Big winners on Wall Street are yesterday's dogs

Click for more market data.

NEW YORK (CNNMoney)

First Solar was the best performing stock among the S&P 500, gaining more than 65% over the past three months.

It's a remarkable rebound for the leading maker of solar panels, which saw its stock fall 12% in the first quarter.

First Solar (FSLR) wowed investors in April with a surprisingly bullish outlook for the year. The stock shot up 43% in one day, after First Solar said it expected profits to be 28% above previous forecasts this year on healthy sales growth.

The solar industry has been in a slump as low-cost imports from China have depressed prices. But solar panel prices have stabilized and First Solar said demand is ramping up.

First Solar wasn't the only underdog to make a comeback.

J.C. Penney (JCP, Fortune 500) shares gained more than 12% during the quarter, recovering about half of their first quarter losses.

The retailer ousted CEO Ron Johnson in April, after his controversial turnaround plan failed to show results. J.C. Penney publicly apologized for the changes, and ran an ad on its YouTube channel that practically begged customers to come back.

Related: Top hedge fund manager bets on a return to normal markets

In business for more than 100 years, J.C. Penney has been swimming in red ink as it struggles to compete with online retailers. But the company has been strengthening its finances in an effort to mount another turnaround. It scored a $1.75 billion loan from Goldman Sachs (GS, Fortune 500) in April.

Other top performers in the quarter include popular momentum stocks, such as GameStop (GME, Fortune 500), Micron Technology (MU, Fortune 500) and Best Buy (BBY, Fortune 500).

Best Buy has also been on a turnaround kick, cutting costs and closing under performing stores. Investors have welcomed the moves, sending shares up 26% in the quarter, despite a disappointing sales report in May.

It was also a good quarter for health insurance companies. Shares of Aetna (AET, Fortune 500), WellPoint (WLP, Fortune 500) and Humana (HUM, Fortune 500) all rose by more than 23%.

Golden parachute? Mining companies were among the worst performers in the quarter as prices of precious and non-precious metals plunged.

Shares of Alpha Natural Resources (ANR, Fortune 500) and Newmont Mining (NEM, Fortune 500) fell more than 30%. Iron Mountain (IRM) and Freeport McMoRan (FCX, Fortune 500) also suffered double-digit losses.

Investors have been dumping mining stocks as gold prices plunge.

Related: Gold plunges to two-year low

The precious metal is down 25% this quarter, falling below $1,200 an ounce this week for the first time since August 2010. The largest gold-backed ETF, the SPDR Gold Shares Trust (GLD), lost nearly 24% during the past three months.

While the sell-off in gold has caught the most headlines, mining stocks have also been hurt by the falling price of copper.

Copper prices plunged nearly 12% in the second quarter as demand from China slowed and supplies increased.

A number of energy companies were also hit hard.

Marathon Petroleum (MPC, Fortune 500) shares are down more than 20% for the quarter, after gaining 42% in the first quarter. The company has been playing catch-up on the boom in domestic energy production, and is exposed to a slowdown in emerging market demand.

Peabody Energy (BTU, Fortune 500), which specializes in coal mining, and gas station operator Valero (VLO, Fortune 500) were also big losers in the quarter.

First Published: June 28, 2013: 12:44 PM ET

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Starbucks' caffeine-fueled expansion

A cup of joe from the Starbucks coffee shop in Beijing's Forbidden City.

(Money Magazine)

It's a remarkable turnaround for a firm that just five years ago had to bring back former CEO Howard Schultz after overexpansion and error-filled forays beyond coffee -- ranging from breakfast foods to music -- eroded customer patience. After righting the ship, management is again embarking on another major expansion. But at what cost?

Venti valuations

After more than quadrupling in the past four years, the stock is foamy.

	Projected P/E ratios
Starbucks	27.1
Restaurant stocks	21.2
S&P 500	15.2

Notes: Price/earnings ratios are based on projected profits. Sources: Bloomberg, Morningstar

Strong brew

"Say 'Starbucks' to the average American, and they'll not only think of coffee, but good coffee," says David Ricci, co-manager of William Blair Large Cap Growth, which owns the stock. The same can now be said for global consumers.

Starbucks (SBUX, Fortune 500) is the world's only premium coffee superpower, and its basic business -- selling expensive cups of joe and even pricier espresso drinks through nearly 18,900 stores worldwide -- is as robust as its earthy Sumatra roast.

Related: Starbucks hikes prices

Even with a recession in Europe, global same-store sales still rose 6%. Revenues should climb 11.5% this year, vs. 7% growth for Dunkin' Brands (DNKN) (parent of Dunkin' Donuts).

And SBUX will save more than a quarter-billion dollars in coffee costs in the next two years because of falling bean prices.

Caffeinated costs

Starbucks is growing all over. The company plans to build 600 more cafés in the U.S. this year and another 1,000 stores in China by the end of 2015. It bought Teavana, Evolution Fresh, and La Boulange for $750 million to move more into teas, juices, and baked goods.

The roaster is also making a big push into the at-home market through K-cup sales and its new Verismo brewing system.

Related: Starbucks starts paying U.K. tax

"One concern is, Are you doing too much?" says Bill McVail, analyst at Turner Global Opportunities Fund, which owns the stock.

The reason the firm had to go back to Schultz was it tried -- and failed at -- brand extension via ice creams and even a music label. While croissants and coffee pods are closer to the core business, a misstep could dim Wall Street's starry eyes.

Steamy valuations

Starbucks is poised for years of growth, but it's also "a company with a valuation that is just too expensive for us," says Regina Lombardi, co-manager of BBH Global Core Select. The stock's price/earnings ratio is nearly double the S&P 500's, so you have to pay to jump on this caffeine-fueled bandwagon.

That said, even after boosting spending, Starbucks has $1.7 billion in cash, 10 times Dunkin's stash. Management is also likely to boost dividends in line with strong earnings growth, says Ashley Woodruff, an analyst at the T. Rowe Price Blue Chip Growth Fund, which owns the stock. "Starbucks is able to pay shareholders and still invest in the businesses it wants," she says.

Think: a splash of income to go with rich growth.

First Published: June 28, 2013: 4:42 PM ET

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Paula Deen's business partners vow to support her

NEW YORK (CNNMoney)

Walmart (WMT, Fortune 500), Target (TGT, Fortune 500), Home Depot (HD, Fortune 500), Sears (SHLD, Fortune 500), JC Penney (JCP, Fortune 500) and Caesars (CZR, Fortune 500) have recently ended their deals with Deen while drugmaker Novo Nordisk (NVO) and home shopping channel QVC have suspended their dealings with the embattled celebrity chef.

On Friday, President Jimmy Carter, whose Atlanta-based Carter Foundation is hosting a human rights forum this weekend, weighed in on the issue.

"She was maybe excessively honest in saying that she had in the past, 30 years ago, used this terrible word," Carter told CNN's Suzanne Malveaux.

Carter, while not condoning Deen's racial slurs, said she's been punished enough and that he advised her to get the people she's helping to speak up.

Several of her business partners are doing just that, speaking up and pledging to stand by her. Many have issued letters of support for Deen.

Sandridge Food Corporation, a fresh foods manufacturer that produces deli salads, soups, entrees, desserts, sauces and dips, released a statement Wednesday announcing its unwavering support for Deen.

"Paula is a very caring person who has spent the majority of her life helping the less privileged and giving back," said CEO Mark Sandridge. "As an organization, we believe she and her team are on the right track and we look forward to continuing to work together."

Related: Paula Deen business shaken by controversy

Sandridge says he knows Deen personally and asserts the woman portrayed in the media is not the woman he knows.

"The woman that I know is a very giving person; I do not believe she's a racist whatsoever," said Sandridge. "We know where she comes from and she is genuinely about equality for all."

Kevin Lyles, President and Chief Operating Officer of Club Marketing Services -- which helps companies sell to Wal-Mart and Sam's Club -- affirmed his support for Deen.

"Her apology for the past, I believe came from the heart," said Lyles "The commitment to fairness and equality in the workplace for everyone was from the heart and also a clear message to everyone working for her and those supporting her brand that this behavior will not be tolerated by Paula Deen Enterprises going forward."

Lyles, a personal friend of Deen's for about four years, says she has always shown love and compassion for her fellow man, and has made financial decisions that have not always been in her best interest.

As Deen became a household name, he said she had many opportunities to drop smaller companies that were supporting her and switch to larger companies that could benefit her more financially. But Lyles said Deen instead chose to stay with them.

"She wanted the people that supported her to grow with her," Lyles said.

Related: Paula Deen fans lash out against Wal-Mart

Perhaps one of Deen's most ardent supporters is Julie Goodman Cook, a sales consultant who oversees the Paula Deen cruise for Alice Travel. Cook's unwavering support was on full display as she explained how generous and giving Deen has been.

Cook said, while on the Deen themed cruise, the chef auctioned off personal items such as clothing worn while on TV as well as serving dishes, artwork and other items from her home. The auction raised almost $80,000 for Deen's Bag Lady Foundation which supports women and families in need.

