Stocks fall on talk of strike on Syria

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NEW YORK (CNNMoney)

The Dow Jones Industrial Average, the S&P 500, and the Nasdaq all fell in morning trading, following global markets lower.

Investors moved into assets deemed "safe," pushing up the prices of gold and U.S. and German government bonds. Oil prices also surged on fears in the Middle East.

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Investors have grown increasingly concerned that the U.S. and its allies are preparing for military action against Syria. Secretary of State John Kerry said Monday that evidence "strongly indicates" chemical weapons were used in Syria.

Related: Military strikes likely response?

Kerry's comments were interpreted as a war speech, sparking a downward move in the Dow Jones industrial average and S&P 500 during the final hour of trading on Monday. It also erased modest gains in the Nasdaq.

Still, Tuesday's sell-off was relatively mild. It is expected to be another light day of trading in the late August doldrums. What's more, major U.S. indexes are still up between 14% and 20% in 2013.

Home prices keep rising: U.S. investors got more good news about the housing market. Prices for homes in the nation's 20 largest cities in June rose 12.1% over the last year. That was down slightly from the previous month, but still shows that housing continues to rebound.

Related: Fear & Greed Index shows Extreme Fear

Luxury retail rises, while lower priced retail falls: Shares of jewelry retailer Tiffany & Co (TIF) rose after the company reported better-than-expected quarterly results.

Shares in struggling department store operator J.C. Penney (JCP, Fortune 500) fell on news that activist shareholder Bill Ackman is selling his entire stake of more than 39 million shares.

Shares of electronics retailer Best Buy (BBY, Fortune 500) fell after its founder Richard Schulze announced that he would begin selling his stake in the retailer in October. Last year Schulze attempted to take Best Buy private but was rebuffed by the board.

In Australia, shares in surfwear maker Billabong plunged after it posted a huge loss and wrote off the entire value of its brand.

First Published: August 27, 2013: 9:46 AM ET

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Oil jumps as Syria conflict heats up

Oil prices are up more than 2% as the situation in Syria worsens.

LONDON (CNNMoney)

Prices for both U.S. crude, and Brent crude -- Europe's benchmark -- rose more than 2% Tuesday, as the U.S. government and its allies consider a military strike on Syria following the country's suspected use of chemical weapons.

The conflict has left investors reeling, with global stocks selling off and investors rushing to safer havens, such as U.S. Treasuries, where buying has pushed the yield on the 10-year note down to 2.7%.

"In a world when you don't know what to do, you buy government bonds," said Steen Jakobsen, chief investment officer at Saxo Bank.

Even gold, which had been maligned by investors, is spiking. The precious metal, also considered a safe haven in times of geopolitical turmoil, is back above $1,400 an ounce for the first time since early June.

CNN: A call to arms over alleged gas attack in Syria

But oil prices in particular are being closely watched since any turmoil in the Middle East could threaten global oil supplies.

"It's very difficult to measure a perceived threat of military intervention, but immediately we know Middle East oil prices will rise," said Ishaq Siddiqi, a London-based market strategist at ETX Capital

Syria is not a major oil producer, but there's a spill-over risk if neighboring nations become engulfed in the conflict, said Emad Mostaque, a market strategist at Noah Capital.

"[Brent crude] could easily go up by $10 to $20," said Mostaque, noting that prices were already relatively high as traders have been pricing in geopolitical risk from the ongoing conflict in Egypt.

Mostaque forecasts prices will jump further if a strike on Syria somehow leads to a disruption in global oil supplies. Saudi Arabia produces nearly 12 million barrels of crude a day. Iraq and Iran are also big producers.

Sanctions have already severely restricted oil exports from Syria, according to the U.S. Energy Information Administration. But Iran has been operating under sanctions for years, and it hasn't imploded yet.

While global stocks have been selling off, equity markets in the Middle East have been posting the most dramatic declines. The benchmark index in Dubai has tumbled by 7%, while markets from Abu Dhabi to Bahrain to Kuwait also moved roughly 1% to 3% lower Tuesday.

Turkey, which neighbors Syria, has been particularly hard hit in recent months as it has faced its own share of violent protests and heightened concerns about the Syrian conflict. The country's benchmark stock index fell 3% Tuesday and the Turkish lira hit a record low.

Syria shares a border with Turkey, Iraq, Jordan, Israel and Lebanon. In Israel, the main stock index shed 2% Tuesday.

Related: More trouble ahead for emerging markets

Emerging markets around the world also stand to lose out if Syria is hit with a military strike, as investors will be keen to pull their money out of more volatile markets in favor of traditional safe havens.

Emerging market equities and currencies across the globe have been hammered in recent months as investors have worried about the impact of the Federal Reserve pulling back on its massive bond buying program that has pumped liquidity into markets and helped resuscitate the U.S. economy.

-- CNNMoney's Steve Hargreaves contributed to this report.

First Published: August 27, 2013: 10:50 AM ET

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Home prices still surging ... for now

NEW YORK (CNNMoney)

Prices for homes in the nation's 20 largest cities in June rose 12.1% over the last year, according to a report Tuesday from S&P/Case-Shiller home price index.

While that gain is still robust, it didn't quite match the gain of 12.2% reported for May. Rising mortgage rates may be to blame.

"With interest rates rising to almost 4.6%, home buyers may be discouraged and sharp increases may be dampened," David Blitzer, chairman of the Index Committee at S&P Dow Jones Indices, said in a press release.

Home prices have been on a tear for the last twelve months. June marks the first time in over a year that the overall increase has been smaller than the month before. While prices rose in all 20 cities measured by the index, only six cities in June saw price increases larger than the month before, down from 10 cities in May.

