Monday, December 31

Zuckerberg donates $500 million in stock to charity

Zuckerberg donates $500 million in stock to charity

Ben Popken , NBC News contributor

It's quite the Christmas gift. Facebook's CEO Mark Zuckerberg says he is donating nearly $500 million in company stock to charity in order to promote education and health initiatives.

A Facebook spokesperson confirmed to NBC News the gift of 18 million shares valued at their Tuesday closing price of $498,780,000. The sum was first announced by Zuckerberg via a status update on his Facebook page on Tuesday. The recipient is the nonprofit Silicon Valley Community Foundation, which helps donors manage and identify charitable funds that are in line with their philanthropic passions.

This gift is Zuckerberg's biggest ever. Before Facebook went public in 2010, he gave $100 million in company stock to Newark, N.J., public school districts. That same year, he signed The Giving Pledge, an effort led by Microsoft founder Bill Gates and investor Warren Buffett, where the world's wealthiest individuals commit to giving away most of their fortunes to charitable efforts.

In the status update, Zuckerberg wrote that the donation was " in order to lay the foundation for new projects" and that he is "hopeful we'll be able to have as positive an impact in our next set of projects."

Sunday, December 30

Bankrupt Kodak sells patents for $525 million

Bankrupt Kodak sells patents for $525 million

Reuters

Bankrupt camera maker Eastman Kodak Co agreed to sell its digital imaging patents for about $525 million to a consortium led by Intellectual Ventures and RPX Corp, a key step to ending its bankruptcy.

The photography pioneer said a portion of the payment will come from 12 intellectual property licensees organized by Intellectual Ventures and RPX Corporation.

A sale of the roughly 1,100 patents, which Kodak has said could be worth as much as $2.6 billion, has been a key element of the Rochester, New York-based company's plans to shift its focus to commercial packaging and printing from photography.

The agreements are subject to approval by the U.S. Bankruptcy Court in Manhattan.

The Kodak bankruptcy case is in Re: Eastman Kodak Co. et al, U.S. Bankruptcy Court, Southern District of New York, No. 12-10202.

Saturday, December 29

Hasbro plans gender-neutral Easy-Bake Oven

Hasbro plans gender-neutral Easy-Bake Oven

Courtesy Change.org

McKenna Pope prepares to enter Hasbro headquarters holding a box containing some of the 44,000 electronically signed petitions.

By Ben Popken, TODAY contributor
Hasbro plans to unveil a new black-and-silver Easy-Bake Oven in February, following an online petition urging the toy company to market the product in a way that appeals to both boys and girls.

Hasbro, which said it already had the new color scheme in the works, on Monday invited 13-year-old McKenna Pope of Garfield, N.J., and her family to check out the new design at the company's Pawtucket, R.I., headquarters. Pope's Change.org petition, asking Hasbro to make an Easy-Bake Oven in colors other than the "gender-role specific" pink and purple and to feature boys on the packaging and in its marketing materials, garnered 44,000-plus signatures, including celebrity chefs. She started the petition after noticing her 4-year-old brother Gavyn Boscio's interest in cooking. When she went to shop for an Easy-Bake Oven for him, she was bothered that the design and box seemed to focus solely on girls.

"I feel that this sends a clear message: women cook, men work," Pope wrote in her petition description.

McKenna Pope, right, with her mother, Erica Boscio, and (from left) brothers Gavyn and Matthew at Hasbro headquarters in Pawtucket, R.I.

"We value input from our consumers and given the widespread interest in McKenna Pope’s story, we extended an invitation to McKenna and her family to visit Hasbro and meet with our EASY-BAKE team," Hasbro's vice president of global brands and publicity, Julie Duffy, told TODAY. During the visit, Duffy said Hasbro showed Pope and her family the new black-and-silver Easy-Bake Oven design the company has had in development for the past 18 months. The design is set to be revealed for the first time at the New York Toy Fair in February 2013.

When asked whether Hasbro would feature boys in the marketing for the toy, Duffy told TODAY that all of the 2013 marketing plans for all its brands are still in development.

Pope told the Associated Press that her younger brother pronounced the new design "awesome." She could not be reached directly for comment, as she in school.

The Associated Press contributed to this report.

Teenager McKenna Pope's YouTube video in which she and her little brother ask Hasbro to make a gender-neutral Easy-Bake Oven.

Friday, December 28

Shooting gunmaker to be sold by Cerberus

Allison Linn , NBC News

A major private equity firm has decided that putting its clients’ money into a company that makes assault-type weapons isn’t a wise strategy.

At the same time a large sporting goods chain has said that, at least for now, it would not sell those types of weapons.

The decisions came as pressure rises for the government to do something about the proliferation of assault-type weapons that have been used in several recent mass shootings.


Cerberus Capital Management said Tuesday, after discussions with investors, that it would sell its stake in Freedom Group, a major weapons producer whose portfolio includes such well-known gun brands as Remington and Bushmaster Firearms.

Bushmaster made the AR-15 type weapon used in the Newtown shooting, in which 20 children, six or seven years old, and six staff were killed at the Sandy Hook Elementary School. The gunman also killed his mother and himself.

Cerberus said in a statement that it believes its role is to make investments for its clients, not shape policy debate, but that there are actions a company can take.

“We believe that this decision allows us to meet our obligations to the investors whose interests we are entrusted to protect without being drawn into the national debate that is more properly pursued by those with the formal charter and public responsibility to do so,” the company said in a statement posted on its website.

Freedom Group reported net sales of more than $677 million for the nine months ended September 30, according to its website. That compares with sales of $564.6 million for the same nine-month period a year earlier.

Cerberus has more than $20 billion in assets under management and makes investments on behalf of investors including pension plans for teachers and other municipal workers.

The California State Teachers Retirement System had been re-evaluating its investment in Cerberus following the Newtown shooting.

Spokesman Michael Sicilia told NBC News Tuesday that the fund made initial investments of $600 million in Cerberus in 2003 and 2007. It owns an approximately 2.4 percent stake in Freedom Group as part of that investment, he said.

Sicilia said the large teachers’ pension fund had committed in 2008 to start looking at its investments through the lens of environmental, social and other criteria.

Now, he said, the company was looking back at investments made before the 2008 decision, such as the Cerberus investment.

“I think going forward CalSTRS will work to ensure that all investments are taking in account these important considerations,” he said.

Separately, Dick’s Sporting Goods also said Tuesday that it would temporary stop selling guns at a store near Newtown and suspend the sale of “modern sporting rifles” for all stores nationwide.

The company did not immediately respond to repeated requests to clarify what specific guns it would not sell or how long the suspension would last.

“We are extremely saddened by the unspeakable tragedy that occurred last week in Newtown, CT, and our hearts go out to the victims and their families, and to the entire community,” Dick’s said in a statement.

Politicians and thought leaders across the nation seem to be re-evaluating their stances on gun ownership in the wake of the Newtown tragedy and other mass shootings in Colorado, Arizona and elsewhere.

President Barack Obama said Sunday that he would lead an effort to prevent tragedies such as the one in Newtown, and other traditionally pro-gun Democrats seem willing to rethink the nation's gun laws.

White House spokesman Jay Carney said in a briefing with reporters Tuesday that President Obama would support a Congressional effort to reinstate an assault weapons ban and to close any loopholes related to gun shows. But he also noted that gun control legislation alone will not solve violent crime problems.

Others, such as New York Mayor Michael Bloomberg, an Independent, have been even more forceful in calling for major changes to prevent more gun violence.

Any effort to curtail gun sales could be a blow to companies that manufacture and sell such weapons. Shares in Smith and Wesson Holding Company have fallen by about 19 percent since the close of trading on the Thursday before the Newtown shooting. Shares in Sturm Ruger and Co. are down about 13 percent over that time period.

Neither company saw shares have such significant drops in the days following the mass shooting at a movie theater in Colorado last July.

Still, Second Amendment rights are held dear to many Americans, and not all politicians or corporations appeared to be making any immediate changes.

Wal-Mart spokesman Kory Lundberg said Tuesday that the major retailer had no immediate plans to change its sales strategy.

“We don’t sell guns online and we have made no change to the assortment of guns we sell in our stores,” Lundberg wrote in an e-mail.

Thursday, December 27

Steve Jobs yacht seized over unpaid Bill

Steve Jobs yacht seized over unpaid Bill

Reuters
AMSTERDAM - a super yacht built for Apple Inc. late co-founder of Steve jobs in Amsterdam seized due to a dispute over an unpaid invoice designer Philippe Starck has been, a lawyer said on Friday.

Jobs, who died last year after his name and fortune at Apple make, never got, but had to use the yacht - Venus - called the French designer working on board a ship, more than EUR 100 million building costs in order given.

Lawyer, Starck company Ubik which EUR 9 million for his work on the vessel minimalist had told of Reuters of his client's 6 million euro from a Commission and sought now restore the rest of what he was owed.

The yacht was on Wednesday evening, dammed, the lawyer said, and will remain in the port of Amsterdam real estate jobs' until the payment is received by lawyers.

"The project has been since 2007 and it had much detailed conversation between jobs and Starck," said Roelant Klaassen, a lawyer who represents Ubik,.

"These guys familiar to each other there was a very detailed contract does not," he said.

The lawyer, jobs real estate represents could not immediately reached for comment.

