Shares of prominent personal computer manufacturers, software companies and chipmakers tumbled Thursday after PC sales endured their worst quarter in history.

Shares of Hewlett Packard plummeted nearly 7 percent during trading hours, while Dell and Apple fell by about 1 percent. Shares of Intel dropped nearly 3 percent and rival AMD suffered a loss of roughly 3.6 percent. 

 

Shares of Microsoft also dipped about 5 percent after the company was downgraded to “sell” by Goldman Sachs on Thursday morning. 

 

Shipments of personal computers fell nearly 15 percent worldwide last quarter, marking the worst yearly decline since such statistics were tracked in 1994. 

The decline in PC shipments was nearly twice as unpleasant as the 7.7 percent decline that many industry professionals anticipated. Moreover, the decline marked the fourth consecutive quarter in which PC shipments declined year-over-year. 

Gartner, a technology consultancy business, said nearly 80 million personal computers were shipped throughout the world in the first quarter, marking the fewest number of shipments since the second quarter of 2009. 

 

PC industry power players have attempted to innovate themselves out of this sales slump, but recent attempts have been futile. Super-thin notebooks, ultrabooks, and other gadgets debuted to significant fanfare in 2011, but sales disappointed, and firms quickly slashed their sales forecasts. 

 

In October of last year, Microsoft unveiled Windows 8, which received mixed reviews from critics and consumers alike. Sales of Windows 8 have been muted compared with the tech giant’s previous Windows launches.  Many industry leaders claimed that the launch of Windows 8 not only failed to provide momentum for the personal computer market, but may have actually slowed the market. Bob O’Donnel, a senior executive at IDC< slammed the new operating program’s changes to the user interface, primarily the removal of the iconic start button. 

 

“Microsoft will be forced to make some very complicated decisions moving forward if it wishes to help boost and reinvigorate the personal computer market,” O’Donnel said in a statement this week. 

 

Source: CNN

 

Satellite TV provider Dish Network offer a bid of $25.5 billion for Sprint Nextel. The offer is a means to top another bid for Sprint: a $20.1 billion dollar bid for a 70 percent stake in Sprint from Japanese tech company Softbank. This offer, which Sprint accepted in the fall of 2012, was intended to give Sprint a much desired cash infusion to avoid impending bankruptcy. 

 

Sprint acknowledged the bid from Dish and said its board would evaluate the offer, but did not elaborate or extend further with the comment. Following news of the bid from Dish, shares of Sprint shot up nearly 25 percent in afternoon trading while Dish shares dipped roughly 3 percent. 

 

The Chief Executive Officer of the Dish Network, Mr. Charlie Ergen, said the combination of his company with Sprint would create a new company that offers customers the greatest possible bandwidth for video and other data feeds. 

 

Mr. Ergen said while cable companies do a decent job in providing bandwidth inside of residential homes and wireless companies offer bandwidth outside of homes, no company currently allows for the efficient combination of said bandwidth. 

 

“The pipes with regards to bandwidth are fairly clogged,” said Ergen. “If you are attempting to procure a lot of data, you better get yourself a big pope; if we get this deal done, nobody is going to have a bigger pipe than Dish Sprint.”

 

The bid for Sprint would also provide Dish with another coveted target—wireless broadband provider Clearwire. 

 

Dish engaged in a brief bidding war earlier this year with Sprint for the broadband provider, but Clearwire decided to accept Sprint’s offer instead. Sprint already owned a 50 percent stake in the broadband provider before the bidding competition took place. 

Dish claims its bid for Sprint represents approximately a 13 percent premium over the Softbank offer. Ergen claims that Dish would be willing to spend an additional $600 million to pay the breakup fee that Softbank is owed if that deal collapses because of Dish’s offer. 

 

Many analysts said that there are several questions regarding Dish’s plans for Sprint that make it difficult to judge who will be the winning bidder. 

 

The wireless sector has been home to a number of deals in recent years, and Dish has been interested in finding a partner in the sector. Charlie Ergen has been labeled a gambler by trade, and this proposed deal might just be his attempt of getting all the other wireless corporations to open up negotiations with him. 

 

 

Source: CNN

 

Oracle CEO Larry Ellison was the top-earning CEO in 2012 with a salary of $96.1 million; the average American worker earned $34,645 last year. 