Cook said the support she has seen from Deen's fans of all races has been overwhelming. "My phone has not stopped ringing," said Cook. "The emails haven't stopped, Facebook is going crazy and they are all positive comments from her fans."

First Published: June 28, 2013: 3:16 PM ET

10.20 | 0 komentar | Read More

Big winners on Wall Street are yesterday's dogs

Click for more market data.

NEW YORK (CNNMoney)

First Solar was the best performing stock among the S&P 500, gaining more than 65% over the past three months.

It's a remarkable rebound for the leading maker of solar panels, which saw its stock fall 12% in the first quarter.

First Solar (FSLR) wowed investors in April with a surprisingly bullish outlook for the year. The stock shot up 43% in one day, after First Solar said it expected profits to be 28% above previous forecasts this year on healthy sales growth.

The solar industry has been in a slump as low-cost imports from China have depressed prices. But solar panel prices have stabilized and First Solar said demand is ramping up.

First Solar wasn't the only underdog to make a comeback.

J.C. Penney (JCP, Fortune 500) shares gained more than 12% during the quarter, recovering about half of their first quarter losses.

The retailer ousted CEO Ron Johnson in April, after his controversial turnaround plan failed to show results. J.C. Penney publicly apologized for the changes, and ran an ad on its YouTube channel that practically begged customers to come back.

Related: Top hedge fund manager bets on a return to normal markets

In business for more than 100 years, J.C. Penney has been swimming in red ink as it struggles to compete with online retailers. But the company has been strengthening its finances in an effort to mount another turnaround. It scored a $1.75 billion loan from Goldman Sachs (GS, Fortune 500) in April.

Other top performers in the quarter include popular momentum stocks, such as GameStop (GME, Fortune 500), Micron Technology (MU, Fortune 500) and Best Buy (BBY, Fortune 500).

Best Buy has also been on a turnaround kick, cutting costs and closing under performing stores. Investors have welcomed the moves, sending shares up 26% in the quarter, despite a disappointing sales report in May.

It was also a good quarter for health insurance companies. Shares of Aetna (AET, Fortune 500), WellPoint (WLP, Fortune 500) and Humana (HUM, Fortune 500) all rose by more than 23%.

Golden parachute? Mining companies were among the worst performers in the quarter as prices of precious and non-precious metals plunged.

Shares of Alpha Natural Resources (ANR, Fortune 500) and Newmont Mining (NEM, Fortune 500) fell more than 30%. Iron Mountain (IRM) and Freeport McMoRan (FCX, Fortune 500) also suffered double-digit losses.

Investors have been dumping mining stocks as gold prices plunge.

Related: Gold plunges to two-year low

The precious metal is down 25% this quarter, falling below $1,200 an ounce this week for the first time since August 2010. The largest gold-backed ETF, the SPDR Gold Shares Trust (GLD), lost nearly 24% during the past three months.

While the sell-off in gold has caught the most headlines, mining stocks have also been hurt by the falling price of copper.

Copper prices plunged nearly 12% in the second quarter as demand from China slowed and supplies increased.

A number of energy companies were also hit hard.

Marathon Petroleum (MPC, Fortune 500) shares are down more than 20% for the quarter, after gaining 42% in the first quarter. The company has been playing catch-up on the boom in domestic energy production, and is exposed to a slowdown in emerging market demand.

Peabody Energy (BTU, Fortune 500), which specializes in coal mining, and gas station operator Valero (VLO, Fortune 500) were also big losers in the quarter.

First Published: June 28, 2013: 12:44 PM ET

10.20 | 0 komentar | Read More

Starbucks' caffeine-fueled expansion

A cup of joe from the Starbucks coffee shop in Beijing's Forbidden City.

(Money Magazine)

It's a remarkable turnaround for a firm that just five years ago had to bring back former CEO Howard Schultz after overexpansion and error-filled forays beyond coffee -- ranging from breakfast foods to music -- eroded customer patience. After righting the ship, management is again embarking on another major expansion. But at what cost?

Venti valuations

After more than quadrupling in the past four years, the stock is foamy.

	Projected P/E ratios
Starbucks	27.1
Restaurant stocks	21.2
S&P 500	15.2

Notes: Price/earnings ratios are based on projected profits. Sources: Bloomberg, Morningstar

Strong brew

"Say 'Starbucks' to the average American, and they'll not only think of coffee, but good coffee," says David Ricci, co-manager of William Blair Large Cap Growth, which owns the stock. The same can now be said for global consumers.

Starbucks (SBUX, Fortune 500) is the world's only premium coffee superpower, and its basic business -- selling expensive cups of joe and even pricier espresso drinks through nearly 18,900 stores worldwide -- is as robust as its earthy Sumatra roast.

Related: Starbucks hikes prices

Even with a recession in Europe, global same-store sales still rose 6%. Revenues should climb 11.5% this year, vs. 7% growth for Dunkin' Brands (DNKN) (parent of Dunkin' Donuts).

And SBUX will save more than a quarter-billion dollars in coffee costs in the next two years because of falling bean prices.

Caffeinated costs

Starbucks is growing all over. The company plans to build 600 more cafés in the U.S. this year and another 1,000 stores in China by the end of 2015. It bought Teavana, Evolution Fresh, and La Boulange for $750 million to move more into teas, juices, and baked goods.

The roaster is also making a big push into the at-home market through K-cup sales and its new Verismo brewing system.

Related: Starbucks starts paying U.K. tax

"One concern is, Are you doing too much?" says Bill McVail, analyst at Turner Global Opportunities Fund, which owns the stock.

The reason the firm had to go back to Schultz was it tried -- and failed at -- brand extension via ice creams and even a music label. While croissants and coffee pods are closer to the core business, a misstep could dim Wall Street's starry eyes.

Steamy valuations

Starbucks is poised for years of growth, but it's also "a company with a valuation that is just too expensive for us," says Regina Lombardi, co-manager of BBH Global Core Select. The stock's price/earnings ratio is nearly double the S&P 500's, so you have to pay to jump on this caffeine-fueled bandwagon.

That said, even after boosting spending, Starbucks has $1.7 billion in cash, 10 times Dunkin's stash. Management is also likely to boost dividends in line with strong earnings growth, says Ashley Woodruff, an analyst at the T. Rowe Price Blue Chip Growth Fund, which owns the stock. "Starbucks is able to pay shareholders and still invest in the businesses it wants," she says.

Think: a splash of income to go with rich growth.

First Published: June 28, 2013: 4:42 PM ET

10.20 | 0 komentar | Read More

Paula Deen's business partners vow to support her

NEW YORK (CNNMoney)

Walmart (WMT, Fortune 500), Target (TGT, Fortune 500), Home Depot (HD, Fortune 500), Sears (SHLD, Fortune 500), JC Penney (JCP, Fortune 500) and Caesars (CZR, Fortune 500) have recently ended their deals with Deen while drugmaker Novo Nordisk (NVO) and home shopping channel QVC have suspended their dealings with the embattled celebrity chef.

On Friday, President Jimmy Carter, whose Atlanta-based Carter Foundation is hosting a human rights forum this weekend, weighed in on the issue.

"She was maybe excessively honest in saying that she had in the past, 30 years ago, used this terrible word," Carter told CNN's Suzanne Malveaux.

Carter, while not condoning Deen's racial slurs, said she's been punished enough and that he advised her to get the people she's helping to speak up.

Several of her business partners are doing just that, speaking up and pledging to stand by her. Many have issued letters of support for Deen.

Sandridge Food Corporation, a fresh foods manufacturer that produces deli salads, soups, entrees, desserts, sauces and dips, released a statement Wednesday announcing its unwavering support for Deen.

"Paula is a very caring person who has spent the majority of her life helping the less privileged and giving back," said CEO Mark Sandridge. "As an organization, we believe she and her team are on the right track and we look forward to continuing to work together."

Related: Paula Deen business shaken by controversy

Sandridge says he knows Deen personally and asserts the woman portrayed in the media is not the woman he knows.

"The woman that I know is a very giving person; I do not believe she's a racist whatsoever," said Sandridge. "We know where she comes from and she is genuinely about equality for all."

Kevin Lyles, President and Chief Operating Officer of Club Marketing Services -- which helps companies sell to Wal-Mart and Sam's Club -- affirmed his support for Deen.

"Her apology for the past, I believe came from the heart," said Lyles "The commitment to fairness and equality in the workplace for everyone was from the heart and also a clear message to everyone working for her and those supporting her brand that this behavior will not be tolerated by Paula Deen Enterprises going forward."

Lyles, a personal friend of Deen's for about four years, says she has always shown love and compassion for her fellow man, and has made financial decisions that have not always been in her best interest.

As Deen became a household name, he said she had many opportunities to drop smaller companies that were supporting her and switch to larger companies that could benefit her more financially. But Lyles said Deen instead chose to stay with them.

"She wanted the people that supported her to grow with her," Lyles said.