Prices in Dallas and Denver hit all-time highs, while San Francisco housing prices notched the biggest rebound, rising 47% from their low in March 2009.

U.S. home prices are now at early 2004 levels -- still 23% below their peak in mid-2006.

And while mortgage rates have been steadily rising for the last few months, they're still at historically low levels.

Record-low rates, a lack of new homes on the market and years of pent up demand have been the driving forces behind the recent home price spike, according to Erik Johnson, senior U.S. economist at IHS Global Insight.

"The shortages are likely to get larger before getting smaller," Johnson wrote in a note Tuesday. "We still expect housing to remain a key driver of growth for at least the next couple of years."

Related: How the Fed can taper without killing housing

The recovering housing market has been a big part of the nation's economic recovery since the Great Recession. But many fear that rising mortgage rates could put a damper on that growth.

Rates have risen more than a full percentage point since May, when Federal Reserve Chairman Ben Bernanke indicated the Fed may soon ease its bond buying program that's helped keep interest rates at record lows.

While some cheer the Fed stepping back from its unusual bond purchases amid fears the buying will spark inflation, others worry that it may be too soon.

First Published: August 27, 2013: 9:19 AM ET

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Indian stocks plunge 11% in a month

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LONDON (CNNMoney)

Stocks have been in free fall this month, the rupee has been hitting record low levels and investors are running scared.

The Mumbai Sensex index swung wildly on Wednesday, at first popping into positive territory but then falling by 760 points to close with a loss of nearly 2% for the day.

This is the fourth consecutive day of losses, with the index down by 7.5% over the period. In the past month, the benchmark index has tumbled by just over 11%.

Investors are growing increasingly concerned about the U.S. Federal Reserve cutting back on its massive bond-buying program, which has generated a wave of liquidity around the world and propped up global markets.

As the Fed looks to taper its $85-billion-per-month stimulus program, emerging markets -- and India in particular -- have suffered damaging capital outflows.

Related: Nissan resurrects Datsun in India

Local factors are making the situation worse. Investors are losing faith in India's sluggish economy and worry about its large current account deficit, which reflects the nation's tendency to import more goods than it exports and leaves it heavily reliant on foreign capital.

The economy grew at its slowest pace in a decade in 2012 and forecasters have been downgrading their expectations for future growth.

"There is no dynamism in India right now that will allow the free flow of capital," said Stephen Pope, managing partner at Spotlight Ideas.

Pope pointed to the extreme bureaucracy, which is slowing economic and political progress.

"Everything seems to make some progress and then it stops because of the level of bureaucracy. And this is what is killing the potential of India. It should be challenging China, but it's not," he said.

Others have voiced concerns that elections due by May 2014 will do little to strengthen India's political leadership.

"Whatever new coalition assumes power by next spring will be very weak, deepening India's political paralysis and reducing already paltry chances for reforms needed to re-energize the lagging economy," said David Sloan, director for Asia at Eurasia Group.

Related: Fed provokes run for the hills ... in China and India

Investors are selling the rupee, pushing the currency on Wednesday to a record low versus the U.S. dollar.

Economists and traders said the sell-off was exacerbated by indecisive moves from the Indian central bank. The Reserve Bank of India announced Tuesday that it would inject over $1 billion into the markets, just days after saying it was working to tighten liquidity. The announcement came after yields on Indian government bonds spiked above 9%.

"It's taking neither a hot nor cold stance to protect its currency and this indecision is fueling the market's selling bias when it comes to the rupee," said Kathleen Brooks, a research director at FOREX.com.

Ishaq Siddiqi, a market strategist at ETX Capital, said the central bank was doing little to secure stability for the Indian economy and currency.

"This is seen as a sign of desperation from the Reserve Bank of India," he said.

First Published: August 21, 2013: 9:41 AM ET

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Investors nervously await the Fed

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NEW YORK (CNNMoney)

U.S. stocks were mixed in early trading Wednesday as investors await the release of minutes from the U.S. Federal Reserve's latest monetary policy meeting.

The Dow Jones industrial average and the S&P 500 edged lower, while the Nasdaq bounced around the breakeven line.

The minutes will be released at 2 p.m. ET. Investors will be looking for clues as to when the central bank might begin cutting back on its massive bond-buying program.

David Jones, chief market strategist at IG in London, said the minutes -- and investor reaction -- should provide some hints about market direction in the weeks ahead.

But with markets now well into their traditional summer lull, Jones said it "would not be surprising to see this lack of conviction continue in the short term."

Related: Fear & Greed Index driven by FEAR

What's moving: Corporate earnings remained in focus as several retailers reported results.

Lowe's (LOW, Fortune 500) stock rose after the home improvement retailer announced that its quarterly sales and profit rose from a year earlier. Its strong results come a day after rival Home Depot (HD, Fortune 500) also issued an upbeat outlook thanks to the continued recovery in the housing market.

In another positive sign for housing, existing home sales rose 6.5% in July from the prior month.

Target (TGT, Fortune 500) shares fell even after the retailer announced significant year-over-year gains in sales. Investors seemed worried about a more tepid outlook for consumer spending.

Shares of Staples (SPLS, Fortune 500) dropped more than 10% after the office supply retailer reported lower quarterly sales and profit compared to the prior year. The CEO blamed the declines on weakness in retail stores and said the company was working to ramp up its online sales.

Hewlett-Packard (HPQ, Fortune 500) will report after the closing bell. The PC and printer giant is this year's best performer in the Dow as investors have embraced the turnaround strategy of CEO Meg Whitman.

Shares of Heineken (HEINY) were down sharply in Europe after the brewer reported earnings that were worse than expected.

Related: Indian stocks plunge 11% in a month

World markets: Stocks in India continued to slide. The Mumbai Sensex has fallen by roughly 7% over the past four trading sessions and the country's currency hit fresh lows versus the U.S. dollar this week. Policymakers have taken some steps to defend the rupee, but some analysts argue more must be done.

