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

22.16 | 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

22.16 | 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

22.16 | 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

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Mortgage rates soar to 4.46% - biggest jump in 26 years

NEW YORK (CNNMoney)

Rates on 30-year, fixed-rate home loans spiked 0.53 percentage points to an average of 4.46% this week -- the largest weekly increase in more than 26 years, according to mortgage giant Freddie Mac.

The 30-year loan, which stood at 3.35% as recently as early May, is at its highest level since July 2011.

Rates for 15-year loans, popular with homeowners refinancing their mortgages, jumped 0.46 percentage points to 3.5%.

An extra percentage point will cost homebuyers with 30-year, fixed-rate mortgages $56 more a month for every $100,000 they borrow.

Related: Best advice now for homebuyers and sellers

"If sustained, the rate increase will take some of the steam out of the housing market," said Mark Zandi, chief economist at Moody's Analytics.

The sudden jump in rates is driven by uncertainty over whether the Federal Reserve's economic stimulus program, called quantitative easing, will continue, according to Keith Gumbinger of HSH.com, a mortgage information provider.

"The aftermath of the Fed meeting and Mr. Bernanke's remarks ... about the future of QE continue to roil markets," Gumbinger said.

"Even though the chairman spoke about tapering QE over what will likely be an extended period of time -- through mid-2014 at least -- bond market participants headed for the exits," he added.

Related: Quiz: How much do you know about mortgages?

The recent rate rise might not be enough to discourage most buyers.

"Rates are still reasonable," said Zandi. "Going from 3.5% to 4.5% is not helpful, but it's not enough to make a big difference."

First Published: June 27, 2013: 10:22 AM ET

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Pimco's Gross: Treasuries aren't the Titanic

Pimco's co-chief investment officer Bill Gross tells investors to stay in Treasuries.

NEW YORK (CNNMoney)

In his monthly letter to investors, Gross said now is not the time to jump ship.

"The U.S. economy is not sinking, nor are the majority of global economies," he wrote. "Their markets just had too much risk. In effect, the ship was top heavy with too little ballast. Guess I should have known, huh?"

Pimco's Total Return Fund (PTTRX) is down 4% over the past month -- a major blemish for a fund that's up nearly 7% on an annualized basis over the past five years.

The yield on 10-year Treasuries recently rose to 2.65% -- its highest level since August 2011 -- as investors started worrying about when the Federal Reserve would start pulling back on its bond buying spree.

But Gross thinks yields have overshot and will dip back to 2.2%.

Related: Bill Gross tells Fed -- your stimulus isn't working

Now is not the time to exit or even scale back on Treasuries, he said.

Bond investors have been running for lifeboats, ever since Ben Bernanke outlined what would cause the Fed to pare back its bond buying,

But the ship is not sinking, said Gross. Investors had simply taken on too much risk, expecting the Fed to keep throwing out a lifeline.

While Treasuries are typically considered a safe haven because of implicit government backing, investors went a little overboard.

Now, they've run for cover too soon.

While Bernanke has said that the Fed will eventually cut back on its bond buying, Gross says the tapering won't happen as soon as the market is currently predicting.

The economy simply has too many headwinds.

Related: Bond gurus say Treasuries are still safe

Housing, for one, could wind up putting a kink in the recovery. The rebound in that sector has recently helped rev up the economy, but that growth engine is already stalling.

Mortgage rates, Gross noted, have jumped dramatically during the past six months. (Mortgage rates soar). At some point, it will start to be a tough pill to swallow for both prospective and current homeowners.

The Fed is also unlikely to raise interest rates for at least another year or two. It would only do so if unemployment falls to 6.5% and inflation tops 2%. Currently inflation is sitting comfortably around 1% and the unemployment rate is 7.6%.

Still, Gross says investors should ride out the rocky seas.

"Will there be smooth sailing tomorrow? 'Red sky at night, sailors delight?' Hardly," he wrote.

It's unlikely that bonds will perform as well as they have over the past 20 to 30 years. Returns will more likely hover between 3% to 5% per year.

But Gross says, "Don't panic." This bond boat won't capsize.

First Published: June 27, 2013: 10:36 AM ET

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Europe bank rescue plan would hit investors

In the event of a future banking crisis, European finance ministers agreed there would be bank 'bail-ins' instead of 'bailouts' where investors would be forced to rescue struggling financial institutions.

LONDON (CNNMoney)

The new framework requires bondholders, shareholders and large depositors with over 100,000 euros to be first to suffer losses when banks fail. Depositors with less than 100,000 euros will be protected. Taxpayer funds would be used only as a last resort.

Shielding small depositors from losses is a top priority in Europe, especially after the public outrage over initial plans to bailout Cypriot banks using money from both large and small depositors.

Commissioner Michel Barnier called the agreement a "balanced compromise" between the 27 finance ministers.