Wednesday, December 26

One of you two gets sacked; You choose the

One of you two gets sacked; You choose the

A. Pavlovsky, NBC News contribution
She could the redundancies-a how to "hunger games" call, the a big thumbs down from workplace experts always.

Recently two journalists, Karen Dillon and Dawn Bormann the Kansas City star said, only one of them could your job-keep and the workers themselves had to decide who, should leave the company JimRomenesko.com according to the media blog.

Dillion confirmed the report in an E-mail to NBC News, but offer no more details. The investigative reporter worked for the Kansas City Star since 1991, according to her LinkedIn profile.

Bormann did not respond to email comment a search. She leaves the company, allegedly after KC confidential, a blog that covers topics of Kansas City.

On Monday announced MI-AI Parrish, President and publisher of the Kansas City Star, in a memo to employees is a new round of Entlassungen--the third since joined the company in 2011, according to MediaKC, a blog that covers media problems.

In a statement via e-Mail to NBC News late Wednesday, Parrish said that cut the paper of its workforce by 17 positions was.

"These are always tough decisions, we occasionally allow employees to voluntarily for a severance package, if we reduce areas are where there are two or more of the same types of positions," Parrish said.

She added that if an employee in a group do not voluntarily, "then the person with the least tenure in the severance program is included."

Parrish turned more personal decisions to comment.

Workplace experts said, that it is almost unheard for a company this approach when deciding who is to quit - for good reason.

"I warn strongly any organization from insourcing dismissal decisions to employees." There is a reason why they pay people in management positions, more than they pay their direct reports, '' said Bob Kelleher, CEO of the Group of employee engagement and author of the new book"Creativeship: a novel for evolving Guide. "

"Guide for these difficult decisions should make responsible," said Kelleher. "I don't think that it staff, which should be implemented in the location, these decisions."

Company questions sometimes workers in a situation voluntary dismissal step forward, but a person to an other pitting is not the way to go, said Nan Russell, host of the radio show "Work matters" and author of "titleless Guide."

"Personally, I think it is very frightening that individuals would be, that such situation-not only from the emotional point of view for them to have left to make this decision, but also for the people, what happens and their lack of respect for the leaders in this organization, now" she said.

Management guidelines usually occurred when it comes layoffs, whether the call depending on the performance or other factors, said Russell. Employees expect in return, that their leaders are fair, hard decisions, and if they do, they respect and trust workers earn.

But two people choose, who will leave the indicating that someone was missing the courage that choice, she added. Beyond the pain of employees can create problems that involved.

"Not only she feel awful, no matter what the decision is, but left is the people behind it, also, and wondering what happen to them... will." Choose you next get?" Russell said.

Any action that always closely monitored in connection with dismissal by the remaining employees, says Kelleher. A company must always assess what impact any decision for the people, as well as the Organization and the brand will have been involved, he said.

"Every action has a reaction," said Kelleher.

Tuesday, December 25

5 Career change error

Amanda C. Halai, Investopedia
The State of today's business world is fast-paced, constantly evolving and undeniably competitive. After a successful career, regardless of what position you are, is strongly dependent on several factors, including know confidence and finesse. Many people choose, midstream career try for a variety of reasons, including a new line of business, learn new skills or their resumes, staff professionals appear more marketable make want to change. Work paths can change invigorate your career, your earning potential and help secure the dream job, that the hunt been have to increase. If not carefully done, a drastic change of job can sabotage a career. While the jury is still out on the perfect way to change the profession, many bans career change it and want career changes, you just don't. Here is a look on five career change errors, which should avoid professionals in all circumstances.

Unclear or indecisive career planning
An error that significantly restrict your possible career without a goal. If you frequently switch career tracks, or have no real direction in your career, you are likely to get not very far in your profession. Building on the experience and training you have, and decide you are your knowledge can apply for a career step in which you. Career goals, whether long term or short term, act as a road map. Without clear goals, your career must be not much definition or depth. There are many skills, which are varied and can be applied to a variety of different careers easily. Make sure that you have at least a goal in mind, before you make any major changes. There are many organizations that can help you have no idea what career path would not use.

Changing paths without your homework
A further error that long-term costs can be changed without any homework or research to do career paths. While the position might sound interesting and lucrative, it's enormously important, full research where it can take you and what training or experience you need to successfully in this area. Prior to change career paths, make sure that the way you really want it and can any assumptions that you have new career path--which are actually met. By exploring fully the limits and possibilities different career paths, you also will help to ensure, that your career is not a rash or bad decision thought out burdened.

Out of desperation, professional to make change
Take a survey and questions from your friends and colleagues, whether they are really satisfied positions and the State of their careers with their current. Chances are good that you will get a feedback about how unhappy they are called in their. While it may seem a dead-end work to escape you in misery are desirable, it is not advisable based completely on this fact to escape to your profession. Career tend to work best changes, if you are at the top of your game in a profession and your income potential, or knowledge on make a change would base. Change of career only to employers to escape, that you did not enjoy the work is that you will decide in desperation rash probably not a good idea, because chances are.

For the money
A major reason for anyone who is a career earning to support his lifestyle and family. Although money, as most people work is the main reason, should not always the determining factor be change it in the career. While the salary can surpass your expectations, is it important to research, whether this career takes you where you want to be. Money alone based career may change a decision that you will regret later if you do not have the necessary research to justify the career switch. Make sure that your new career is something you about passionately. Many successful people found success by they did their passions to follow, and this, by aligning their work with their preferences. You want to make sure that you will be doing the kind of work and the amount of work you have to put in the raise will pay.

With an entry level job in a new field
She spent years collecting samples CV and gaining important skills and knowledge to perform your job well. When you make a career change, you want to ensure that you pass can apply in your new job skills and knowledge. While you try desperately, make a change in your career, it is important that you are short sell you. Choose a lateral movement never for something less than. A lateral career move allows you to maintain your content and level of expertise while to learn a new business.

The bottom line
While there is no fool-proof recipe for success in the business world, there are many pitfalls, where professionals in can fall when you change careers. It is important to consider each career step with caution. Go not only your experience in your resume to a specific point in time, but your work history is the backbone of based your entire career out of. Smart make business trains, that build on your strengths, knowledge base, experience and personality to a strong career, while poorly thought out career sabotage moves can everything, what you have worked so hard to achieve.

Monday, December 24

Is to develop the best company...

Jane wells, CNBC
Where are employees most satisfied in your job? Beer tasters at Sam Adams? Photographers in Playboy? Saks shopper? Mickey at Disneyland?

No.

The happiest people on earth are in Facebook.

Thats the website Glassdoor.com, loud, where employees rate their own companies. For the second time in three years Facebook has come out on top with a 4.7 rating on a scale of one to five, meaning workers are usually "very satisfied."

Satisfied, despite the fiercely companies both in the media and has taken stock since the IPO.

"To doubt risky Wall Street to Facebook and Zuckerberg has she turned into an internal battle cry", glass door, said co-founder and CEO Robert Hohman. "The people have more confidence in him than a year ago."

Hanson says that Zuckerberg the consent of 90 percent now has grown for 99 percent in 2011, him in a rare Club that once included Steve Jobs.

Glass door came on this year's list after combing about almost half a million anonymous employee reviews of companies on its Web site (or alleged employees as glass works on the honor system).

Facebook workers praised the company for its fun culture and they trust clearly founder Mark Zuckerberg. A project manager wrote about the "Ability, on a product work, affecting hundreds of millions of people" enjoy and "Employees receive great responsibility early in their careers."

Second, for the best place is for work in the year 2013 McKinsey & co., followed by Riverbed Technology, Bain & co. (overturning last year of #1) and MD Anderson Cancer Center. Riverbed both M.D. Anderson are new to the list, as-N-out Burger, which debuted on #9 with a 4.2 rating.

At the bottom of the top 50 list is with a 3.8 rating, yet satisfied area into Starbucks. But the 24 points of 10th place took over last year Starbucks ranked #34, a space Apple, now in a single year was.

Young, if employees have lost enthusiasm for Apple and Starbucks, are the Mayans really onto something.

"It is increasingly difficult to do business on this list for customer service and retail," said Hanson. Apple's assessment has not changed in a year, it's remained stable at 3.9, but so many other companies have shifted farther.

Which companies make the list at all? In the tech sector, the lowest rating include well-known companies, GroupOn, Netflix, and HP.

Yahoo is actually at the beginning, with a 3.3 rating, move, and new CEO Marissa Mayer has a rating of 86 percent approval.

There are some traditional American industries that have been classified by the workers. Companies that have made the list since the start of the year 2009 include Chevron (#13) and General Mills (#35). Who would have thought that for big oil and big food can be great fun? Glass door cited the work-life balance benefits of both companies, even though the shares of both have the market this year is below average.

Underperformance also employees of "Fondness" for Facebook stopped.

So can we stop, push social networking fun monolith, considering people are probably happier than most of us? Potentially richer also? Plus get they wear jeans and hoodies to work? I think someone at Facebook have nothing bad to say?

Actually Yes.

Identify someone wrote as Facebook product engineer to the glass door, "it can be very stressful. You have to get used to the attention of the media and the mud-slinging."

Sunday, December 23

8 Steps to a successful work relocation

8 Steps to a successful work relocation

Jacquelyn Smith, Forbes

The decision to relocate for a job is a big one that demands a lot of time and consideration-but as it turns out, that might be the easy part.

