consumers made $1.2 trillion of payments to merchants during its fiscal fourth quarter. That's an 11% increase in so-called payments volume from the year before.

And it's not like all the strength was coming from fast-growing emerging markets. Visa CEO Charles Scharf noted particular strength in the U.S., where transactions grew 8% in the three months that ended September 30.

Related: US economy chugging along at 3.5% growth

There's growing momentum for U.S. credit growth. Visa has seen credit card balances rise for much of the year and the pace is accelerating this fall -- up 15% so far in October.

MasterCard (MA) also reported earnings that exceeded expectations, driven by a 12% jump in gross dollar volume, or GDV. That metric measures purchases and ATM withdrawals with MasterCard-branded cards.

Of course, it's not exactly full steam ahead for the card companies. Visa said its near-term outlook "remains cautious" due to the "modest pace" of the recovery, geopolitical tensions, Ebola and the stronger U.S. dollar.

Still, the strong reports back up new government data released on Thursday that show the U.S. economy grew at a solid 3.5% pace in the third quarter, boosted in part by a rise in consumer spending.

Investors were definitely pleased with the corporate report cards. Visa, which also unveiled a new $5 billion share buyback plan, soared 8% on Thursday morning. MasterCard rallied nearly 7%.

Related: These countries are getting killed by cheap oil

China opens up: Wall Street is also salivating over China's announcement late Wednesday that it will end its payments monopoly. The move could give American card companies access to a tantalizing market worth $1 trillion and and expected to rise rapidly.

"China is a hugely important geography that previously these companies really could not penetrate," said Friedman.

Visa and MasterCard were also helped by increased turbulence in the currency market, which is actually a good thing for these companies.

But the foreign exchange fluctuations can also be a double-edged sword because a stronger U.S. dollar can hurt revenue from overseas.

First Published: October 30, 2014: 11:09 AM ET

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Why are America's biggest businesses struggling?

NEW YORK (CNNMoney)

Investors were having panic attacks mid-month. Nearly all the gains for the year were wiped out. Now the Nasdaq and S&P 500 are both positive for October and way up for the year. The Nasdaq is up over 1% this month alone.

But a funny thing happened during this big rebound: The Dow Jones Industrial Average -- the index representing 30 of America's largest and most well-known companies -- got left behind.

The Dow has struggled to get out of negative territory for the month.

What happened to these supposed "Blue Chip" companies?

1. Bigger isn't always better. Normally investors think of the Blue Chip names as solid, stable companies. The Dow has household brands like Boeing (BA), AT&T (T, Tech30) and McDonald's (MCD) that are known around the world. But lately, Blue Chip has been a bit of a euphemism for "stale."

Almost half of the companies in the Dow -- 11 of 30 -- are down more than 1% for October.

McDonald's can't quite find its place as people want healthier options. Coke (KO) is in a similar position. While rival Pepsi (PEP) (not a Dow member) has been able to leverage its snack food business as soda revenue declines, Coke hasn't figured out a new formula.

Related: McDonald's gets burned in Asia

"Businesses are competing with nimble, newer and faster companies," says Tim Anderson, Managing Director at MND Partners.

IBM (IBM, Tech30) was an especially large blow in October. It announced the sale of its chip unit for a nearly $5 billion loss and followed that up with lackluster quarterly results and little optimism about the coming months. The company cited "the unprecedented pace of change in our industry." The stock tanked and is still down about 14% for the month.

There's an identity crisis going on among several of America's large companies. Even GE (GE) is negative for the year and facing pressure to break itself up and restructure.

Despite the fact that the U.S. economy is improving, investors aren't certain that these specific brands in the Dow are going to benefit until they get their big picture strategies sorted out.

Related: How much should a young worker save for retirement?

2. The Dow is just odd. There's a reason a lot more people invest in funds that mimic or track the S&P 500 than the Dow. The Dow started in 1896. While America's economy grew, it still has a mere 30 firms in the index (compared to the 500 in the S&P or the nearly 3,000 in the Nasdaq).

And while other indexes typically weight the companies equally, the Dow is price weighted. So companies with larger share prices have more sway. That's especially problematic when IBM -- the third biggest weight in the Dow -- goes down.

"The Dow is just a very narrow index," says Russ Koesterich, BlackRock's Chief Investment Strategist. "If you look at a broader measure like the S&P 500, large cap companies are doing better than small cap during the sell-off, but the Dow is very idiosyncratic."

Koesterich thinks large company stocks actually offer some of the better bargains in the market at the moment, just not necessarily the ones in the Dow.

Related: CNNMoney's Fear & Greed Index indicates 'fear'

Some go as far as saying the Dow isn't representative of American business anymore.

CNNMoney's Paul La Monica has often asked a simple question: Why the heck isn't Apple in the Dow? It's arguably the most valuable brand in the world and its stock trades right around $100, yet it's not in "the club," while Cisco (CSCO, Tech30) and Caterpillar (CAT) are.

3. Blame the hedge fund types. The final factor at work in the Dow's lagging October performance might be traders and hedge funds.

After the big dip, many investment professionals did whatever they could to pare their losses. They looked for stocks likely to go up quickly. Those are momentum stocks -- typically tech and bio tech and smaller companies -- not the big, slow Blue Chips.

"Hedge funds, momentum funds and funds that are subject to withdrawals every six months have a real problem holding dead money stocks," said Anderson.

First Published: October 30, 2014: 7:56 AM ET

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New York Times shares slammed on grim forecast

NEW YORK (CNNMoney)

The company told investors Thursday to get ready for a drop in ad spending in the fourth quarter - news that crushed the stock, sending it down 6%.

The Times has been trying to maintain a tough balance: Show enough growth in digital to offset the drop in the traditional print business, which is much larger.

And it has to do that while cutting costs. The most recent downsizing will affect 100 employees. But severance costs from those cuts hit $21 million in the third quarter. The company posted a $12 million loss as a result.

The company has been posting gains in online ads, and in the third quarter, those digital ads (up 16.5%) were nearly enough to almost balance out the loss in print ads (down 5.3%). But the Times doesn't expect that to continue in the fourth quarter, and expects an overall drop.

Advertising is now responsible for about 40% of the company's total revenue.

The company has had some success with people paying to read the TImes online, as well as with higher prices for home delivery of the paper. Still, the result is growth of just 1.3%.

And growth in digital revenue has been slowing and there are limits to how much the paper can charge even its affluent readers for the print edition.

New York Times (NYT) shares dropped 6% on Thursday and are now down more than 20% for the year. The stock tumbled after the Times released second-quarter results as well. The issue then: The concern that digital subscriptions had peaked.

Investors are clearly concerned about the long-term challenges print media and the Times ability to buck those industry trends.

The Times is trailing even other print media stock such as News Corp (NWS) and Time Inc. (TIME)

First Published: October 30, 2014: 12:16 PM ET

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Feds fine dating site for making fake profiles

For all you bot fetishists.

NEW YORK (CNNMoney)

The Federal Trade Commission has fined UK-based JDI Dating for using fake, computer-generated profiles to trick users into upgrading to paid memberships.