"The EU has made a big step towards putting in place the most comprehensive framework for dealing with bank crises in the world," Barnier said in a statement.

Related: 5 reasons the Cyprus bailout matters

The new plan outlines a hierarchy of who will have to rescue struggling banks, with bondholders taking the first hit. Shareholders will be next, followed by large depositors.

Even within the large depositor category, there is a specific order detailing which depositors will have to kick in money first, with small and medium-sized businesses receiving preferential treatment.

The plans also outline that European banks must contribute toward "resolution funds," which can be drawn upon during a banking crisis.

"During the financial crisis, there was no single set of tools available to member states to deal with failing banks," said Ireland's finance minister, Michael Noonan, who chaired the talks.

"This agreement will effectively move us from ad hoc 'bail-outs' to structured and clearly defined 'bail-ins'," he said. "In the event of future banking failures taxpayers will be protected."

The framework will now have to be considered by the European Parliament before it is approved. The goal is to have the plans finalized by the end of the year.

First Published: June 27, 2013: 10:39 AM 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

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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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China's credit squeeze spooks markets

China is grappling with the challenge of pricking real-estate and credit bubbles and avoiding a hard landing for the economy at the same time.

LONDON (CNNMoney)

In its bid to control surging real estate prices and a head off a credit bubble, the Chinese government could end up sparking a credit crunch and slow economic growth more than expected.

And as seen this week, concerns about the world's second-biggest economy can rattle investors all over.

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 earlier this week despite rocketing short-term borrowing costs and evidence that the economy is slowing.

Growth in China slipped to 7.8% last year. The government's target for this year is 7.5%. But the risk of a disappointment is rising and with it the prospects of a weaker-than-expected recovery in the global economy.

HSBC, which cut its China forecast to 7.4% this week, said it believed Beijing would not act to stimulate the economy unless growth was heading to 7%.

"We believe markets will worry about the slowdown, but take time to get enthusiastic about the prospects for reform," noted HSBC strategists Garry Evans and Herald van der Linde, downgrading Chinese equities to neutral from overweight.

The Shanghai Composite and Hong Kong's Hang Seng both closed about 0.5% weaker Friday and have lost 8.6% and 10.6% respectively since the start of the year, compared with gains of about 11% on U.S. stocks.

With the Federal Reserve likely to start winding down its bond-buying program before the end of the year, analysts at Nomura believe China is taking a stand now to avoid delivering two shocks simultaneously.

Related: China cities move to cool red-hot housing market

The rate at which Chinese banks lend to each other overnight hit a record high above 13% this week before falling to 8.5% Friday. Another key measure of cash in the banking system -- the 7-day "repo rate" -- hit 25% on Thursday, before dropping sharply Friday.

There were some reports Friday that the central bank had taken steps to ease lending but rates remain way above normal levels.

Explanations for the cash crunch vary. But China watchers agree that the country's central bank's hard line reflects Beijing's desire to put reform before growth in the short term and moderate lending to its burgeoning "shadow banking" sector.

"We believe that recent action by the People's Bank of China reflects the government's determination to take aggressive action to contain financial risks," said Nomura economist Zhiwei Zhang.

The International Monetary Fund last month cut its growth forecast for China to 7.75%, raising concerns about a rapid expansion in credit and questioning the quality of borrowers and their ability to repay loans.

Related: China's debt: a crisis in the making?

Analysts worry that new lending is not translating into growth and is increasingly dominated by unregulated operators such as trust companies, securities dealers and underground operators that make up the shadow banking system.

The risk that the cash crunch will trigger a full-blown financial crisis is slim, given the vast resources of the Chinese government. But corporate earnings will suffer as financing costs rise, and some companies could default.

Fitch Ratings agency, which warned in April about excessive debt levels, said Friday it calculated that credit expansion would total 18 trillion yuan ($2.9 trillion) this year, a level similar to 2011 and 2012, if the authorities maintain their current stance.

But with 10 trillion yuan extended by the end of May, that implies a sharp drop in new credit in the second half.

"This credit deceleration will create a further drag on economic growth, which has been slowing down steadily since early 2010," Fitch said.

The central bank has not commented this week but the Chinese government said Wednesday it would maintain a prudent monetary policy to curb new credit for unauthorized construction projects in industries with over capacity.

First Published: June 21, 2013: 10:19 AM ET

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What sell-off? Stocks stabilize.

Click chart for more markets data.

NEW YORK (CNNMoney)

Investors were spooked after Fed chairman Ben Bernanke gave them reason to think the central bank could wind down its stimulus program later this year. Shares fell sharply Wednesday afternoon and the pullback accelerated Thursday.

But with little news to trade on heading into the weekend, it appears investors were willing to step back into stocks. The Dow Jones Industrial Average and the S&P 500 rose between 0.3% and 0.4%.