European markets were lower in afternoon trading, while Asian markets ended with mixed results.

First Published: August 21, 2013: 9:43 AM ET

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Why Apple should buy NFL digital rights

If Apple inked an NFL deal, it could expand the popularity of its Apple TV service.

NEW YORK (CNNMoney)

AllThingsD reported on Wednesday that Google's top brass recently met with NFL Commissioner Roger Goodell to discuss broadcasting live NFL games on YouTube. It's a neat idea, particularly when combined with Google's new $35 Chromecast gadget that allows users to stream YouTube videos on their TV sets.

NFL spokesman Brian McCarthy confirmed that the meeting took place. Google did not comment.

But if Apple (AAPL, Fortune 500) really wants to get serious about television (stop me if you've heard that rumor before), adding the NFL is a no-brainer.

Apple already airs professional baseball, hockey and basketball games on the Apple TV. It also comes with the Watch ESPN app, which allows users to watch live tennis matches, golf tournaments and college football and basketball games aired on the Disney (DIS, Fortune 500)-owned sports giant. But in the United States, the NFL is the crown jewel.

Fox (FOXA) and CBS (CBS, Fortune 500) have agreements to air games locally. Comcast's (CMCSA) NBC has the rights to Sunday night games while ESPN airs "Monday Night Football."

DirecTV (DTV, Fortune 500) currently has the exclusive broadcast rights for a package that lets fans watch any NFL game they want on Sundays. That's part of a contract that lasts for two more seasons (including this year's, which starts in a couple weeks). More than 2 million DirecTV customers subscribed to its NFL Sunday Ticket package last season.

One potential hangup: The satellite provider is likely losing money on its NFL deal. DirecTV pays the NFL $1 billion a year for the package, and subscribers pay between $200 and $300. That's why DirecTV's NFL deal appears to be more about adding subscribers than financial gains.

Related story: Apple TV adds HBO Go and WatchESPN

Apple isn't known for entering expensive, money-losing ventures. But there's a chance it wouldn't have to pay upwards of $1 billion for the deal. For the exclusive mobile rights to NFL games, Verizon (VZ, Fortune 500) pays about a quarter of what DirecTV pays.

Even if Apple did end up losing money, the prospect of adding the NFL exclusively could add some steam to Apple TV's tepid adoption. Apple has only sold about 13 million of the devices since it debuted in 2010. Sales have begun to speed up this year though as Apple began to add new premium content, including the popular HBO Go service -- owned by CNNMoney parent company Time Warner (TWX, Fortune 500).

Apple was not immediately available for comment about this story.

If Google (GOOG, Fortune 500) bought the NFL rights, it's possible that Apple TV users would still be able to watch football games via the YouTube app. But so could users of Roku, Microsoft's (MSFT, Fortune 500) Xbox, Sony' (SNE)s PlayStation and so on. But if Apple won exclusive rights, it seems a good bet that Apple would sell many more of those $99 Apple TV set-top boxes.

Well, in the United States anyway -- the NFL hasn't taken off in other countries that play the other football.

-- CNN's David Close contributed reporting to this story.

First Published: August 21, 2013: 10:47 AM ET

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Stocks try for gains after four down days

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NEW YORK (CNNMoney)

J.C. Penney (JCP, Fortune 500) posted a big loss that was even worse than the forecasts. Despite that, the struggling retailer noted that its same store sales, a key measure for retailers, were slightly better than they were during the first quarter of 2013. Shares surged in early morning trading on the news, but then struggled to hold on to those gains.

The retailer's future was a popular topic on StockTwits and some investors questioned why the stock rose in the first place.

duke2duke: $JCP good luck bulls. Buying on the promise of back to school when the numbers showed otherwise. The market is irrational, is what it is. Bearish

racernic: i don't get this obsession w/$JCP.walk away.company in terrible situation trying 2do the improbable. easier trades elsewhere. 2dy as ex

Best Buy (BBY, Fortune 500) has also struggled recently, but appears to be a step ahead of J.C. Penney in the turnaround process. The electronics retailer reported a surge in profit, which CEO Hubert Joly attributed to aggressive cost-cutting. The stock was up about 10% Tuesday and has now gained 185% so far this year.

Retailers Urban Outfitters (URBN) and TJX (TJX, Fortune 500) were also top performers in the S&P 500 after releasing solid earnings reports.

Home Depot (HD, Fortune 500)announced a gain in quarterly net profit and raised its guidance for 2013. Its rival Lowe's (LOW, Fortune 500) will report results tomorrow.

But not all the reports from retailers were good. Struggling bookseller Barnes & Noble (BKS, Fortune 500) recorded a loss and said revenue from its Nook tablet business was down 20% from the same quarter last year. The stock plunged and at least one trader on StockTwits had little hope for a rebound.

graubart: I would like Barnes & Noble to survive. But I don't find any benefit to shopping there. And can't see a path to a sustainable future. $BKS

Related: Fear & Greed Index ruled by Fear

Besides earnings, there was little market-moving news Tuesday. The Dow Jones industrial average, S&P 500 and Nasdaq all edged slightly higher.

The Dow and S&P 500 recorded their first four-day losing streak of the year on Monday. Still, the indexes are both up about 15% for the year, and the Nasdaq has gained 19%.

Investors continue to speculate about when the U.S. will begin to tighten monetary policy.

The minutes from the Federal Reserve's last monetary policy meeting will be closely watched on Wednesday for clues as to when the central bank will begin tapering its $85 billion a month in bond purchases.

More signals could come from the Kansas City Fed's annual conference in Jackson Hole, Wyo., later this week.