Related: Paula Deen fans lash out against Wal-Mart

Perhaps one of Deen's most ardent supporters is Julie Goodman Cook, a sales consultant who oversees the Paula Deen cruise for Alice Travel. Cook's unwavering support was on full display as she explained how generous and giving Deen has been.

Cook said, while on the Deen themed cruise, the chef auctioned off personal items such as clothing worn while on TV as well as serving dishes, artwork and other items from her home. The auction raised almost $80,000 for Deen's Bag Lady Foundation which supports women and families in need.

Cook said the support she has seen from Deen's fans of all races has been overwhelming. "My phone has not stopped ringing," said Cook. "The emails haven't stopped, Facebook is going crazy and they are all positive comments from her fans."

First Published: June 28, 2013: 3:16 PM ET

10.20 | 0 komentar | Read More

Feds crack down on lenders bilking military members

NEW YORK (CNNMoney)

In one action announced Thursday, the Consumer Financial Protection Bureau said it has ordered U.S. Bank (USB, Fortune 500) and another company, Dealers' Financial Services, to refund a combined $6.5 million to more than 50,000 active duty service members to make up for failing to disclose fees and other costs on auto loans.

The government agency said the auto loans were marketed to active military members with little credit history, borrowers who were "often young and new to the car buying process."

The size of the refund will vary widely, according to CFPB, but will average around $100.

An investigation of the firms' so-called "MILES" program -- a subprime auto loan program that operated near military bases across the country -- found that U.S. Bank failed to properly disclose fees and other information about the loans, while Dealers' Financial Services understated the costs of add-on products, such as vehicle service or insurance.

For example, marketing materials claimed adding a vehicle service contract would add only a few dollars a month, when it actually cost an average $43 extra per month.

The program also required service members to pay the loans using the military allotment system, which deducts payments directly from military paychecks, but then charged the borrowers $36 in monthly processing fees each year. U.S. Bank did not properly disclose those fees, the CFPB said.

U.S. Bank said in a statement that the MILES program, which was created more than a decade ago, has been "a popular program with young military service people, who faced the prospect of paying much higher interest rates at other lenders." Still, the company said it plans to exit the program, and noted that it had not been fined beyond paying the refunds.

Related: Veterans losing savings to 'pension advance' firms

The CFPB learned of the program from the father of a 21-year-old soldier who said his son had inked a loan agreement that ate up more than 70% of his take-home salary before it even hit his bank account.

Also on Thursday, the Department of Defense announced plans to study other potential abuses of the decades-old military allotment system.

Financial counselors on military bases often tell horror stories of the automatic deductions, said Holly Petraeus, the CFPB's assistant director for Service Member Affairs.

"They tell me about instances where there are service members who are 'allotted out', where they've got virtually all of their paycheck going to allotment before any of it gets to their bank," she said.

Related: Getting into the military is getting tougher

Dealers' Financial Services has agreed to stop requiring borrowers to use military allotments. It said it will now focus on "new potential lending partners that the company believes will provide more competitive financing alternatives to our service member customers."

In an unrelated action, the Federal Trade Commission announced that Mortgage Investors Corporation, which offers mortgage refinance loans to military veterans, would pay a $7.5 million fine for illegal telemarketing practices.

Telemarketers for the firm called more than 5.4 million numbers listed on the national Do Not Call registry, and misstated the terms of their adjustable rate loan products.

First Published: June 27, 2013: 3:49 PM ET

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U.S. curbs Bangladesh trade privileges

A Bangladeshi man cries for a missing relative, believed to have died in the rubble, after an apparel factory building collapsed and killed over 1,100 workers in April.

WASHINGTON (CNNMoney)

The government said it would no longer allow duty-free imports of certain products made in Bangladesh under a program that helps encourage trade with developing countries by providing breaks on tariffs.

The trade decision comes as Bangladesh is facing mounting international pressure to improve working conditions after a series of fatal fires last year killed hundreds, and a building collapse in April killed over 1,100 workers. Almost all of the accidents have happened in its apparel industry. Bangladesh is the fourth largest exporter of clothes to the U.S., behind China, Vietnam and Indonesia.

However, the U.S. decision isn't expected to affect clothing imports, because apparel isn't covered under the duty-free program.

Related: Bangladesh: Cheap clothes lead to danger and tragedy

The program is part of a global effort overseen by the World Trade Organization and applies to imports from developing countries. Thursday's curbs is likely to affect imports of tobacco products, sports equipment, china and plastic products from Bangladesh, according to the country's embassy.

In 2011, the U.S. imported $26.3 million worth of goods that got duty free breaks under the program, according to trade records. That's less than 1% of the more than $4 billion of Bangladesh exports to United States.

"While (it) doesn't cover garments from Bangladesh, it's still important to U.S. companies purchasing goods from Bangladesh under the program, such as ceramics and dinnerware," said Daniel Anthony, research director at the Coalition for GSP, an advocacy group for the program funded by U.S. companies and associations.

Related: Why I'm protesting against Gap over Bangladesh

The U.S. program granting duty free status to developing nations was already set to expire July 31.

The program can be extended only if Congress acts by the deadline, which doesn't look likely so far, according to congressional aides and lobbyists.

In 2011, Congress renewed the program retroactively. But the dire budget situation combined with forced spending cuts could reduce enthusiasm for a trade program that eats into U.S. revenue.

Labor unions have been pushing the Obama Administration to respond to labor and safety problems in Bangladesh.

"The AFL-CIO hopes that the suspension of benefits will be a catalyst to accelerate an effective process involving the government, employers and workers of Bangladesh to achieve these goals," President Richard Trumka said in a statement.

Bangladesh is among more than 120 countries that gets tariff breaks under the program, known as the U.S. Generalized System of Preferences.

Related: Bangladesh pay hike would cost shoppers only pennies

"I have determined that it is appropriate to suspend Bangladesh's designation as a beneficiary developing country under the GSP program because it is not taking steps to afford internationally recognized worker rights to workers in the country," President Obama wrote in the proclamation.

Bangladesh's working conditions are also in the spotlight in Europe. The European Union is considering a move to revoke Bangladesh's duty free privileges also on clothing, which could really really hurt the country.

Apparel is Bangladesh's top business and makes up 80% of exports. The average worker in the garment industry in Bangladesh makes between 10 and 30 cents an hour, and many of the factories do not have windows, fire escapes or emergency exists, according to labor rights activists.

The Bangladeshi government has turned a blind eye to working conditions in an effort to entice retailers with low costs. International governments are now amping up the pressure hoping that Bangladesh will step up its vigilance over its country's factories.

-- CNNMoney's Emily Jane Fox contributed to this story.

First Published: June 27, 2013: 3:42 PM ET

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Healthy savings: Fewer lab tests

When doctors know a lab test's cost, expenses are cut 9.6%.

(Money Magazine)

A new Johns Hopkins study found that doctors shown the bill for lab tests ordered fewer of them, cutting expenditures 9.6%.

"Most medical care is delivered in a cost vacuum," says co-author Leonard Feldman. "Information helps providers be more cost-conscious."

Here are other ways in which greater awareness of prices can promote healthy savings for you.

Prescription for savings

Health care: To better weigh costs, check if your insurer lets you compare provider pricing. And to get your doctor thinking about your outlays, ask him or her whether less expensive treatments or fewer tests will suffice.

Investing: A new study finds the hidden cost of mutual funds' trades runs to 1.4% of assets annually, more than the stated expenses of the average fund. Best deals: midsize and smaller funds trading less than 60% of holdings a year, says co-author Roger Edelen of the University of California at Davis.

Related: Best advice now for saving and spending

Travel: Fees can add 5% or more to a hotel's rate, says New York University's Bjorn Hanson.

The latest gotcha: a charge to park in the front lot. Ask about fees beforehand, note the rep's name, and refer to it if surprises pop up later.

First Published: June 27, 2013: 4:21 PM ET

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Coverdell, 529, Roth: Which to tap first for college?

NEW YORK (Money Magazine)

Take into account taxes and, if you qualify, need-based aid, says Troy Onink, CEO of Stratagee.com, a college-planning firm.

Start with the 529 and Coverdell Education Savings Account: Withdrawals for eligible expenses, such as tuition and books, aren't taxed or counted as income in financial-aid calculations.

You might also tap the mutual funds to get the American Opportunity Tax Credit, worth as much as $2,500 annually. You'll have to spend up to $4,000 from sources other than the 529 or ESA; the income phaseout is $180,000 for couples and $90,000 for singles.

Related: Getting the financial aid you need

Save the Roth for last (using it only if you're already set for retirement). You can withdraw contributions tax-free; earnings used for school are taxed as income.

First Published: June 26, 2013: 4:04 PM ET

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Sallie Krawcheck on trusting Wall Street again

Sallie Krawcheck, former investment bank executive, just bought a network for professional women, 85 Broads.

(Money Magazine)

Can investors trust Wall Street again?

If we mean by "Wall Street" large financial institutions, I'd say that they are no doubt safer today than before the Dodd-Frank law and the new financial regulatory changes, but it is still unclear whether they can make it through a significant downturn like we had in 2008.