JDI -- which operates 18 dating websites, including cupidswand.com, flirtcrowd.com and findmelove.com -- must pay a $616,165 fine and reform its practices. The case is the first for the FTC against an online dating site.

JDI allowed users to set up profiles on its sites for free, and then sent them fake messages purportedly from people living nearby who wanted to meet, according to the complaint.

Related: India looks for love on Tinder

The users were unable to respond without setting up paid memberships, which cost between $10 and $30 per month, and JDI renewed those memberships in many cases without consent.

JDI did not immediately respond to a request for comment. Going forward, the company must clearly disclose to users that they will receive messages from fake profiles, and is barred from setting up recurring memberships without authorization.

First Published: October 30, 2014: 12:16 PM ET

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Tim Cook isn't the only openly gay CEO

LONDON (CNNMoney)

Of course, many lesbian, gay, bisexual and transgendered employees still struggle with discrimination at work. The executive suite also remains extremely closeted, but there are a few high-ranking openly gay businesspeople.

1. Christopher Bailey, CEO at Burberry

The British luxury brand installed Bailey as CEO late last year after former chief executive Angela Ahrendts left the company for a job at Appl. (AAPL, Tech30)

Bailey has been working at Burberry (BURBY) since 2001, leading the fashion house's product design, creative marketing and digital innovation. In that time, Burberry has transformed into a fashion powerhouse with a strong social media presence.

Burberry CEO Christopher Bailey.

2. Nick Denton, founder and publisher of Gawker Media Group

Denton founded the Gawker media empire in 2002.

Over the past 12 years he's built it into an influential outlet that boasts tens of million of readers who clamor for the latest gossip and news.

When Denton married Derrence Washington this summer, his wedding was covered in a big feature in the New York Times.

When CNNMoney asked Gawker to confirm that Denton was gay, Gawker editor-in-chief Max Read replied, "If Nick's not gay, his husband will be very surprised to find out."

Nick Denton, founder of Gawker Media Group

3. Robert Greenblatt, chairman at NBC Entertainment

Greenblatt joined NBCUniversal in January 2011 and now oversees primetime and late night programming for the network

In his previous roles at other networks, he's been credited for the success of major hit TV series including "Weeds," "Dexter" and "Six Feet Under."

Greenblatt has also won many awards for his work, including recognition from GLAAD, an industry group that supports the LGBT community.

Robert Greenblatt, chairman of NBC Entertainment.

4. John Browne, former CEO of BP

Browne led oil giant B (BP)from 1995 until 2007. He resigned after a British newspaper group outed him as a gay man.

"I wish I had been braver to come out earlier during my tenure as CEO of BP. I regret it to this day," he said.

He has since written a book called The Glass Closet to encourage other closeted, gay individuals to come forward and "bring their whole selves to work."

But he warns that this will only happen when corporate leaders create an environment where people feel comfortable about coming out.

Related: The LGBT reality in American workplaces

Related: U.S. says companies illegally fired transgender workers

First Published: October 30, 2014: 12:24 PM ET

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Maker of Camel cigarettes bans smoking in its offices

Don Draper and his colleagues smoke at work all the time on hit the show Mad Men, which is set in the 1960's.

NEW YORK (CNNMoney)

Reynolds American, the nation's No. 2 tobacco company, will no longer let its employees smoke in most places at work starting next year.

The company, which makes Camel cigarettes, is constructing indoor smoking areas for those who do want to smoke.

But smoking traditional cigarettes, cigars and pipe tobacco at desks and in conference rooms will no longer be allowed, said spokesman David Howard.

Employees and visitors will still be permitted to use smokeless tobacco, including e-cigarettes, at work.

"We believe it's the right thing to do and the right time to do it, now that we offer a full line of smoke free products," said Howard. "It will make our work environment more inviting for employees and visitors who do not smoke."

Related: See who smokes in America

The proportion of Reynolds American employees that smoke is about the same as it is for the general U.S. adult population, according to Howard. The Centers for Disease Control puts that at 18.1% in 2012, down from 24.4% in 2005.

The company has banned smoking in the cafeteria and fitness centers for a number of years.

"This is really just an update to our current policy," he said.

American Nonsmokers' Rights Foundation estimates that just less than half of the nation's workers are covered by laws that prohibit smoking in their work places. But the traditional tobacco states of Virginia, North Carolina and Tennessee have no such laws, according to the group.

Reynolds American (RAI) is in the process of buying No. 3 U.S. cigarette maker Lorillard (LO) in a $27.4 billion merger that is expected to close in the first half of next year.

First Published: October 23, 2014: 9:55 AM ET

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After six months of recall costs, GM making money again

NEW YORK (CNNMoney)

The nation's No. 1 automaker earned $1.4 billion in the third quarter, down slightly from a year earlier but better than Wall Street was forecasting. The company posted a slight gain in revenue and the number of cars sold globally.

"Strong global sales and growing margins in North America and China helped GM deliver very solid third quarter results," said GM CEO Mary Barra.

Costs associated with repairing a record number of cars recalled in the first half of the year will come to about $2.5 billion, and the company has set up a victims' compensation fund that GM says it expects will cost at least $400 million.

Those costs left GM with essentially breakeven results the first half of the year. But this quarter's results contained virtually no mention of the impact of recalls on earnings.

Shares of GM (GM) jumped about 3% in premarket trading following the results.

First Published: October 23, 2014: 7:55 AM ET

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Zuckerberg, in all-Chinese Q&A, says Facebook has '11 mobile users'

NEW YORK (CNNMoney)

So how did the Facebook (FB, Tech30) CEO do?

Well, he certainly gets an "A" for effort. He got his point across to the audience, even if his command of the language was fairly basic.

But his accent was so bad that he was hard to understand at times. Mandarin is a tonal language, meaning that the pitch you speak in can alter the meaning of a word.

Zuckerberg's heavy accent even caused a couple goofs when he tried to say the word "billion," which sounded kind of like "eleven" when it came out of his mouth. So at one point, he said Microsoft (MSFT, Tech30) had 11 customers and Facebook had 11 mobile users.

Related: Facebook tells DEA to stop impersonating users

The Mandarin word for billion, 十億, is pronounced "shi yi." Phonetically, that's the same as the Mandarin word for eleven, 十一. But when you want "shi yi" to mean 1 billion, the "yi" is said with a different tonal accent than when you want it to mean 11. But the audience clearly knew what he meant -- the gaffe didn't get any laughs.

Zuckerberg also was clearly thinking in English then translating in his head, and his sentence structure was sometimes reversed. He also said a lot of "ums" and "you knows."

Still, it's an impressive feat. Mandarin is an extremely difficult language to master -- you can study it for years and still make some of the mistakes that Zuckerberg made.

The audience certainly loved it. Chinese people often find it surprising that foreigners are able to speak Mandarin -- or even want to learn.

When asked by the moderator why Zuckerberg wanted to learn Chinese, he said that China is a powerful country and he likes a good challenge. He also noted that his wife, Priscilla Chan, is Chinese-American and some of his in-laws only speak in Mandarin.

"I want to communicate with them," he said.

He said that his Mandarin vocabulary is larger than his wife's, but she also speaks Cantonese. He quipped that her listening is better than his.

