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Game Changer: Staples to Start Selling 3-D Printers

Game Changer: Staples to Start Selling 3-D Printers

 

 
3-D Printers, the next generation of printers, have officially gone mainstream as consumers can now procure one from Staples for $1,300. 
 
Staples claims it is the first major retailer in the United States to sell a 3-D printer. Staples began selling the Cube, created by 3D systems on the staples.com website last week, and the printer will hit many of the brick-and-mortar stores by June. 
While these new printers have long been used in the industrial manufacturing industry, a recent “maker” movement is popularizing in-home versions of the devices. 
The Cube, similar to other 3-D printers, is a device that creates physical, three-dimensional objects. The printer utilizes a digital design file as a blueprint and then constructs the item layer by layer with a liquid or plastic powder. Consumers may print anything they can design, including coffee cup holders, iPhone docks, toys, action figures etc. 
 
The Cube is capable of printing items up to five-and-a-half inches wide, long and tall in 16 different colors. The printer comes packaged with 25 free design templates.
Following the announcement that the printer would be sold in brick-and-mortar stores, shares of 3D systems were up 4 percent while Staples increased by 3 percent. 
3D systems says it is devoted to the widespread use of 3-D printers, making the expensive and complex technology available to public. However, the company faces a tremendous amount of upstart talent, including the Marketbot, which released the “Replicator 2x” at the Consumer Electronics Show earlier this year. 
 
Following the success Marketbot, crowd-funding site Kickstarter rapidly became filled with similarly named rivals such as Tangi-Bot, Ultra Bot, Rigid Bot, Gigabot, Bukobot and Printrbot. 
 
While several 3-D printer owners may be utilizing the devices to have fun or prototype inventions, other industries are finding utility in the machines. Chefs are tapping into the technology to create intricately designed food while doctors are experimenting to make prosthetic limbs and artificial organs. 
 
 
Source: sba.gov

Another Record: Dow Closes Above 15,000

Another Record: Dow Closes Above 15,000

 

 
Today marked another record-setting on Wall Street as the Dow Jones Industrial Average closed above 15,000 for the first time ever. The Dow officially closed at a record mark of 15,056. 
 
In addition to the Dow’s surge, investors also pushed the S&P 500 to a new record as the broad index gained .5 percent to end the day at 1,625.96. That said, the momentum didn’t hit the NASDAQ; the tech-heavy index inched up just 0.1 percent after wafting on either side of the breakeven point for the majority of the day. 
 
Stocks in the United States have had a remarkable run in 2013 as all three indexes have logged gains between 14 to 15 percent thus far. 
 
Impressive corporate earnings have been responsible for a significant chunk of the market’s impressive run. Shares of Direct TV popped today, following the company’s better-than-expected earnings report. That said, some companies, including Molson Coors Brewing Company, reported profits and sales that failed to meet earnings’ forecasts. First Solar’s sock also plunged after the company missed earnings. 
Also, OfficeMax fell extremely short of earnings projections and announced that revenue in 2013 could also fail to meet analyst estimates. To offset these crushing announcements, the office supplier issued a special dividend of $1.50 a share. 
 
Moreover, the Walt Disney Company inked a deal with Electronic Arts to develop Star Wars Video Games. Walt Disney, which reported after the bell, surpassed revenue and earnings estimates. Shares of Whole Foods also soared during aftermarket trading as the supermarket crushed estimates. 
 
 
Source: whitehouse.gov

Social Media Shutdown: Wall Street Cracks Down on Facebook Posts and Tweets

Social Media Shutdown: Wall Street Cracks Down on Facebook Posts and Tweets

 

 
Several states in the U.S. have banned companies from monitoring employees’ social media accounts; however, FINRA wants to introduce an exception for financial firms. 
Despite a dozen or so laws that prevent the practice, a Wall Street regulator is seeking for wiggle room to keep close tabs on stockbrokers’ social network entries. 
 
The Financial Industry Regulation Authority, which is a self-regulator for brokerage firms, says investors must be protected; if brokers are chatting about stocks on Twitter and Facebook, FINRA is responsible for ensuring that they comply with Wall Street policies. 
 