Related: SEC bans Phil Falcone from trading for 5 years

European markets were lower, with investors tracking losses on Wall Street and paring back risk before the Fed minutes.

Asia markets were also lower across the board on worries that possible changes to the Fed's bond-buying program will suck capital out of riskier markets. Japan's Nikkei dropped 2.6%, the Hang Seng lost 2.3% and the Shanghai Composite was off 0.6%.

Shares in China Everbright Securities fell 10% as investors had their first chance to respond to restrictions placed on the broker's activities after trading glitches on Friday and Monday.

Indian stocks fell again as the rupee continued to hit new lows against the dollar.

First Published: August 20, 2013: 9:51 AM ET

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Best Buy surges 13% on earnings

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NEW YORK (CNNMoney)

Best Buy (BBY, Fortune 500) said earnings jumped to $266 million in the quarter ended Aug. 3, compared with $12 million in the year-ago quarter.

The company's stock jumped as much as 12.8% to $34.65. That helped it unseat Netflix (NFLX) as the S&P 500's top performer this year.

Chief Executive Hubert Joly said Best Buy cut $65 million in annualized costs. He said the company has managed to slash $390 million in nine months, as part of an effort to cut $725 million.

Looking ahead, Joly was a little cautious, noting that Best Buy has incurred some additional costs and an interruption in same store sales growth as it rolls out its new Samsung Experience Shops and Microsoft (MSFT, Fortune 500) Windows Stores. Same-store sales slipped 0.4% for the quarter, but Joly said they would have been flat to slightly higher if not for the Samsung roll-out.

Related: J.C. Penney posts big loss

Belus Capital Advisors chief equities strategist Brian Sozzi noted that Best Buy has made a big splash online, where same-store sales rose 10.5%.

"The sales number is even more impressive considering Best Buy's entirely new website won't launch until 2014, leading me to believe that price matching, and advertising of price matching, is closing the price perception gap with Amazon (AMZN, Fortune 500)," he said in a research note.

But Sozzi said Best Buy still has some work to do.

"Structurally Best Buy online is not where it has to be to compete effectively, and may be longer away from achieving financial awesomeness (yes, awesomeness)," he said. "For example, keywords on Google (GOOG, Fortune 500) for certain electronics bring up Best Buy on the dreaded ... second page. The team is actively working on improving its SEO."

First Published: August 20, 2013: 8:31 AM ET

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Health insurance premiums rise faster than wages

Employees are paying 89% more for family health insurance premiums compared to a decade ago.

NEW YORK (CNNMoney)

Workers are shelling out an average of $4,565 for their employer-sponsored family health coverage this year, according to the annual survey conducted by the Kaiser Family Foundation and the Health Research & Educational Trust. That's still only 28% of the total price of $16,351.

Premiums for individual plans rose 5% to a total of $5,884, of which employees paid an average of $999, according to the survey, released Tuesday.

While health insurance costs have been rising more slowly in recent years, so have wages. Workers saw their incomes rise by only 1.8%.

Over the past decade, employee premiums have risen 89%, nearly three times as fast as wages.

Still, this year's increase was the second lowest premium increase since Kaiser/HRET began conducting the survey in 1999. A decade ago, increases of more than 9% a year were common.

"We are in a prolonged period of moderation in premiums, which should create some breathing room for the private sector to try to reduce costs without cutting back benefits for workers," said Drew Altman, Kaiser's chief executive.

Related: Who's the killer employee under Obamacare? No. 50 or 51?

But companies are still passing along more costs to workers. About 78% of all covered workers face an annual deductible, up from 72% last year. The average deductible for single coverage rose only a tiny bit to $1,135 since 2012, but the change in recent years is more pronounced. In 2009, the annual deductible was only $826.

Employers are also trying to control costs by offering wellness programs. Some 26% of large firms with more than 200 workers and 10% of smaller firms have a wellness program, with the most popular being flu shots and vaccinations.

Health insurance costs and availability vary widely by size of firm and share of low-wage workers within the company.

Among companies with 50 or more workers, 93% offer health benefits. Firms of this size will have to provide affordable insurance to workers starting in 2015, under the Affordable Care Act.

Only 57% of smaller firms provide their workers with health insurance. Workers at smaller firms also have to pay more for family coverage than their peers at bigger employers, though they contribute less for individual insurance.

How many low-wage workers are employed at a company also affects premiums levels. The Kaiser study found that employees had to contribute $5,818 at firms with many low wage workers, as opposed to $4,030 at firms with higher-paid staff. The employer contribution at firms with lower-paid workers was also smaller.

First Published: August 20, 2013: 11:01 AM ET

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J.C. Penney still in a world of trouble

Shares of J.C. Penney have plunged since the start of 2012. Click the chart to track J.C. Penney's stock.

NEW YORK (CNNMoney)

J.C. Penney (JCP, Fortune 500) is slated to report its second-quarter results Tuesday morning, and it's unlikely that the retailer will have much good news to share with investors.

In fact, analysts are expecting a ninth straight quarterly drop in sales and another large loss, even as returning CEO Mike Ullman aggressively tries to clean up the mess left by ousted CEO Ron Johnson.

"The bottom line is that the second quarter is going to be really bad for J.C. Penney," said Brian Sozzi, chief equities strategist at Belus Capital Advisors. "It's still fighting with the ghost of Ron Johnson when it comes to the merchandise, so customers still haven't regained their trust in J.C. Penney."

Related: J.C. Penney: A buy or a sell?

Investors will be looking for a possible glimmer of hope though. According to a report in The New York Post last week, J.C. Penney's same store sales, a key measure of health for retailers, began to improve in August.