If we mean financial advisers, in my experience running Smith Barney at Citi (C, Fortune 500) and then Merrill Lynch, I found that the vast majority of them are good people, looking to do good things and committed to building long-term relationships with their clients. You know, the cartoon representation of so many of them as short-term-focused is wrong.

For example, back in 2007 and 2008, Citi had sold some financial products that we believed would only go down a few cents in a bad market, but which actually [lost most of their value]. Instead of reading investors the fine print, the advisers pounded the management team to partially reimburse their clients for our stupidity. I advocated for that too, the bank eventually relented, and I subsequently lost my job.

Many of the people who were on Wall Street in 2007 and 2008 are still there making big money. How is that possible?

A number of people lost their jobs at Citi, including the CEO, the head of the corporate investment bank, desk heads, and traders.

Related: 101 ways to build wealth

Is Wall Street getting any better at managing risk to avoid catastrophe?

Everybody's learned something, but are we going to have the breakthrough to reduce risk in the system? There's a reason crowdsourced problem-solving works: You put a problem to groups who have different experiences, and they'll often solve dilemmas that the experts couldn't. The chemists solve the physicist's problem.

Part of me wants to open-source bank risk so that we have some sharp college kids in some corner of the world trying to solve it, as opposed to the same folks with the same tools. It sounds fanciful, but there is not a tremendous amount of new thinking on these issues of risk. The problem is, banks will never allow positions or performance information to be made public.

What's the next financial risk out there that people don't broadly recognize?

The first one I would point to is bond funds. There is still an incorrect but widely held view that you don't take particularly big losses on bonds unless there's a credit issue. [This is true only if you can hold to maturity.] Bond funds are different. If the economy gets better and interest rates increase, bonds may suffer losses. There's going to be some surprise out there.

Related: Are we at risk of another banking crisis?

You've also raised concerns about money-market mutual funds.

The funds do take on risk. It's a $2.6 trillion market. Lots of individual investors participate. They believe it's cash, in part because the brokerage system puts it into CASH on their statement. And they redeem 100¢ on the dollar in good markets and bad.

But back in 2008, a money-market fund "broke the buck" [couldn't redeem for 100¢]. If we learned anything in the downturn, implicit guarantees not backed by capital are very bad things. What worries me about money funds is managers who take on more risk just to get a tiny bit more return. It's not worth it.

Do you believe high-speed computerized trading gives Wall Street an unfair advantage over individual investors?

It's faster. I would make sure to worry about first things first and second things second, and last things last.

So first things first. How do I want to live? How much money do I need to do it? Can I reasonably get there? Then you've got to go to second things. Do I have the right portfolio to get me there? Am I properly diversified? Third things: Are you in a mutual fund that has an average management fee of 1.2%, 1.3%, when you could be in an ETF that has an expense ratio of 0.3%?

Once you've done all that, then let's start to talk about the fractions of pennies that the institutional traders are getting over individual investors. Most individuals really shouldn't be trading often anyway.

Related: Money-market funds aren't as safe as you think

What about the "flash crash," when computers seemed to cause the Dow to briefly plunge 9%.

It was very scary, but the good news was that there was not a tremendous amount of money lost by individual investors.

You first built your name as a stock analyst covering Wall Street. A MONEY reader asks whether banks are a decent investment yet.

Today the markets feel fine, right? The economy feels good enough. If the economy and the markets are in good enough shape, overall banks will be in good enough shape.

One caveat: Individual banks are difficult to analyze. They're very complex. Even when they give out 100-plus pages of 10-K and 10-Q disclosure, it is really impossible to know what's on their balance sheet at any point in time because the banks' individual loans and trading positions can change quickly between earnings reports. And as we've learned, idiosyncratic accidents do happen.

So my advice is, if one wants to invest in financial institutions, own a group of them, or an ETF that owns them, rather than individual banks. That's what I do.

Related: Best advice now for getting richer

You've talked about banks alienating customers with high and hidden fees. Why do they do it?

Banks, having had their earnings reduced, are doing what companies do: looking to replace earnings.

What new fees should bank customers expect?

It's well known that if you transfer a credit card balance, you can get a low teaser rate that will then move up. What is less understood is that when you give a deposit to a bank, there can be a teaser rate that is later taken down.

In this low-rate environment, the numbers are not large. But if you look for a future fee stream, it would be that. The average checking-account agreement is, I believe, 111 pages. You can find the formula for how the leap year affects the calculation of your interest payment. It's harder to figure out the rate they'll actually pay.

First Published: June 26, 2013: 4:13 PM ET

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Coming soon to Windows: 3-D printing

Microsoft's Windows 8.1 will support plug-and-play for 3-D printers.

SAN FRANCISCO (CNNMoney)

Among the many big Windows 8.1 announcements on Wednesday, 3-D printing isn't one that will immediately resonate with most users. But it is sure to excite the growing contingent of designers, "makers" and early adopters, as millions of PCs will suddenly have native support for 3-D printing.

Although you've always been able to connect a 3-D printer to a Windows PC, many 3-D printing apps require you to craft your designs inside the app or spend time translating your creation into a format the printer software can handle.

But Windows 8.1 will feature plug-and-play support for 3-D printers. Much like you can plug in a standard printer, go into any number of Windows apps, click the file menu, and choose to print a document, Microsoft (MSFT, Fortune 500) will soon allow you to do the same with 3-D renderings and 3-D printers.

Related story: Stratasys buys Makerbot for $400 million

No 3-D printer companies currently support plug-and-play on Windows 8.1, but after Microsoft's latest operating system is released during the holiday season, Microsoft expects that a number of 3-D printers will take advantage of the feature. At the Microsoft Build developers conference in San Francisco, Microsoft showed off a proof-of-concept demonstration.

Given that Windows is still the world's most used PC operating system, Microsoft's announcement serves as a huge validation for the 3-D printing movement and a crucial step towards making 3-D printing easier and more accessible. Nothing made that more clear than the announcement that the MakerBot Replicator 2 3-D printer will now be available in select Microsoft stores.

"Wiill 3-D printing go mainstream? We think so -- which is why we've built it into Windows," wrote Shanen Boettcher, general manager of Microsoft's startup business group, in a blog post.

First Published: June 26, 2013: 4:45 PM ET

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Orders for Paula Deen cookbook surge

Advance orders for Paula Deen's next cookbook have surged since the Food Network discontinued her show after she admitted using a racial slur.

NEW YORK (CNNMoney)

Orders for "Paula Deen's New Testament: 250 Favorite Recipes, All Lightened Up" surged on Amazon (AMZN, Fortune 500) by nearly 1,300% in the last 24 hours.

The cookbook was ranked 115th on Tuesday, compared to a ranking of 1,592nd on Monday

"Paula Deen's New Testament" is not available until October.

Another cookbook, "Paula Deen's Southern Cooking Bible," jumped 114% to Amazon sales rank 350, from 750 in the prior 24 hours.

Deen's agent did not immediately return a message from CNNMoney about the book sales.

Scripps Networks Interactive's (SNI) Food Network announced June 21 that it would not renew Deen's contract after reports emerged that she admitted, during a court deposition in May, using racial slurs.

"Yes, of course," said Deen, when asked by a lawyer if she had ever used the "N word."

Deen's television contract expires at the end of June, ending her 11-year relationship with the Food Network.

Related: Men's Wearhouse: Why we fired Zimmer

Pork producer and former Deen sponsor Smithfield Foods (SFD, Fortune 500) cut its ties on Monday.

"Smithfield condemns the use of offensive and discriminatory language or behavior of any kind," said Smithfield vice president of investor relations Keira Lombardo, in a statement to CNN. "Therefore, we are terminating our partnership with Paula Deen."

Deen's 14 cookbooks have sold millions of copies. She also sells cookware and decorating supplies via her website and owns seven restaurants, including The Lady & Sons and Uncle Bubba's Oyster House, both in Savannah, Ga.

Brian Warner, managing editor at CelebrityNetWorth.com, estimates Deen's wealth at $10 million.

Related: Controversial T-shirt destroys business

Deen, who uses the Southern greeting "Hi y'all" conspicuously on the air and on her website, apologized via video:

"Your color of your skin, your religion, your sexual preference does not matter to me, but it's what's in the heart and my family and I try to live by that," she said. "I offer my sincere apology to those that I have hurt and I hope that you forgive me because this comes from the deepest part of my heart."

First Published: June 25, 2013: 1:19 PM ET

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Nokia Lumia 928: Design is not enough

NEW YORK (CNNMoney)

You can hold your applause.

Stripped down to its most essential parts, Nokia's new Lumia 928 is virtually identical to last year's Lumia 920. They share get the same 4.5-inch screen with a resolution of 1280x768, a dual-core Snapdragon S4 processor, and a gigabyte of RAM.

The 928's lighter, slimmer, more angular polycarbonate body that makes it far more pocketable than the 920, even if its sharp angles are a bit less accommodating to your palm. Also new is the xenon flash to provide better low light performance.