 

Chief Executive Officers of the country’s largest companies earned an average of $12.3 million in total pay in 2012, which is roughly 354 times more than the typical average American worker, according to the AFL-CIO—a group that represents over 50 trade unions in the states. 

 

Ellison topped the list of the highest-paid executives in 2012, followed by the $54.3 million earned by Credit Acceptance Corp’s Brett Roberts and Discovery Communication CEO David Zaslav’s $50 million compensation package. 

 

The one noteworthy salary was pulled-in by Apple CEO Timothy Cook, whose salary dropped to $4.2 million from $376 million in 2011, when his pay got a robust boost from long-term stock awards. The drop in Cook’s pay was enough to decrease the overall average pay for CEOs of top American companies by 5 percent from 2011. 

 

The considerable discrepancy in pay between Chief Executive Officers and the average worker has skyrocketed over the last couple decades, peaking in 2000, when the gap was 525 times. In 1980, CEO compensation was only 42 times that of the average American worker. 

 

The AFL-CIO each year underlines the pay discrepancy between CEOs and workers from companies that are part of the S&P 500. Richard Tumka, the president of the AFL-CIO, said he hopes the project will remind the nation’s leaders that most workers continue to struggle financially. 

 

“The average American worker struggles every day to make ends meet. The average worker’s wages are stagnant, and their companies are attempting to take their pensions and health insurance,” Trumka said.

 

The union wants regulators to enforce a pending rule from Wall Street reforms for publicly traded companies to publicize executive pay compared to their average employees. The United States Securities and Exchange Commission has delayed efforts to structure this rule, in part because of spirited lobbying efforts from large American companies. 

 

The labor group built a website database earlier today compiled from 327 companies based on SEC filings; the site will reveal CEO compensation for all 500 companies of the S&P as the data is released to the public. 

 

 

Source: CNN

 

 

A widespread sell-off in stocks accelerated this afternoon following the news of two explosions at the Boston Marathon. The Dow Jones Industrial Average, which was down all day, dropped 266 points (roughly 1.8 percent) following reports of the explosions in the Massachusetts’ capital. The Nasdaq dropped 2.4 percent and the S&P 500 slipped 2.3 percent on the day. 

 

The majority of domestic news outlets reported that two bombs went off near the finish line of the Boston Marathon shortly before 3 this afternoon. Before news of the bombings went public, stocks were already suffering worldwide as gold prices plunged and investors positioned themselves in lower risk assets like U.S. treasuries. The initial sell-off started when investors awoke to the news that China’s financial growth had decreased in the first quarter. 

 

The Chinese economy grew at a rate of 7.7 percent in the first quarter of this year, compared to the first quarter of 2012. The report was disheartening and confirmed China’s fragile recovery, said HSBC’s Asian economic research department. 

The majority of economists expected the Chinese economy to grow 8 percent, and since it reflected weaker global demand for Chinese goods, the news also drove stocks in Europe and Asia lower.

 

The Nikkei, Hang Seng, and the Shanghai Composite all dipped more than 1 percent, and the London exchange followed suit losing nearly.7 percent. 

 

China is currently the world’s second-largest economy after the U.S., and is regarded as one of the top engines of global economic stimulation and growth. 

 

In addition to China’s disappointing numbers, Gold dropped nearly 10 percent to settle at $1,360 an ounce and numerous gold-based ETF’s including the popular SPDR fund dropped significantly. 

 

Along with this information, a major survey of American homebuilders revealed that the housing recovery may have lost some of its steam that it gained last month. This news weighed on shares of construction and homebuilder companies, including Toll Brothers, DR Horton and Lennar. 

 

In a separate case, the New York Federal Reserve released its monthly manufacturing survey that revealed slightly improved conditions for New York manufacturers in the month of April compared to March. The indexes for general business conditions and new orders remained widely positive, despite marginal month-to-month declines. 

 

 

Source: AP

 

U.S. stocks rebounded back from the largest one-day sell-off of 2013 as investors cheered a comprehensive slate of economic reports and corporate results. 

 

The Dow Jones Industrial Average increased by more than 150 points, or 1.1 percent while the S&P 500 added 1.4 percent and the NASDAQ rose by 1.5 percent. This bounce back comes one day after all three indexes dropped significantly, following disappointing economic news out of China and the tragic events that occurred at the Boston marathon. 