"We need to know whether or not J.C. Penney has achieved stabilization in sales and whether it has any momentum going into the end of the year," said Sozzi. The second half of the year is typically much stronger for retailers. Back-to-school shopping kicks in during August while the fourth quarter includes the holiday shopping season.

With that in mind, analysts are eager to see if J.C. Penney is able to provide any upbeat guidance about the third and fourth quarter. But It doesn't help that many other retailers in a stronger position than J.C. Penney all issued relatively weak outlooks last week. Wal-Mart (WMT, Fortune 500), Macy's (M, Fortune 500) and Nordstrom (JWN, Fortune 500) all disappointed investors.

"The holiday quarter is critical for any retailer, and they'll need to show they're on the road to making some serious improvements because their future is dependent on it," said Paul Swinand, Morningstar analyst.

"A lot of J.C. Penney's wounds are self-inflicted," Swinand added. He argued that J.C. Penney does have a chance to fix itself with the "right merchandise and pricing." The company isn't necessarily struggling from online competition in the way that Blockbuster, Borders, Circuit City did. Those three retailers all went bankrupt. Borders and Circuit City were forced to shut their doors for good.

Related: Bill Ackman rides the crazy train

Nobody is really talking about the possibility of a Chapter 11 filing for J.C. Penney just yet. But its balance sheet will be in the spotlight amid ongoing liquidity concerns.

The retailer shot down reports earlier this month that commercial lender CIT stopped providing financial support to small suppliers that sell merchandise to it. Despite the denials, analysts remain worried that CIT (CIT, Fortune 500) could eventually halt lending to suppliers. If that happens, J.C. Penney would either need to pay its suppliers in cash or cut back on its inventory.

Still, J.C. Penney should be helped by the fact that Ackman will be less of a distraction. With the backing of the rest of the board, Ullman should be able to focus on executing his turnaround strategy.

But Ackman could still crate some trouble. Just a few days after Ackman left the J.C. Penney board, he reached an agreement with the company that allows him to register to sell shares of J.C. Penney in up to four separate blocks.

Ackman owns a 18% stake in the company. So once he does start selling, that could create more problems for a stock that is already down more than 30% this year, and more than 60% since the start of 2012.

"The fact that Ackman will be creating fewer headlines will be important for Ullman and overall confidence among vendors and investors," said Sozzi. "But I worry about that signal to the market when Ackman begins dumping his stock. He has been privy to all sorts of information for a long time, and if begins selling sooner than later, he'll be showing that he's willing to take a loss for fear of losing more money."

First Published: August 19, 2013: 9:02 AM ET

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Deadline to challenge Detroit's bankruptcy filing looms

Monday night marks the last time people can challenge the city on whether its municipal bankruptcy should be allowed to proceed.

NEW YORK (CNNMoney)

The deadline, set at 11:59 pm Eastern time on Monday night, marks the last time people will be able to formally challenge the city on whether the largest municipal bankruptcy in the nation's history should be allowed to proceed.

Detroit filed for bankruptcy last month when the state-appointed emergency manager Kevyn Orr and Michigan Gov. Rick Snyder said the city could not pay its $11.5 billion in liabilities associated with pension benefits, retiree health care costs and unsecured debt held by investors.

But the question of whether Detroit can qualify for municipal bankruptcy, known as Chapter 9, remains.

Related: Retired Detroit firefighter: "My pension is what I was promised"

Judge Steven Rhodes, who's overseeing the case in U.S. Bankcruptcy Court, now must to decide whether the city has proven that it's insolvent, and that it has negotiated in good faith with creditors.

Only a handful of creditors have filed objections so far, all arguing that the city does not qualify for Chapter 9. More are expected to roll in as the day goes on.

Some of the arguments contend that the bankruptcy violates a provision of the Michigan constitution that prohibits cutting pension and retirement benefits.

In addition to arguing that it's unconstitutional, public employee unions have charged that the city did not negotiate in good faith, and should not be allowed to walk away from obligations made to employees and retirees.

While the deadline to object to Detroit's filing is fast approaching, the question of whether Detroit can qualify for Chapter 9 won't be taken up in court until October.

First Published: August 19, 2013: 9:39 AM ET

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Bond bubble finally bursting? Rates creep up

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NEW YORK (CNNMoney)

Worries that the central bank could taper its $85 billion a month in bond purchases, or quantitative easing, as early as September has spurred a huge sell-off in bonds.

Investors have yanked nearly $20 billion from bond mutual funds and exchange traded funds so far in August. That's the fourth highest pullback ever, according to TrimTabs data. In June, investors took out $69.1 billion -- the highest on record.

The heavy selling has pushed long-term bond rates to two-year highs, with the benchmark 10-year Treasury yield nearing 2.87%.

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

"As much as bond professionals say they've never really liked QE, they're trading as though they miss it already," said Jim Vogel, interest rate strategist at FTN Financial.

The Fed will remain in focus this week as investors look ahead to Wednesday. That's when the Fed releases minutes from its last monetary policy meeting. The Kansas City Fed also hosts its annual conference in Jackson Hole, Wyo. later this week.

Concerns about the Fed tapering have hit stocks as well. The Dow Jones industrial average, the S&P 500 and the Nasdaq have dropped for two consecutive weeks.

But with no economic data or significant earnings reports on tap Monday, the three major market indexes were only slightly higher.

Related: Fear & Greed Index

What's moving: Shares of Chesapeake Energy (CHK, Fortune 500)advanced following news that Carl Icahn boosted his stake in the natural gas company to almost 10%.

Apple, (AAPL, Fortune 500) which Icahn announced a "large" position in last week, also continued to move higher.

The earnings calendar was light Monday, but results are due from J.C. Penney (JCP, Fortune 500), Target (TGT, Fortune 500) and Hewlett-Packard (HPQ, Fortune 500) later in the week.