The Nasdaq dipped 0.1%. Weak results from Oracle (ORCL, Fortune 500) dragged down the tech-heavy index.

Click here for more on bonds, currencies and commodities

Even after this week's sell-off, stocks are still way up this year. All three major U.S. indexes have gained between 11% and 13%.

The Fed has been a major driver of the bull market over the past few months as it has injected liquidity into the markets. Traders say the coming shift in monetary policy will mean even more volatility in the months ahead. The CBOE Market Volatility Index (VIX) surged 23% Thursday.

Investors are expecting an extra dose of volatility Friday. It's quadruple witching day. This eerie date occurs four times a year and is when four types of options contracts expire. It usually means that trading volume increases, and prices bounce around more.

Related: Fear & Greed Index firmly in extreme fear

U.S. government bond yields also remain at elevated levels. The 10-year Treasury yield was at 2.42% Friday morning.

Investors have been bailing out of bonds and sending yields higher over the past month amid speculation that the Fed will soon taper its monthly bond purchases, known as quantitative easing.

Gold has also been hit hard due to Fed tapering fears. But the metal bounced back Friday after a sell-off pushed gold below $1300 an ounce to its worst level in two and a half years.

European stock markets were mixed in midday trading, while Asian markets ended with mixed results.

Japan's Nikkei index posted a 1.7% bounce, closing the week with a gain of 4.3%.

Related: Don't panic! Selling now could hurt your nest egg

But Chinese stocks continued to head lower as investors worried about tighter liquidity conditions across the country and a slump in manufacturing activity.

Nomura said Chinese government policies seem to be the reason for the cash crunch.

"Since mid-March, the government has introduced a series of tightening measures in the shadow banking sector to contain financial risks," it said in a research note.

"The People's Bank of China could have reacted and injected liquidity through open market operations. Its decision not to intervene shows that it is committed to tightening the policy stance."

Related: U.S. dollar headed for 'multi-year rally'

In corporate news, shares of Facebook (FB) rallied Friday, one day after the social media giant rolled out its Instagram video product.

Darden Restaurants (DRI, Fortune 500), which operates chains including Red Lobster and Olive Garden, reported earnings that missed estimates, but a slightly better-than-forecast revenue increase.

Shares of CarMax (KMX, Fortune 500) soared after the auto retailer reported better-than-expected quarterly profits.

Inflight wireless company Gogo (GOGO) will begin trading Friday with shares priced at $17, the high end of its range.

First Published: June 21, 2013: 9:44 AM ET

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Tesla unveils 90-second battery-pack swap

Tesla demonstrated that it could swap the battery in a Model S faster than a car can be refilled at a gas station.

NEW YORK (CNNMoney)

Tesla hopes the new system will help overcome the fears that many drivers have about the convenience of electric cars.

At a demonstration in California Thursday night, Tesla CEO Elon Musk said the battery swap stations will be installed throughout the network of "supercharging" stations that Tesla is already installing around the nation. The supercharging stations currently provide free recharging in about an hour. Musk said the battery swap, which will cost between $50 and $80, will allow drivers to get back on the road faster if they'd like.

"The only decision you need to make when you come to one of our Tesla stations is, do you prefer faster or free," he said. "Our goal here was to eliminate the objections that people have. We want to show that [Tesla] can actually be more convenient than a gasoline car. Hopefully this is what convinces people that electric cars are the future."

While Tesla showed the Model S battery swaps, there were TV's above the swapping station showing a 4-minute video of a driver filling up at the pump. The cost of the 23 gallons of gas purchased at the Los Angeles gas station in the video was $99.83.

Related: 9 questions for Tesla's Elon Musk

According to analyst Trip Chowdhry of Global Equities Research, the quick-charge stations will be a money maker for Tesla, which plans to spend about $100 million installing the stations.

"We estimate Tesla margins on battery swap stations could be north of 60%," he said.

The battery swapping technology also gives Tesla additional environmental credits from states such as California, which are pushing automakers to sell more zero-emission cars. Tesla has been able to sell those credits to the major automakers, and that has been a significant source of profits for the company.

One start-up that also planned to offer battery swapping for electric vehicles, Better Place, recently filed for bankruptcy and halted its operations. Chowdhry said that company's plans were based on the flawed assumption that all the different electric vehicles would use interchangable batteries.

Related: Tesla tripling supercharger network

In May, Tesla announced plans to greatly expand its existing supercharging network, tripling the number of stations by the end of this month. By the end of this year, Tesla plans to have more than 100 locations, allowing drivers to drive from Los Angeles to New York.

The battery swapping stations are expected to be in service by the end of the year.

Shares of Tesla (TSLA), which have nearly tripled in value so far this year, were up 2.6% in early trading.

