Alcoa shares climb on better-than-expected sales

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NEW YORK (CNNMoney)

Alcoa (AA, Fortune 500) is the first Dow component to report fourth-quarter results. The company posted earnings of six cents a share, in line with expectations, while sales were $5.9 billion, ahead of the predicted $5.6 billion.

Shares rose 2% in after-hours trading.

Alcoa's results are traditionally viewed as the start of earnings season, although most companies don't report until late January and early February, and the firm isn't seen as a bellwether for the broader market.

Overall, fourth-quarter earnings for S&P 500 companies are expected to rise 3.3% from the fourth quarter of 2011, according to S&P Capital IQ.

Excluding financial stocks, however, earnings are only expected to rise 0.5%, Dan Greenhaus, chief global strategist at BTIG, wrote in a research note Tuesday. He said these muted expectations were driven in significant part by the technology sector, where a number of firms have issued weak fourth-quarter guidance.

First Published: January 8, 2013: 4:22 PM ET

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Dish Network kicks off takeover battle for Clearwire

Dish's bid values Clearwire at roughly $5 billion.

NEW YORK (CNNMoney)

Dish has offered to purchase Clearwire for $3.30 a share, a 13% premium to Clearwire's closing price Tuesday of $2.92 and 11% higher than Sprint's $2.97 offer last month. Dish's bid values Clearwire at roughly $5 billion.

Shares of Clearwire (CLWR) were halted ahead of the announcement before rising 9.3% to $3.19 a share in after-hours trading. Dish (DISH, Fortune 500) shares were flat after hours, while Sprint (S, Fortune 500) was down 2.4%.

Clearwire said its board will consider the Dish proposal, but noted that it "is only a preliminary indication of interest and is subject to numerous, material uncertainties and conditions." The proposal includes a request for "multiple contractual arrangements" that "may not be permitted under the terms of Clearwire's current legal and contractual obligations," Clearwire said.

Sprint already owns a 50% stake in Clearwire, and the acquisition has been a key concern of Softbank, the Japanese tech giant that announced in October that it would purchase a majority stake in Sprint.

If Clearwire and Sprint close their transaction, Sprint would own the rights to the largest swath of wireless spectrum -- the invisible infrastructure of airwaves over which wireless signals travel -- of any carrier in the country, by a factor of two. Spectrum is a finite resource and a crucial asset for wireless competition.

Dish's offer signals that the satellite television company has aspirations of broadening its business and competing with telecom heavyweights like Verizon (VZ, Fortune 500) and AT&T (T, Fortune 500).

Sprint said its own offer for Clearwire was "superior to the highly conditional Dish proposal."

"Sprint does not intend to waive any of its rights and looks forward to closing the transaction with Clearwire and helping consumers across the country realize the benefits of this combination," the company said in a statement.

First Published: January 8, 2013: 7:12 PM ET

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Another mega-casino to be built in Macau

Macau's government has approved another large casino.

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The project has a budget of around $2.5 billion, and the 17.8 acre site will include 1,600 hotel rooms, 500 gaming tables and 2,500 slots, the company said.

Shares of MGM China trading in Hong Kong jumped almost 6% after the announcement. MGM China is partially owned by Pansy Ho, the daughter and heir apparent to Macau's longtime gambling boss, Stanley Ho.

Macau is the only location in China where gambling is legal, and the former Portuguese outpost is now heavily dependent on tourist dollars spent by the millions of Chinese who visit each year.

Gambling revenue growth, which had been explosive, has moderated in recent years, expanding by 14% in 2012.

Related: Vegas baby! Casino stocks are paying off

The new MGM casino will be built in Cotai, home to a cluster of casinos that rival the Las Vegas Strip. Construction could take three years. The company already operates one major casino in Macau.

Prior to the start of construction, MGM China was required to secure a land concession from the government of Macau, which issued its official approval Wednesday in its gazette.

First Published: January 9, 2013: 1:54 AM ET

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Intel demands ultrabooks add touchscreens

Intel executive Kirk Skaugen showed off the company's new ultrabook specs at the Consumer Electronics Show.

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Intel is adding a big new requirement for any computers that want to carry its "ultrabook" branding: They'll have to include a touchscreen. A prototype the company showed off Monday at a Consumer Electronics Show presentation featured a detachable display, a form factor that Intel hopes will become common.

That blurs the line even further between a notebook PC and a tablet. It's a move Microsoft (MSFT, Fortune 500) is also backing: Its recently released Windows 8 operating system works on both desktop and mobile devices, but it operates much more smoothly with a touchscreen.

