Stocks: Wal-Mart earnings, housing in play this week

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NEW YORK (CNNMoney)

All three major indexes shed about 1% last week.

However, the market hasn't lost much of its momentum. The Dow Jones Industrial Average, S&P 500 and Nasdaq are all up between 18% and 23% so far this year.

Economic drivers: A smattering of reports on the state of the U.S. economy will drive markets this week.

Investors will get a look at the manufacturing sector, with empire manufacturing, industrial production, producer and consumer prices due out throughout the week.

Related: The new CNNMoney Portfolio

The housing market will be in play, with housing starts, building permits and the National Association of Home Builders housing market report on tap.

Investors will also get a sense of how confident Americans are in the economy as retail sales and the Michigan sentiment report are released on Tuesday and Friday, respectively.

Corporate earnings: On top of the economic data, several major companies are set to report earnings this week, as well.

Wal-Mart (WMT, Fortune 500), Macy's (M, Fortune 500), Deere & Co (DE, Fortune 500) and Cisco Systems (CSCO, Fortune 500) will all report throughout the week.

First Published: August 11, 2013: 11:02 AM ET

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Sheryl Sandberg sells $91 million of Facebook stock

Sheryl Sandberg sold $91 million dollars of Facebook stock last week.

NEW YORK (CNNMoney)

The Facebook (FB) chief operating officer and author of the much buzzed-about "Lean In" sold nearly 2.4 million shares of the social network's stock last week at an average price of $38 per share, according to a regulatory filing.

It amounts to about $91 million.

Related: Facebook investor: I'm buying more

Sandberg is using a pre-arranged trading plan, which means she has no control over the specific timing of her sales. Such plans are a common way for top executives to cash in on a portion of their holdings while avoiding accusations of insider trading.

Sandberg has sold Facebook shares several times in the past year. Last year alone, she cashed out around $50 million in the months after Facebook went public in May.

Her move this time came just a week after Facebook shares rose above $38 a share Wednesday for the first time since the social network went public in May 2012. The stock has clawed back from a low $17.55 in September.

But Facebook shares soared after the company blew past earnings estimates last month. Shares have climbed nearly 50% in the last month.

Sandberg has periodically sold small portions of her holdings since the stock went public, but she still has plenty left. What she sold this week represented only about 5% of her holdings.

After selling 30.2 million shares during Facebook's IPO, CEO Mark Zuckerberg hasn't sold any more of his holdings. Last September, Zuckerberg said in a filing that he had no intention of selling any shares for at least 12 months.

While the stock had been on a roll for weeks, Facebook stock gave up a little bit of its gains last week, sliding 1.2% to $38.50.

First Published: August 11, 2013: 10:50 AM ET

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Tax hike in question as Japan GDP disappoints

Japan failed to meet GDP expectations in the second quarter.

HONG KONG (CNNMoney)

Japan's economy grew at an annual rate of 2.6% in the second quarter of 2013, the Cabinet Office said Monday. The expansion was slower than the 3.6% increase expected by analysts.

The government also said growth in the first quarter was at a lower rate than previously reported, with GDP at 3.8% instead of 4.1%.

Japan's benchmark Nikkei index dropped more than 1% on the news.

The results should raise market expectations that policymakers will delay or suspend an unpopular tax increase that could take a bite out of growth just as a bold economic stimulus plan appears to be bearing fruit.

The government had planned to double consumption tax to 10% by 2015. Paid by consumers when they buy goods or services, the tax will be increased in two stages, rising first to 8% in April 2014.

Related story: Japan's tough choice on tax hike

Should the government follow through with the tax hike, it would help raise revenue and prove that Japan is committed to fiscal reforms. But the measure, as planned, could also slow the economy.

Japan has been mired in a malaise brought on by falling prices and a strong yen for years. The economy's prospects have brightened significantly since Prime Minister Shinzo Abe announced fresh spending by the government and encouraged the central bank to unleash a tidal wave of asset purchases.

Growth has picked up, the yen has fallen sharply and stocks have hit multi-year highs.

But the third pillar of Abenomics -- structural reforms -- has been tougher to implement. If the government bails on the tax hike, some economists see little hope that Japan's parliament will follow through with other reforms.

Related story Japan debt tops 1 quadrillion yen

The tax hike would be a first step toward arresting Japan's rising government debt, which topped 1 quadrillion yen for the first time, according to data released Friday by the finance ministry.