First Published: June 21, 2013: 10:05 AM ET

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Shoppers outraged, betrayed over Men's Wearhouse firing

George Zimmer, who was fired from Men's Wearhouse on Wednesday, was famous for appearing in the store's television ads.

NEW YORK (CNNMoney)

One customer Ivars Bezdechi fired off this message: "Oust George and lose my business. I guarantee it."

Zimmer opened the company's first store in Houston in 1973. Shoppers have been letting Zimmer into their living rooms for years, as the bearded-faced, raspy-voiced man reassuring men in the store's television ads, "You're going to like the way you look. I guarantee it."

The company's press representatives declined to say why he was fired. Zimmer issued a statement saying that he was fired because of disagreements over the direction of the company.

Customers are taking Zimmer's ousting personally, standing up for the man who's boosted their confidence and wardrobe for four decades. On the Facebook (FB) page, most refer to him by his first name.

Related: Men's Wearhouse founder firing: What happened?

"If there was always one thing I could count on ... it was (that) the sun was going to rise in the east, and George Zimmer would guarantee that I liked the way I looked," posted Kevin Wellsand, after he heard the news.

Another shopper, Brad Gates, asked, "How loyal are they going to be to their customers if they can so nonchalantly stab the very founder of their company in the back?"

Many of the 200-plus Facebook messages were from people who said they are boycotting the store and taking their business elsewhere, unless Zimmer is reinstated.

Several of the store's employees also expressed their disappointment.

Leticia Facey, a former worker whose mother also worked at Men's Warehouse (MW) for 25 years, said she is shocked by the news.

"I had the pleasure of meeting George Zimmer several times at the annual holiday parties," she wrote. "Very sad, indeed."

One shareholder, Samantha Hattley, said the whole reason she bought Men's Wearhouse stock was because of the "great guy" in its commercials.

"He's made your chain...I now regret buying into your stock and we'll be letting go of that, as well," she wrote. The stock is down over 2% since the news broke Wednesday.

But not everyone bashed the company's decision. Brett Strong said that while he agreed that Zimmer's firing did not make sense, refusing to shop at the store would hurt employees.

"If stores close due to sales dropping, your friend/neighbor could lose their job," he wrote. "Support the people who deliver on the guarantee, not the person who says it."

First Published: June 20, 2013: 10:24 AM ET

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Dollar headed for 'multi-year rally'

The dollar bulls are making a comeback.

NEW YORK (CNNMoney)

The newfound enthusiasm for the buck follows a choppy period as investors prepare for the Federal Reserve to eventually unwind its stimulus program.

Depending on how the economy performs, Fed chairman Ben Bernanke said Wednesday that the central bank could begin tapering its bond buying program by the end of this year.

The remarks sent the dollar higher against its main trading partners as stocks fell and bond yields rose.

"The dollar is the king of castle, extending yesterday's post-Fed rally across the board," said Marc Chandler, head currency strategist at Brown Brothers Harriman.

Although the Fed trimmed its outlook for economic growth this year, traders seemed to take Bernanke's comments as confirmation that the recovery is gaining momentum. At the same time, market volatility is expected to remain high for now, which should help boost the dollar. The CBOE Market Volatility Index (VIX) spiked 10% Thursday.

The big picture. Beyond the immediate Fed driven moves, many investors say the dollar will push higher as the economy continues to strengthen.

"The factors are coming together for a mutli-year rally in the dollar," said Paresh Upadhyaya, senior currency strategist at Pioneer Investments.

For one, the U.S. economy is expected to grow faster than most developed economies in the world, said Upadhyaya.

In addition, the U.S. government appears to be getting its fiscal house in order sooner than anticipated, thanks largely to forced budget cuts that took effect earlier this year.

The federal deficit is expected to fall to 4% this fiscal year, and drop to 3% by 2019, according to the Congressional Budget Office. That's substantially lower than the CBO had predicted in February.

And the boom in domestic energy production could reduce the nation's trade deficit and external financing needs.

"The energy independence story is a very big story as far as dollar is concerned," said David Woo, head of global rates and currency research at BofA Merrill Lynch.

The volatility factor. In the sort-term, the dollar could benefit from its reputation as a safe haven as concerns about the Fed keep investors on edge, according to analysts at Societe Generale.

"The combination of stronger data, Fed exit fears and shaky risk conditions should prove positive for the U.S. dollar this summer," the analysts said in a recent report.

The analysts said investors should look past the recent pullback, which was driven largely by investors unwinding positions in emerging markets following a rise in interest rates.

Related: Fed tapering should help, not hurt, the dollar

Even with that retreat, the dollar is the third-strongest currency so far this year, according to SocGen. The euro has been number one, followed by the Mexican peso.

Carry trade? Eventually the rise in U.S. interest rates should give the dollar an advantage over currencies in countries that have lower rates as investors execute so-called carry trades, which use the currency of a country with exceptionally low rates to buy higher yielding assets.