These policies involve everything from requiring brokers to disclose conflicts of interests, to guaranteeing they are not recommending a stock in company forums and trashing the company via other mediums. In order to keep firms and stockbrokers in line with said policies, both the Unites States Securities and Exchange Commission and FINRA require broker-dealers to keep a detailed record of all “business communications.”
 
If brokers are using social media for these types of communications, FINRA claims that firms are required to access said social media accounts. At the beginning of this year, FINRA sent letters to 10 states whose laws banned such monitoring; states instituted these types of legislation after a number of instances where people were terminated because of ill-advised Facebook or twitter posts. 
 
“Banning access to social media accounts conflicts with a firm’s responsibilities to comply with federal requirements and threatens investor protection,” said FINRA in a letter released earlier this year. 
 
Supporters of the social-monitoring bans claim that the government is going down a slippery slope; these individuals opine that if your employer can check your Twitter or Facebook posts to make sure that you are abiding by the rules, what is to stop them from looking through your photos for incriminating evidence. 
 
Regulators understand the impact social media can have on an investor’s decision; however, figuring out how to manage social-media posts has the SEC and FINRA playing an ugly game of catch-up. 
 
 
Source: SEC.Gov

Stocks Bounce Back After Fake Tweet

Stocks Bounce Back After Fake Tweet

 

After briefly plummeting thanks to a fake tweet sent by the Associated Press saying there were explosions at the White House, stocks bounced back to end the day on a positive note.

The Associated Press said its Twitter Account was hacked, and stocks quickly rebounded. Meanwhile, positive readings on the housing market and strong earnings announcements by several companies overshadowed the disappointing news regarding the pace of global growth.

The S&P 500, the Dow Jones Industrial Average, and the NASDAQ all closed roughly 1 percent higher.

Shares of the heavily shorted Netflix surged nearly 25 percent today, after the streaming video service reported robust subscriber gains on Monday.

Travelers Companies helped boost the DOW as shares climbed more than 2 percent after the insurer reported a substantial increase in profits. Moreover, shares of Coach surged over 10 percent after the retailer posted better-than-expected sales and earnings.

Airline companies were also making waves this week due to concerns regarding flight delays at airports resulting from the government’s forced sequester. That said, Delta Air Lines and US Airways shares rose nearly 5 percent after both companies reported stronger than expected first-quarter profits.

After the bell, Apple reported earnings that surpassed expectations, increased its quarterly dividend by 15 percent and boosted its stock repurchase program. Shares of Apple initially increased approximately 5 percent in after-hours trading, but the gains lost momentum and turned during the evening hours.

AT&T also reported earnings in the afternoon; the telecommunication giant’s earnings were in line with estimates, but revenues failed to meet forecasts. As a result, shares of AT&T fell in after-hours trading.

Earnings have been a primary focus this week as investors seek to grasp any good news they can; however, this does not mean economics concerns have disappeared. Markets are coming off the worst week of 2013 last week primarily due to tepid economic data. Many analysts expect the economy to show several more signs of slowing this spring as budget cuts and higher taxes impact consumer spending.

Investors; however, were greeted with a strong housing market news as the Census Bureau reported a rise in new home sales of 1.5 percent in March to a yearly rate of 417,000. This news boosted shares of a number of home builders, including Toll Brothers, the Pulter Group and Lennar Corp.

 

Time to Start Worrying: Apple’s Profit Slips 18 Percent

Time to Start Worrying: Apple’s Profit Slips 18 Percent

 

 
Apple’s older, cheaper devices have long been popular with consumers; however, those discounts have pinched the company’s historically strong profits. 
 
Apple’s profit dipped 18 percent last quarter, and its gross profit margin declined by nearly 10 percent. Although the tech giant’s earnings failed to meet Wall Street’s expectations, its margins came in far below their forecasts. 
 
Shares of Apple initially jumped 5 percent in after-hours trading, but the gains lost momentum and turned flat later in the evening. 
 
Squeezed profits have long been a troubling trend for the tech giant as many customers are opting to purchase older iPhones and the cheaper iPad mini—devices that are less profitable to Apple. 
 