Related: Investors look to emerge from rough patch

World markets: European markets were slightly lower in afternoon trading.

Asian markets ended mixed results. Both the Shanghai Composite index and Japan's Nikkei rose nearly 1%. Stocks in Hong Kong declined by 0.3%. And investors are also nervously watching India, where stocks have plunged lately as the country's rupee currency hit an all-time low.

First Published: August 19, 2013: 9:51 AM ET

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Anti-fracking protests delay U.K. drilling

Protesters near the Cuadrilla drilling site have said the company is "running scared" after it announced it would suspend drilling.

LONDON (CNNMoney)

Cuadrilla has vowed to resume drilling once it is safe, as the company searches for ideal sites to conduct hydraulic fracturing, also known as fracking.

"After taking advice from Sussex Police, Cuadrilla is temporarily scaling back drilling operations ahead of the event," the company announced in an official statement. "During this time, our main concern is the safety of our staff, [local] residents and the protesters following threats of direct action against the exploration site."

The latest developments illustrate the backlash oil and gas explorers face as they search for suitable fracking sites in a densely populated island nation.

Fracking involves injecting water, sand and chemicals deep into the ground at high pressure to crack shale rock and allow oil or gas to flow.

The process is currently being used in various locations across the United States and has led to an American shale gas boom.

Fracking has been so successful in the U.S. that the International Energy Agency predicts that the nation will overtake Saudi Arabia to become the world's biggest oil producer before 2020.

Related: China set to pass U.S. as top oil importer

No companies have been approved to begin fracking in the U.K. at this point -- they're currently in the testing phase -- but the British government is hoping that will soon change.

"Shale gas is a resource with huge potential to broaden the U.K.'s energy mix," Chancellor George Osborne said earlier this year. "We want to create the right conditions for industry to explore and unlock that potential."

The government is currently considering cutting taxes on future fracking profits.

Cuadrilla has been facing large protests from environmentalists and locals who argue that the company's activities have the potential to contaminate local water, create earth tremors and wreak havoc on the environment. The activists say that if Cuadrilla's tests are successful and the company begins production in the region, that would harm residents and local wildlife.

The protesters have set up camp near the drilling site and will be staying in the area until Wednesday.

First Published: August 16, 2013: 8:21 AM ET

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Police drop BBC payments investigation

British police have dropped an investigation into inflated severance payments at the BBC. New York Times chief executive Mark Thompson was head of the BBC when many of the payments were made.

LONDON (CNNMoney)

London's Metropolitan Police force had been assessing allegations that top BBC executives -- including New York Times (NYT)CEO Mark Thompson -- may have committed fraud or misconduct in a public office when they approved severance payments for senior managers that were higher than they were entitled to receive.

"The assessment, of available material, has concluded there is insufficient evidence of dishonesty or criminal misconduct to begin a criminal investigation, and the Metropolitan Police Service will not be taking any further action," it said in a statement.

Thompson was the director general of the BBC during the time that many of the severance payments were made.

Related: Journalist jobs are picking up

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

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

The National Audit Office's (NAO) report found no criminal wrongdoing.

Related: New York Times not for sale

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

The threat of criminal action may have receded but political scrutiny of the payments continues. Thompson is due to testify about the findings of the NAO report before parliament on Sept. 9.

First Published: August 16, 2013: 8:27 AM ET

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Stocks headed for 2nd straight losing week

Click the chart for more stock market data.

NEW YORK (CNNMoney)

The Dow Jones industrial average, the S&P 500 and the Nasdaq were flat in morning trading Friday, but the pain of Thursday's sell-off still lingers.

"After big moves yesterday, the market is limping into the weekend," said Marc Chandler, strategist for Brown Brothers Harriman. "There's like an eerie calm settling over the markets."

For the week, all three indexes are down between 1.3% and 2%.

Despite two down weeks, the major indexes remain between 15% and 20% higher for the year. But future gains may be hard to come by as investors worry about the Fed and the broader economy.

Bond yields spike on Fed jitters: Questions about the Federal Reserve's next move remain unanswered. Many traders think the Fed will start to taper its $85 billion in monthly bond buying sooner rather than later.

There are also concerns that other central banks around the world, including the Bank of England, will begin to raise rates soon.

Those worries have put pressure on stocks and pushed the yield on the 10-year Treasury to 2.8%, the highest in two years, from 2.6% at the start of the week.

Are consumers still spending? Investors are also growing nervous about the health of the consumer in light of weak earnings from a number of retailers.

Nordstrom (JWN, Fortune 500) was the latest to disappoint. The upscale department store's revenue came in short of forecasts and it also offered weak guidance for the remainder of the year, sending shares lower.

Earlier in the week, Wal-Mart, (WMT, Fortune 500) Macy's (M, Fortune 500) and Kohl's (KSS, Fortune 500) reported lackluster results and tepid outlooks.

Related: Fear is back in the market

Also on the earnings front, Dell (DELL, Fortune 500) reported solid quarterly results after the close Thursday, but shares traded lower Friday. The company's future is still in limbo as founder Michael Dell attempts to take it private.

What the heck happened in China? Asian markets went on a wild ride, triggered by a possible trading error in Shanghai that sent China's marquee index soaring before momentum reversed. The Shanghai Composite index ended with a 0.6% loss. Stocks in Hong Kong were flat and Japan's Nikkei lost 0.8%.

Meanwhile, European markets suffered alongside U.S. indexes Thursday, and were mostly lower in morning trading on Friday, though the CAC 40 in Paris was little changed.

First Published: August 16, 2013: 9:57 AM ET

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Carl Icahn is having an amazing year

Shares of Icahn Enterprises are up more than 70% so far in 2013, a sign of the famed investor's success.