"The move itself could be one of the most stressful changes in life," says Marjie Terry, VP of business development and client services at great on the job. "Even if you re super excited about the new position or company, moving is still complicated."

Ted Stimpson, president and CEO of MyMove.com, agrees. He says: "as with any move, relocating for a job process can in be a complicated and stressful. "But the good news is that you've been recognized as a valuable asset to your new company or office, and employers are typically more than willing to help make your transition a smooth one." Plan ahead for your move, and utilize any relocation packages offered by your employer, he says. "And if things start to get stressful, remember that the reason for your move is a positive and exciting one."

So, what exactly makes relocating so complicated? Ryan Kahn, a career coach, the star of MTV's "Hired!" and author of "hired! The Guide for the recent grad,"says, among other things, the process requires you to a new place to call home, become acquainted with your find new environment, master a new job, and build a new support network-all at the same time. "A lot of hard work go will into being successful at all of these things, but hopefully you find out that it's everything you've wanted."

Stimpson says today's real estate market doesn't make it any easier. "Selling a house is one of the biggest complications that relocating homeowners face," he says. "Paying two mortgages is daunting and often not feasible-which leaves many in the challenging position of selling their current home while securing housing in their new city of employment."

Another challenge faced by two-income families: finding employment for the relocating employee's spouse or partner, he adds. And if you have children, well you'll probably worry about their transition to the new environment, as.

"It's extremely difficult to be 100 percent focused on your new job while dealing with all of the logistics of the move," Terry says. "You want to make great impressions on your new colleagues but everything is new and unfamiliar, so it takes working double time in the beginning to make it all work."

So, if you want to have a successful transition, here's what you'll need to do:

Stay organized. Much of moving-related stress comes from managing all of the logistics, like leaving your current home, and finding a new one, Terry says. "Try to be very organized. Keep to-do of lists for both your departure and arrival locations so that you can stay on top of everything."

Know what's available to you. Many companies offer a variety of relocation services and most are flexible in what they provide, Kahn says. Make sure you take the time to learn what's available to you and use it, for example, some companies will things like house-hunting trips, transportation cars pay for of your, assistance in selling or buying your home, help figuring out how to rent out a property, and event organizers to settle you into your new home. They might also be able to help your spouse with job placement or employment leads in your new city, Stimpson adds.

If your employer doesn't typically offer relocation assistance, ask for it If you learn that assistance isn't typically given, don't be afraid to negotiate, Stimpson says. Start by researching moving costs (truck rentals, quotes from professional movers, transportation expenses, temporary housing, storage, etc.) so that you can present your employer with a detailed estimate of how much your relocation is expected to cost you. "Having this supporting information is crucial to the success of your request," he says. So ask about preferred provider when it comes to relocation companies and real estate agents. Reimbursement for your relocation may be contingent upon the usage of designated professionals with whom your employer has established relationships.

Take time to get to know your new environment before you move. If you have the luxury of taking some time to explore your new area before arriving, do so, Terry says. "Explore the neighborhoods in the area to make sure that you find the best suited one for your lifestyle," she says.

If you're not able to visit the new city before you move, take the time talk to people that live there or used to live there, and "get as much perspective as you can on what you're walking into," says Kahn.

You should therefore read the local news or any local blogs to understand the vibe and learn what's going in your new town, Terry adds.

Know the cost of living in the new city. There are significant differences in cost of living among U.S. cities and states, Stimpson says. "Typically, these differences will be compensated for in your salary, but it's still important to check." Do the research and plan accordingly.

Don't make any long term commitments. "Renting at first is a great way to settle into a new city without making a commitment to a neighborhood you might end up not liking," Terry says.

Kahn agrees. He says a common mistake many people make when relocating for a job is to buy that a home or commit to a long term lease immediately, and later find they don't like the neighborhood, or the job.

Stimpson says to ask about temporary corporate housing. "Some companies offer apartments or condos for a fixed length of time to allow relocating employees to familiarize themselves with their new surroundings and make to informed housing decision."

Find out if any of your moving expenses are tax deductible. Even if your new employer doesn't offer any financial assistance for your relocation, you might be eligible for partial financial stress come tax time, which can definitely ease some of your reimbursement, Stimpson says. (See IRS tax topic 455 for details on which expenses qualify.) "Generally, the moving tax deductions requirements are: the move must be because you started a new job;" your new home must be at least 50 miles from your old home and your old job. (This is to prevent folks from simply moving across the street every time they changed jobs in a design to take advantage of the moving tax deduction.); and you must work full time for at least 39 weeks during the last 52 following your move. "Self-employed movers need to work at least 78 weeks over the last 2 years to qualify."

Build a social support network. "Use your friends to network to make new friends in the same way that you would try to network for a job," Kahn says. Use online services like MeetUp to find others in the area that have similar interests or hobbies. Your new company may also offer clubs and interest groups to meet new people. The faster you can build a support network, the more will feel at home you and the happier you will be with your decision to move, he says.

"Establishing a social network in your new town is going to make you feel more grounded and happy, which will allow you better in your new job, to perform" Terry adds.

Saturday, December 22

Working moms redefining maternity leave

Working moms redefining maternity leave

On the surface, maternity leave is simple: You have a baby, you take time off work to take care of yourself and your baby, and then you go back to work.

Slain hero teacher's family: 'She loved those students more than anything' Teacher Vicki Soto, 27, died a hero on Friday when she was killed protecting her class of first-graders from alleged schoo...

Shaken Sandy Hook teachers: 'In time, we're going to heal' 'SNL' pays moving tribute to victims of Sandy Hook Elementary School shooting Pastor: Parents asked about kids' last moments 'Hero': Sandy Hook principal 'put her children first'
But now a new breed of working mom is quickly redefining the concept.

From Marissa Mayer, who assumed the helm as CEO of Yahoo while six months pregnant and announced she’d only be taking “a few weeks of leave” that she’d “work through,” to moms who use the “downtime” to launch new businesses, they’ve certainly changed the new mommy landscape.

The question is: By working through mat leave—or using that time to alternate between 4 a.m. breast-feeding sessions and hatching a business plan—are they helping or hurting women? And have we officially entered the age of the maternity leave overachiever?

Dr. Jennifer Gardner, a pediatrician, used her maternity leave after the birth of her first child, William, to jumpstart an idea she had been sitting on for years: Healthy Kids Company, which educates families on the importance of nutrition.

“Maternity leave was actually a great time to start working on it. I knew I was eventually going to return to full-time work as a pediatrician, but while my son was sleeping, I had the free hours necessary to build my website,” she says. ”Starting a company to educate families had always been a passion of mine, but prior to maternity leave, I didn’t really have the time to devote to my idea.”

“My maternity leave was my security blanket,” agrees Bridget O’Brien, a former New York City school teacher who used her time away two years ago to found her own PR and event planning firm. “For years, I had been doing event planning free of charge for friends, nonprofits and charities. Working as a public school teacher in New York City is a noble job, but I hated the political aspect behind the scenes.”

O’Brien talked the idea through with her husband — she knew she would be happier and that it would create a better environment for their daughter. "I would be able to work from home and set my own schedule,” she explains, so she used her mat leave to start amassing clients. After giving birth in January 2010, she officially launched her company in May of that year.

In fact, O’Brien says that while running her own business can be stressful, she doesn’t resent her even busier schedule. “The day I gave birth to my second child two weeks ago, I was also doing PR for an event in New Jersey with Bravo and the 'Real Housewives,' ” she says. “Though I was in labor and handling work on my cell phone, it’s easier because it’s my own company. If I were doing this for someone else, I wouldn’t have been as passionate.”

'Craving certainty'
Sure, some women are born overachievers, you might argue—and good for them. But in the wake of Mayer’s announcement, many wondered whether her decision to forgo a traditional maternity leave would put other working women at risk.

In the online magazine Slate, one writer opined: “Mayer needs time to emotionally and physically recover … [it's] nuts to forget that there is a BABY involved here.”

Others queried whether her decision would set a bad example for other women looking to juggle motherhood and a career: Namely, would HR departments and bosses then expect more new moms to follow suit—by literally suiting up again mere weeks after giving birth?

And why did Mayer—and other ladies who choose to launch when they have an ambitious new project to tackle at home—feel the need?

“For some women, working through pregnancy or using the same set of skills used on the job while on leave may be an effort to maintain normalcy,” says Jonathan Alpert, psychotherapist and author of “Be Fearless: Change Your Life in 28 Days.”

The brain is craving certainty, says Alpert, so if overachieving is your norm, it may actually be hard to slow down—even with a newborn to contend with. “While working hard may not be advisable from a physical perspective,” he explains, “it may be a positive coping mechanism that helps the mother deal with the uncertainty associated with a baby.”

In other words, staying in work mode may allow frazzled new moms—used to a demanding work routine—to maintain some sense of their former selves.

Another weighty question: Is our inability to be home with our babies—without refashioning ourselves as CEOs while they nap—something innate in modern-day women, or a response to outside pressure?

The need to overachive
“Women get stuck in a cycle of fear where they can’t see all the other things that are important in life,” says Shari Goldsmith, a life coach and mental health therapist. “It’s often difficult to be a woman in a workplace, and some fears related to falling behind may be valid.”

But there’s also a difference between a natural-born entrepreneur who just happens to have a newborn and someone who’s having a hard time transitioning from her 24/7 attachment to her Blackberry. Or worrying that being away for that amount of time could cause her to fall behind on the job.