 

Investors were optimistic as a result of housing statistics, which topped 1 million in the month of March for the first time since the summer of 2008. Building permits came in at a yearly rate of 900,000 in March, which was slightly less than forecast estimates but still solid. The positive housing numbers caused homebuilder stocks to spike as Hovnanian Enterprises added 1.6 percent, the PulteGruop rose more than 4 percent and Lennar increased by 2.4 percent. 

 

In addition to the housing sector, a number of companies reported strong earnings. Coca-Cola shares increased nearly 6 percent, leading gains on the S&P 500 and the Dow after the company shattered earnings and sales forecasts. In addition, Johnson & Johnson shares enjoyed modest increases after the company’s first quarter earnings also exceeded expectations.

 

Goldman Sachs also reported solid results; however, the banking giant’s shares slid roughly 2 percent as investors worried that Goldman was taking on too much risk to deliver robust earnings. 

 

Yahoo also reported earnings; the company’s revenue missed estimates, but still reported higher-than-expected numbers. Shares of Yahoo dropped slightly during after-hours trading. 

 

Gold also bounced back today following a dramatic 9 percent drop-off to a 2-year low. The price of gold gained roughly 2 percent, settling at $1,387.40 per ounce; other commodities featured mixed results.  

 

European markets closed with slight losses on concerns about slowing global growth while the Asian markets ended the day mixed. Also, the dollar dropped versus the pound and the euro, but increased versus the yen. 

 

 

Source: SEC.GOV

 

Cigarette smuggling is a hot new business as taxes rise in some states but remain marginal in others. Yes, the act of purchasing cigarettes in one state, then selling them in another is illegal; however, a truckload of cigarettes purchased down South can earn a smuggler upwards of $1,940,000 if they are sold in New York. And these lofty margins are what attract criminals into the underground world of cigarette smuggling. 

In 2011, roughly 65 percent of all cigarettes sold in New York were smuggled from another state, according to a free-market report think tank. This figure is up from roughly 36 percent in 2006. 

 

This illegal activity is not just taking place in New York; the Mackinac Center for Public Policy estimates that more than 15 states have smuggling rates that exceed 20 percent. Factor in counterfeit cigarettes from overseas, and the Bureau of Alcohol, Tobacco, Firearms and Explosives estimates lost government revenue at over $5 billion per year. 

 

Many involved in the legal sale of cigarettes blame rising state taxes for the exorbitant increase in illegal smuggling; these individuals estimate that things will get worse if President Obama’s proposed 94 cent per-pack cigarette tax increase goes through. 

The New York-Virginia corridor is the most popular arena for illegal cigarette smuggling as the considerable difference in taxes and the states’ relative close proximity make it an attractive route for smugglers. In the state of Virginia, state taxes are 30 cents per pack while in New York, they are a whopping $5.85—the highest rate in the United States. 

 

While the Virginia-New York corridor gets the majority of the attention, professionals tracking the situation claim that trafficking rings can run from any of the low-cost states to the high ones. North Carolina to Michigan and Virginia to California are also popular routes for smuggling. 

 

The quantity of smuggled and/or counterfeit cigarettes arriving from overseas, particularly from China, is also increasing. These knockoffs are particularly bothersome to the American tobacco companies, and could pose a significant risk to consumers. “You have no idea what’s in a counterfeit cigarette,” says a spokesman for Altria, which produces Marlboro and other cigarettes. Rabbit feces, rat droppings and dirt have all been observed in counterfeit cigarettes, says Sutton, who notes that manufacturing typically takes place in old factories, in caves or underground. 

Public health officials believe there is no reason to oppose Obama’s tax proposal.

 

Higher cigarette taxes encourage Americans to quit smoking; smoking rates decreased by more than 10 percent after the 62-cent-a-pack federal tax increase in 2009. Moreover, smoking costs society a large amount of money—nearly $200 billion a year in lost productivity and medical costs, according to the U.S. Centers for Disease Control. The dollar amount is peanuts; however, compared to the nearly 500,000 lives lost each year to cigarette smoke. 

 

 

Source: AP

 

The United States Securities and Exchange Commission today charged a wealthy Denver businessman with insider trading based on proprietary information he procured from the CEO of an oil company that was about to secure a prominent investment. 

 

An investigation by the SEC found that Scott Reiman procured inside information regarding Delta Petroleum before the company’s announcement that it had received a $684 million investment from private investment company Tricinda. Following the announcement of the investment, Delta Petroleum stock jumped almost 20 percent and Reiman reaped substantial profits. 