Intel (INTC, Fortune 500), which makes the processors most laptop makers use to power their devices, has been trying to steer the industry toward lighter, sleeker, faster machines that take full advantage of its latest chip advances. It calls those machines "ultrabooks," a term it created and gets to write the rulebook for.

Intel boldly predicted at last year's CES that ultrabooks would dominate the industry and account for 40% of all consumer notebook sales by the end of 2012. The reality came up far short. Industry analysis firm IHS iSuppli chopped its ultrabook estimates for the year in half in October, citing the devices' "nebulous marketing and unappealing price."

Price has been a big sticking point: Ultrabooks typically go for more than $1,000. Intel claims that price tag will come down this year, even with the expensive addition of a touchscreen. The company predicted that entry-level ultrabooks will retail for $599 by end of the year -- just in time for the 2014 holiday season.

Kirk Skaugen, who heads Intel's PC client group, said the fourth-generation ultrabooks coming out this year "will be game-changers."

The new ultrabooks will run on Intel's upcoming Haswell chips, which are the first processors designed specifically for ultrabooks. The processors can provide "all-day battery life" and are designed to work "naturally" with voice and touch, Skaugen said.

The touch focus is part of Intel's push for "perceptual computing," the company's clunky term for a cool concept that wraps up recent advances in mouseless computing. The idea, Skaugen said, is that PCs will "have senses, like we do": touch, sight, hearing, and so on.

Intel demoed a few experiments along those lines from its developer partners, including a gesture-controlled version of the game "Portal 2" that lets users move items around the screen simply by grabbing at the air. A "Where's Waldo?" demo showed off eye-tracking, in which a user simply scanned the screen and blinked when he found the stripe-clad cartoon.

Intel also unveiled a new smartphone platform that's aimed at emerging markets, codenamed Lexington. Acer, Lava International, and Safaricom will offer devices that run on the low-power platform.

Jumping into this market was a no-brainer, Intel said: It cited forecasts that the so-called "value smartphone market" could reach as many as 500 million units by 2015.

On the tablet front, Intel announced a new quad-core Atom processor family called Bay Trail. The chip will deliver twice the computing power of current Intel-powered tablets, and it's slated to be available by the 2013 holiday season.

First Published: January 7, 2013: 7:29 PM ET

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Yum Brands hit by slower China sales

Yum Brands warned Monday that investors should expect a 6% decline in same-store sales in China.

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Sales at existing locations in China are expected to drop by 6% in the fourth quarter, the Kentucky-based company said in a brief filing with the Securities and Exchange Commission.

Yum had warned last year of slower same-store sales in China during the quarter, but said Monday the decline would be more severe than previously thought. Shares were down more than 5% after the market close in New York.

The sharp drop in sales is due to "adverse publicity associated with a government review of China poultry supply -- and the corresponding significant impact on KFC China sales during the last two weeks of December," the filing said.

Chinese food regulators have said they are investigating claims of excess antibiotics in some chicken products sold at KFC restaurants, a revelation which sparked an outcry on popular micro-blogging platforms in China.

Yum has said it is cooperating with authorities, and will continue to monitor the quality of food purchased from its suppliers.

Related: McDonald's, KFC, Burger King workers protest in NYC

China is an increasingly important market for the parent company of Taco Bell, KFC and Pizza Hut, which has placed big bets on future growth in the world's second largest economy. The company operates more than 4,000 KFC restaurants in China, and around 750 Pizza Huts. It plans to open hundreds more.

Last year, Yum (YUM, Fortune 500) sales in China grew by 21% -- a difficult performance to replicate.

Some of the slowdown might also be attributable to macro conditions in China, where the government reported gross domestic product growth of 7.4% in the most recent quarter -- a number that disappointed analysts.

Since then, early data points to stronger expansion in coming months -- but too late for Yum's fourth quarter figures.

-- CNN's Alexandra Hoegberg contributed to this report.

First Published: January 7, 2013: 11:24 PM ET

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Netflix, Time Warner strike new content deal

Netflix has signed a new content deal with Time Warner.

HONG KONG (CNNMoney)

Netflix customers will have a few new options this year, thanks to a content deal inked with Time Warner.

Users will be able to stream complete seasons of several series produced by Warner Bros., including NBC's "Revolution" and USA Network's "Political Animals," according to a statement issued by Time Warner on Monday.

The complete roster of additions includes A&E's "Longmire," ABC's "666 Park Avenue" and the forthcoming "The Following." "Chuck," "Fringe" and "The West Wing" are also included.

Time Warner is the parent company of both Warner Bros. and CNNMoney. The financial terms of the deal were not immediately available.