Tokyo has now issued 830 trillion yen in government bonds, and the country's revenue collection has never kept pace. Japan's gross public debt is projected to hit 230% of GDP by 2014 after years of sustained deficits.

The Organization for Economic Cooperation and Development and other debt watchers have cautioned that Japan must do more to pare rising debt. "Stopping and reversing the rise in the debt-to-GDP ratio is crucial," the OECD has said.

First Published: August 11, 2013: 10:23 PM ET

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Apple patent win: Samsung banned from selling some phones in U.S.

NEW YORK (CNNMoney)

Apple (AAPL, Fortune 500) alleged that several Samsung products infringe on its patents. Apple originally filed this lawsuit against Samsung in 2011, and it's just one of dozens of ongoing patent lawsuits currently being waged between the tech titans across the globe.

In this latest case, the International Trade Commission ruled in favor of Apple. The commission said Samsung products infringed on two Apple patents, one for touchscreen multitouch and another related to headset plug detection. The court ruled Samsung did not infringe on four other patents listed in Apple's claim.

The ITC banned Samsung from importing or selling some devices that infringe on the Apple patents. While the devices Apple mentioned in the case are older Samsung products -- like the Galaxy Tab 7 tablet and the Continuum smartphone -- the ITC's ruling could have implications for phones currently on the market that use the same technology.

But Samsung has the chance to release software updates to work around the infringement -- for example, customers would still use multitouch the same way they always did, but Samsung would change how that worked from a technical perspective.

Tech companies like to bring their cases before the ITC because it's generally easier to get that court to ban the sale of patent-violating products, when compared with the traditional patent court system.

U.S. import bans are obviously serious concerns for foreign companies like South Korea-based Samsung. But they're just as problematic for those headquartered in America because most tech products -- including Apple's -- are assembled overseas and must be imported.

Even if Samsung weren't able to figure out a workaround, there's a chance the ITC's import ban won't stick. Earlier this summer the ITC ruled on Samsung's own 2011 filing against Apple -- and it ended with the agency issuing an import ban on Apple products. But the ITC is required by law to send such "exclusion orders" to the president for a 60-day review. In an extremely rare move, President Obama vetoed that ITC order just before the review period was up.

Are you an Apple Store employee? Share your story!

This case is one of four Apple-Samsung patent battles currently playing out in U.S. courts, and dozens more are being tried abroad. Billions of dollars are on the line, and the companies are warring to take each other's products off the shelves.

The good news for consumers is that the trial proceedings in such disputes typically take so long that the products in question are often long obsolete by the time a judge rules.

First Published: August 9, 2013: 5:41 PM ET

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Report: Two ex-JPMorgan employees to be arrested in 'London Whale' investigation

Two ex-JP Morgan bankers are facing arrest for their actions related to "the London Whale" trade, according to the New York Times.

NEW YORK (CNNMoney)

The two will be arrested in London within the next few days, the Times reported, citing anonymous sources. The men could then be extradited to the United States.

Spokespeople for JPMorgan (JPM, Fortune 500), the FBI and the U.S. Attorney's office in Manhattan declined to comment.

JPMorgan revealed last year that it had sustained massive losses as a result of a complex bet by traders at its Chief Investment Office in London related to credit derivatives. The bet, which drew on federally insured deposits, was so large that the JPMorgan trader said to be responsible for it earned the nickname "the London Whale."

Related: JPMorgan settles electricity manipulation case for $410 million

The losses eventually swelled to more than $6 billion, stoking renewed concerns about the stability of the nation's largest banks. JPMorgan has previously said it has recordings, emails and other documents that suggest traders may have been hiding the losses as they began to balloon.

A report on the botched trade issued in March by the Senate's Permanent Subcommittee on Investigations said JPMorgan had "disregarded multiple internal indicators of increasing risk; manipulated models; dodged [federal] oversight; and misinformed investors, regulators, and the public about the nature of its risky derivatives trading."

Regulators at the Federal Reserve and the Office of the Comptroller of the Currency ordered JPMorgan in January to improve its risk management and internal auditing in light of the losses. The bank did not face any monetary penalty at that time, consenting to the order without admitting or denying wrongdoing.

First Published: August 9, 2013: 7:25 PM ET

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British police looking into BBC's severance payments

NEW YORK (CNNMoney)

In early July, the UK's National Audit Office investigated the severance packages of 60 BBC senior managers and found the company paid 14 of those managers larger amounts than they were entitled to by contract, costing taxpayers just over $1.5 million.