“The reality is that women notice and respond to those subtle societal pressures to be better, stronger and smarter, and they make choices accordingly,” says mom of two Samantha Krigsvold. “As a professional woman, breadwinner and mother of two young children, my choice to take an abbreviated maternity leave was absolutely tied to an underlying pressure to prove I could handle it all.”

The experts agree: “Women hear over and over again the message that they’re supposed to be able to manage it all—a career and a family. When it comes to taking maternity leave, there are very real fears of being seen as uncompetitive or dispensable,” says Ford Myers, a career coach and author of “Get the Job You Want, Even When No One’s Hiring.”

Isn’t having a baby enough?
Then again, for many women, wanting to go back to work at all, let alone double down on it during their downtime, just doesn’t compute.

“Any woman who says she wants to go back to work full time as soon as possible after giving birth is not being honest with herself,” argues Krigsvold.

And what of the need to physically recover? While celebrity magazines trumpeting A-listers’ ability to “lose the baby weight” in record time may be contributing to the rise of the bionic new mom, the fact is birth—whether by a natural delivery or a surgical procedure like a C-section—takes a toll.

“I believe every mother deserves proper recovery time, and only the mother can determine what the ‘right’ amount of time is for her,” says Charissa Duncan Mathews, a LearnVest reader in Tulsa, Okla.

The bottom line is that there’s no one-size-fits-all policy that suits all new moms. But, says one expert, using your maternity leave as a litmus test can be a good exercise to figure out what you want your new life to look like.

Make maternity leave work for you
If you’re the type who’s been sitting on a big business idea, but caught up (for years) in your day-to-day, a whole new routine could be just what it takes to wake up your get-up-and-go.

Maternity leave can also provide valuable insight into how your company will respond to your new role as a working mom: “What I tell my clients is that if their employer isn’t going to be understanding early that you need to take maternity leave for your own sake and for the well being of your child, they’re not going to be understanding later on, when it comes to doctors’ appointments, school meetings and more,” says Myers. “So if you do end up losing this job as a result of having taken maternity leave … it probably wouldn’t have ended up working later on, either.”

LearnVest © 2012

Friday, December 21

'Workampers' help Amazon meet holiday rush

'Workampers' help Amazon meet holiday rush

Jane Wells , CNBC

It's 5:30 p.m. outside a huge Amazon fulfillment center in Fernley, Nev., population 19,000. Workers pour out of the doors as a new wave of employees arrive. They're putting in close to 12-hour shifts round the clock during the final Christmas rush.

Some employees leave and go home to RVs, a few of them parked, ironically, in a Walmart parking lot across the street.

These are "workampers," temporary seasonal workers who roam the country in Winnebagos and Fleetwoods. They're filling the 31 RV parks around Fernley, east of Reno, to work for another few weeks at a center Amazon has had here since 1999.

"I've gotten to know a lot of really cool people, and I'm really going to miss them," says 50-year-old Sharon Scofield. "But then I'm excited that I get to come back again next year, hopefully, and see them again."

Scofield and her husband have set up temporary residence at the Fernley RV Park, where 60 percent of the 49 spots are occupied by members of Amazon's "camperforce". Temporary employees are paid about $12 an hour, plus overtime, and Scofield plans to use her income to pay for gas for her Winnebago all year. "The work is hard," she says. What does she do for fun after hours? "Sleep."

Amazon says it's hired 50,000 seasonal workers and may keep some of them after the holidays. Workampers say the company recruits during the off season in places like Quartzsite, Ariz., where many of them winter.

Jim Melvin is in his second season for Amazon. "It gives me extra money to travel with." This 68-year-old retiree from California says he walks up to 10 miles a day picking merchandise inside the Amazon facility. "When you walk into it, you know you're gonna work hard." He's hoping to save enough money to buy a car to tow behind his rig. Melvin blogs about his life on the road and the people he meets. "They're fun...you see the same people," he laughs.

The seasonal workers spend money in Fernley and Reno, an area recovering from the recession more slowly than the rest of the country.

Amazon even pays the rent for temporary employees at RV parks it contracts with. "It's necessary for parks like this to survive," says Bernard Roberts, general manager at the River's Edge RV Park in Sparks. "This particular park is not a destination park." He says seasonal workers provide about 40 percent of his business, and rents range from $350 to $575 a month.

Near the Amazon warehouse, Wai Louie serves up lunch at Louie's China Bistro. "Without Amazon, the whole city would be in trouble."

Soon, however, the estimated 400 seasonal workers will be pulling out of Fernley. Most temporary jobs end Dec. 23, and then they're gone...until next year.

Despite the hard work, Sharon Scofield hopes to get hired on again next year. "When I'm wrapping these presents, it makes me feel good knowing that I put that thing in there and I'm getting it out the door, and I love that challenge."

Thursday, December 20

Fearing a holiday layoff? Be prepared for the axe

Fearing a holiday layoff? Be prepared for the axe

Chelsea Emery , Reuters

NEW YORK -- Never mind coal. There may be pink slips in some holiday stockings this year.

The end of the year can be a dangerous season for employees. As companies make last-minute attempts to adjust payrolls or to meet earnings goals, layoffs tend to pick up.

Indeed, as many as 150,000 jobs could disappear in the fourth quarter, up 46 percent from the previous quarter, according to consulting firm Challenger, Gray & Christmas Inc.

Citigroup employees know this all too well. The third-largest U.S. bank announced 11,000 job cuts worldwide, affecting 4 percent of its work force, Wednesday.

It's easy to panic as rumors of layoffs fly at the office. Anger, fear and confusion can cloud final days that would be better spent preserving your professional reputation and contacting possible future employers.

So, cancel the bridge-burning email and don't waste time stocking up on pens and paper clips from the supply cabinet.

Instead, take these two steps immediately: Network like crazy, and start working on the most favorable exit package possible.

That's what David Berman wishes he had done when he lost his senior financial adviser post at Morgan Stanley Smith Barney in mid-2011.

"I still believed that I had people fighting for me on the inside," says Berman, who is based in St. Petersburg, Fla. "I was wrong. In hindsight, I was not aggressive enough."

Among other things, Berman regrets not having used LinkedIn, the online networking site, to find connections and advice.

And he's still looking for a full-time job.

Here's how you can gird yourself for the best possible outcome if the axe falls.

Be prepared
Knowing weeks ahead of a job loss can have its benefits.

Use this time to prepare for your severance meeting with your boss or human resources specialist. It can bring months more of paid health insurance or a longer severance pay period.

Go in with a list of questions, says Brooklyn, New York, executive coach Elaine Weinstein, who runs her own firm.

Is there a severance and how long does it last?
When does it begin?
Is it a lump sum and who pays taxes?
What are your health benefits?
Do they last as long as severance pay?
When they end, who will notify you about beginning Cobra?
What happens to your 401(k) retirement plan?

Make the firm explain in its own words why you're being let go. You can use this terminology when you apply for a new job, if it is favorable.

And, depending on your relationship with your employer and your company's rules, you may be able to walk out with a letter of recommendation, too.

You will probably receive papers to sign. Don't sign them immediately, but ask how long you have to review them.

Threatening to call a lawyer may not be prudent, but it doesn't hurt to suggest - obliquely - that you might consult one, says Weinstein.

You can say something like, "I'm very disappointed in this package. I have to think about this and think about my next actions," suggests Weinstein.

Always ask for more: A longer severance, longer paid health insurance, or a paid career counseling service.

"Fight for it," says Weinstein. "All they can do is say 'no.'"

Reach out to contacts
If you don't have a personal cell phone or computer, get one, and transfer your contacts to your new equipment, says Weinstein. Once you leave the company, it won't be possible to access those systems or documents again.

Consider adding your personal email address to your email signature, as appropriate.

Most companies will allow employees a health care coverage grace period, so you may not need to schedule all your doctors appointments immediately. Still, if it takes time to see a medical specialist, make those appointments now.

Immediately activate your business network, Weinstein says. Reach out to professional and personal contacts, even if you have not spoken to them in years. Admit that you may have been "sloppy" about staying in touch, but say you would like to re-establish communication.

Break the ice by offering to help them. Weinstein suggests a humorous approach, such as: "Other than babysitting, let me know if I can help you in any way."

Seek out a new job while you still have one
In September, New Jersey insurance consultant, Lori Sternthal, learned how valuable a network can be.

When the senior business analyst learned that her contract would end within weeks, she reached out to recruiters, friends and business contacts, using LinkedIn, phone calls and emails -- using her personal phone and computer and not those of her client's. A recruiter located a full-time staff position and Sternthal was at a new desk within nine weeks.

Recruiters prefer to find someone who is currently employed, says Cobb.

"Otherwise they can't justify their fee," he says.

That makes these precious few weeks remaining at your job vital for reaching recruiters.

No matter how angry, upset or worried you might be, remain positive, says Sternthal. She suggests job seekers say something like, "I had a great experience at the company, but I'm in transition and open to new opportunities." You could say you're open to both staff or contract work.

You'll be surprised how many people will offer help when they learn you're about to lose your job, says Weinstein. "It's survivor guilt."

Additional reporting by Lou Carlozo.

Wednesday, December 19

Inflate stocks little changed as budget speak

NBC News and reports of wire

The S & P 500 wrapped up its fifth positive month in the last six months on Friday, although it ended the day flat, how politicians remain divided about how the so-called fiscal cliff to avoid.