The trade allows investors to earn interest while potentially making a profit on riskier bets. But it only works if investors are upbeat about the prospects for a global economic recovery.

Jens Nordvig, head fixed income and currency strategist at Nomura, said interest rates are still too volatile to make this trade safe.

He said rates should stabilize over the next few months as the shock of a potential exit by the Fed filters through the financial system. "That will be the time to get aggressive."

First Published: June 20, 2013: 10:33 AM ET

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Is your neighbor hurting your home's value?

(Money Magazine)

A recent survey by Harris Interactive and State Farm Insurance found that 60% of Americans have a pet peeve with someone who lives nearby.

A bad neighbor "can make your life a total nightmare," says Bob Borzotta, managing editor of NeighborsFromHell.com, whose message boards contain more than 42,700 posts on unfriendly neighbor behavior.

At the extreme, certain next-door nuisances -- such as annoying pets, unkempt yards, foul odors, and dangerous trees -- could reduce your home value by 5% or more, according to the Appraisal Institute.

Case in point: Omaha real estate appraiser John Bredemeyer says that a few years ago he saw a house in his area sell for 8% less than comparable homes nearby, owing largely to the large, snarling dogs next door. "Raising kids there?" he says. "I don't think so."

Related: Get a lazy co-worker to pick up the slack

So what's your recourse? "You can move to the woods," Borzotta says. "Or you can expect issues and learn how to deal with them properly."

Try this conversation before you start eyeing log cabins.

The Ground Rules

Temper your temper. "The worst thing to do is march over when you're angry and demand action," says Mary Greenwood, author of How to Negotiate Like a Pro. Take 24 hours.

Give notice. Don't try to work this out over the hedgerow. Schedule a time to chat. Maybe even invite the offender to your house, a friendly gesture that also allows him to see his ugly satellite dish from your perspective.

Do your homework. Before the conversation, research what state laws or local ordinances apply, in case your neighbor needs extra persuading.

Related: How to talk about money before saying 'I do'

Keep a log. A record of your dispute can help refresh your memory should you eventually go to the authorities or to court, says Emily Doskow, co-author of Nolo's Neighbor Law.

Your Best Approach

1. Opening gambit: "Hey, Doris, I haven't seen you in a while. Everything okay with you?"

Why it works: Understanding your neighbor's circumstances may allow you to see the problem differently, says Susan Hackley, managing director of the Program on Negotiation at Harvard Law School.

Maybe the dog that's been incessantly barking is outside more often because the owner has a visitor who's allergic. Or the yard is a mess because your neighbor was ill. Best case, you'll find out that the situation is temporary. But if not...

2. Make it about you: "My child naps in the afternoon and won't sleep unless it's quiet. Thing is, Champ is often outside barking then."

Why it works: Focus on how the problem affects you, and your comments will probably be better received than "Your beagle barks too much" -- which sounds like a criticism. Using "I" statements rather than "you" statements helps you avoid coming across as confrontational, says Matt Phillips, executive director of the National Association for Community Mediation (NAFCM).

3. Parrot back: "I totally understand that you can't bring Champ to work and that doggie day care is too costly."

Why it works: "The neighbor needs to feel like you get it," says Michael Donaldson, author of Negotiating for Dummies. Show you understand her perspective by rephrasing what she says in your words.

Hearing what's important to her can also help you come up with solutions that work for both of you. Should you learn that she's concerned about the cost of removing a sick tree that hangs over your house, for example, you could suggest splitting the bill (if you're feeling so generous).

4. Know what you'll take: "It'd be great if Champ stopped barking altogether, but what I really need is for him to be quiet from 2 to 4 p.m."

Why it works: You're stating what you see as a reasonable resolution. Donaldson suggests figuring out in advance what your ideal outcome is, what you'll tolerate, and when you'll walk away. Walking away means being ready with an "or else" plan -- like calling the cops if your neighbor refuses to turn down the blaring music after midnight.

5. Lay on the law: "You probably didn't know that there's a local ordinance on noise. I brought a copy."

Why it works: As the saying goes, "Speak softly and carry a big stick." Handing your neighbor a copy of the law shows that you're serious and, if needed, have some powerful next steps, says Roger Dawson, author of Secrets of Power Negotiating. "But approach it gently," he advises. You don't want to come across as a jerk who's looking for any excuse to escalate.

6. Seek outside help: "Hmmm. We don't seem to be getting anywhere. Can we give mediation a try?"

Why it works: At mediation, you and your neighbor sit down with a third party to find a solution. "It puts positive attention toward the goal of working the issue out for both sides," says Nolo's Doskow.

Roughly 75% of those who use mediation walk away with an agreement, according to the NAFCM, which supports about 400 centers. Prices typically range from zero to $200 a person (often based on what you can afford) for a three- to four-hour session. Hiring a lawyer costs a lot more. An initial consult usually runs $500 to $1,000; going to court can add $2,500 at minimum.