Between April 1, 2005 and March 31, 2013, two-thirds of the senior managers who left the BBC were paid an inflation-adjusted $93 million in severance, the report found.

In a statement, London's Metro police said they are gathering information following allegations of misconduct in public office and fraud related to severance payments at the BBC. The authorities said they will decide whether or not to proceed with a full investigation in "due course."

Related: Ex-JP Morgan employees to be arrested in "London Whale" case, says report

A spokesperson for the BBC noted that the National Audit Office's report found no criminal wrongdoing when it investigated the company's severance payments earlier this year and has not been contacted by police on the matter.

When the report was released, the BBC Trust, which oversees the public broadcasting company on behalf of taxpayers, said some of the findings regarding the severance payments were "deeply worrying, particularly the failure, in the past, of the BBC Executive and its Remuneration Committee to always follow agreed policy and entitlement."

Related: The New York Times is not for sale

New York Times (NYT) chief executive Mark Thompson was the director general of the BBC during the time that many of the severance payments were made. He is scheduled to testify about the findings before Parliament on September 9.

New York Times spokeswoman Eileen Murphy said Thompson had not been contacted by British police and added that he had no comment.

First Published: August 10, 2013: 4:19 PM ET

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Postal Service loses less but cash crunch looms

The U.S. Postal Service continues to see overall losses, despite gains in package delivery.

WASHINGTON (CNNMoney)

The agency said Friday that it lost $740 million in the three months ending June 30, far less than in recent quarters. During the same period last year, it reported a $5.2 billion loss.

So far, the Postal Service has lost $3.9 billion in its fiscal year, which has three months remaining. It lost $16 billion in 2012.

The agency was helped by a big uptick in customers shipping packages, the area where it competes with United Postal Service (UPS, Fortune 500) and Fed Ex (FDX, Fortune 500).

But total mail volume continued to fall. The Postal Service handled 37.9 billion pieces of mail between April and June, down from 38.3 billion pieces last year.

The decline underscored a central problem for the agency: People are increasingly moving away from the use of first-class mail to do things like pay bills and send correspondence.

Another big issue is a mandate that the Postal Service "prefund" health care benefits for future retirees.

The requirement has been a major drag on the agency, which has exhausted a $15 billion loan from taxpayers to make up for shortfalls.

This year, the Postal Service owes $5.6 billion to fund future retiree health costs. Last year, it actually owed two such payments because it had to make up for one it withheld in 2011.

And the issue is not going away. The Postal Service is expected to default on the payment -- something it has done twice before -- when it is due Sept. 30.

Related: The Postal Service would love to ship you beer

The Postal Service reiterated Friday that it needs Congress to pass legislation to help it stop the losses. Among measures the agency wants: The end of Saturday delivery of letters and some relief from its annual payments due to the health fund.

"Without comprehensive postal reform legislation signed into law, our hands are tied and we expect multi-billion dollar annual losses to continue," Chief Financial Officer Joe Corbett said.

The Postal Service said it faces a dangerous cash crunch. It must make a payment toward workers compensation benefits by October, leaving it at risk of not being able to pay its operating bills.

Overall losses came despite major cost-cutting. The Postal Service consolidated 104 processing plants, and its roster of career employees, who get full benefits, has fallen to the lowest level since the 1960s.

Related: Postal Service looks to end at-your-door mail

Unions have been pushing Congress to do away with the mandate on funding future health benefits. They said that absent the payment, the agency would have posted a $660 million profit for the third quarter.

"It makes no sense to degrade service or dismantle a network that is performing well and that provides Americans and businesses with the world's most affordable delivery network," said Fredric Rolando, president of the National Association of Letter Carriers.

Earlier this year, the Postal Service announced, and then later dropped, a plan to end Saturday delivery of mail, a move that was expected to save $2 billion a year.

At the last Postal Service board meeting, officials said they would investigate the possibility of hiking the price of stamps. The current price of a first-class stamp is 46 cents. A one-cent increase went to effect Jan. 28.

First Published: August 9, 2013: 3:48 PM ET

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Apple patent win: Samsung banned from selling some phones in U.S.

NEW YORK (CNNMoney)

Apple (AAPL, Fortune 500) alleged that several Samsung products infringe on its patents. Apple originally filed this lawsuit against Samsung in 2011, and it's just one of dozens of ongoing patent lawsuits currently being waged between the tech titans across the globe.