Trade was choppy in the last two weeks, as investors a series of tax increases and spending cuts, to respond to statements from politicians about the State of the discussions on that to avert the economy into recession could pull out.

The S & P 500 was 0.29 percent in November, even as it deeply up suffered a slide of more than 6 percent from the month to his.

"In the face of the" off again "is fiscal Cliff (negotiations), it's rather surprising this market has been as robust," said David Rolfe, chief investment officer of St. Louis based Wedgewood partners.

"By the end of the year, it will be a vacuum information outside the fiscal cliff, and I think that the resistance to be tested."

In contrast to the apparent tranquility in shares, the market jumped the CBOE volatility index, a gauge fear, 5.4 percent, the biggest daily gain in two weeks.

The VIX rose booked for the week, but a whopping 14.7 percent decline in November.

On Friday accused President Barack Obama is a "Handful" of the Republicans in the U.S. House of representatives of legislation holding, to extend tax cuts for the middle class Americans, to try to preserve them for the wealthy.

Shortly after the President, House Speaker John Boehner, an Ohio Republican speech, said: "there is a standoff; Let us not make."

Despite the disagreement language, many market participants are betting that an agreement is - are found in the eleventh hour.

Companies continue to react, what to expect, will be a tougher tax regime next year. Whole foods market should at the latest before expected higher tax rates in the year 2013 in this case - a special cash dividend to announce$ 2.00 per share.

The Dow Jones industrial average rose 3.76 points, or 0.03 percent, to 13,025.58 at the end. The S & P 500 won a mere 0.23 of a point, or 0.02 percent, to stop 1,416.18. But the Nasdaq composite index dipped to finish 1.79 points or 0.06 percent to 3,010.24.

For the month of November, S & P rose 500 0.29 percent, its smallest monthly variation since March 2011. The Dow Jones fell 0.5 percent and the NASDAQ gained 1.1 percent.

For the week all three major U.S. stock indexes with the Dow 0.1 percent progressed, the S & P 500 up 0.5 percent and the NASDAQ up 1.5 percent.

VeriSign dropped 13.2 percent to $34,15 that said company shares, the U.S. Department of Commerce approved its agreement with ICANN run the .com Internet registry, but VeriSign unable, the prices to increase, as before.

Yum Brands slipped 9.9 percent to $67.08 a day after the parent of chains Pizza Hut, KFC and Taco Bell said it expects a decline in sales at established restaurants in China in the fourth quarter.

After a close relationship for several years Facebook and Zynga terms of a partnership agreement revised according to regulatory filings on Thursday. Under the new Pact Zynga, creator of the game "Farmville", ability to your website on Facebook advertising limited.

Zynga shares fell $2.46-6.1 percent. Facebook shares gained 2.5 per cent to $28.

Latest Apple Inc. iPhone received final clearance from Chinese regulators, paving the way for a December debut in a highly competitive market, where the absence of a new model had greatly eroded its share of product sales. Apple shares fell 0.7 percent to $585.28.

The markets reaction to data on Friday was muted.

US consumer spending fell in October for the first time in five months and income growth ground to a halt, leading some economists to cut already low estimates of economic growth in the fourth quarter.

So far about 6.48 billion shares and the largest changed owners on the New York Stock Exchange, the NASDAQ and NYSE MKT something more than 7 billion shares, more than the daily average this year in two weeks.

On the NYSE stood at around six questions for all five rose, while on the NASDAQ, the ratio fell, nearly 1 to 1.

Tuesday, December 18

Spending stumbles in October as income growth stalls

Spending stumbles in October as income growth stalls

Reuters

US consumer spending fell in October for the first time in five months as income growth stalled, what slowdown of economic growth in the fourth quarter.

The U.S. Commerce Department said Friday consumer spending fell 0.2 percent after an unrevised 0.8 percent increase in September.

It said it could not quantify the implications of Superstorm sandy, but added that where the source data was not made, adjustments still available or the effects of the storm not reflected.

Although the storm that slammed late October for the East Coast, was automobile sales brake, the decrease in expenditure last month partially a reflection of the weak economic fundamentals.

By Reuters surveyed economists had expected, would be the consumer spending, which accounts for 70 percent of the U.S. economy, flat last month.

Adjusted for inflation, fell 0.3 percent, the first decline since June, after rising 0.4 percent of the previous month consumer spending.

It was also the largest decline since September 2009 and implied increase in consumer spending this quarter would fight 1.4 percent in the third quarter annual rate, exceeding was the slowest in more than a year.

While the economy in the third quarter after 1.3 percent in the previous three months to advance came from much of the boost the recovery of the Dunmore and robust Government spending, grew 2.7 percent. That is lost in the last three months of the year.

Growth also on the terms of the storm could be pressure and automatic deep spending cuts on Government and increased taxes, the $600 billion could release early next year, when the Congress and the Obama administration on a cut less-severe budget deficits some.

Income was in October for the first time since April unchanged and followed a gain of 0.4 percent in September. The Department said, private wages and salaries fell through caused work stoppages reflecting Sandy.

The amount of the income of private households after inflation and taxes dipped 0.1 percent after his apartment in September available. Despite weak income growth, the saving rate rose to 3.4 percent from 3.3 percent of the previous month.

Monday, December 17

Costco to spend $3 billion on special dividend

The Associated Press , Staff

Costco will spend $3 billion to pay a special dividend of $7 per share next month ahead of higher tax rates that may kick in come January.

Many companies are making special end-of-year dividend payments or moving up their quarterly payouts because investors will have to pay higher taxes on dividend income starting in 2013, unless Congress and President Barack Obama reach a compromise on taxes and government spending.

The Issaquah, Wash., company said Wednesday that the special dividend will be payable Dec. 18 to shareholders of record Dec. 10. In addition, Costco Wholesale Corp. will pay its regular quarterly dividend of 27.5 cents per share on Nov. 30 to shareholders of record as of Nov. 16.

Costco also said Wednesday that its November revenue climbed nearly 9 percent to $8.15 billion. Revenue from stores open at least a year rose 6 percent. That increase would have totaled 5 percent excluding gains from gasoline price inflation and stronger foreign currencies. Sales were strongest in Texas, the Midwest and the southeastern U.S., as well as Canada and Mexico, the company said on a conference call. Customers snapped up candy, cooler and deli items and Costco said hardware, health and beauty and women's apparel categories also performed well.

The company is selling $3.5 billion in debt to cover the cost of the special dividend. Costco will sell $1.2 billion in senior notes due in December 2015, $1.1 billion in notes due in December 2017, and $1.2 billion due in December 2019.

Several Costco warehouses were closed during part of the month due to power outages following Superstorm Sandy. The company estimated that the storm trimmed 0.5 percent from sales of stores open at least a year. That is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.

Costco's shares rose $6.07, or 6.3 percent, to close at $102.58 on Wednesday. The stock has climbed from a low of $78.81 in early January to a 52-week peak of $104.43 last month.

Investors have paid a maximum 15 percent tax rate on dividends since 2003. But that historically low rate is set to expire in January. Dividends will be taxed as ordinary income in 2013, the same as wages, so rates will go up depending on which income bracket a taxpayer is in. For the highest earners, the dividend rate could jump to 43.4 percent. Even if a political compromise is reached, there's no guarantee that the tax rate for dividends will remain at its current level.

Fitch Ratings said Wednesday that it lowered Costco's issuer default rating one notch to "A+" from "AA-" because of the debt the company is taking on. Analyst Philip M. Zahn said "A+" is still considered an above-average, investment-grade rating.

Costco runs 618 warehouses in several countries, including 447 in the U.S. and Puerto Rico.

Sunday, December 16

Jobless claims drop for 2nd straight week as Sandy effect fades

Jobless claims drop for 2nd straight week as Sandy

Reuters

The number of Americans filing new claims for unemployment benefits dropped for a second straight week last week, unwinding some of the storm-related surge, which has muddled the labor market picture.

Initial claims for state unemployment benefits dropped 23,000 to a seasonally adjusted 393,000, the Labor Department said on Thursday. The prior week's figure was revised up to show 6,000 more applications than previously reported.

Economists polled by Reuters had forecast claims falling to 390,0000 last week. The four-week moving average for new claims, a better measure of labor market trends, increased 7,500 to 405,250, the highest level since October last year.

Superstorm Sandy, which ripped through the East Coast in late October, has distorted initial claims data in recent weeks, making it hard to get a clear pulse of the labor market.

A Labor Department official said there was no pronounced impact of the storm in last week's data, adding that claims also tended to be volatile around this time of year.

The labor market improved in October, with employers adding 171,000 jobs to their payrolls, up from 148,000 the prior month. Economists say stripping out the three states - New York Connecticut and New Jersey - hardest hit by the storm, new applications for state unemployment benefits have been steady.

The claims report showed the number of people still receiving benefits under regular state programs after an initial week of aid dropped 70,000 to 3.29 million in the week ended November 17. So-called continuing claims covered the week of the household survey from which the unemployment rate is derived.

The jobless rate increased by a tenth of a percentage point to 7.9 percent in October, as more Americans - including those who had given up the search for work - entered the labor market.

Saturday, December 15

Weak economy keeps adult kids in the house

Allison Linn , NBC News

You raise them, you educate them and you expect them to go out into the world. But they keep coming back.

The recession and weak recovery appears to be keeping many adult children from getting a home of their own, and that could have implications for the housing industry’s recovery.