"One day I asked her why my listening is so bad," Zuckerberg joked. "She said my listening in English is also bad!"

Zuckerberg was invited to speak at the university after joining its board. Otherwise, the Q&A would have been ironic: Facebook is blocked in China.

First Published: October 23, 2014: 11:09 AM ET

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Just how sick are Europe's top banks?

We'll find out soon which banks are still feeling the effects of the last financial crisis.

LONDON (CNNMoney)

The banks at the heart of the eurozone economy are about to find out whether regulators will give them a clean bill of health, or send them back to the emergency room.

European officials have just completed an extensive health check on the region's top 130 banks and are due to reveal the results Sunday.

The whole point is to weed out the weaklings that are hobbling the European economy, or that could spark a new financial crisis in the event of another long recession.

Regulators have been poring over bank finances, and testing whether they have the strength to withstand a nasty shock, such as a spike in loan defaults or unemployment.

The health of the sector is of vital importance for the eurozone, where growth has evaporated again and the specter of deflation looms.

Most European companies rely on bank finance, unlike their U.S. peers who are more likely to issue bonds. Banks with shaky foundations are less likely to take risks with their lending, therefore potentially stifling investment and growth.

Major players such as Deutsche Bank (DB) and Santander (SAN) were among the test subjects.

Regulators will release a prognosis on each bank at 7 a.m. ET Sunday, providing insight into how healthy the banks are now and how they could fare in the future.

If a firm is deemed too sick -- meaning it wouldn't have the resources to cope with a shock -- it will be forced to submit remedies, including possibly raising more money from investors.

Related: Debt-laden 'zombie' firms are threatening China's economy

Analysts have been busy forecasting which banks are most at risk of failing.

JPMorgan said two Greek banks -- Eurobank and Piraeus -- are among those most likely to fail, along with Portugal's Banco Comercial Portugues.

Eurobank did not respond to a request for comment. Piraeus and BCP declined to comment.

Pimco portfolio manager Philippe Bodereau estimates that 18 banks will fail the tests, though he didn't say which.

It's widely expected that the region's biggest banks should be fine.

The results of the health check come just weeks before the European Central Bank assumes responsibility for supervising the eurozone's biggest lenders, a move intended to reduce the risk of future bank failures.

-- CNN's Anna Stewart contributed to this article.

First Published: October 23, 2014: 6:14 AM ET

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Customers up, profit up at Comcast

NEW YORK (CNNMoney)

That's significant because Comcast (CMCSA) is the biggest cable provider and one of the biggest entertainment producers in the United States. Its earnings are a reflection of the industry's stability -- or lack thereof.

In the third quarter, Comcast posted a 12% uptick in earnings, to 73 cents per share, once one-time tax adjustments and merger-related costs were excluded. Analysts had expected 71 cents per share on average.

Overall revenue increased 4% to $16.8 billion for the quarter. On the distribution side, revenue was up 5.2% to $11 billion; on the production side, NBCUniversal, revenue climbed 1.2% to $5.9 billion.

NBC's broadcast division was the standout in the quarter, gaining ground faster than the division that includes cable channels such as USA, E! and MSNBC.

Tellingly, the cable division saw revenue from cable subscriber fees grow 5.1% while revenue from advertising dropped 4.6%, continuing a long-term trend toward subscriptions overshadowing advertising.

Ad revenue has been weak across the TV industry lately, "primarily due to a decline in ratings," as Comcast said in its third-quarter earnings statement. This has been attributed to fragmentation and online viewing options -- Americans are still hooked on TV, but they're watching in a newly wide variety of ways.

To that point, Comcast gained 315,000 new broadband Internet subscribers in the third quarter. It now has 21.6 million broadband customers and 22.4 million cable TV subscribers, most of whom receive both services.

Related: Comcast vows: we'll fix our customer service

Comcast has been fighting to hold onto those cable TV subscribers amid tough competition from DirecTV (DTV) and Verizon (VZ, Tech30) FiOS, as well as omnipresent concerns about cord-cutting.

CEO Brian Roberts said Comcast lost a smaller number of TV subscribers than it has lost in the past, just 81,000.

Overall, "customer relationships increased by 82,000 to 26.9 million," the company said.

Comcast was ridiculed during the third quarter when two customers' terrible experiences with customer service representatives went viral.

On a conference call with investors on Thursday, Roberts didn't respond directly to those complaints, but he said "customer service should be our best product."

First Published: October 23, 2014: 8:06 AM ET

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Refinancing your mortgage? Opportunity knocks

Mortgage borrowers are getting the lowest rate mortgages of the year right now.

NEW YORK (CNNMoney)

The 15-year fixed hit 3.08% according to Freddie Mac's weekly survey, a tenth of a percentage point lower than last week and down sharply from 3.36% early in the month. Rates for 30-year loans dipped 0.05 percentage point to 3.92%.

"For borrowers hoping to pull the trigger on a refinance, this spate of the lowest mortgage rates since June 2013 is a pretty good opportunity," said Keith Gumbinger of HSH.com, a mortgage information company.

With equity markets on a roller coaster and bad economic news roiling Europe, investors have fled to safe havens in bonds and mortgage-backed securities, depressing interest rates.

It's a boon for existing homeowners with mortgages a few years old. Borrowers can swap their old 30-year loans at, say 5% or more, for spanking new 15-year loans at the current rate.

Related: For $65 million, you can buy Miami's most expensive home

Their payments may not fall -- as a matter of fact, they'll go up by about $340 a month for someone refinancing a mortgage balance of $200,000. But instead of making payments of $1,075 a month for 25 more years, they'll pay $1,423 for 15 years and then be mortgage free. So, if they can afford the higher monthly bills, borrowers can save more than $137,000 in interest over the term of the loan.

The opportunity may not last long, though, according to Gumbinger. Markets are very volatile right now, so rates could change quickly.

"It pays to be prepared to jump and lock in a rate when they come along," he said.

First Published: October 23, 2014: 10:15 AM ET

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Dunkin' gets dunked: Weak doughnut sales hurt stock

NEW YORK (CNNMoney)

Shares of Dunkin' Brands (DNKN) fell nearly 4% Thursday after the coffee and doughnut chain reported revenue for the third quarter that missed forecasts and also warned that it will be a "challenge" to meet the low end of its sales growth target for the full year.

The company, which owns Dunkin' Donuts as well as the Baskin-Robbins line of ice cream shops, has had a tough 2014. Shares are down nearly 10%.

What in the name of Munchkins is going on? It's not as if investors have suddenly decided to shun coffee. Just look at how well Keurig Green Mountain's (GMCR) stock has done this year. It's nearly doubled and is one of the best performers in the S&P 500.

But it may be the case that consumers are more interested in brewing their own coffee at home instead of going out for it.

Dunkin' Brands CEO Travis Nigel said in the company's press release that the economy and a "highly competitive" market for breakfast and coffee offerings were big reasons why growth is so sluggish.

Same-store sales for Dunkin' Donuts in the United States rose just 2% in the quarter, compared to a 4.2% increase a year ago.