In this latest case, the International Trade Commission ruled in favor of Apple. The commission said Samsung products infringed on two Apple patents, one for touchscreen multitouch and another related to headset plug detection. The court ruled Samsung did not infringe on four other patents listed in Apple's claim.

The ITC banned Samsung from importing or selling some devices that infringe on the Apple patents. While the devices Apple mentioned in the case are older Samsung products -- like the Galaxy Tab 7 tablet and the Continuum smartphone -- the ITC's ruling could have implications for phones currently on the market that use the same technology.

But Samsung has the chance to release software updates to work around the infringement -- for example, customers would still use multitouch the same way they always did, but Samsung would change how that worked from a technical perspective.

Tech companies like to bring their cases before the ITC because it's generally easier to get that court to ban the sale of patent-violating products, when compared with the traditional patent court system.

U.S. import bans are obviously serious concerns for foreign companies like South Korea-based Samsung. But they're just as problematic for those headquartered in America because most tech products -- including Apple's -- are assembled overseas and must be imported.

Even if Samsung weren't able to figure out a workaround, there's a chance the ITC's import ban won't stick. Earlier this summer the ITC ruled on Samsung's own 2011 filing against Apple -- and it ended with the agency issuing an import ban on Apple products. But the ITC is required by law to send such "exclusion orders" to the president for a 60-day review. In an extremely rare move, President Obama vetoed that ITC order just before the review period was up.

Are you an Apple Store employee? Share your story!

This case is one of four Apple-Samsung patent battles currently playing out in U.S. courts, and dozens more are being tried abroad. Billions of dollars are on the line, and the companies are warring to take each other's products off the shelves.

The good news for consumers is that the trial proceedings in such disputes typically take so long that the products in question are often long obsolete by the time a judge rules.

First Published: August 9, 2013: 5:41 PM ET

14.44 | 0 komentar | Read More

Report: Two ex-JPMorgan employees to be arrested in 'London Whale' investigation

Two ex-JP Morgan bankers are facing arrest for their actions related to "the London Whale" trade, according to the New York Times.

NEW YORK (CNNMoney)

The two will be arrested in London within the next few days, the Times reported, citing anonymous sources. The men could then be extradited to the United States.

Spokespeople for JPMorgan (JPM, Fortune 500), the FBI and the U.S. Attorney's office in Manhattan declined to comment.

JPMorgan revealed last year that it had sustained massive losses as a result of a complex bet by traders at its Chief Investment Office in London related to credit derivatives. The bet, which drew on federally insured deposits, was so large that the JPMorgan trader said to be responsible for it earned the nickname "the London Whale."

Related: JPMorgan settles electricity manipulation case for $410 million

The losses eventually swelled to more than $6 billion, stoking renewed concerns about the stability of the nation's largest banks. JPMorgan has previously said it has recordings, emails and other documents that suggest traders may have been hiding the losses as they began to balloon.

A report on the botched trade issued in March by the Senate's Permanent Subcommittee on Investigations said JPMorgan had "disregarded multiple internal indicators of increasing risk; manipulated models; dodged [federal] oversight; and misinformed investors, regulators, and the public about the nature of its risky derivatives trading."

Regulators at the Federal Reserve and the Office of the Comptroller of the Currency ordered JPMorgan in January to improve its risk management and internal auditing in light of the losses. The bank did not face any monetary penalty at that time, consenting to the order without admitting or denying wrongdoing.

First Published: August 9, 2013: 7:25 PM ET

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Cutting the accelerating cost of car insurance

The price of car insurance soared 23% over the past five years.

(Money Magazine)

Claims, however, are at best just keeping up with inflation, says the Consumer Federation of America's Mark Romano: "You're certainly not getting any more for your money."

Should you have an accident, make sure your coverage pays off.

Road to recovery

Call the cops. Report even minor incidents, since some damage -- to a car's electronics, say -- can take weeks to emerge.

"We see this often," says Randy Hanson, Allstate's director of auto claims. (A report won't raise your premium; a ticket or claim might.)

Related: Quick guide to car insurance

Collect evidence. Use your smartphone to record the backup you'll need for a claim. Free apps like WreckCheck (and others from large insurers) guide you through photographing the scene and obtaining information from other drivers and witnesses.

Get your due. Your insurer's favored repair shop may cut corners, says Romano; a dealership specializing in your make -- or a garage it refers you to -- will likely do better.

Related: 5 great big cars

Car totaled? Use prices on kbb.com to negotiate payment for a comparable car.

First Published: August 8, 2013: 5:17 PM ET

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