Other than that? Same phone.

The good news about the 928, if you're a Verizon (VZ, Fortune 500) customer, is that it's the first high-end Lumia device to grace the nation's largest wireless network -- in fact, the Lumia 928 is a Verizon exclusive. Those Verizon customers who had been holding out for the Lumia 920 won't have a tough decision to make.

Everything else about the Lumia 928 feels like old news.

Last year, the guts found in the 928 would have been top notch. This year, they're simply commonplace and a generation behind.

Related story: Nokia's Lumia 928 is a placeholder more than a flagship

To be fair to Nokia (NOK), the Finnish phone maker couldn't have built a better smartphone if it wanted to. It has equipped the 928 with the best processor and display Microsoft's Windows Phone 8 operating system will allow. Until Microsoft (MSFT, Fortune 500) releases an update to its mobile OS later this year, Nokia's hands are tied.

But even with last year's hardware, The Lumia 928 is still a perfectly good phone.

Nearly every aspect of the Windows Phone user interface runs silky smooth. The display is beautiful, and you'll be hard pressed to find a better low light camera on the market. Internet Explorer renders sites beautifully, and more apps continue to pile into the Windows Phone app store by the day. The battery will get you through a full day, and with Verizon's network, coverage issues are few and far between.

But smartphones can't just be measured by their performance when you buy them -- we're typically stuck with them for at least two years. When a bigger, badder version of the Windows Phone operating system rolls out next year, will the Lumia 928's aging hardware be able to keep up? What happens in 2015, at which point it will be a dinosaur in smartphone years?

Nokia and Verizon appear to be aware of that conundrum, and they have priced the phone accordingly. The Lumia 928 costs $100 with a two-year contract at Verizon stores (half the price of most high-end smartphones) and just $30 on Amazon (AMZN, Fortune 500).

At the end of the day, the Lumia 928 is Nokia's way of reminding the world that its still making quality hardware and trying to claw its way back to the top of the smartphone food chain. Even if its operating system is holding it back, the Lumia 928 is a phone that will undoubtedly please a few Verizon customers who were faithfully waiting for a premium Lumia to come their way.

But if you're a Windows Phone devotee who can wait a few months, chances are we'll see a bigger and better Lumia phone hit the market -- Nokia has an announcement planned for July 11 in New York.

First Published: June 25, 2013: 12:10 PM ET

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BlackBerry launches iPhone and Android security platform

Secure Work Space lets users toggle between personal and corporate modes on their devices.

NEW YORK (CNNMoney)

Now a distant fourth (behind even Microsoft) and fading fast on the hardware side, BlackBerry is hoping its acclaimed security software might be its ticket to success -- even if it means supporting rivals' devices.

BlackBerry on Tuesday introduced a new service called "Secure Work Space," which allows enterprise iPhone and Android users to toggle between personal and corporate modes.

Secure Work Space is aimed at giving companies control over the data that flows over their networks, even on a user's personal phone. Corporate email, calendars, contacts and intranets are cordoned off, and IT departments can add or remove other apps from that corporate section without affecting any personal information.

That separation ensures, for example, that users can't copy a message from the corporate profile and paste it into the personal one. Just as crucially, malware infecting the personal side of the phone won't make its way into corporate data.

The setup is similar to BlackBerry Balance, which comes standard on BlackBerry 10 devices.

Related story: You're going to love the BlackBerry Q10 (or hate it)

BlackBerry will provide an update on sales of the Z10 and other BlackBerry 10 smartphones on Friday. Though some analysts are optimistic, no one expects the new line of devices will launch BlackBerry back to the smartphone forefront anytime soon -- or, truthfully, ever.

But if Secure Work Space takes off, it could help BlackBerry (BBRY) regain some of the corporate market that it lost so publicly and painfully.

"Conceptually, it does make sense -- BlackBerry did well securing email, and now they're securing a workspace," said Cowen & Co. analyst Matthew Hoffman.

But as BlackBerry has declined, competitors like Apple (AAPL, Fortune 500), Google (GOOG, Fortune 500) and Microsoft (MSFT, Fortune 500) have worked hard to improve their own security capabilities. Samsung launched its own "Knox" system for the new Galaxy S4, which works much like Secure Work Space.

Still, there's room in the market for a trusted multi-platform solution -- an Oracle (ORCL, Fortune 500) of mobile devices.

Hoffman isn't convinced that BlackBerry will be the only company in the field, but BlackBerry still has the chance to become that trusted solution. Despite all of its troubles on the hardware side, BlackBerry's reputation as a company dedicated to security endures, as CEO Thorsten Heins has made sure to play up the company's history in the space.

A full switch to software would be "messy," though, Hoffman said. "[BlackBerry would] be taking 95% of its revenue, hardware, and saying, that doesn't matter -- now we're going to focus on this 5%. It would be a pretty big corporate transition to become software-only."

BlackBerry dipped a toe into this field back in 2011, when the company launched an experimental product that allows corporate IT staffers to manage multiple mobile devices -- including iOS and Android -- through the same interface. At the time, the company insisted that it wasn't shifting its strategy away from hardware.

Two years later, however, BlackBerry is still struggling on the device side and sorely needs a bright spot. If security software can be successful for BlackBerry, a bit of a strategic shift could be a smart move.

First Published: June 25, 2013: 3:36 PM ET

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China: Don't worry! It's not 2008

China's stock market is in bear market territory, marked by a 20% drop from its most recent high.

NEW YORK (CNNMoney)

China is unlikely to see a financial crisis like the one the United States experienced in 2008, said Axel Merk, chief investment officer of Merk Investments. That's because China has much more control over its banking system.

"The Chinese government can take over the banks in a minute," he said.

Late last week, the rate at which China's banks lend to one another soared, leading to worries about a full blown credit crisis.

Instead of intervening, China's central bank warned the nation's banks Monday to rein in risky lending. That caused the Shanghai Composite to sink more than 5% and slip into bear market territory -- defined as a 20% drop from its most recent high.

While it may look like the makings of a credit freeze, it's nothing like 2008, when U.S. banks were dangerously close to failing. (Some, of course, did).

Related: China stocks crater as banks warned over credit

China's banking sector today is more similar to the U.S. banking system in 2006, when banks were lending to borrowers who had virtually no ability to repay their mortgages, says Komal Sri-Kumar, founder of an eponymous global strategy firm.

China's decision not to jump in and push down borrowing rates for banks is seen as a way to force them to get back to traditional banking. China recently issued warnings to its banks to avoid risky loans and excessive expansion of credit.

"China is doing what [former Fed chairman] Alan Greenspan should have gotten to around to doing in 2006," said Kumar. "The Chinese are getting ahead of speculation that could ultimately result in major economic failures."

That may continue to unnerve investors, who have grown accustomed to policies designed to juice markets, but longer-term, it could make the country's economy healthier, says Mike Holland, chairman of investment firm Holland & Co.

Shorter term, any pullback in lending by Chinese banks may prove to be a drag on the global economy.

Kumar said economic growth in China could fall below 7% this year, which would translate into "less stimulus" for the global economy. Economists had been predicting a growth rate of roughly 8%.

Related: Stock sell-off is just 'taper tantrum'

Holland was more optimistic. He thinks the recent sell-off has created a near-term buying opportunity.

The Chinese government will continue to fix up its banking system and its financial markets, while making sure that the economy remains stable, he said.

"At the top of the agenda for leadership: they do not want to have a revolution," said Holland.

First Published: June 24, 2013: 3:48 PM ET

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Question about Obamacare? Here's a number to call for help.

The administration launched new tools to help consumers sign up for Obamacare.

NEW YORK (CNNMoney)

The administration on Monday launched a toll-free helpline and revamped its HealthCare.gov site to answer basic questions about the state-based health insurance exchanges that will open for enrollment in October. A Spanish-language site, CuidadoDeSalud.gov, is also available.

The helpline, 800-318-2596, is available 24/7 and can provide assistance in 150 languages. There is also a new live-chat feature on HealthCare.gov.

A CNNMoney reporter's initial live-chat question on whether green card holders are eligible to sign up was answered with a textbook response that enrollees must be citizens or "lawfully present." A second question on whether the holder had to be here for a certain period of time before being eligible to enroll was referred to the call center.

The question was one CNNMoney had received from a reader.

Posed to a call-center representative, the question yielded the same response about holders having to be citizens or "lawfully present." Asked about the time period, the representative re-read the identical passage.

The website also provides information about the exchanges and includes links to the state-based websites for the 17 states that are running their own exchanges. (The federal government will operate the exchanges elsewhere.)

Related: I'm signing up for Obamacare

The site also answers questions about the Small Business Health Options Program, known as SHOP, including what companies are considered small businesses, whether they have to insure their employees and whether they are eligible for subsidies. A call center for small businesses is scheduled to open in August.

Consumers will be able to get more in-depth, in-person assistance as the enrollment date approaches. Coverage begins Jan. 1.