And Nigel is correct in saying that the market is competitive. In fact, it's brutal. And it's showing up in the stock performance of Dunkin's rivals.

Related: Glazed and confused: Krispy Kreme stumbles

Shares of Starbucks (SBUX), which will report its latest results on October 30, are down 4% this year. Krispy Kreme's (KKD) stock is down about 10% as well.

The only coffee and doughnut company that is having a solid year on Wall Street is Canada-based Tim Hortons (THI) -- and that's mainly because Burger King (BKW) has agreed to buy it. Timmy Ho's (as my wife and her Buffalo friends refer to it) is up nearly 40% this year.

Other fast food chains have been aggressively going after the morning cup of joe and egg sandwich crowd too.

Dunkin' and Starbucks now face tough competition from the likes of McDonald's (MCD), Yum! Brands (YUM)-owned Taco Bell and Panera (PNRA).

Related: Enough with the bleeping pumpkins!

One way for Dunkin' and Starbucks to differentiate themselves is with gimmicky seasonal drinks. Starbucks created a craze with its Pumpkin Spice Latte. Dunkin' followed suit with a Pumpkin Creme Brulee Latte.

And with the holidays rapidly approaching, Starbucks is set to unleash its new Chestnut Praline Latte on the world. Will Dunkin' come up with something similar? Stay tuned.

But one thing is clear. The losers in the coffee and breakfast wars are investors trying to pick out a winner.

First Published: October 23, 2014: 11:36 AM ET

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Lucasfilm disputes brewery's 'Star Wars' beer name

For Lucasfilm, the force was too strong in the name of Empire Brewing Co.'s 'Strike Bock' beer.

NEW YORK (CNNMoney)

Lucasfilm is attempting to block a trademark on one of Empire Brewery Co.'s, signature beers, "Strikes Bock."

The bock beer's title when combined with the bar's namesake makes for a pun on the 1980 "Star Wars" sequel (or fifth film in the series, depending on who you ask) "Empire Strikes Back."

"We named it 'Strikes Bock' because we thought it was a clever pun," said Monica Palmer, Empire's director of marketing. "We weren't trying to infringe on anything. We were just trying to make a nice beer with a funny name."

Lucasfilm filed its "notice of opposition" against Empire Brewery, a brewpub located in Syracuse New York when it tried to trademark the beer recently. Strikes Bock by Empire -- as the brewpub calls it -- has actually been around for seven years.

Related: Woman says Disney stole my 'Frozen' life

"Applicant's Empire Strikes Bock mark is virtually identical in sound, appearance, and connotation to Lucasfilm's The Empire Strikes Back mark," Lucasfilm stated in its legal filing with the brewpub.

The company says in the filing that the name could confuse people into thinking it is related to the "Star Wars" franchise, one of the most profitable brands in this galaxy or any far, far away.

The six films in the series alone have totaled $4.5 billion at the global box office (with a highly anticipated seventh on the way), which is not to mention the film's merchandising, TV shows, and marketing. Lucasfilm was bought in 2012 by Disney for $4 billion.

However, regardless of the opposition, the folks at Empire Brewery Co. are still big fans of the films.

"Our GM is a huge 'Star Wars' fan," Palmer said. "He might be a Stormtrooper for Halloween this year."

Lucasfilm did not return e-mails for comment regarding this story.

Related: Downey Jr. may be 'Captain America's' hero

First Published: October 23, 2014: 11:39 AM ET

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Virtual reality movies are coming

Oculus in action.

NEW YORK (CNNMoney)

That's the future virtual reality enthusiasts from Oculus VR and elsewhere are sketching out, extolling the technology as a transformative new medium for visual storytelling.

"At some point, VR is going to eliminate the need to go to a physical place and see a big screen," Oculus CEO Brendan Iribe told CNNMoney. "It can be even richer than the IMAX experience in a theater, because it can be 360 and all around you."

Did you think virtual reality was just for video games? So did Oculus at first. The company, which was acquired by Facebook (FB, Tech30) earlier this year for $2 billion, counts a number of people with video gaming backgrounds among its earliest employees. Most of them believed that's where the main applications of the technology would lie, Iribe said.

Related: How Mark Zuckerberg courts companies

"What we quickly realized was that stepping into this virtual world where you had bullets whizzing by you was very jarring, and for most people it was too jarring," he said. "What we did find was that real-time cinema experiences and video experiences turn out to be some of the most compelling, comfortable content."

All that content is still in the experimental phase, particularly since VR headsets haven't yet hit the mass market. Oculus, the most promising player in the field, doesn't even have a consumer product on store shelves yet.

But independent filmmakers have already produced a number of Oculus-ready short movies, which generally clock in at under 15 minutes. The challenge, directors say, is having to rethink storytelling for an interactive medium in which you can't control where the viewer looks.

"It's exciting because the rules haven't been written -- it feels very much like the days of early cinema," said Ikrima Elhassan, whose studio has shot a handful of VR projects.

Elhassan says that for VR filmmakers, "the entire production process has to be rethought." Among the challenges: How do you direct a viewer's attention? How do you do cuts that aren't too jarring? How do you move people through a virtual environment without making them sick?

There's also the question of when VR content will find a wide audience. Iribe says it will likely be five to seven years before Oculus produces a headset compact enough to prompt wide adoption.

"The jury is still out on whether traditional Hollywood production companies are going to be the ones to come in and produce the truly magical, original VR content the right way," Iribe said, adding that Oculus has met with a number of major studios to demonstrate the technology.

"They don't quite know what to think of it all -- they don't know when it will get to scale, when there will be 10, 20, 30 million people with VR headsets," he said.

Some big studios are experimenting with the technology, including Fox Searchlight, which is reportedly working on virtual reality experiences tied to "Night at the Museum" and the upcoming Reese Witherspoon film "Wild."

Related: $2 billion for Oculus? That's cheap!

For now, it's easier to create an immersive VR experience using computer-generated graphics than live action. That's because the computer-generated environment can be programmed to track a viewer's position and respond to movements. Imagine, for example, leaning into a scene while watching "Toy Story" and having Woody turn and make eye contact with you.

With live action, by contrast, scenes are created using footage from multiple cameras that gets stitched together to create a panoramic view. It's harder to make those scenes responsive to the viewer, but filmmakers say the experience of being immersed in the action is striking nonetheless.

"It gives you this really powerful and emotional experience of being present," Felix Lajeunesse of Felix and Paul Studios, which makes VR content.

"It's going to grow at exponential speed," he added. "It's just too interesting and extraordinary an experience for it to fail."

First Published: October 23, 2014: 11:50 AM ET

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What's keeping bond investors awake at night?

Newport Beach, Calif. (CNNMoney)

Things would get messy pretty quickly.

That's exactly what some bond investors are worried will happen if panic strikes certain corners of the fixed-income market that lack liquidity.

Known as the lifeblood of financial markets, liquidity measures how easy it is for investors to quickly buy and sell securities. Without it, prices can quickly plunge.

Bond investors are increasingly losing sleep over liquidity concerns. It was the most frequently talked about issue among panelists at ETF.com's Fixed Income Conference this week.