NEW YORK (CNNMoney)

Shares of Apple (AAPL, Fortune 500) have surged nearly 7% after Icahn disclosed Tuesday on Twitter that he has taken a "large" stake in the company. Apple's stock even traded above $500 on Wednesday for the first time since January. The latest regulatory filing from Icahn didn't include his stake in the company, which means he bought Apple during the current quarter.

But Icahn's recent investments in other companies have been even more fruitful.

Shares of CVR Energy (CVI, Fortune 500) have more than doubled since he first picked up a 14.5% stake in the company in January 2012. A few months later, Icahn essentially took control of CVR, boosting his stake to 80% of the company.

CVR is Icahn's second largest holding. Only his stake in his own firm, Icahn Enterprises, is bigger. And that stock has been a huge success this year as well. Shares of Icahn Enterprises (IEP, Fortune 500) are up nearly 80% so far in 2013.

Apple: The Carl Icahn effect

"Icahn is one of the greatest investors ever, and it's pretty well documented that he's having one of his best years," said Ken Squire, founder of the 13D Monitor and the 13D Activist Fund.

One of his biggest winning bets this year has been on Herbalife (HLF), which pitted him against rival investor Bill Ackman of Pershing Square Capital Management.

Ackman first revealed in December that he believed Herbalife was running a pyramid scheme and that he was shorting the stock. The following month, Icahn said his research proved otherwise, and in February, he announced he had bought a nearly 13% stake in Herbalife.

Shares of Herbalife have more than doubled this year, and Icahn has since increased his position in the company.

Icahn has also been a big winner thanks to his bet in Netflix (NFLX) -- even though you could argue that his reason for buying it was wrong. The billionaire took a 10% stake in the streaming video company in October because he thought it was undervalued and would be a good buy for larger companies who needed to build out their streaming services.

But Netflix has surged more than 180% this year thanks to strong subscriber gains. Few are talking about the need for Netflix to sell the company now.

Last month, Icahn said he considered selling his stake in Netflix earlier this year but sat tight at the urging of his son. Icahn is now thankful to Netflix CEO Reed Hastings, and has said that the gains in Netflix shares have generated more than $1 billion in paper returns for him.

The billionaire hedge fund manager has also notched a win with his investments in Chesapeake Energy (CHK, Fortune 500) and oil driller Transocean (RIG), in which he boosted his stake last quarter.

More recently, Icahn has been in the headlines due to his battle with Michael Dell and private equity firm Silver Lake. So far, Icahn has been successful in warding off the company's founder and Silver Lake from taking Dell (DELL, Fortune 500) private. Icahn, who owns nearly 9% of Dell, says he wants to keep the PC giant public and says he has CEO candidates in mind to run the company.

Of course, Icahn hasn't always come out on top with his investment decisions.

In August 2011, he gave up trying to take control of movie studio Lions Gate following a two-year-long battle. He sold his 33% stake at a price of $7 a share. At the time, Icahn broke even on his investment, but shares of Lions Gate (LGF) have nearly quintupled since then thanks to the huge success of the "Twilight" movie franchise and "The Hunger Games."

So not even Carl Icahn can win all the time.

First Published: August 15, 2013: 10:05 AM ET

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Workers earned less but paid more for goods in July

Consumer prices rose last month, driven partly by gasoline, which alone rose 1%.

NEW YORK (CNNMoney)

The Consumer Price Index, which is based on a broad basket of consumer goods and services, showed prices rose 0.2% in July, the Bureau of Labor Statistics reported Thursday.

Simultaneously, workers' wages and hours declined slightly.

Taken together, these trends show that real weekly earnings, which are adjusted for inflation, fell 0.5% in July and are down 0.1% from a year ago.

Where are prices rising? Gasoline prices rose 1%, clothing prices rose 0.6% and the cost of shelter rose 0.2% in July. Food prices, which are notoriously volatile, rose 0.1%.

Consumers also faced higher prices on new cars, medical care and prescription drugs.

Compared to a year earlier, the CPI shows inflation is up 2%, in line with economists' expectations. Stripping out food and energy shows "core inflation" is up 1.7%.

A little more inflation could be seen as a sign the economy is gaining momentum, but when it's coupled with lower wages, the two trends show a recovery that's still muddling along.

What the Fed wants: The Federal Reserve wants a bit more inflation, coupled with more improvement in the job market, before it slows its stimulus program.

The central bank generally aims to keep core inflation at or around 2% a year over the long run. But it has said it would be willing to tolerate inflation up to 2.5% in the near term as it aims to stimulate jobs and bring unemployment down.

The problem is, inflation has been well-below the Fed's target this year. As of June, the central bank's preferred measure showed core inflation was only 1.2%.

James Bullard, president of the St. Louis Fed, noted in a speech earlier Thursday, that if the data seems to show inflation is picking up again and could near the 2% target, the central bank could start reducing its monthly bond-buying program without worrying about pushing inflation even lower. If that's not the case, however, the Fed should hold off on reducing its stimulus program.

"It is especially important to see if better macroeconomic growth materializes in the months and quarters ahead, and whether inflation naturally returns toward target," he said.

Initial jobless claims: A separate report released Thursday did present some encouraging news for the job market. Initial jobless claims fell to their lowest level in nearly six years, as 320,000 people filed for their first week of unemployment benefits. That was the lowest level since the week ending October 6, 2007.

About 2.97 million people filed for their second week or more of benefits in the week ending August 3, the most recent data available. That marked a decline of 54,000 continuing claims from the prior week.