Plus, you'd be stuck living next door to someone you're litigating against. Awkward. Better to try to settle the issue with a neighborly handshake.

First Published: June 20, 2013: 10:57 AM ET

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Tesla announces Model S recall

Tesla announced a recall of some of its recently-built Model S early Wednesday.

NEW YORK (CNNMoney)

CEO Elon Musk announced the recall with a tweet and a blog post early Wednesday.

Musk said Tesla has discovered a problem with a weld that could allow one of the back seats to come loose in the case of an accident.

The electric car maker will contact the affected vehicles' owners and arrange to pick up the cars at their convenience, give them a loaner Model S if necessary, and return their cars within a few hours.

Musk said there had been no customer complaints, no injuries or near injuries caused by the problem, and that it was not brought to the company's attention by any safety regulator.

Related: 9 questions for Elon Musk

The cars being recalled were built over four weeks in May and early June. Given that Tesla said it planned to build about 5,000 Model S in the quarter, suggesting that about 1,600 cars could be affected by the recall, though the announcement did not give a specific number. It is not known how many of the affected vehicles had already been sold and delivered to customers.

The Model S has won rave reviews, with Consumer Reports calling it the best car it has ever tested and Motor Trend giving it Car of the Year honors.

Tesla's announcement is in stark contrast, in both size, seriousness of the problem and automaker response, to Tuesday's news that Chrysler Group was relenting and recalling 2.7 million Jeeps. The National Highway Traffic Safety Administration believes the Jeeps pose an increased fire risk if hit from behind.

Chrysler had initially insisted it wouldn't do a recall and continued to say the older model Grand Cherokees and Libertys are safe. But it agreed to the recall when faced with the prospect of a public hearing into the problem and the deaths that occurred.

Related: Chrysler relents, agrees to recall 2.7 million Jeeps

The shares of Tesla (TSLA), which have tripled in value so far this year, were down in premarket trading on the recall announcement.

Start-up Tesla had its first recall in 2010. It recalled 429 of its Roadsters after a single customer incident prompted it to replace a power cable.

First Published: June 19, 2013: 8:23 AM ET

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Men's Wearhouse fires the 'I guarantee it' guy

Men's Wearhouse executive chairman George Zimmer has been terminated, the clothing retailer said on Wednesday.

NEW YORK (CNNMoney)

Zimmer opened the company's first store in Houston in 1973. He's been the bearded face of Men's Wearhouse (MW) in television ads for years, famously promising men, "You're going to like the way you look. I guarantee it."

The company's press representatives declined to comment as to why it fired the company's co-founder.

"The Board [of Directors] expects to discuss with Mr. Zimmer the extent, if any, and terms of his ongoing relationship with the company," the retailer said in a prepared statement.

The company also postponed its annual shareholders meeting, originally scheduled for Wednesday, "to re-nominate the existing slate of directors without Mr. Zimmer."

Zimmer's image was still all over the company web site on Wednesday morning, featuring Youtube links to his commercials, and a timeline explaining how he started the chain of stores.

Related: Megadeth's Mustaine rips Men's Wearhouse

There was even an online feature called "Ask George," where customers can send him fashion questions or comments. CNNMoney sent a question to Zimmer via this web feature asking why he was fired, but there was no immediate response.

Zimmer owns 3.6% of the company's shares, making him the largest single shareholder, according to Lionshares. The stock was down 1.8% in early trading.

First Published: June 19, 2013: 10:03 AM ET

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Investors hold their breath for the Fed

Click the chart for more stock market data.

NEW YORK (CNNMoney)

Federal Reserve chairman Ben Bernanke takes center stage Wednesday and investors are hoping he'll provide some clarity on when the central bank could begin tapering the pace of its bond purchases.

As investors waited, stocks dipped into the red. The Dow Jones industrial average and S&P 500 slipped just 0.2% in early trading, while the Nasdaq edged down 0.1%.

The Fed's bond-buying program has been a boon to equity markets, supporting U.S. and global stock indexes and driving them to recent record highs.

Click here for more on stocks, bonds, currencies and commodities

Any comments from Bernanke suggesting that the program's end is near would likely lead to significant declines.

"Bernanke has to address asset purchases and every nuance in his replies will be seized upon by markets," said Deutsche Bank economist Jim Reid in a research note.

The Fed will release a statement at the conclusion of the its latest monetary policy meeting at 2:00 p.m. ET. Bernanke is scheduled to speak at 2:30 p.m. ET.

Related: Bond investors bracing for Bernanke

In corporate news, shares of Tesla Motor (TSLA)dipped after the automaker announced a recall of some of its Model S cars for a non-mechanical defect.