"No matter how inventive we become, there's no way of outmaneuvering the lack of liquidity. We are going to start to see much gappier reactions in the market," Robert Smith, president and chief investment officer at Sage Advisory Services, said at the conference.

Related: Can you protect yourself from a market crash?

While the U.S. Treasury market is extremely deep and liquid, a number of investors expressed concern about the liquidity of the bank loan and high-yield sectors of fixed income.

These riskier areas have become popular places for investors searching for returns in today's world of zero interest rates. But what happens to these investors when they try to swim to safer waters at the first sign of higher interest rates?

"There are a lot of investors swimming out in the deep end of the credit pool without their waders on," said Smith.

The lack of liquidity is being blamed at least partially on tougher regulations that have forced banks to cut the amount of corporate bonds sitting on their balance sheets. That means banks are less able to grease the markets in times of stress.

"We have a very Volckerized Wall Street right now. It's been brought to its knees by regulation," said Smith. He was referring to the Volcker Rule, which has limited the types and amount of securities banks can hold on their books.

Concerns about low liquidity are amplified by the presence of "crowded trades" in which many investors hold the same position.

"We feel a day of reckoning is coming, where the size of the exit door will be highly incompatible with the volume of bonds looking to exit. When that occurs, prices will adjust downwards in a hurry," Nottingham Advisors wrote in a note to clients on Sept. 30.

Related: Oil will tumble to $70, says new 'bond king.'

Rick Rieder, co-head of Americas fixed income at BlackRock, said trades have become more crowded because of the deleveraging process the financial system has undergone since the Great Recession.

That process has caused a drop in the production of new debt at a time when an aging U.S. population is searching for stable income from bonds.

"There are not enough financial assets in the world," said Rieder. "Demand is much bigger than supply."

No matter the cause of low liquidity and crowded trades in the bond markets, Smith said the implications for investors are clear.

"Don't be the last guy in the canoe as it's going over the waterfall," he said.

First Published: October 23, 2014: 8:31 AM ET

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Goldman Sachs is hiring as profit soars

Goldman Sachs Chief Lloyd Blankfein is probably pretty happy with his firm's earnings.

NEW YORK (CNNMoney)

The investment banking powerhouse trounced earnings expectations Thursday when it reported a 25% jump in third quarter revenue compared to same period last year.

In a sign that the post-crisis cost cutting mentality on Wall Street may be ending, Goldman said it's total headcount increased 3% last quarter. And employees can expect big paychecks this year. The company's compensation and benefits for the quarter (which includes money set aside for bonuses) were $2.80 billion, 18% higher than the same three months in 2013.

Related: Wall Street is hurting ... sorta

Goldman capitalized on the wave of mergers and acquisitions activity over the summer, bringing in almost $600 million alone from fees earned by advising companies on such transactions.

Managing money for wealthy individuals and institutions also pays well, evidenced by the firm's 20% bounce in its investment management division.

Overall, Goldman booked a third quarter profit of over $2.2 billion, or $4.57 a share, on revenue of nearly $8.4 billion. That was compared to analyst estimates of $3.21 per share on revenue of about $7.8 billion.

Related: Citigroup says goodbye to 11 countries

While the bank's numbers are impressive, they are lower than the second quarter.

"The combination of improving economic conditions in the U.S. and a strong global franchise continued to drive client activity across our diverse set of businesses," said Lloyd C. Blankfein, Chairman and CEO of Goldman, in the earnings press release.

"While conditions and sentiment can shift quickly, the strength of our transaction backlog indicates our clients' desire to pursue and execute their strategic plans for growth," he said.

Still, investors are often a tough crowd. The stock is down 2% Thursday.

First Published: October 16, 2014: 9:42 AM ET

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How much should you tip housekeeping? A travel tipping guide

Tipping: What's the right amount?

NEW YORK (CNNMoney)

The move immediately prompted debates of all sorts. Among travelers, the chatter centered around what's an appropriate amount and who else to tip along the way.

Marriott (MAR) didn't specify, but the American Hotel & Lodging Association suggests leaving housekeepers a tip of $1 to $5 per day. There was no guide for tipping others who help in your travels - the bellhop, the valet or the cab driver.

Related: Mariott: Tip your housekeeper!

Etiquette pros agree that tipping can be awkward, especially in unfamiliar environments.

The number one rule of thumb: When in doubt, tip. But remember to ask if tips are accepted, since there are some establishments that have a "no tipping" policy.

"Let me tell you, they will tell you if they accept tips," said Jacqueline Whitmore, founder of The Protocol School in Palm Beach.

But you don't want to blow you entire vacation budget by overtipping, so here's a cheat sheet:

At the airport

Taxi Driver: 10-15% of the bill and add $2-$3 for every bag the driver helps get in and out of the vehicle.

Private Car Service: 20% of the total, but be sure to check the bill to see if the tip is already included, especially if the car is pre-paid. "If someone else is paying for it, add a tip," said etiquette expert Elaine Swann. "Go with a dollar amount based on distance: $5 for shorter trips and $10 or more for longer distances."

Related: Hottest places to travel this winter

Shuttle Drivers: $1-$3 per bag if the driver assists with loading and unloading. If the driver doesn't help, the experts said it's acceptable to skip a tip.

Wheelchair assistance/Skycap: $5-$10 for assistance getting through security and to the gate or for plane-side pickup. For skycaps, tip $1-$2 per bag.

At the hotel

Any person that helps with your bags should get tipped $1-$3 per bag, including doormen, bellman and greeters. If a doorman hails a cab, tip $1-$2, said Whitmore.

Housekeeping: $2-$10 a day depending on the quality of service and the hotel. Because staff can vary each day, experts advise leaving a tip daily. If a staff member brings up extra towels late at night or fulfills another request, tip $1-$5. "If someone is coming to your floor that wouldn't ordinarily be there, give a tip," said Whitmore.

Related: Best hotels of 2014

Room Service: 10-15% of the bill if it's not already included. "If it is, you can give $1-$5 to the delivery person," suggested Patricia Napier-Fitzpatrick, founder of the Etiquette School of New York.

Concierge: $10 or more depending on the level of engagement. Scoring hard-to-get reservations or tickets should be rewarded with more, said Napier-Fitzpatrick. There's no need to tip for dining or activity recommendations.

Out & about

Tour Guides: $5-$10 for a group tour, or 20% of the cost for a private guide. "If it's a bus tour, don't forget to also tip the bus driver a couple bucks," said Napier-Fitzpatrick.

Wine Sommelier: Optional. But if service is exceptional, Whitmore recommended a tip of 5-10% of the wine.

Valet: $2-$5 each time an attendant brings the car.

First Published: October 16, 2014: 12:35 PM ET

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She's America's youngest female billionaire - and a dropout

NEW YORK (CNNMoney)

Elizabeth Holmes left Stanford University at 19 with a plan to start her own company. For money, she cashed out the funds her parents had saved for tuition. Now, she counts billionaire Larry Ellison as an investor and has former secretaries of state on her board.

"I think a lot of young people have incredible ideas and incredible insights, but sometimes they wait before they go give their life to something," she said. "What I did was just to start a little earlier."