Without a legitimate, market-impacting new device, investors fear that the trend sill persists. Apple’s stock has dropped by nearly 25 percent so far in 2013, a phenomenon that CEO Tim Cook considers “very frustrating to everyone involved.”
Apple addressed disgruntled investors today by increasing its cash hoard to $144.7 billion, and announcing that it plans to hands some of this cash back to shareholders by increasing the quarterly dividend to $3.05 per share. This announcement came after activist shareholder David Einhorn pressured the tech giant to stop hoarding its cash and provide increased value to shareholders. 
 
What’s more, Apple increased its stock buyback plan to $60 billion from $10 billion; the company claims it is the largest stock buyback in Apple’s history and that the tech giant will issue debt to finalize it. 
 
All of this information serves as a welcome distraction from less than exemplary product news. Issues with the company’s supply chain have plagued the latest shipments of iPhones, an ongoing issue that Apple mentioned on its conference call with investors. 
 
Despite the lousy news, Apple still managed to sell over 37 million iPhones last quarter, compared to 35.1 million in the same quarter last year. While this is a large amount of smart phones, Apple typically doubles its smart phone sales over the year.
For the present quarter, Apple expects sales of approximately $34.5 billion, which would fall well below analysts’ median estimates of $38.2 billion. Apple expects its margins to continue declining to roughly between 36 and 37 percent.  
 
 
Source: SEC.GOV

Stocks Bounce Back

Stocks Bounce Back

 

 
After briefly plummeting thanks to a fake tweet sent by the Associated Press saying there were explosions at the White House, stocks bounced back to end the day on a positive note. 
 
The Associated Press said its Twitter Account was hacked, and stocks quickly rebounded. Meanwhile, positive readings on the housing market and strong earnings announcements by several companies overshadowed the disappointing news regarding the pace of global growth. 
 
The S&P 500, the Dow Jones Industrial Average, and the NASDAQ all closed roughly 1 percent higher. 
 
Shares of the heavily shorted Netflix surged nearly 25 percent today, after the streaming video service reported robust subscriber gains on Monday.
 
Travelers Companies helped boost the DOW as shares climbed more than 2 percent after the insurer reported a substantial increase in profits. Moreover, shares of Coach surged over 10 percent after the retailer posted better-than-expected sales and earnings. 
 
Airline companies were also making waves this week due to concerns regarding flight delays at airports resulting from the government’s forced sequester. That said, Delta Air Lines and US Airways shares rose nearly 5 percent after both companies reported stronger than expected first-quarter profits. 
 
After the bell, Apple reported earnings that surpassed expectations, increased its quarterly dividend by 15 percent and boosted its stock repurchase program. Shares of Apple initially increased approximately 5 percent in after-hours trading, but the gains lost momentum and turned during the evening hours. 
 
AT&T also reported earnings in the afternoon; the telecommunication giant’s earnings were in line with estimates, but revenues failed to meet forecasts. As a result, shares of AT&T fell in after-hours trading. 
 
Earnings have been a primary focus this week as investors seek to grasp any good news they can; however, this does not mean economics concerns have disappeared. Markets are coming off the worst week of 2013 last week primarily due to tepid economic data. Many analysts expect the economy to show several more signs of slowing this spring as budget cuts and higher taxes impact consumer spending. 
Investors; however, were greeted with a strong housing market news as the Census Bureau reported a rise in new home sales of 1.5 percent in March to a yearly rate of 417,000. This news boosted shares of a number of home builders, including Toll Brothers, the Pulter Group and Lennar Corp. 
 
 
Source: whitehouse.gov

Smoking Kills: Obama Calls for Cigarette Tax Hike of Nearly $1 per Pack

Smoking Kills: Obama Calls for Cigarette Tax Hike of Nearly $1 per Pack

 

 
The federal government already imposes a sin tax on cigarettes of $1.01 per pack; however, President Obama wants to double the rate to nearly $2 a pack. 
 
Anti-smoking circles are applauding the proposal, but many tax experts and tobacco companies are vehemently against it. 
 
The tax is being presented as a means to fund education and reduce smoking rates in the United States; the tax would effectively raise approximately $78 billion over the next decade. 
 