A Census Bureau report released Wednesday found that between 2007 and 2011 there was a steady increase in the percentage of adults living in someone else’s house – and that increase has mostly been driven by adult children moving in with mom and dad.

In 2011, Census Bureau researchers found that 17.9 percent of people 18 and older, or 41.2 million people, lived in a house in which they weren’t the head of the household or that person’s spouse or significant other. That’s up from 16 percent in 2007, before the nation went into recession.

About half of those people were adult children living with their parents, while the rest were other relatives or unrelated people such as a group of roommates.

But Suzanne Macartney, an analyst in the poverty statistics branch of the Census Bureau and a co-author of the report, said the only group that saw an increase between 2007 and 2011 were adults moving in with their parents.

The nation was officially in recession from December of 2007 until June of 2009, but economic growth has largely been slow and unsteady in the years since.

The Census data runs through 2011. This year, economists have seen some signs that the housing industry is starting to recover, although there have been some bumps in the road.

There also have been more recent signs that housing formation is picking up, which would be good news for the economy and perhaps offer a sign that some young adults are moving out of mom and dad’s house. But economists caution that the improvements seen so far are not yet enough to offset the shortfall caused by the Great Recession and weak recovery.

If a significant number of adult children continue to bunk with mom and dad, economics caution that that could slow the housing industry’s recovery because those people won’t be out buying or renting homes of their own.

“It does have a negative impact,” said Joel Naroff, economist with Naroff Ecoomic Advisors. “The question is why is it happening.”

One potential reason: They may not have a paycheck to pay the rent or mortgage.

The unemployment rate for 20- to 24-year-olds was 13.2 percent in October, far above the overall rate of 7.9 percent. For 25- to 34-year-olds, it was 8.3 percent, still higher than for the general population.

Naroff said another major factor weighing on young adults is student loan debt, which is approaching $1 trillion by some estimates. The burden of those monthly payments may be keeping some younger adults from paying the rent on their own, let alone buying a house, even if they do have a job.

“You have a lot of the kids coming out with debt, and they’re not going out and buying houses, and that may be pushing out the whole process,” he said.

Naroff said it’s not yet clear how much of the problem is a cyclical one, caused by the high unemployment rate among young adults, and how much is a structural problem caused the increased burden of student loan debts leaving less money for things like homes.

If it’s mainly an issue of unemployment, he believes it could resolve itself in the next few years. But if the burden of student loan debts are keeping people from buying homes, that could be a longer-term problem.

It’s an issue he’s intimately familiar with. Naroff has a son who is graduating from college in a couple weeks. In the short term, Naroff said his son plans to do some graduate work. But after that, he’ll have to find a job.

“I’m already readying my extra bedroom for him,” Naroff quipped.

Friday, December 14

Economic growth still modest, Fed report finds

Economic growth still modest, Fed report finds

Reuters

The U.S. economy trucked along at a "measured" pace in recent weeks and hiring remained modest, according to a Federal Reserve report that did little to calm concerns about slow growth and high unemployment.


Details from the manufacturing sector were mixed, the Fed said in its Beige Book report on Wednesday. Contacts in five of the Fed's 12 districts reported worries about the outlook for 2013, predicated in part on concerns about a looming "fiscal cliff" contraction in the U.S. government's budget.

"Consumer spending grew at a moderate pace in most districts," the report said, alluding to a generally upbeat outlook for holiday sales from those contacts that offered their views on the key shopping season for retailers.

The report, which compiles anecdotal evidence on the economy based on the Fed's business contacts, also found few signs of price pressures.

That should give comfort to Fed policymakers, who recently launched a large new stimulus plan aimed at supporting the economic recovery and keeping long-term interest rates low.

Thursday, December 13

Wall Street increasingly bullish about 2013

Wall Street increasingly bullish about 2013

Jeff Cox , CNBC.com

Even the bears are bullish for 2013, a year in which virtually every Wall Street expert believes the market will overcome its many headwinds and post a positive year.

While retail investors have been preoccupied with worries over fiscal armageddon, an election that is now past and a global economy nearing stall speed, strategists have been busy with projections that see sizeable stock gains.

Their reasons: A U.S. economy that is on the mend due to the nascent housing recovery and an expected surge in earnings, more cheap money from the Federal Reserve, and a general feeling that none of the various-worst scenarios out there will come to fruition.

"At first blush, it seemed like an inopportune time to commit to a year-ahead target and outlook, what with so many global uncertainties in our path," said Sam Stovall, chief equity strategist at Standard & Poor's/Capital IQ. "But most of these uncertainties have been with us for quite some time, and are now regarded by many as annoyances to resolve rather than obstacles to fear."

The firm is near the high end of the pack, projecting a 1,550 close for the S&P 500 by the end of next year, a nearly 11 percent rise from current levels.

Obstacles such as the "fiscal cliff" of automatic spending cuts and tax increases that will take effect if Washington fails to reach deficit-reduction targets worry Stovall, but he believes that issue, as well as the debt crisis and recession in Europe, won't stop stocks.

"We believe the manner in which these headwinds are resolved could result in an explosive rally rather than just a sigh of relief," he said. "Yet, handled inappropriately, these could end up causing a low flying economy to crash."

While not predicting an outright crash, Adam Parker, chief market strategist at Morgan Stanley, had through the year been predicting the market to swoon lower from a lackluster 2011.

But his projection of an 1,167 for the S&P 500 has virtually no chance of happening absent a colossal stock market event.

For 2013, Parker has changed his tune.

"We wish we didn’t have to set a year-end target. Having had a very accurate one in 2011 and a pretty bad one in 2012, we are living proof that there is a negative asymmetry," he said in the firm's 2013 outlook. "We felt little joy in 2011 and lots of pain in 2012 related to the target, and find few credible investors really care where we think the market is going to be on a particular day one year in the future.

"What they more often care about is the logic and thought process, and the empirical evidence that support it."

Parker sees a modest 2013 rally driven by mega-cap dividend stocks and a rebound in China, as well as a broader picture of rising earnings.

His S&P 500 call is for "low- to mid-single-digit upside" with the S&P 500 closing at 1,434.

"We have been cautious on US equities for much of the last two years," he wrote in his analysis. "Our concerns around U..S deficit/debt and the obvious borrowing from the future that occurs from unconventional policy, the European sovereign crisis, and slower growth in emerging markets generally remain, but the acuteness of these issues appears for now to be less sharp."

While that's not exactly wide-eyed bullishness, it is enough to make contrarians think that sentiment could be getting a little overheated on Wall Street.

"The reasons we're skeptical of it being able to break to new highs is, first of all, everybody's bullish," said Walter Zimmerman, senior technical analyst at United-ICAP in Jersey City, N.J. "The readings are consistent with those at a major top."

Still, even someone normally as bearish as Zimmerman thinks the near-term direction is higher, though he doesn't see a sustained rally through next year.

That's not the case at Canaccord Genuity, which has one of the most bullish calls yet at 1,650, with only Piper Jaffray's 1,700 higher thus far.

"History, global monetary policy, and the fundamental sweet spot of U.S. economic data argue strongly for better performance as we move...into next year," Canaccord's Tony Dwyer and Michael Welch said.

Deutsche Bank, meanwhile, remains bullish with a 1,500 call. The firm is "encouraged by the continued intention of central banks to maintain accommodative policy" and believes that "given current market pricing, equities continue to offer the best risk-adjusted return compared to other asset classes."

And Bank of America Merrill Lynch, whose 1,450 for 2012 remains very much in play, believes the S&P 500 will close out the coming year at a 10 percent rise from its projected finish for the current year.

"We are cautious on the near-term outlook for US equities, but we remain constructive on the medium to longer term outlook," Savita Subramanian, equity and quant strategist at BofA, said in a note. "Given the S&P 500's attractive valuation and weak investor sentiment, we expect positive earnings growth to drive the market to 1,600 by the end of 2013."

Wednesday, December 12

Buffett: Raising taxes on rich won't chill economy

Buffett: Raising taxes on rich won't chill economy

Super investor Warren Buffett, the chairman of Berkshire Hathaway, speaks with TODAY's Matt Lauer about Cyber Monday sales figures, consumer confidence and the future of the American economy.

By Ben Popken, TODAY contributor
Raising taxes on the rich won't dampen economic growth and would "raise the morale of the middle class," billionaire investor Warren Buffett told the TODAY show Tuesday.

Echoing a theme he has stressed often, Buffett downplayed the idea that higher taxes for the wealthy, as proposed by the Obama administration as part of a deal to resolve the "fiscal cliff," would scare off critical investment for job creation. Republicans argue that raising taxes on people in higher tax brackets would choke off investment and slow the economy at a time when it can ill afford it.

Buffett disagrees. "No, and I think it would have a great effect on the morale of the middle class," said Buffett, in the first of two live interviews with TODAY's Matt Lauer. "They've had to watch guys like me pay below the rate by that paid by the people in my office."

Also known as the "Oracle of Omaha" for his investing acumen, Buffett's views on the economy are widely followed, including on whether we're really going to go off the "fiscal cliff" of $500 million in tax hikes and spending cuts.

The CEO of Berkshire Hathaway has been vocal on the economy lately, proposing in a New York Times op-ed Monday that there be a minimum tax for the wealthy.

"I'm confident," said Buffet when asked about how he was feeling about the economy. "I can't speak for others, but at Berkshire Hathaway, we buy and sell stocks every day. America's a winner."