Holmes, through her company Theranos, has taken on the $76 billion laboratory-diagnostic industry as her target. It's an industry that was just waiting to be disrupted, since blood testing has not changed since the modern clinical lab emerged in the 1960s.

Her idea: No more vials. No more tourniquets. Just a pinprick of blood gathered in a container smaller than a dime. And up to 70 lab tests can be run on one drop of blood in less time than traditional tests.

Holmes thinks that ease of testing will make people more likely to go through with blood tests and help with earlier detection of illness, something she's passionate about. Her father, Christian Holmes IV, has spent a career working in humanitarian assistance, including several executive positions with USAID.

"My father worked in disaster relief and so I grew up in a house that had pictures of all these little children in really tough parts of the world," she said. "I was absolutely convinced that was what I was going to do. Then when I started realizing that a company could be a vehicle for having very direct impact over a change that you are trying to make, I started thinking about the concept of what could I build that could impact a lot of peoples' lives?"

Elizabeth Holmes owns 50% of her company, Theranos.

The solution she's built is the Theranos Wellness Center, which has calming music, glossy magazines and offers a blood test with a relatively painless prick. Holmes' ultimate goal is to have one center within five miles of any American (or one mile for folks in big cities).

Theranos teamed up with Walgreens pharmacies to help make that happen, and the centers are built within existing Walgreens stores.

There are currently centers in California and Arizona, with plans for a gradual rollout into 8,200 neighborhood Walgreens across the country.

"It's bringing the testing closer to where people live and also changing the hours of operation, so that on a weekend or late at night you can get access to these tests. You don't have to leave work, leave your job during the day," Holmes said.

Holmes is also a proponent of transparency in health care, so Theranos lists the price of all of its nearly 1,000 tests on its website. Often the costs are a fraction of what they would be through standard reimbursement rates.

The Theranos labs are shrouded in secrecy.

According to American Clinical Laboratory Association, more than 7 billion lab tests are performed in the U.S. annually and lab results dictate 80% of clinical decisions. Far too often, the cost of laboratory tests and the fear of having a needle jabbed into one's arm deters patients from getting the necessary tests.

"Forty to sixty percent of Americans today are not compliant with even the basic tests that their physicians give them when they do see them, because often they can't afford it, or they are scared of needles," Holmes said.

She feels the same way about needles.

"I really believe that if we were from another planet and we sat down to put our heads together on torture experiments, the concept of sticking a needle into someone and sucking their blood out would probably qualify as a pretty good one," she said.

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First Published: October 16, 2014: 8:57 AM ET

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How Boston is getting dropouts back to school

Mary Nelson, 20, a former high school dropout, fills out forms after getting hired at a mall in Boston.

NEW YORK (CNNMoney)

Nelson, 20, got held back twice when she was younger, which meant she was 16 as a high school freshman. That was the last grade she completed.

She made the decision to get her high school diploma this year and started taking online classes through the Boston Public Schools Re-Engagement Center. The flexibility allows her to work, study and care for Maurice, her nine-month-old son.

"There was an option of getting my GED, and there's nothing wrong with that, but I want my son to see that I tried my best and I did my hardest for him -- and for myself as well," Nelson said.

Nelson is one of the many Boston students taking advantage of the vast number of programs available in the public school system. The city's dropout rate is 4.5%, one of the lowest of any major U.S. city, and it's been dropping for the last eight years.

High school student Cassandra Bergeron, 18, outside the re-engagement center.

One way Boston has tackled the dropout rate is to try to reach kids before they hit the point where Nelson once was. The city uses data to identify at-risk students as early as their freshman year, and some are flagged while still in the eighth grade.

"We can tell which students need which support," said Mary Skipper, network superintendent for Boston public high schools.

These students are identified through several factors, including poor grades and attendance, behavioral issues and family troubles. Often, kids just need extra time or more flexibility, and are offered enrollment in a five-year high school program.

It seems to be working. The graduation rate for Boston students taking part in the five-year program has been increasing over the last several years, and crucially, the additional year seems most beneficial to African-American and Hispanic students, who are most at risk.

Gail A. Forbes-Harris, director of the re-engagement center, said she sees the kids at the center as her own.

But kids still drop out, and the re-engagement center opened in 2009 to make sure they still have educational opportunities. It was only the second in the country (the first was in Philadelphia), and it identifies the best program for each student, whether it's regular high school classes, online courses or placement at Boston Adult Technical Academy, a public school for high school students ages 19-22.

Hundreds of students make their way through the re-engagement center every year. Two years ago, Eugene Johnson, 22, was one of them. Like many kids, he was brought to the center by a friend.

He grew up across the street from Northeastern University, but never thought college was an option. He had a son at 16, dropped out of high school at 17 and spent the next several years homeless or incarcerated.

When Eugene Johnson was homeless, he would walk for miles to find somewhere to sleep.

Then he made a decision to go back to school. "I just needed to complete some steps in my life," he said.

The center assigned him an academic counselor and matched his skill level with online classes. He spent two years at the center, going every day and even through the summers. He graduated a few months ago and has a home, a steady job and is studying to be a nursing assistant at a local community college.

"I'm not living for me," he said, and spoke of his son, now four years old. "I'm going to school for nursing for him. I can't have him going through what I just went through."

While Johnson's success is a win for Boston's school system, Skipper said the dropout rate still isn't low enough.

"Until it's at 0%, we as a district will not be satisfied," she said. "That is a Boston mentality."

First Published: October 16, 2014: 10:57 AM ET

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Apple set to release new iPads

NEW YORK (CNNMoney)

Apple (AAPL, Tech30) is set to unveil new editions of the iPad and iPad Mini at an event in California on Thursday, and could also provide details on the launch of its new Apple Pay system.

The company accidentally leaked photos and details on key features of the new iPads -- the iPad Air 2 and the iPad Mini 3 -- in iTunes on Wednesday.

Discovered by 9to5Mac, the photos show that the new tablets will both gain TouchID fingerprint sensors, which are currently only available on the iPhone, and that the Air 2 will gain a burst photography mode. They also seem to verify that the latest update to the company's mobile operating system, iOS 8.1, is coming Thursday.

Overall, the physical designs of the new tablets appear to be largely unchanged from existing iPad models.

Related: Apple's plan to change how you pay for everything

Beyond the iPads, there may be more details about the launch of Apple Pay, a system that will let iPhone 6 and iPhone 6 Plus owners spend money at participating stores simply by using their phones' fingerprint scanner and holding the device up to the register.

Apple has already announced that a number of major retailers will support the system from its launch, including Bloomingdale's, Macy's (M), McDonald's (MCD), Staples (SPLS) and Whole Foods (WFM).

Apple may also unveil the latest editions of its Mac desktop computers and provide a release date for the OS X Yosemite operating system.

First Published: October 16, 2014: 11:10 AM ET

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Mortgage rates fall below 4%

NEW YORK (CNNMoney)

Interest rates on a 30-year, fixed-rate mortgage fell to 3.97% this week, according to Freddie Mac. That's down from 4.12% last week and the lowest level since June 20, 2013.

The drop in mortgage rates comes as investors have flocked to the safety of U.S. Treasury bonds. The yield on the benchmark 10-year Treasury note has tumbled as low as 1.86% this week.