 

To settle the charges, Reiman agreed to pay roughly $900,000 and accept a barring from the securities industry and from services as a director or officer of a public company for at least five years. In addition to the charges filed against Reiman, the SEC also filed charges against Reiman’s source, then CEO Roger Parker, and a trader, Michael Van Gilder. 

 

“Reiman illegally took advantage of confidential information that he procured through his friendship with Parker and traded the company’s stock for significant and illegal profits,” said Daniel Hawke, Chief of the Securities and Exchange Commission’s Market Abuse Unit. 

 

According to the complaint filed by the SEC, Reiman is founder and manager of the Denver investment firm Hexagon. Reiman received numerous tips from Parker regarding Tracinda’s investment in Delta Petroleum. On several occasions during the winter of 2007, Reiman purchased Delta stock or risky option contracts after speaking with Parker, including once within a few minutes after ending a phone conversation with Parker. 

 

The SEC charged Reiman with violations of the Securities Exchange Act of 1934; Reiman neither denied or admitted the charges filed against him. Instead, Reiman agreed to pay disgorgement of roughly $400,000 plus interest of nearly $94,000 and a penalty of $400,000. The charges also prohibit Reiman from serving as a director or officer of any public company for at least five years and from acting in any role within the securities industry. Reiman is awarded the right to apply for reentry into the industry after five years. 

 

 

Source: Sec.gov

The Teapot Dome Scandal of the 1920’s was a bribery incident due to the influence of oil money during the Warren G. Harding Administration. During this time, Harding proved himself to be a poor president. He was unable to properly manage the Federal government and often delegated work and authority to his cabinet officials. Many of these officials were dishonest, creating many problems.

In the beginning of the 1900’s the United States Navy switched from coal to oil as their primary source of fuel. In order to ensure that they would have enough, President Taft designated many oil producing areas as Naval Oil Reserves.

The Teapot Dome Scandal began with the Warren Administration. Warren G. Harding was a U.S. Senator from Ohio who was elected into the Presidential office in 1920. Early in his administration, before the Teapot Dome Scandal, the Secretary of the Navy requested that some of the responsibility for the Navy’s reserve oil be transferred to the Department of the Interior. This included the Teapot Dome field in Wyoming, which the Teapot Dome Scandal was named after, and other land in California.

At the time of the early events of the Teapot Dome Scandal, Albert B. Fall was the Secretary of the Interior. In 1921, he rented these naval oil reserves to two private oil companies, the Pan American Petroleum Company and the Mammoth Oil Company in exchange for gifts and loans, the sum of which added up to approximately $404,000.

The events of the Teapot Dome Scandal were not discovered and publicly announced till On April 14, 1922, the Wall Street Journal released a report stating that there had been an arrangement between Secretary Fall and a private oil company. The report claimed that the land had been leased out without any competitive bidding. 

The next date, the Senate opened up an investigation of the Teapot Dome Scandal. The Senate expected the investigation to be most likely futile, so the committee’s Republican Leadership allowed Democrat Thomas Walsh, the Montana Democratic Senator, chair the panel. The panel eventually discovered the Secretary’s shady agreement   because of one piece of evidence that Secretary Fall had not covered up.

In 1927, the Supreme Court invalidated the oil leases that have been illegally obtained through Secretary Fall the reserves were returned to the U.S. Navy. In 1929, Albert Fall was found guilty of bribery and fined $100,000. He also became the first Presidential cabinet member to be given a prison sentence for his actions while in office. He received a sentence of one year in prison.

The Teapot Dome Scandal as well as other cases quickly tested the reach of the Senate’s investigative powers. In 1927, the Supreme Court ruled on the landmark case, McGrain v. Daugherty, and found that Congress had the right to compel a witness to testify before the committees of Congress.

No matter what financial situation a person is in, it is always a good idea to try to save money. However, it is often difficult to figure out how to save money. Whether it is saving money for a retirement fund, or just trying to keep a few extra dollars, having extra money and being a careful spender is important in order to obtain financial success. 

Here are some helpful tips to help you figure out how to save money.

• New cars

o Choose a model that has a low purchase price and a low depreciation, insurance, gas, maintenance, and financing cost. New car guides can often provide this information.

o After choosing a model, go comparison shopping with several dealers both over the phone and online.

• Used cars

o Use a car guide, such as a “bluebook” to help compare the average retail price of the car with what the seller is asking.

o Have a mechanic check the car to find any potentially expensive problems.