“The proposed tobacco increase would have considerable public health benefits, particularly for our younger demographic,” president Obama’s budget reads. “Researchers have found that increasing taxes on cigarettes significantly reduces consumption, with considerable effects on youth smoking.”
 
Following a 62-cent-a-pack tax increase that was passed in 2009, cigarette sales plummeted by over 10 percent, according to the Campaign for Tobacco-Free Kids. 
There is also little doubt that fewer people smoking is a good thing for American society. Costs relating to smoking amo0unt to nearly $200 billion a year in both lost productivity and direct medical payments; moreover, smoking kills roughly 445,000 people each year. 
 
The biggest argument against the tax hike is that it will fund the early education program on the backs of America’s impoverished population. Not only is the sin tax not progressive, but a higher percent of smokers are low or middle income individuals. 
The median household income for a smoker in 2011 was roughly $27,700 compared to $45,500 for nonsmokers, according to a study conducted by Reynolds American. Moreover, nearly half of all smokers possessed a household income below $25,000 per year. 
 
A large majority of smokers already pay a high tax rate for cigarettes; the current federal tax rate is a little over $1 per pack. That said, the taxes don’t stop at the federal level. Many states and municipalities have applied a cigarette tax to pump-up revenues. For example, in New York City combined state and local taxes add up to almost $6 a pack. In New York City, a pack of cigarettes can cost as much as $14 while the same pack can sell for as low as $3 or $4 in other regions of America. 
 
Some economists question whether it is wise to finance a long term program like the early childhood education program with revenue that is expected to fall over time. Roughly 20 percent of Americans smoke, a number that has decreased considerably over the past several decades. Others; however, claim that while the tax will not be too much of a burden on the general economy, it will impact smokers and those that work in the tobacco industry. These pundits claim the president should and could raise far more money by focusing on spending cuts. 
 
Source: whitehouse.gov

Total Recall: Toyota, Nissan and Honda in Massive Recall

Total Recall: Toyota, Nissan and Honda in Massive Recall

 

 
Japanese automakers Nissan, Honda, Toyota and Mazda are on the verge of recalling roughly 3.4 million cars due to airbag defects.
 
Toyota announced it was recalling 1.7 million cars throughout the world, including many popular models, such as the Corolla, Matrix and Camry models. Nissan recalled roughly 480,000 cars while Mazda is undergoing a recall of another 45,000 vehicles. 
Honda, which is recalling more than 1.1 million vehicles, said the recall was mandatory to replace passenger front airbags. 
 
“It is possible that the passenger front airbags in affected vehicles may deploy without the necessary pressure, which may result in the rupturing of the inflator and subsequent injury,” the company announced via a statement. 
 
Many of the recalled automobiles appeared to be from earlier models, including 2001, 2002 and 2003 years. 
 
Honda announced it was aware of one crash in which the vehicle’s passenger front airbag casing had ruptured after being deployed after only a marginal amount of pressure. Honda claimed it was not aware of any fatalities or injuries that resulted from the defect. 
 
In response to the announcement of the massive recalls, Takata shares plummeted, at one point dropping more than 15 percent before recovering to close down just above 9 percent. 
 
The recall, while massive, is not without precedent. The United States alone has gone through 13 recalls of more than three million units, according to various reports from auto safety organizations. 
 
For Toyota, the recall represents another blow to its carefully cultivated reputation for efficiency and quality. The automaker announced in October of last year a recall of roughly 7.43 million vehicles due to a power window defect that posed a direct fire risk. 
Toyota’s largest recall came in 2010, when more than 8 million vehicles were brought in for a potential issue involving sticky gas pedals. During this recall, dealers were asked to suspend sales of eight Toyota models, which subsequently led to a temporary manufacturing suspension of those models. 
 
Source: AP

Computer Issues: Shares of Microsoft and HP Tumble after Dismal PC Sales

Computer Issues: Shares of Microsoft and HP Tumble after Dismal PC Sales

 

 
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

Bold Move: Dish Launches $25.5 Billion Bid for Sprint

Bold Move: Dish Launches $25.5 Billion Bid for Sprint

 

 
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
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