Mortgage rates usually move lock step with the yield on the 10-year note.

Related: 5 things to consider before tapping into your home for cash

Investors have rushed to bonds because they have been spooked by a combination of economic weakness in Europe, concerns about Ebola and geopolitical turmoil around the world.

"Rates are at their lowest levels since June 2013 amidst continued investor skepticism regarding the precarious economic situation in Europe," said Frank Nothaft, chief economist at Freddie Mac.

Mortgage rates have gone lower despite expectations that they would start rising as the Federal Reserve starts pulling back its economic stimulus.

Related: I bought a house for $1,000

The Fed has cut back its program of buying bonds and mortgage-backed securities, which everyone expected would put upward pressure on interest rates.

The latest international turmoil and the stock market rout has instead pushed rates the other way.

First Published: October 16, 2014: 10:06 AM ET

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One in every five U.S. cars recalled this year

The Jeep Wrangler, which was involved in the latest recall in a record 52 million cars and trucks recalled in the United States so far this year.

NEW YORK (CNNMoney)

Even accounting for millions of the same vehicle being recalled more than once, that's roughly the equivalent of one car out of every five on the road.

The recalls are far above the previous record of 30.8 million in 2004. The 2014 estimate comes from Stericycle, which helps automakers manage their recall process. It says there have been 544 separate recalls announced, or the equivalent of about two a day.

The leader by far in recalls has been General Motors (GM), which has accounted for just more than half of the recalls in the industry -- 26.5 million in the United States so far this year. The company has been hit by a recall crisis, admitting it made a mistake by waiting a decade before ordering a recall of millions of cars with an ignition problem now tied to 27 deaths.

That problem has prompted the company to change its procedures and order recalls more quickly. It has also gone back and looked at reports of problems with older vehicles. Most of GM's recalls have been on cars it no longer builds.

Related: More than 1 million GM cars with fatal flaws still on the road

But the change in recall procedures hasn't been limited to GM, according to Mike Rozembajgier, a vice president at Stericycle.

"We've seen a ripple effect," he said. "You will see other manufacturers be more diligent than in the past."

Rozembajgier said the greater diligence is only part of the reason for the record number of recalls. The greater complexity of modern cars can also increase the frequency of problems that can prompt a recall.

"We all want our cars to do far more than they did in the past," he said. "It takes a lot of gadgets to make that happen, and that adds to complexity."

One of two recalls announced Thursday by Chrysler is an example of that. A heated power side view mirror on more than 300,000 on Jeep Wranglers has an electrical connector that could be susceptible to short circuit and catch fire. The company has also ordered a recall even though it has no record of fires, accidents or injuries related to the problem.

Chrysler's other recall is for an alternator that can cause a car to stall while driving. All totaled, Chrysler recalled 900,000 cars nationwide Thursday.

First Published: October 16, 2014: 11:22 AM ET

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Turbulence: Another wild day for stocks

NEW YORK (CNNMoney)

The Dow plummeted about 200 points and briefly tumbled below the 16,000 level before rebounding dramatically. Now it's down again.

So what's driving the latest craziness? The early selling was sparked by continued concerns about global growth, especially in European countries like Greece and Spain.

Then stocks bounced and even briefly turned positive on new signs the Federal Reserve could keep the easy money flowing due to the recent market turbulence. That would be very bullish for the stock market, which has soared to record highs thanks in part to the Fed's stimulus programs.

Fed officials are clearly taking notice of the extreme turbulence that has hit the markets in recent days due to fears about Europe's economy, the Ebola outbreak and plunging oil prices. Just look at Wednesday, when the Dow plummeted as much as 460 points but ended the day down "only" 173 points.

"Price action this morning is ridiculous, with currencies, commodities, interest rates, volatility markets, equities, and every other financial asset class whipping up and down almost at random," Bespoke Investment Group wrote in a note to clients.

The wave of selling over the past month has nearly wiped out the stock market's gains for the year and left all three major indexes flirting with their first "correction" in years.

If the Nasdaq closes below 4,138.37, it would officially be in correction mode, signaling a 10% decline from a previous closing high. It's currently trading around 4,207.

Related: When will companies stop hoarding cash?

Fed to the rescue?

Stocks received a mid-morning boost from a pair of Federal Reserve officials who suggested the central bank should keep pumping easy-money into the economy.

James Bullard, the St. Louis Fed president, told Bloomberg News the Fed should weigh delaying the end to quantitative easing, the bond-buying experiment that has helped send stocks to record highs.

"This big flip flop from the guy I refer to as 'the Godfather of QE' is a game changer," Michael Block, chief strategist at Rhino Trading Partners, wrote in a note to clients. "This is a powerful signal that the Fed remains accommodative and is concerned with asset prices and volatility enough to consider the seemingly unthinkable step of continuing and even growing QE from current levels."

The comments mirror similar ones from another Fed official and could ease worries about interest rate hikes that would make stocks less attractive. But they also highlight concerns about whether the Fed is running out of ammo.

Despite bouncing off its lows, the Dow is still at risk of posting its first six-day losing streak since August 2013.

European jitters mount: European growth has slowed to a near halt and some countries, including even economic powerhouse Germany, are teetering on the brink of recession.

Markets in France and Germany retreated and the U.K.'s FTSE 100 tumbled nearly 3%. Virtually all European markets are now in correction territory.

Related: This is NOT another financial crisis

New problems are also emerging in the high-debt nations on Europe's periphery. Greece's stock and bond markets have been in free fall this week over worries about the country's efforts to leave its bailout program.

Those worries have spread to Spain. Investors were alarmed by the fact that Spain held a bond auction on Thursday that failed to meet its target. That's never a good sign and highlights the aversion to risk in the markets.

These concerns help explain why crude oil has plunged 6% this week alone. Oil broke below the $80-a-barrel threshold on Thursday for the first time since June 2012 before rebounding.

Related: What the heck should the Fed do now?

Good U.S. news: There are a number of positive U.S. stories that are offsetting the gloom and doom in Europe.

For example, there's fresh evidence the job market is getting healthier. Claims for first-time unemployment benefits tumbled last week to the lowest level since April 2000.

"I think it speaks loudly about the sturdiness of the labor market. That's the underpinning of a self-sustaining economic recovery," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. "The market doesn't care about that right now."

Also, a number of major companies reported quarterly earnings that exceeded expectations. Shares of Delta Air Lines (DAL) and UnitedHealth (UNH) rallied on their earnings beats.

On the other hand, Goldman Sachs (GS) dropped 2% despite reporting soaring profits and Netflix (NFLX, Tech30) plummeted over 20% on disappointing subscriber figures.

First Published: October 16, 2014: 10:37 AM ET

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New way to watch CBS shows, for $6 a month

NEW YORK (CNNMoney)

Someday the service, called CBS All Access, could give the network a direct route to viewers, bypassing its broadcast television affiliates and cable provider partners and revolutionizing the way television is delivered.

CBS and its competitors like Disney and Time Warner have recently shown interest in so-called direct-to-consumer products, and Time Warner's HBO announced on Wednesday that it would start selling a version of HBO via the Internet in 2015.