Lauer brought up a recent quote from Honeywell CEO David Cote who told Meet the Press that he and others like him were feeling a lack of confidence in the political process, so much so that the uncertainty was making them keep their money on the sidelines and preventing them from making additional investments, including hiring.

"At Berkshire Hathaway, we're investing 9 billion in plant equipment, a record, breaking last year's record. It's always uncertain," said Buffett.

"December 6th 1941 was uncertain," said Buffett, referring to the day before the attack on Pearl Harbor. "We just didn't know it."

When asked whether Congress would really enact a strong proposal such as the one Buffett made in his Times op-ed, which suggested setting a minimum 30 percent tax for millionaires, Buffet said, "I wouldn't be surprised. They're going to make a deal."

Now there's a new Buffett book, "Tap-Dancing to Work" that trace his career through 80 different FORTUNE Magazine articles over the years. If there's one thing that stuck out from the timeline, Carol Loomis, FORTUNE editor, who collected and expanded the articles for the book, told TODAY, it's "how consistent he's been in his thinking. He's never changed."

"I couldn't be more boring," said Buffett. "I just look at the facts and wherever they lead me, I go."

Is this the secret to Buffett's success? Lauer asked Loomis. It's hard, she said, because other investors "get emotional."

Buffett is known for finding undervalued companies with strong fundamentals and good management. "It's simple, but not easy," said Loomis. "That's why other people can't do it. He's thinking about business 24/7."

Lauer asked if this book was a goodbye letter of sorts. "What's it going to mean to the world when he hangs up his investing shoes?" he asked.

Loomis said, "He will be remembered. His role in life will be remembered for the next century. I don't know whether investing or philanthropy is going to be the lead item. People are going to be reading about Buffet 100 years from now."

About that retirement... "Got a date in mind?" Lauer asked the 82-year old businessman.

Buffett just laughed.

Read a free excerpt from the book Tap-Dancing to Work.

Tuesday, December 11

Consumer confidence hits more than 4-year high

Consumer confidence hits more than 4-year high

Reuters

Consumer confidence rose to a four-and-a-half-year high in November as consumers became more optimistic about the outlook for the economy, according to a private sector report released on Tuesday.

The Conference Board, an industry group, said its index of consumer attitudes rose to 73.7 up from an upwardly revised 73.1 the month before, its highest since February 2008. Economists had expected a reading of 73.0, according to a Reuters poll.

October was originally reported as 72.2.

"Over the past few months, consumers have grown increasingly more upbeat about the current and expected state of the job market, and this turnaround in sentiment is helping to boost confidence," Lynn Franco, director of The Conference Board Consumer Research Center, said in a statement.

The expectations index rose to 85.1 from 84.0, while the present situation index edged slightly lower to 56.6 from 56.7.

Consumers' labor market assessment was little changed in November. The "jobs hard to get" index was flat at 38.8 percent, while the "jobs plentiful" rose to 11.2 percent from 10.4 percent.

Analysts said the latest figures should bode well for the holiday shopping season.

"Despite the 'fiscal cliff,' Hurricane Sandy and a weaker stock market in November, households seem to be upbeat," said Ray Stone, economist and managing director for Stone & McCarthy Research Associates. "That means they should be willing to spend money on Christmas. Shoppers won't be busting down doors, but sales should be pretty upbeat."

Monday, December 10

Business spending plans gauge rebounds

Business spending plans gauge rebounds

Reuters

WASHINGTON - A gauge of planned U.S. business spending increased by the most in five months in October, but a fourth straight month of declines in shipments underscored the damage that fears of tighter fiscal policy next year are inflicting on the economy.

The Commerce Department said on Tuesday non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rebounded 1.7 percent last month after falling 0.4 percent the prior month.

Economists had expected so-called core capital goods orders to fall 0.5 percent.

Shipments of non-defense capital goods orders excluding aircraft, used to calculate equipment and software spending in the gross domestic product report, slipped 0.4 percent. It was the fourth straight month of declines in shipments.

The Commerce Department said there was no indication that superstorm Sandy, which lashed the East Coast in late October, had an immediate impact on factories in that region.

Businesses are cutting back on capital spending, wary of automatic government spending cuts and tax increases, known as the fiscal cliff, that are scheduled to kick in early next year unless the U.S. Congress and the Obama administration can agree on a plan to cut the budget deficits.

The fiscal cliff could drain about $600 billion from an already fragile economy. Business spending is also being undermined by the long-running debt problems in Europe and slowing global demand, especially in China.

Despite the headwinds, the manufacturing sector continues to grow, though modestly. Durable goods orders were unchanged in October as gains in machinery, fabricated metal products, and computer and electronic products offset the drag from automobiles, defense and civilian aircraft.

Economists polled by Reuters had forecast orders for durable goods, items from toasters to aircraft that are meant to last at least three years, falling 0.6 percent last month after rising 9.2 percent in September.

Excluding transportation, orders rose 1.5 percent after increasing 1.7 percent in September.

Sunday, December 9

Europe sees US debt crisis as dire as its own

John W. Schoen , NBC News

Now it’s Europe’s turn to worry about U.S. economy.

American officials have been wringing their hands for the past two years about the heavy burden of government debt piling up in Europe. On Tuesday, Europe’s Organization for Economic Co-operation and Development warned that the U.S. "fiscal cliff" threatens prospects for the eurozone’s economic recovery.

“We’re talking here about the medium and long-term viability of the United States economy,” OECD Secretary General Angel Gurria told CNBC. “Not only to avoid the fiscal cliff but then get to a moment where (U.S.) debt stops rising and the debt to GDP starts coming down to an area where we call all breathe more comfortably.”

In its latest Economic Outlook, the influential Paris-based think tank said that with the eurozone’s economy already headed in reverse, the United States faces the same fate if lawmakers fail to agree a deal to avoid a combination of tax hikes and budget cuts that will otherwise take effect next year.

“The US ‘fiscal cliff,' if it materializes, could tip an already weak economy into recession, while failure to solve the euro-area crisis could lead to a major financial shock and global downturn,” Gurria told reporters in Paris.

Even if a deal is reached, the OECD joined other forecasters calling for a continued global economic slowdown in 2013. For the U.S., that means expansion of just 2.0 percent, versus the OECD's 2.6 percent forecast in May.

The eurozone economy is expected to shrink by 0.4 percent this year and another 0.1 percent next year, before recovering at a weak 1.3 percent growth rate in 2014, the forecasters said.

Negotiations in Washington continued this week on a broad range of alternatives to the current budget law, which would impose roughly half a billion dollars in government spending cuts and tax increases starting Jan. 1. Uncertainty over the outcome has depressed hiring and investment by businesses, some economists say.

On Monday, White House economists estimated that the budget measure, unless altered or postponed, would carve some $200 billion out of consumer spending, which accounts for about two thirds of the U.S. economy. Together with deep cuts in government spending, the package would wipe out the current weaker recovery and shrink the U.S. economy by about 0.5 percent in 2013, according to the non-partisan Congressional Budget Office.

Congress and the White House have been deadlocked on solutions since the law was enacted after a bitter battle in July 2011 over increasing the government’s legal borrowing authority. Though President Barack Obama and Republican leaders have made conciliatory comments since the November election, there has been little in the way of concessions needed to reach a compromise.

Most observers believe that the worst of the tax hikes will be avoided – if only because they would be so politically unpopular. The so-called Alternative Minimum Tax, for example, would ensnare some 28 million households with new taxes next year unless Congress once again agrees to a “patch.”

But broad compromise on reforming the thicket of deductions, exemptions and other breaks in the tax code, along with restructuring the massive Medicare and Social Security entitlement programs, will be much harder to pull off.

“I think it is a romantic hope that to believe that these politicians can agree to a grand bargain that will fundamentally fix our budget deficit issue,” said Richard Hoey, chief economist at BNY Mellon. “ I think that is totally unrealistic.”

That kind of sweeping fundamental reform has eluded European governments for years.

On Monday, facing the latest precipice in their two-year saga trying to head off a Greek debt default, European leaders hammered out yet another bailout package that calls on the Greek government to pare down its debt in the coming decade.

But while the latest plan appeared to buy more time, the threat of the longer-term crisis remains.

“Athens’ cash reserves must be down to vapors,” said Carl Weinberg, chief economist at High Frequency Economics. “Any interruption in implementation of this scheme could cause an ugly default, with little or no warning.”

The details of the latest “solution” are murky, and the plan still faces opposition from both individual eurozone governments and potential legal challenges.

Terms of a proposed buyback of Greek debt that would leave some bond holders with losses haven’t been worked out. And the 44 billion euro ($53 billion) bailout payments over the next two months will be made in stages – with each new payment conditioned on Athens meeting milestones called for by its European benefactors.

The longer term solution to Europe's debt crisis is even murkier - a possible portent of what U.S. lawmakers face if they can't work out a broad tax and spending compromise soon.

Saturday, December 8

Budget standoff weighs on holiday shopping season

Budget standoff weighs on holiday shopping season

John W. Schoen , NBC News

The impasse in Congress over the “fiscal cliff” could be the Grinch that steals Christmas if it isn’t resolved soon.

A record 247 million shoppers visited stores and websites over the four-day Black Friday weekend, up 9 percent from last year, according to the National Retail Federation. They spent an average $423 this year, up 6 percent from last year, for a total of $59 billion.