The administration's efforts come a few days after several advocacy organizations launched consumer education initiatives. Obamacare supporters are focused on getting people -- particularly younger, healthier Americans -- to enroll in the exchanges. Awareness is currently fairly low: Some 78% of the uninsured don't know they'll be able to purchase insurance through the exchanges, according to Enroll America, an advocacy group.

In October, consumers will be able to shop for and enroll in coverage through the HealthCare.gov website.

First Published: June 24, 2013: 4:06 PM ET

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Big money at stake in same-sex marriage ruling

Married same-sex couples in these 12 states (and Washington, D.C.) are waiting to find out whether they will become eligible for federal spousal benefits.

NEW YORK (CNNMoney)

A decision on the constitutionality of the 1996 Defense of Marriage Act, which defines marriage as solely between a man and a woman, is expected to be announced as soon as Tuesday. If the act is overturned, married same-sex couples in a dozen states will become eligible for more than 1,000 spousal benefits that are currently off limits.

The case challenging DOMA was filed on behalf of 83-year old New Yorker Edith Windsor, who sued to get back the $363,000 in estate taxes she paid when her wife of more than 40 years died -- a tax bill she wouldn't owe if she had been married to a man.

If the Supreme Court leaves DOMA standing, the battle for federal benefits will continue. But here's what happens if DOMA is overturned:

Income tax: Same-sex couples would be able to file their federal income taxes jointly. For many couples -- typically those in which one person earns significantly more than the other -- merging incomes for tax purposes could result in big savings.

Janet and Janet Emery-Black, who married in California in 2008, estimate they could save more than $10,000 a year in income tax by filing jointly. Janet has always had a higher-paying job than her wife, who is now retired, so combining incomes would put them in a much lower tax bracket.

Related: Out of the closet on Wall Street

Other couples wouldn't be helped by filing jointly, however -- especially if their incomes are similar.

Gift tax: Currently, spouses in opposite-sex marriages can transfer unlimited assets to one another. But for same-sex couples, any gift of more than $14,000 begins chipping away at a lifetime gift limit of $5.25 million -- after which a 40% gift tax is assessed. Same-sex couples who divorce can also be subject to the federal gift tax when dividing assets. If DOMA is overturned, however, this extra tax will disappear.

Related: The high cost of same-sex divorce

Health insurance: Many married same-sex couples would no longer have to pay extra income tax on the medical benefits one partner receives through the other's health insurance plan. And federal employees will likely be granted spousal benefits, such as partner health insurance.

Death benefits: Same-sex couples would be eligible for the same federal tax treatment and Social Security benefits as opposite-sex couples in the event that one spouse passes away. This means a surviving spouse would be eligible for Social Security survivors benefits and exempt from the 40% federal estate tax on assets exceeding $5.25 million.

Related: Same-sex marriage's corporate boosters

What the decision won't do: Even if DOMA is overturned, many same-sex couples won't receive federal spousal benefits. That's because the majority of states still don't allow same-sex marriage, and federal benefits would likely only be extended to those who are married at a state level and live in a state where that marriage is recognized, said Kyle Young, a financial adviser and vice president for Wells Fargo Advisors.

This also means that domestic partnerships and civil unions may not qualify for federal benefits,

Currently, same-sex marriage is legal in 12 states and Washington, D.C., while seven states grant domestic partnerships and civil unions, according to advocacy group the Freedom to Marry.

First Published: June 24, 2013: 6:18 PM ET

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BIS to global central banks: Time to reduce stimulus

Federal Reserve Chairman Ben Bernanke hinted that the central bank would pull back on stimulus measures later this year.

NEW YORK (CNNMoney)

But a powerful group, representing global central banks, wants more.

In its annual report, the Bank for International Settlements suggested that global central banks should stop relying on stimulus to grow their economies and instead encourage authorities to speed up reforms.

"We are past the height of the crisis, and the goal of policy has changed -- to return still-sluggish economies to strong and sustainable growth," said the BIS, a consortium of central banks like the Fed and the European Central Bank.

"Can central banks now really do "whatever it takes" to achieve that goal?"

Related: Fed sets road map for end of stimulus

The report stated that the initial purpose of stimulus programs was to do "whatever it takes" to prevent financial collapse.

But at this point, the BIS called the programs "cheap money" which delays needed reforms in the economy and the financial system.

Investors have been skittish around any kind of central bank pullback talk. U.S. markets fell two weeks in a row after the Fed suggested it could start easing up on its controversial stimulus program, which is pumping $85 billion a month into the U.S. economy.

Central Bank action in China and Europe also has people on edge.

The People's Bank of China, which maintains tight control over the banking system, has been taking a tough line with Chinese lenders. It refused to inject cash into the financial system last week despite rocketing short-term borrowing costs, rattling investors.

The ECB, meanwhile, is in a wait and see mood and seems poised to move in the opposite direction.

The bank says it is ready to do more if an economic recovery fails to materialize later this year. It has discussed negative interest rates to ease a credit squeeze by encouraging banks in depressed southern Europe to lend more money to businesses and consumers.

Europe is constantly wrangling with the long-running debate over spending cuts and tax increases that have formed the core of the eurozone's response to its credit crisis. In recent months, European policymakers have gone out of their way to acknowledge that there are limits to austerity programs.

First Published: June 23, 2013: 1:56 PM ET

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4 stocks I'm buying to ride U.S. energy boom

Occidental Petroleum Corp v. Kinder Morgan

NEW YORK (CNNMoney)

This week, the sector will be in focus, with President Obama expected to unveil a national plan to combat climate change on Tuesday.

The energy renaissance has also been on the mind of portfolio manager Mark Freeman, who has been stocking up on companies that are benefiting from it. Freeman said his investments have been driven by the U.S.' push to become energy independent and its focus on renewable energy sources.

"You get a powerful dynamic in achieving self-sufficiency," said Freeman, chief investing officer of Westwood Holdings Group, which manages $8 billion in assets.

American oil production has surged, and is expected to continue rising. It's lit a fire under energy stocks -- the S&P 500 energy sector index is up over 20% in the past year.

Freeman's firm has invested on all sides of the energy market, from domestic producers to infrastructure components to support services for oil drilling. Here are 4 stocks he's bought, and why he thinks they'll continue to be hot:

1. Domestic producer Occidental Petroleum Corporation (OXY, Fortune 500)'s stock has risen 13% this past year. But Freeman believes it has more to go as the largest onshore producer in the United States.

2. Infrastructure components company Kinder Morgan (KMI, Fortune 500), whose stock is also up 13%, has been big for Freeman. The company's 80,000 miles of pipelines and 180 terminals, which transport natural gas and petroleum products, Freeman believes puts Kinder in the perfect position to benefit from increased domestic production.

3. Freeman said that Union Pacific (UNP, Fortune 500), a major railroad franchise, will benefit in the same way, because there will be more demand for crude-by-rail and shipping. The stock is up 32% in the past year.

4. Schlumberger (SLB), a leading oilfield services company, will be big, said Freeman. Energy companies will rely more on Schlumberger to get their work done because Schlumberger helps supply technology and project management to the oil production industry. Its stock is up 16% this past year.

All these stocks are multi-year holdings for Freeman.

First Published: June 23, 2013: 2:08 PM ET

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Brazilian stocks among world's worst performers

Click chart for more data on global markets.

NEW YORK (CNNMoney)

The Bovespa Stock Index (IBOV) is down more than 20% so far this year, making it the worst performer among the major emerging markets.

Investors have been pulling out of emerging markets in anticipation of tighter monetary policy in the United States. The sell-off in Brazil accelerated last month after Federal Reserve chairman Ben Bernanke told U.S. lawmakers that the central bank could begin to slow the pace of its asset purchases later this year.

The Fed has bought some $3 trillion worth of assets since it launched quantitative easing in 2008. Much of that money has found its way into stocks in developing economies as investors ventured into more risky assets.

Brazilian stocks have also been hurt this year by a lackluster growth outlook for Latin America's largest economy as global demand for natural resources wanes.

Related: Emerging markets in turmoil

The Brazilian real has come under pressure as investors pull money out of the country. That's prompted Brazil's central bank to take steps to prop up the currency. Despite such intervention, the real tumbled to a four-year low against the dollar Friday.

The recent political unrest in Brazil has also put the country in the headlines for the wrong reasons. But analysts say the political turmoil has not yet impacted the nation's economy.

Following large-scale protests in Sao Paulo and Rio de Janeiro, the government agreed to roll back controversial fare hikes on bus and metro tickets.

"The protests are having very little impact on sentiment towards Brazil at this stage," said Robert Wood, Brazil analyst for The Economist Intelligence Unit. "It's mostly driven by external factors."

However, the protests have highlighted the significant gap between the rich and poor in Brazil.

Brazil has 12 to 13 million households in extreme poverty, which translates to roughly 40 million people, said Rafael Amiel, director of Latin American economics at IHS Global Insight.

"Brazil has made substantial progress, but they still have a lot of people in poverty," said Amiel.