For Netflix (NFLX), the infusion of fresh content comes at a crucial time. Video streaming services are snapping up content at a rapid pace, and the contest is becoming increasingly cutthroat.

In December, Netflix signed a deal with Disney, but new film releases from the studio won't be available for another four years.

Last year, Amazon (AMZN, Fortune 500) announced it had struck a deal to stream movies from Epix on its Prime Instant Video service. Epix, which previously had an exclusive content deal with Netflix, is a Viacom-owned company that owns the digital rights to many Paramount, MGM and Lionsgate movies.

Related: Redbox isn't much of a threat to Netflix -- yet

The deep-pocketed Amazon is also testing a $7.99 per month pricing scheme for its Prime program, the same exact cost as the monthly streaming services from Netflix and Hulu.

Other competitors are looking to muscle in on Netflix as well, including Coinstar's (CSTR) kiosk service Redbox, Google (GOOG, Fortune 500) and Verizon (VZ, Fortune 500).

The days of cheap contracts are gone; studios are demanding more money for their content as streaming video has become more popular, and they have a bargaining chip in the form of Netflix's rivals.

That means Netflix hasn't been able to hold onto some of those all-important licensing deals. Most notably, contract renewal negotiations with Starz broke down in 2011, and Netflix lost access to that service's movies and TV shows at the end of February 2012.

First Published: January 8, 2013: 2:13 AM ET

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NHL deal means payday for sports stores

Many store owners are expecting customers to shop for hockey merchandise now that teams are expected to resume playing.

NEW YORK (CNNMoney)

"We expect NHL jerseys and gear sales to pick up right away," said Wayne Woodward of BigSportsShops.com, a website that sells official merchandise for NHL teams.

Woodward said that a lot of angry NHL fans stopped buying hockey merchandise in the fall. As a result, his sales fell 60% during the Christmas period from last year.

"We won't make up for the lost Christmas sales revenue, but there should be a nice sales uptick when players hit the ice again," said Woodward.

Related: Tentative NHL deal could end lockout

The NHL and the NHL Players' Association struck a tentative agreement early Sunday that may end the 113-day lockout of unionized players, the league said in a statement posted on its website.

The agreement reached in New York has to be approved by both players and owners, the NHL said.

The NHL scrapped its preseason and all games through the end of 2012 after the contract expired on September 15 and the two sides were unable to reach an agreement. If the agreement is approved, the door is open to salvage the second half of the season and the closely-followed Stanley Cup playoffs.

With half of the season left and as many games to attend, businesses are banking that fans will try to make up for lost time.

"Hopefully we'll see an increase in the sales of jerseys and other NHL apparel, maybe hoodies for the (Philadephia) Flyers," said Mike Antonelli, manager of Hockey Giant, a hockey goods store located in the outskirts of Philadelphia in Cherry Hill, NJ.

Antonelli said that while his store primarily sells protective gear, he has seen NHL gear lingering on store shelves longer since the lockout began.

The reaction on social media could spur sports store owners to be more hopeful. Michael Pickett, a New York Rangers fan from Islip, NY, tweeted that he began his hunt for new merchandise when he heard the news.

"I have seriously slacked on my Rangers jersey purchase," he wrote. "The trend is over."

First Published: January 6, 2013: 2:57 PM ET

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Stocks: Earnings season springs

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NEW YORK (CNNMoney)

Following last week's big market rally and a status-quo employment report that showed businesses weren't overly spooked by the fiscal cliff, several major companies will start reporting how they performed in the last three months of 2012.

The U.S.' largest aluminum producer Alcoa (AA, Fortune 500) will kick off earnings season on Tuesday, after the closing bell. Apollo Group (APOL), WD-40 (WDFC), Texas Industries (TXI) and Wells Fargo (WFC, Fortune 500) are also reporting throughout the week.

Earnings reports from the fourth quarter are particularly weighty, since companies provide a picture of their full-year performance in their reports.

Investors will also get a sense of whether the fiscal cliff impacted companies' operations, as many business leaders and economists were anticipating.

Economic data is relatively light this week. Reports on trade are scheduled to be announced throughout the week, including trade balance and import and export prices.

Investors will also get a sense of whether consumers loosened their purse strings during the 2012 holiday season. A report on consumer credit for November is slated for Tuesday.

News out of Washington is also expected. The White House could name a new Treasury secretary this week. Treasury Secretary Tim Geithner has indicated he will step down at the end of this month, just as another contentious debate begins over raising the debt ceiling.

Though the White House has been tight-lipped about a nominee, CNN has reported that current White House chief of staff Jacob "Jack" Lew is among the top candidates for the job.