FedEx (FDX, Fortune 500) shares edged higher after the shipping giant reported quarterly earnings the blew past forecasts, though revenue was roughly in line with estimates. The company is often seen as a bellwether for the global economy given the nature of its delivery business and its international footprint.

Adobe (ADBE) shares jumped after the software company reported quarterly earnings that beat expectations.

Dish Networks (DISH, Fortune 500) dropped its pursuit of Sprint (S, Fortune 500), clearing the way for Japan's SoftBank (SFTBF) to continue with its offer. Dish said it would instead focus on its tender offer for Clearwire (CLWR).

Shares of Men's Wearhouse (MW) slid after the clothing retailer "terminated" executive chairman George Zimmer, also known as the "I guarantee it" guy.

Related: Fed watchers say Bernanke won't act now

On the international stage, European markets were down slightly in afternoon trading. Asian markets ended mixed. Japan's Nikkei index rallied by 1.8%, helped by strong export data. But the Hang Seng in Hong Kong moved in the opposite direction, sinking by 1.1%. The Shanghai Composite index also dipped down by 0.7%.

First Published: June 19, 2013: 9:41 AM ET

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Swiss lawmakers nix bank deal with U.S.

Credit Suisse is one of hundreds of Swiss banks facing possible U.S. legal action after the Swiss parliament blocked legislation that would have allowed the sharing of account information with U.S. tax authorities.

LONDON (CNNMoney)

The lower house of parliament voted Tuesday against a draft law that would have allowed the country's banks to start sharing secret offshore account information with U.S. tax authorities.

The move keeps Switzerland's famous bank secrecy rules intact for the foreseeable future, but creates a problem for hundreds of Swiss banks that are being barred, by law, from sharing account information.

The banks could face U.S. legal action if they continue withholding information and there is evidence proving they are helping Americans evade taxes via offshore accounts.

Switzerland is home to the world's largest offshore banking industry with $2.2 trillion in deposits. Many account holders were attracted to its banks by the prospect of being able to hide their assets and avoid taxes in their home countries.

Related: Got a Swiss bank account? Time to fess up.

American and European authorities have been aggressively pursuing these banks in an effort to catch tax evaders, with some success.

In early 2012, Swiss bank Wegelin and Co. was forced to shut down after being charged by the U.S. Department of Justice with helping American taxpayers hide more than $1.2 billion from the Internal Revenue Service.

In 2009, Swiss giant UBS (UBS) admitted to helping U.S. taxpayers hide money from the IRS and agreed to pay $780 million in fines and restitution. It also handed over account information for its U.S. customers.

The two largest banks that are still most exposed are Credit Suisse (CS) and Julius Baer, which have not yet struck deals with U.S. tax authorities.

Both banks did not immediately respond to calls for comment, though Credit Suisse revealed in a 2011 financial statement that it had set aside 295 million Swiss francs ($308 million) in anticipation of settling U.S. tax issues.

Julius Baer has not published any similar estimates but said last month it welcomed the proposed legislation as providing a framework for resolving tax issues with the U.S.

Related: U.S. citizens ditch passports in record numbers

Professor Peter V. Kunz from the University of Bern Law School said the largest banks were holding private discussions with the U.S. Department of Justice and therefore would likely avoid indictments for now.

"The biggest risks are for the [smaller] banks which are not yet in contact with the Department of Justice," he said. "The uncertainties and the legal risks will continue for the foreseeable future."

Swiss politicians will continue debating the proposed bank information-sharing law Wednesday, though the prospects of parliament reversing its decision look slim.

"I think the deal is dead," Kunz said.

A decision will have to be made by Friday at the latest, which is the final day of parliament's summer session.

First Published: June 18, 2013: 9:58 AM ET

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Is gold losing its safe haven appeal?

Gold has sunk 18% this year. Click chart to see current gold prices.

NEW YORK (CNNMoney)

Despite choppy trading in stocks and bonds, gold prices have struggled to move back above $1,400 an ounce.

At the same time, the VIX (VIX), a benchmark of investor anxiety, has jumped 35% in the past month.

Gold is often seen as a safe haven when markets are volatile, since it's tangible and tends to hold value better than other assets.

But that has not been the case recently.

Gold prices have tumbled 18% so far this year, and many analysts say the metal's 12-year bull market has peaked.

"We've begun a significant turn in the gold market," said Paresh Upadhyaya, senior market strategist at Pioneer Investments.

There are several drivers behind the sell-off, including a strong dollar and rising interest rates in the United States, he said.

Related: Market volatility creating buying opportunity

Gold had benefited from its reputation as a safe haven since the 2008 financial crisis, said Upadhyaya. But the recent rise in rates, along with improving economic data, has undermined gold's allure.

"That flight to quality that gold has enjoyed is starting to lose some of its luster," he said.

Gold has also fallen out of favor as inflation remains subdued and concerns about a collapse of the euro currency union have eased, said James Cordier, president of Liberty Trading Group.