But for the time being CBS All Access is merely "additive," the CBS Corporation chief executive Les Moonves said Thursday, intended for people who don't receive CBS programming via cable or satellite.

Moonves said the service, which is available immediately, delivers "the most of CBS to our biggest fans" for $6 a month.

CBS indicated that it will sell a version of its HBO rival Showtime via the Internet sometime in the future, too.

It's as if CBS, HBO and other media giants are placing multiple bets on the future of TV -- so that they're protected no matter what happens.

The CBS All Access service mimics Hulu in some ways by providing full current-season libraries of 15 of its prime time shows.

CBS doesn't have full-season streaming rights for all of its prime time shows, however; "The Big Bang Theory" is one that will be missing.

All Access also resembles the now-defunct Aereo service by offering live streams of CBS stations in the 14 markets where the company owns stations. CBS and the other major broadcasters successfully sued Aereo in federal court.

The stations' signals are already available for free over the public airwaves, but CBS's app brings the signals onto mobile phones and tablets.

CBS All Access further mimics Hulu (and Netflix and Amazon Prime) by providing past seasons of current series like "The Good Wife" and retired series like "Cheers."

What it won't provide, though, is any access to one of CBS's biggest draws: Thursday and Sunday football games.

"Some sporting events, including NFL coverage, are not available for live streaming through CBS All Access," the company's web site says.

The service may appeal to some people who don't currently subscribe to any form of cable or satellite -- "cord-cutters."

Those are the same people HBO said it wants to reach by selling a separate subscription service. CBS, however, has a somewhat older and more traditional viewership.

"HBO and CBS a la carte won't blow up cable," Derek Thompson of The Atlantic wrote on Thursday. "The vast majority of older households adores pay-TV and spends four to five hours a day glued to the couch."

But younger households are different, Thompson wrote, and options like CBS All Access, HBO via the Internet, Netflix, and others make it "thinkable to be a television fanatic without actually paying for what we've historically considered 'television.'"

First Published: October 16, 2014: 9:36 AM ET

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Time to shop 'til you drop for cheap stocks

These stocks are 20% below their recent highs, pay dividends and should report decent earnings growth. Time to buy?

NEW YORK (CNNMoney)

You read that correctly. While your heart may be telling you it's time to get out of the market, panicking while stocks are plunging has historically been the wrong thing to do.

Time and time again, savvy investors like Warren Buffett and the late Sir John Templeton made a killing by purchasing bargain stocks after big drops.

Templeton was famous for saying that his investing philosophy was to buy when others were "despondently selling" and sell when others were "avidly buying."

The trouble is that many stocks that have fallen on hard times have done so for very good reasons. A cheap stock might be too good to be true -- the market's version of the house that Tom Hanks and Shelley Long bought in "The Money Pit."

Experts even have a phrase for beaten down stocks that deserve to be in the dumps: a value trap. (Cue Admiral Ackbar from "Return of the Jedi: It's a trap!)

To avoid getting caught in one of these, I ran a stock screen with some nifty software from FactSet so I could find high-quality companies trading at outlet mall prices.

Related: When will companies stop hoarding cash?

How to find the bargains: Now I realize that not everyone has access to such tools. Fortunately, there are several great stock screens you can use online for free.

The Nasdaq has a really solid one that's powered by Zacks. A site called Finviz.com has a good one too. The finance sites of both Google and Yahoo also have such tools. And if you have an online brokerage account, there's a good chance that you can access one there too.

I encourage any long-term investor to play around with some screens. Looking at raw data eliminates much of the emotion that can cause you to make bad mistakes.

For my screen, I started by looking for companies that are technically in a bear market. They are at least 20% below their 52-week highs.

I then made sure that the companies have relatively little debt and also pay dividends. Strong balance sheets and a willingness to reward investors with cash payments is a sign of quality.

I also set up the screen to find companies trading at reasonable valuations (a price-to-earnings ratio of less than 15 based on earnings estimates for 2015) that should also be able to post healthy levels of profit growth.

Here are some of the companies that made it through my vetting process.

1) Time to go on autopilot? Several auto-related companies popped up, including major carmakers GM (GM) and Honda (HMC). A couple of parts makers also met all my criteria: Johnson Controls (JCI), Magna International (MGA) and BorgWarner (BWA).

This makes sense. Despite serious economic problems in Europe, the automotive industry should continue to do extremely well in the United States. Sales are strong and if gas prices keep plunging, that could help make trucks and SUVs more popular as well.

2) Sifting through the tech wreck: Tech stocks have fallen harder than the broader market -- and many momentum techs should be pulling back because their valuations were, to be blunt, absurd. I'm looking at you Netflix (NFLX, Tech30), Amazon (AMZN, Tech30) and Twitter (TWTR, Tech30)!

But several tech stocks that are not trading at 2000 dot-com bubble levels look attractive. SAP (SAP, Tech30) is cheap and remains a powerhouse in business software. And two companies that should continue to benefit from the mobile revolution are flash memory chip company SanDisk (SNDK) and Gorilla Glass owner Corning (GLW), are definitely bargains right now.

3) Check out the retail bargain bin: Drugstore king Walgreen (WAG) is a great value right now. Investors seem a little too concerned by the fact that it wasn't able to lower its tax bill with its acquisition of European pharmacy chain Alliance Boots.

Two other well-known retailers made the cut. Gap (GPS) and Best Buy (BBY). Investors may be overreacting to the news that the Gap's CEO is stepping down next year and that sales hit a rough patch lately.

As for Best Buy, I'll readily admit the company still faces tough competition from the likes of Amazon and Wal-Mart (WMT). But Best Buy is not RadioShack (RSH). The company actually has a successful turnaround strategy in place. Profits are growing after all. The stock got ahead of itself last year and now appears to be reasonably priced as investors recognize the risks.

4) Black gold: Yes, crude prices have plunged. But the sell-off in energy stocks appears to be massively overdone. So it's no surprise that many leading oil companies are on the list.

Oil services titan Schlumberger (SLB) looks attractive. Ditto for shares of Chinese energy giant PetroChina (PTR) as well as big U.S. refiners Valero (VLO) and Marathon Petroleum (MPC).

Now does this mean that these stocks are guaranteed to go up in the next few days or weeks? Of course not. The broader market sell-off may not be done yet.

But investors (not traders) looking to scoop up blue chips for the long haul should be salivating right now: 20% off sales like this don't happen that often.

Reader Comment of the Week! Why do I heart Twitter so much? Because there are tons of smart people using it.

I often find great story ideas there. Case in point. Aaron Levitt tweeted this to me Wednesday afternoon.

"Everyone keeps forgetting that 2011 was a down year for stocks. Started off great, finished in the red."

I remembered that 2011 had that nasty correction. But I forgot it was so bad that stocks actually went down that year. And that inspired me to write a piece about how this stock slump is a lot more like 2011 than 2008.

So thanks, Aaron! But I wonder what you are going to do after the next Fed meeting? The "Keep Calm and Taper On" background image on your profile page is going to need to change!

First Published: October 16, 2014: 12:43 PM ET

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