Nevertheless, he said the recent political unrest is not comparable to the Arab spring uprisings over the past few years.

"They don't want to bring down the government," he said. "They just want more services and less corruption."

Related: Meet the new emerging markets

So why have Brazilian stocks fallen even more than shares of Indian and Chinese companies? A global slowdown in the demand for oil and other commodities is the big reason.

Brazil's economy has cooled off from a torrid pace in the past few years as domestic consumption has not made up for the decline in demand for natural resources. The International Monetary Fund cut its outlook for Brazilian growth this year to 3% in April, down from 3.5% in January.

"Brazil was one of the investment darlings of the emerging world over past ten years," said Paul Christopher, chief international strategist Wells Fargo Advisors. "Now, it has fallen out of favor with a big thud."

Shares of Brazilian oil company Petrobras (PBR) has fallen nearly 30% this year while mining company Vale (VALE) has plummeted 35%.

Christopher noted that the Bovespa has underperformed the benchmark MSCI (MSCI) index of emerging market stocks since mid-2012.

The government has ramped up infrastructure spending in the past few years as Brazil prepares to host the 2014 World Cup and the 2016 Olympic Games. But that hasn't been enough to offset the impact of the slowdown in commodity prices and is putting a strain on the government's finances.

Related: China's credit squeeze spooks markets

Amiel said the political unrest could discourage some people from traveling to Brazil for the World Cup. But given the nation's limited capacity to host such a large event "it might be a good thing if some people are discouraged," he added.

While Brazil has invested heavily in public works, progress has been slow on key projects such as airports, railways and roads.

Meanwhile, inflation remains a problem. The Brazilian central bank has been hiking interest rates in an effort to bring inflation back down to its target level of 4.5%. The bank announced a surprise interest rate hike in April, and increased the benchmark rate again in May to 8%.

The central bank has also been busy trying to prevent the Brazilian real from falling further. Brazil's currency had appreciated significantly from 2009 to 2011 as investors poured money into the country, which held up better during the credit crisis than the United States, Europe and other developed markets

Brazil declared a currency war in 2012 and started hiking interest rates in an attempt to discourage excessive speculation by foreign investors. The real had been drifting in a range for the past year, but it recently fell through the low end.

"The central bank will try to keep the real in that range," said Christopher. "But it's an open question as to whether they will succeed."

First Published: June 23, 2013: 5:08 PM ET

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Next week you'll pay more for a Starbucks latte

Starbucks, next Tuesday, is raising U.S. prices by an average of 1% for its brewed drinks to help offset an increase in business costs.

NEW YORK (CNNMoney)

The price hike will affect beverages including Starbucks' (SBUX, Fortune 500) brewed coffee, tea, latte and espresso drinks, said spokesman Jim Olson. While drink prices vary from city to city, Olson said that customers in some markets could pay about 10 cents more for a tall brewed coffee.

Still, less than one-third of all Starbucks beverages will be affected by the new prices, he added.

For instance, prices will not increase at a vast majority of Starbucks stores for its venti and grande-sized brewed coffees, or for its Frappuccino drinks.

This is the first price hike in nearly two years for the coffee chain, according to Olson, who said the rising cost of labor, raw materials and rent triggered the move.

Still, there is one way that customers can always shave a few cents off their coffee tab: Starbucks offers a 10 cent discount on any drink when customers bring in a personal tumbler or use a reuseable Starbucks cup.

First Published: June 21, 2013: 5:01 PM ET

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LeBron will never be an endorsement star like Jordan

NEW YORK (CNNMoney)

He may be a great basketball player, but endorsement experts say that off the court, he's still no Michael Jordan.

James has $39 million in annual endorsements, more than any other active athlete, according to the Fortunate 50 rankings compiled by Sports Illustrated and Fortune magazines. But Michael Jordan is still bringing in a whopping $80 million in endorsement deals a year - even though he hasn't set foot on a court in a decade.

Many fans simply don't like James. He was heavily criticized when he moved to the Miami Heat as a free agent in 2010, and his popularity plunged according to various surveys.

Related: Heat's winning streak sparks sales rush

"That was the first time we saw such a precipitous drop in appeal without something criminal happening," said Henry Shafer, executive vice president of the Q Scores Company, which conducts one such survey.

James' likability is on par with that of Mickey Rourke and rocker Gene Simmons of KISS - which isn't great company - according to a competing survey by the Celebrity DBI index.

"It certainly doesn't hurt that [James] has won two championships in a row. But it's going to be really hard for him to match what Jordan delivered on camera and how he resonated with fans," said Darin David, director of the sports consulting group at The Marketing Arm, which arranges deals between advertisers and and celebrities.

Related: Under Armour's crew of star athletes

David and others experts say that pitchmen like Jordan and Peyton Manning have a special on-screen persona that most athletes will never have, no matter how many championship titles they might accumulate.

Both Jordan and James have deals with Nike (NKE, Fortune 500), which pays out billions in endorsement deals to athletes around the world. James also has deals with top consumer companies like Coca-Cola (KO, Fortune 500), McDonald's (MCD, Fortune 500) and Samsung. But commercials starring James get relatively limited air time, even during the NBA playoffs.

Related: Coming out could boost Jason Collins' endorsements

Shafer, from the Q Scores Company, said that while James has started to slowly win back sports fans, he hasn't made a lot of progress with the general public.

"It's not just about winning. It's about how you interact with the public," he said.

First Published: June 21, 2013: 4:28 PM ET

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Pending law would block Tesla sales in New York

Elon Musk and Tesla are battling dealership associations throughout the country for the right to sell vehicles directly to customers.

NEW YORK (CNNMoney)

Tesla said in a statement Friday that if the bill passes, it will be "put out of business in New York," with all employees in the state losing their jobs.

"The bottom line for New York consumers and New York suppliers is that if this bill passes, special interests in Albany will once again have gotten their way while robbing New Yorkers of choices in the marketplace," Tesla (TSLA) said.

The current legislative session was originally scheduled to conclude on Thursday, but work continued in both the Senate and Assembly on Friday, and it is unclear when it will end.

Related: Tesla unveils 90-second battery-pack swap

CEO Elon Musk took to Twitter Friday as legislators were considering the bill, urging New Yorkers to call their representatives and ask them to vote it down.

The New York State Automobile Dealers Association did not respond to a request for comment, though the association is also urging supporters to contact their representatives, saying the pending bill is "designed to maintain the health and vitality of New York's retail automobile industry."

Tesla has tangled with dealership associations in a number of states in its effort to sell its Model S electric sedan directly to consumers rather than using franchised car dealers.

General Motors (GM, Fortune 500), Ford (F, Fortune 500), Toyota (TM) and others don't sell cars to customers. They sell to independently owned and operated dealers or distributors who, in turn, sell them to the public, usually after some negotiation over the final price.

Tesla's showrooms, by contrast, are owned and operated by the company. Most are in shopping malls, with only enough cars on hand for display and test drives. Every Tesla car sells at full sticker price, and service on the cars is performed at separate garages owned by Tesla.

Auto sales are mostly regulated at the state level. In some states, Tesla has had little or no problem opening its stores. In others, auto dealers and their allies in government have resisted Tesla's plans, fearing they could ultimately undermine the system of franchised dealers.

Earlier this month, legislators in Texas failed to vote on a bill backed by Tesla that would have loosened the state's restriction on dealerships owned by automakers. Virginia rejected the electric-car maker's dealership application earlier this year.

Dealers argue that the traditional franchise system is best for car buyers because it preserves competition between dealerships selling the same products.

But Tesla worries that traditional franchised dealers, who also have gasoline cars to sell, won't represent its products properly or aggressively enough. Dealers pressed to make quick sales will likely be tempted to steer customers to gasoline cars rather than explain the benefits of the Model S, Diarmuid O'Connell, Tesla's vice president for business development, told CNNMoney last month.

"From the beginning, Tesla's goal has been to catalyze the market for electric vehicles, and selling through intermediaries at this stage of the company will not work," Tesla said Friday.

First Published: June 21, 2013: 6:31 PM ET

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Next week you'll pay more for a Starbucks latte

Starbucks, next Tuesday, is raising U.S. prices by an average of 1% for its brewed drinks to help offset an increase in business costs.

NEW YORK (CNNMoney)

The price hike will affect beverages including Starbucks' (SBUX, Fortune 500) brewed coffee, tea, latte and espresso drinks, said spokesman Jim Olson. While drink prices vary from city to city, Olson said that customers in some markets could pay about 10 cents more for a tall brewed coffee.

Still, less than one-third of all Starbucks beverages will be affected by the new prices, he added.

For instance, prices will not increase at a vast majority of Starbucks stores for its venti and grande-sized brewed coffees, or for its Frappuccino drinks.

This is the first price hike in nearly two years for the coffee chain, according to Olson, who said the rising cost of labor, raw materials and rent triggered the move.

Still, there is one way that customers can always shave a few cents off their coffee tab: Starbucks offers a 10 cent discount on any drink when customers bring in a personal tumbler or use a reuseable Starbucks cup.