"All the factors that had supported gold are now off the table," he said.

Gold bulls have long argued that the Federal Reserve is setting the stage for inflation by printing money and holding down interest rates.

But the latest data on inflation have been tame and some economists are now worried about deflation.

Meanwhile, the European Central Bank has quelled fears of a runaway debt crisis in the eurozone, although the region remains mired in recession.

Cordier said gold could fall to $1,200 an ounce in the near term as risk-averse investors seek higher returns in fixed-income assets.

"Gold at current levels is still incredibly expensive," he said.

Related: Gold prices drop 1%. Is $1,150 next?

Still, investors should have some "sensible" exposure to gold, said John Corcoran, a senior client portfolio manager who specializes in precious metals at Oppenheimer.

Corcoran warned that timing the gold market is tricky, and said investors should take a longer-term view.

While gold is facing short-term headwinds, Corcoran said it should benefit from a pick-up in inflation over the next few years.

First Published: June 18, 2013: 10:36 AM ET

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Enterprises launch their own private clouds

NEW YORK (CNNMoney)

Now, enterprises are following the little guys' lead and embracing cloud computing. But because of security concerns, custom requirements, and in some cases, sheer scale, a number of big organizations are doing it with a twist: They're creating their own private clouds.

PayPal, the U.S. National Security Agency, Samsung, BestBuy.com, Comcast, Bloomberg and even a group of particle physicists are among those that have launched their own isolated networks.

A private cloud is built on hardware that a business controls itself (sometimes through a contract with an outside vendor), rather than sharing it with others. Clouds are different than traditional data centers in several ways, a key one being that users can call up new computing resources on demand. That's a major improvement for many enterprises, where a developer might have to wait months to get access to an IT department server.

At PayPal, a unit of eBay (EBAY, Fortune 500), developers used to have to fill out as many as 100 forms and sit through hours of meetings to roll out a small service, recalls Saran Mandair, the company's senior director of platform engineering and operations.

Now, programmers log into a portal where they can upload code to test, change and deploy. The goal -- which Mandair says PayPal hasn't quite reached -- is for a feature or service to go from a developer's desktop to a live service in an hour.

BestBuy.com is also shaving time off its development cycle with a newly launched cloud.

The company has more than 40 development teams around the world working on its website, which were using a variety of setups to test their projects. Many didn't match the production platform, causing problems when new features launched.

With the new cloud system, developers can test features in exactly the way they'll function on the live site. Because the process is so easy, developers are more likely to experiment. "Our teams are free to innovate," says Steve Eastham, Best Buy's director of e-business architecture.

It also means that coders are less likely to go rouge. Previously, some were turning to public cloud services for the computing resources they needed. But because they were doing so independently, charging the services on corporate credit cards, it was difficult for Best Buy to track resource usage and control spending, Eastham says.

Related story: The IPO market is back -- for enterprise tech

One of the most novel private clouds is a globe-spanning network built by a group of particle physicists.

Research centers around the world collect huge amounts of data when they run experiments. The detector at CERN, for instance -- which led to the discovery of the Higgs Boson -- required "racks of processors used to filter data," says Randall Sobie, a research scientist at the University of Victoria's Institute of Particle Physics.

Now that the experiment is over, those resources are sitting idle until the next project gets up and running.

Sobie and his colleagues would like to make those servers available to physicists anywhere. "They're being converted to OpenStack clouds," Sobie says. The group has already linked nine clouds around the world, including the one at CERN, that researchers can use through a custom-built scheduling system.

Open Stack is an open-source technology developed by NASA and Rackspace (RAX). It's one of many different systems -- including offerings from CloudStack, VMware (VMW), Microsoft (MSFT, Fortune 500) and Eucalyptus -- that businesses use to build internal clouds, and it's popping up in some surprising places.

Like the U.S. National Security Agency. Understandably, the NSA is reluctant to divulge much about its cloud. During a presentation at a recent industry conference, Nathanael Burton, an NSA computer scientist, offered up a PowerPoint slide listing all details he couldn't share, including the number of servers in the NSA's cloud, its storage capacity, the apps running on it, and his favorite color. (Yes, that last one is a joke.)

But Burton did discuss how he took matters into his own hands while investigating ways to improve the NSA's cumbersome process for allocating resources to developers.

"Me and a coworker, two mad scientists, stole a rack," Burton quipped. "The goal was to try out OpenStack."

Burton and his co-conspirator had the NSA's private cloud up and running in two weeks. Now, he's in the process of opening up the cloud to all 16 agencies that comprise the U.S. intelligence community.

One of the cloud's most popular features is its accessibility.

"There's a free tier where they get a default [resource] quota without having to talk to somebody," Burton said. "That's big at the NSA, because most people here are introverts."

First Published: June 18, 2013: 10:36 AM ET

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