• Car leases

o When leasing a car, consider the price, trade-in allowance, monthly payments, down payments, and any other fees that will be involved.

• Airline fares

o Look at internet travel sites and airline sites online to find special deals.

o Compare major carriers and low-cost carriers.

• Car Insurance

o Make sure a new policy is already in effect before cancelling an old one.

o Purchase insurance from a licensed, low price insurance. Call at least four of these agencies to find the best deal.

• Life Insurance

o Buy a term life insurance policy for just the protection without investments and savings services.

o When buying a universal life, whole life, or other case value policy, anticipate holding the plan for at least 15 years. Cancelling these plans early on can double the life insurance cost

• Homeowner/Renter Insurance

• Debit Cards and Checking Accounts

o Use a free checking account that does not have a minimum balance requirement.

o Some banks provide lower checking costs through either direct depot or ATM use only.

• Credit Cards

o Send payments 7-10 days in advance to avoid late fees and increases in interest rates.

o If the entire bill cannot be paid off, switch the balance to a credit card with a lower APR.

• Savings Product

o Use a bank that is insured by the Federal government.

o Compare fees and rates of different banks and financial institutions.

o Consider U.S. Savings Bonds or Certificates of Deposit to earn the highest return.

• Buying a Home

o Try negotiating a lower sale price through a buyer broker working for you and not the seller.

o Have a home inspected before purchasing it.

• Renting a Home

o Find buildings and inquire about the availability.

o Do not sign a lease until you are sure you can be responsible for the monthly payments as agreed upon.

• Home Improvement

o Look at established licensed contracted who give fixed-price bids for jobs.

o Do not sign contracts that require a full payment before finishing the work.

• Food

o Shop at lower-priced food stores. Smaller convenience store are more likely to have higher prices.

o Compare the unit price of similar products and choose those with the lower one.

o Take advantages of sale items.

o Buy basic ingredients instead of pre-packaged or ready-made food items.

• Prescriptions

o Use generic equivalents of drugs when possible.

o Call a pharmacy in advance to ask for a price of a medicine.

• Clothing stores

o Check online for any coupons or promotions the store may have.

• Keep putting away money regularly and stick to a plan.

• Understand your retirement needs.

• Put money towards an employer’s retirement savings plan

• Do not touch retirement savings.

• Learn about an employer’s pension plan.

Frugal living may sometimes seem like a pain, but getting into the habit of saving money can add up quickly. The saved money can be invested, help pay off debt, or just be saved. To start off a new life of frugal living, here are some helpful hints to get into the swing of it.

• Buy a used car instead of new.

• Just use one car.

• Buy a used car with a low price, low depreciation, and low expenses.

• Carpool or take public transportation.

• Try to walk or bike when possible.

• Consider train travel instead of air travel.

• Shop around when renting a car.

• Find cheaper accommodations when traveling.

• Find positions that will allow you to telecommute.

• Buy a smaller home and live within your means.

• Rent instead of owning a home if the cost of buying is too much. Money can be saved while renting which can be invested later.

• Find good contractors who provide fixed-price bids for house repairs.

• Make sure to understand all fees and payment involved in a home before agreeing to them.

• Purchase sale items at the store.

• Buy basic ingredients rather than ready-made or pre-packaged items.

• Compare unit prices of similar products.

• Eat out less. Packing lunch and snacks is a good alternative.

• Join a food co-op.

• If eating out, look for discounts or specials in advance.

• Eat sweets or drink alcohol in moderation.

• Instead of drinking juices, teas, or sodas, drink water instead.

• Cook food ahead.

• Eat less meat.

• Try to have a more minimalist wardrobe with pieces that go match well.

• Avoid being in situations where window browsing can happen.

• Stop impulse shopping.

• Only purchase bargain clothing, and only do it when it is necessary.

• Look for any online coupons or promotions that may be available.

• Get rid of cable.

• Use a library card and borrow books and movies.

• Look up free entertainment, for example, days of free admission to a museum.

• Use coupon sites to take advantage of special deals for various activities.

• Cut off a cell phone line.

• Save energy and gas to have lower monthly bills.

• Learn to trim or cut your own hair.

• Wash clothes less frequently and let them air dry.

• Make an attempt to stay healthy as a preventative measure.

• Purchase generic prescriptions whenever possible.