“I think there's a long way to go,” said retail industry analyst Dana Telsey. “This season is going to be a battle almost every single day as you keep getting through to those ten days before (December) 25th. I think we go into a lull period now before you get the big sales coming again.”

Even without the uncertainty over a $500 million wave of tax hikes and spending cuts set to hit paychecks Jan. 1, retailers face some major challenges this holiday season.

With unemployment stuck at nearly at 8 percent, millions of households are without paychecks. Still reeling from last month’s Superstorm Sandy, millions of hard-hit households have had to dip into savings to clean up and rebuild. (Based on insurance data from previous storms, as much as half of the estimated $50 billion in property losses may have been uninsured.) Spending on lost household furnishings and damaged homes will divert funds that would otherwise have gone to holiday shopping.

Spending may also fade this holiday season because, continuing a decade-long trend, retailers kicked it off even earlier this year. Some consumers have already spent all or part of the money they budgeted for the holidays.

With so much economic uncertainty this year “retailers started extending their promotional period,” said American Express vice chairman Ed Gilligan. “Our research says that some people have been holiday shopping since Halloween or even earlier.”

Consumers who haven’t finished – or even started – their holiday shopping face continued uncertainty until Congress and the White House reach a budget deal. One of the biggest single hits to spending would come from the expiration of jobless benefits which, unless renewed, would remove $26 billion from consumer spending next year, according to the non-partisan Congressional Budget Office.

Since the recession hit in 2007, Congress has battled multiple times over the extension of four separate” tiers” of extended benefits. As a result, most beneficiaries are keenly aware of just how vulnerable they are to a last-minute cutoff of those extended tiers.

All those people facing expiration are going to keep their wallets closed, even if a last-minute deal is reached before year-end.

On Monday, a White House report estimated that letting taxes rise on middle-class families would take a $200 billion bite out of consumer spending in 2013. That 1.7 percentage point cut in spending would knock 1.4 percentage points off GDP growth, according to the White House's National Economic Council and Council of Economic Advisers.

The retail industry, which has accounted for nine percent of employment growth since the U.S. recession ended in June 2009, would be among the hardest hit, the report said.

The CBO has estimated that, unless modified or postponed, the budget law set to take effect in January will push the U.S. economy back into recession and send the unemployment rate to 9.1 percent – up from the current 7.9 percent. The budget package would send the nation’s gross domestic product, which grew at a 2 percent annual rate in the third quarter, into reverse, shrinking at a 0.5 percent rate, according to the CBO analysis.

Much of the contraction would come from a sharp slowdown in consumer spending, according to Monday’s analysis by the White House of the impact on middle class consumers.

The report was the latest volley by President Barack Obama in his ongoing political battle to strike a deal with Republicans that would extend tax cuts for families making less than $250,000 a year and raise taxes on people making more.

Shortly after his re-election, Obama called on Congress to extend tax cuts for 98 percent of American families even before wider deal is reached. The White House also wants lawmakers to fix the alternative minimum tax, set up decades ago to remove tax breaks for high-income households. Because it was not indexed for inflation, is has to be fixed every year to avoid snaring in millions of less affluent taxpayers.

Middle class households – along with all wage earners - will also lose about $68 a week in spending money if the two percent payroll tax holiday is allowed to expire.

Friday, December 7

Sandy washed away job market gains

Sandy washed away job market gains

It takes a lot to knock the U.S. economy off course.

One month after being clobbered by the largest storm ever recorded in the North Atlantic, it’s becoming a little clearer just how big an economic impact Superstorm Sandy is having.

As the cleanup of visible damage continues around his office in lower Manhattan, Brian Drum is tallying up the damage to the job market.

“Hiring has slowed down tremendously – it’s almost like it’s come to a halt,” said Brian Drum, CEO of Drum Associates, an executive recruiting firm. “The jobs seem to be open, and the inventory seems to be available in terms of competent people. But companies are not making decisions.”

Those hiring decisions will have to wait for many potential employers – still without power, communications or a place to issue paychecks. In New York City alone, about a third of the 100 million square feet of downtown office space was still out of operation a week after the storm, according to brokerage Jones Lang LaSalle. That’s roughly the total office space available in downtown Houston.

Sandy hit the East Coast on Oct. 29 and disrupted businesses from North Carolina to Maine. The nearly 1,000-mile-wide storm cut a wide path of death and destruction, killing 113 people, through a region that represents about a quarter of the U.S. economy.

Heavy rainfall combined with a storm surge, high winds, inland flooding and fires to leave millions without power and tens of thousands homeless. Thousands of retailers and restaurants were closed, many for good. Some 20,000 airline flights were canceled. Miles of roads and railways were destroyed or damaged. The storm forced shutdowns of financial markets and several nuclear power reactors.

With so many businesses closed, many of the roughly 10 million workers in coastal counties were tossed out of work. On Wednesday, the government reported that more than 75,000 workers filed a new unemployment claim last week in New York, New Jersey and Connecticut, mostly in the construction, food service and transportation industries.

After a healthy pickup in hiring in the second half of the year, some analysts expect Sandy to wash away a big chunk of employment in the monthly jobs data for November, due out Dec. 7.

“We are concerned there may be an acute hurricane impact on November payrolls,” Deutsche Bank economist Joseph LaVorgna warned earlier this week in a note to clients.

LaVorgna noted that, following Hurricane Katrina in August 2005, the pace of new hires saw a downward swing of 127,000. He estimates the November report will show that hiring slowed to just 25,000 new jobs from a gain of 171,000 in October.

To be sure, there are other reasons for the pause in hiring decisions. Even before the storm hit, the ongoing recession in Europe and slower growth in China has brought a coordinated slowdown in the global economy. The November election did little to break the political gridlock over the federal budget and tax policy.

“I think people are still waiting to see whether there’s going to be compromise between the two factions in Washington,” said Drum. “But the situation was certainly exacerbated by the storm. “

A month later, thousands of families are still homeless and tens of millions of dollars of repairs have yet to be made. Despite lingering shortages of gasoline and isolated power outages, the region’s economy is back up and running.

“It wasn’t the massive disruption in the supply chain that might have been thought, given the severity of the storm,” said Andrew Tananbaum, executive chairman at Capital Business Credit, a lender that services the retail sector.

With the insurance claims process just getting underway, industry estimates – of as much as $50 billion in property damage – are still preliminary.

“This is the fourth loss we’ve had of significance in the last couple of years which is outside the models we might use to ascertain the cost of such extreme losses,” said Stephen Catlin, CEO at Catlin Group, a Bermuda-based insurer. “There are still people without houses to live in and still people without electricity. It’s going to take a few more weeks before we’re really clear as to how much damage and how much insured loss has been incurred.”

Apart from the visible destruction, the economic impact has been widespread. The chaos unleashed by the storm has already begun showing up in the monthly data from industrial production and retail sales.

The Federal Reserve reported that the nation’s total industrial output shrank by 0.4 percent in October, largely because of storm-related production shutdowns at utilities and makers of chemicals, food, transportation equipment and computers and electronic products.

Airlines sustained hundreds of millions of dollars in losses from more than 20,000 canceled flights. United and Delta reported last week the two carriers lost a combined $135 million in revenues from the storm. The shutdown of New York City’s subway and commuter train network cost the city about $50 million in lost revenues, according to estimates from IBISWorld. The market research firm also figures the financial services industry lost $150 million in revenues after the storm knocked the NASDAQ and New York Stock Exchanges offline for two days – the first such weather-related outage in more than a century.

Mortgage applications fell by almost 40 percent in Connecticut, 50 percent in New York and more than 60 percent in New Jersey in the week after the storm, according to the Mortgage Bankers Association.

Retailers were among the hardest hit. A surge in sales of critical supplies and equipment before the storm was more than offset by a week of closed stores. Just a few days of lost business in October put a dent in the government’s monthly retail sales tally.

November sales data will show an even bigger impact. Retail spending (not including cars) dropped in the Northeast by about 20 percent in the week following the storm, according to data collected by MasterCard. But that drop in spending will be offset as households hit by the storm spend to repair and replace damaged items, including waterlogged cars and trucks.

“A large number of dealers are back up and running, but there are still dealerships facing difficulties – just as there are neighborhoods still facing significant problems,” said Paul Taylor, chief economist at the National Automobile Dealers Association.


Taylor said it’s too soon to know how many cars will have to be replaced, but initial estimates put the figure at between 100,000 and 250,000. He also estimates that the increased demand for used cars will push up prices up by about 1.5 percent nationally – with bigger increases in states like New York and New Jersey, where demand is strongest.

Increased spending on repairs and shopping trips delayed by Sandy could help boost sales in December. But it may also cut into savings that were intended for holiday shopping.

That means nervous store managers may have to slash prices to avoid getting stuck with unsold goods, according to Jack Kleinhenz, chief economist for the National Retail Federation.

“I would imagine that those retailers in the area that were affected by the storm are going to be more prone to try and move their promotions and incentives out there,” he said.

The wider economic outlook is harder to assess, as the stimulus effect of rebuilding is spread over many months. But Sandy’s economic headwind at the end of 2012 could provide a boost to the first half of next year.

“With housing strong and vehicle sales likely to rebound as people replace Sandy-destroyed autos, the economy is on the rise,” said economist Joel Naroff. “The only thing we have to fear is Washington itself.”

Site Search