In 2009, the Senate took nearly a month to confirm Geithner as Treasury secretary. The next one could be just as hotly contested, coming right after a bruising fight over the fiscal cliff.

Related: Fear & Greed Index

Markets started the year with a bang after Washington lawmakers struck a deal to avert automatic spending cuts and tax hikes. Last week was the best week for all three indexes since December 2011, with the Dow Jones industrial Average climbing 3.8% and the Nasdaq soaring 4.8%. The S&P500 fared even better, finishing at its highest closing level since December 2007.

The CNNMoney Fear & Greed Index is in 'extreme greed' territory, up from 'neutral' a week earlier and "fear" a month ago. The index tracks investors' emotions -- fear indicates a selloff, while greed is a sign that people are ready to buy stocks.

First Published: January 6, 2013: 11:40 AM ET

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Banks get reprieve on new rules

Banks have been given more time to meet new capital requirements.

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The rule change affects the "liquidity coverage ratio," a minimum standard set by regulators as part of the Basel III accord. Banks will now have more time to comply with the rule, and the standard has been eased.

Tougher capital requirements are considered a key step toward making banks safer and avoiding future taxpayer bailouts.

The decision comes after years of pressure from banks, which view the elevated capital requirements as onerous. Opponents of the higher standard have also argued that the capital requirements will limit access to credit at a time when lending is needed to boost economic growth.

The changes announced Sunday will delay full implementation of of the liquidity coverage ratio until 2019 -- a four-year extension. The ruling also expands the definition of "high quality liquid assets," which should make it much easier for banks to comply with the regulations.

The liquidity coverage ratio, in theory, should reflect the number of assets a bank would need to survive a severe 30-day credit crisis.

Related: Fed proposal would boost bank safety cushions

Despite the decision to relax requirements, Bank of England governor Mervyn King said the agreement is "very significant" and that "for the first time in regulatory history, we have a truly global minimum standard for bank liquidity."

Yet the implementation of Basel III rules has proved problematic. Many banks have not moved quickly to boost capital reserves, drawing rebukes from regulators and governments.

Capital cushions have come under scrutiny again in recent months, as Spanish banks required bailouts and JPMorgan Chase, thought to be one of the best-run banks on Wall Street, disclosed it had lost billions on a series of bad bets.

First Published: January 6, 2013: 11:09 PM ET

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Bieber's latest gig: prepaid card promoter

Teen singer Justin Bieber will use his star power to promote a new prepaid debit card.

NEW YORK (CNNMoney)

Eighteen-year-old pop sensation, Justin Bieber, will promote a new prepaid debit card to his more than 30 million Twitter followers and 50 million Facebook fans, according to BillMyParents, the teen-focused financial company that's launching the card.

He's one of many celebrities to make a foray into the multi-billion dollar prepaid card market, following in the footsteps of Suze Orman, Russell Simmons, Magic Johnson and the Kardashians.

Prepaid cards are reloadable and provide an alternative to traditional bank accounts. BillMyParents CEO Mike McCoy said in a press release that Bieber's star power will help the company "empower countless families with teens to think about responsible spending in a new and better way." Bieber will also be producing videos about financial literacy for the company.

Related: Don't be misled by prepaid cards

But before falling head over heels for the new card, make sure to read the fine print. Prepaid cards are often loaded with fees that can really add up, and this card is no exception.

The Bieber-endorsed card isn't available yet, but it will carry the same fees as the SpendSmart prepaid card currently being offered on the BillMyParents' website, according to McCoy. The monthly fee on that card is $3.95, and withdrawing money from an ATM is $1.50 a pop (and checking your balance at an ATM is another 50 cents). If you don't use the card for 90 days, you're charged $3, and replacing a lost card costs $7.95.

These fees are high compared to those charged by many other prepaid cards on the market, credit card comparison site CardHub.com found. The Kaiku Visa Prepaid Card, for example, comes with a monthly fee of $1.95 and doesn't charge for ATM withdrawals, as long as they are made within the Allpoint network of 50,000 ATMs.

Related: 5 things to know about prepaid cards

John Ulzheimer, CEO of SmartCredit.com, said the fees on the SpendSmart card aren't the worst out there, but he recommends staying away from prepaid cards altogether and going with a conventional debit card from a bank that doesn't charge monthly fees or even a gift card instead.

"If you want to teach teens responsible spending then there are better, less expensive ways of doing so," said Ulzheimer. "Teaching teens that it's okay to pay a fee to use your own money is the exact opposite of what you should be teaching them."

More details about the card and launch date will be released later this month, when Bieber's campaign will also begin.

First Published: January 4, 2013: 5:30 PM ET

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