First Published: June 21, 2013: 5:01 PM ET

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LeBron will never be an endorsement star like Jordan

NEW YORK (CNNMoney)

He may be a great basketball player, but endorsement experts say that off the court, he's still no Michael Jordan.

James has $39 million in annual endorsements, more than any other active athlete, according to the Fortunate 50 rankings compiled by Sports Illustrated and Fortune magazines. But Michael Jordan is still bringing in a whopping $80 million in endorsement deals a year - even though he hasn't set foot on a court in a decade.

Many fans simply don't like James. He was heavily criticized when he moved to the Miami Heat as a free agent in 2010, and his popularity plunged according to various surveys.

Related: Heat's winning streak sparks sales rush

"That was the first time we saw such a precipitous drop in appeal without something criminal happening," said Henry Shafer, executive vice president of the Q Scores Company, which conducts one such survey.

James' likability is on par with that of Mickey Rourke and rocker Gene Simmons of KISS - which isn't great company - according to a competing survey by the Celebrity DBI index.

"It certainly doesn't hurt that [James] has won two championships in a row. But it's going to be really hard for him to match what Jordan delivered on camera and how he resonated with fans," said Darin David, director of the sports consulting group at The Marketing Arm, which arranges deals between advertisers and and celebrities.

Related: Under Armour's crew of star athletes

David and others experts say that pitchmen like Jordan and Peyton Manning have a special on-screen persona that most athletes will never have, no matter how many championship titles they might accumulate.

Both Jordan and James have deals with Nike (NKE, Fortune 500), which pays out billions in endorsement deals to athletes around the world. James also has deals with top consumer companies like Coca-Cola (KO, Fortune 500), McDonald's (MCD, Fortune 500) and Samsung. But commercials starring James get relatively limited air time, even during the NBA playoffs.

Related: Coming out could boost Jason Collins' endorsements

Shafer, from the Q Scores Company, said that while James has started to slowly win back sports fans, he hasn't made a lot of progress with the general public.

"It's not just about winning. It's about how you interact with the public," he said.

First Published: June 21, 2013: 4:28 PM ET

10.20 | 0 komentar | Read More

Pending law would block Tesla sales in New York

Elon Musk and Tesla are battling dealership associations throughout the country for the right to sell vehicles directly to customers.

NEW YORK (CNNMoney)

Tesla said in a statement Friday that if the bill passes, it will be "put out of business in New York," with all employees in the state losing their jobs.

"The bottom line for New York consumers and New York suppliers is that if this bill passes, special interests in Albany will once again have gotten their way while robbing New Yorkers of choices in the marketplace," Tesla (TSLA) said.

The current legislative session was originally scheduled to conclude on Thursday, but work continued in both the Senate and Assembly on Friday, and it is unclear when it will end.

Related: Tesla unveils 90-second battery-pack swap

CEO Elon Musk took to Twitter Friday as legislators were considering the bill, urging New Yorkers to call their representatives and ask them to vote it down.

The New York State Automobile Dealers Association did not respond to a request for comment, though the association is also urging supporters to contact their representatives, saying the pending bill is "designed to maintain the health and vitality of New York's retail automobile industry."

Tesla has tangled with dealership associations in a number of states in its effort to sell its Model S electric sedan directly to consumers rather than using franchised car dealers.

General Motors (GM, Fortune 500), Ford (F, Fortune 500), Toyota (TM) and others don't sell cars to customers. They sell to independently owned and operated dealers or distributors who, in turn, sell them to the public, usually after some negotiation over the final price.

Tesla's showrooms, by contrast, are owned and operated by the company. Most are in shopping malls, with only enough cars on hand for display and test drives. Every Tesla car sells at full sticker price, and service on the cars is performed at separate garages owned by Tesla.

Auto sales are mostly regulated at the state level. In some states, Tesla has had little or no problem opening its stores. In others, auto dealers and their allies in government have resisted Tesla's plans, fearing they could ultimately undermine the system of franchised dealers.

Earlier this month, legislators in Texas failed to vote on a bill backed by Tesla that would have loosened the state's restriction on dealerships owned by automakers. Virginia rejected the electric-car maker's dealership application earlier this year.

Dealers argue that the traditional franchise system is best for car buyers because it preserves competition between dealerships selling the same products.

But Tesla worries that traditional franchised dealers, who also have gasoline cars to sell, won't represent its products properly or aggressively enough. Dealers pressed to make quick sales will likely be tempted to steer customers to gasoline cars rather than explain the benefits of the Model S, Diarmuid O'Connell, Tesla's vice president for business development, told CNNMoney last month.

"From the beginning, Tesla's goal has been to catalyze the market for electric vehicles, and selling through intermediaries at this stage of the company will not work," Tesla said Friday.

First Published: June 21, 2013: 6:31 PM ET

10.20 | 0 komentar | Read More

10 firms named as first Libor trial begins

Former UBS and Citigroup banker Tom Hayes is the first person to appear in court in connection with the Libor rigging investigation.

LONDON (CNNMoney)

Tom Hayes appeared in court Thursday to hear eight charges of conspiracy to defraud by trying to manipulate the London Interbank Offered Rate (Libor) and other rates between August 2006 and September 2010.

Hayes is the first person to face trial in connection with the Libor scandal, a year after Barclays (BCLYF) admitted to taking part in a scheme to rig the benchmark rate used to price loans and derivatives worth trillions of dollars.

The British bank paid a fine of $453 million to settle claims by U.K. and U.S. authorities. UBS was fined $1.5 billion in December last year, and Royal Bank of Scotland paid $612 million two months later for its role.

Hayes, 33, only spoke to confirm his name, date of birth and residence. His lawyer Lydia Jonson declined to comment when asked what Hayes thought about the charges. Hayes did not enter a plea.

While working for UBS (UBS), prosecutors claim that Hayes conspired with colleagues at the Swiss bank and employees at JPMorgan Chase (JPM, Fortune 500), RBS (RBS), Deutsche Bank (DB), Rabobank, HSBC (HBC) and brokers ICAP (IAPLF), RP Martin and Tullet Prebon.

Related: Singapore raps 20 banks for trying to rig rates

They also claim that while working at Citigroup (C, Fortune 500), he conspired with colleagues at the U.S. bank as well as employees at UBS, Deutsche Bank and ICAP.

ICAP said it understood that unnamed employees of one of its subsidiaries had been referred to in the charges against Hayes but said no ICAP company had been charged.

"ICAP has provided information to the Serious Fraud Office and continues to cooperate with its investigation," it said in a statement.

Tullet Prebon said it had not been informed by any authority that it or any of its brokers were under investigation in relation to Libor.

"Tullett Prebon has been asked to provide information to the Financial Conduct Authority and other regulators and government agencies in connection with their enquiries in relation to Libor and is cooperating fully with these requests," it said in a statement.

UBS, Citigroup, Deutsche Bank, RBS, JPMorgan and RP Martin declined to comment. Rabobank and HSBC could not be immediately reached for comment.

The case was referred to a higher court, with a preliminary hearing set for July 4. Hayes was granted bail on condition that he surrender his passport and not make contact with others named in the bail conditions. Those names were not read in court at the prosecutor's request.

-- CNN's Carol Jordan contributed to this article.

First Published: June 20, 2013: 12:14 PM ET

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7-Eleven cracks down on franchises following fed bust

U.S. Attorney Loretta Lynch of the Eastern District of New York charged nine owners and managers of 7-Eleven franchises of stealing identities and exploiting illegal immigrants.

NEW YORK (CNNMoney)

The 7-Eleven company said Thursday that self-reviews must be conducted by the end of June, or the franchises will be subjected to fines of up to $1,100 per violation.

Starting on July 1, the company said it will send consultants to 5,000 of its franchises to make sure they're in compliance.

The aggressive move by 7-Eleven follows the June 18 indictment by federal authorities of nine owners and managers of 14 franchises, located on Long Island, NY and Virginia. The company is currently running the stores.

"We know that you are the sole employer of all associates in your stores, and we are not attempting to interfere with your employment relationship or control how you hire, fire or manage your employees," said 7-Eleven chief operating officer Darren Rebelez, in a letter to franchises.

Related: Feds forfeit 14 7-Eleven franchises in immigrant crackdown

"However, we have a critical need to protect the integrity and reputation of the 7-Eleven brand, a right to insist upon your compliance with the franchise agreement, and to ensure that all franchised stores are being operated in a lawful manner," the letter said.

Related: Madoff, the king of thieves

The indicted 7-Eleven owners are accused of employing illegal immigrants from Pakistan and the Philippines and pocketing their pay, while using stolen identities to hide their true identities from 7-Eleven and the government.

Married couple Farrukh and Bushra Baig, who owned or managed a dozen of the stores, and six of the other defendants pleaded not guilty on Tuesday and were held without bail, according to the feds. One of the defendants, Azhar Zia, was still a fugitive.

First Published: June 20, 2013: 3:00 PM ET

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