First Published: August 15, 2013: 10:10 AM ET

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Microsoft's 45-inch touchscreen costs $150

NEW YORK (CNNMoney)

A startup called Ubi Interactive is now selling $150 software that can turn any wall, desk or screen into a 45-inch touchscreen. Just hook up a Microsoft Kinect sensor and a screen or projector, and the display will instantly gain touch-screen capabilities. Ubi's software can even support touchscreens of up to 100 inches, at a cost of $379.

Ubi worked with Microsoft (MSFT, Fortune 500) engineers at the company's Redmond, Wash., headquarters last year as part of an exclusive "Kinect Accelerator" program. Ubi was one of 11 startups chosen to develop apps and software that work with the Kinect.

The software-Kinect combo senses when a finger touches a surface, allowing the user to click, drag, drop, scroll, and perform all the expected functions of a touchscreen.

The selling point of Ubi's technology is that touchscreens are useful but incredibly expensive -- particularly large ones used in meeting spaces or in-store displays. But many businesses have projectors or televisions already set up in conference rooms. Those could soon become touchscreens by combining a Kinect, which costs $250, and Ubi's software.

Related story: Windows 8.1 update coming Oct. 18 -- for free

"By making it possible to turn any surface into a touchscreen, we ... reduce the cost and extend the possibilities of enabling interactive displays in places where they were not previously feasible -- such as on walls in public spaces," said Anup Chathoth, Ubi's CEO.

Having a large touchscreen handy will become increasingly important as businesses migrate to Windows 8, Microsoft's touch-based operating system. Microsoft is also developing a wearable projector technology that will allow smartphone users to project and control the screens of their mobile devices on to their hands.

First Published: August 15, 2013: 10:41 AM ET

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Stocks lower as investors wait on Fed. Again.

Click the chart for more stock market data.

NEW YORK (CNNMoney)

U.S. stocks were slightly lower Wednesday morning, as investors await remarks from St. Louis Fed President James Bullard. He will be delivering two speeches in Paducah this afternoon.

Bullard is a voting member on the Federal Reserve's policy-making committee, and investors will be listening closely for any hints that the central bank will start slowing its bond-buying program at their meeting next month.

Fed officials have been sending a consistent message recently: their decision will depend on the economic data, which so far, seems to present a picture of a meek recovery that continues to plod along.

But even Bullard's speeches may not be enough to get the market out of its summer doldrums. Fixed income analysts at Nomura joked in a note that "market participants that find themselves in Paducah today might consider a visit to the town's famed National Quilt Museum a better use of their time."

Related: Fear & Greed Index

What's moving: Looking at individual stocks, Apple (AAPL, Fortune 500) shares extended gains in morning trading and was inching closer to $500, a level it has not topped since late January. The stock rallied on news that investor Carl Icahn has taken a stake in the company, calling it "extremely undervalued."

Shares of BlackBerry (BBRY) also continued to build momentum, gaining about 2%, as investors grow more confident that the struggling smartphone maker may take itself private. On Monday, BlackBerry said its board has formed a special committee to look into "strategic alternatives," including the possibility of selling the company.

Meanwhile, Macy's (M, Fortune 500) shares fell nearly 5%, after the retailer reported weaker-than-expected sales in the second quarter. The company sent investors a mixed signal, noting upcoming back-to-school sales could be strong, while simultaneously cutting its outlook for the year overall.

Cisco Systems (CSCO, Fortune 500) will report its latest quarterly earnings after the close.

Check on European and Asian markets here

Across the pond, investors awoke to encouraging news that Europe's recession is over. Gross domestic product across the 17-nation eurozone grew by 0.3% in the second quarter, led by a rebound in the region's two biggest economies, Germany and France.

First Published: August 14, 2013: 9:53 AM ET

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Millions without credit scores not so risky after all

Millions of people who either have little to no credit history or who have gone credit-free for a long stretch of time don't have credit scores -- meaning many lenders consider them too risky.

NEW YORK (CNNMoney)

There are at least 64 million "unscoreable" consumers out there, estimates Experian, one of the three major credit bureaus. These consumers are often immigrants or recent college grads who have little to no credit history or they are people who haven't had an active credit account for at least six months. They may be completely responsible or they could be financial train wrecks waiting to happen -- lenders have no easy way to tell because there is no credit score available.

Credit scoring company, VantageScore, is trying to shed light on this mysterious group with its newest scoring model, which it estimates can assess an additional 30 to 35 million people who were previously unscoreable. It does this by looking at 24 months of credit history, rather than six months, and by considering alternative data like rent and utility payments and public records when available.

"The unscoreables are a big population and in today's rather conservative credit climate they're having a hard time finding mainstream credit," said VantageScore CEO Barrett Burns. The VantageScore model was created by the three major credit bureaus -- Experian, Equifax and TransUnion.

Related: Bad credit -- a deal breaker for many singles

VantageScore found that 10 million, or about a third of unscoreable consumers, aren't high risk at all -- instead, they were determined to be near-prime or prime. Burns calls this the "sweet spot" for lenders, because it means a consumer isn't so risky that a lender would lose money taking them on as a borrower and they're not such low risk that a creditor is forced to reward them with the best terms available.

The largest groups of unscoreable consumers hold professional jobs or are retired, more than 40% are homeowners, and income distribution is in line with the consumers who do have scores, according to VantageScore's research.

"It really surprised me at how good looking these consumers are -- from job characteristics to home characteristics," said Burns. "I don't believe any of us knew how big this audience was and how attractive they are."

Burns said most of the nation's biggest lenders are already testing the new model.

This could be a major untapped market for lenders, said John Ulzheimer, credit expert at CreditSesame.com.

Related: Sneaky credit card charges can cost you hundreds

"If you told a lender out there, 'hey, we flipped over a rock and found 35 million new customers,' they would be very interested, and that's what VantageScore is doing," said Ulzheimer.

The issue is getting other scoring companies to follow suit. FICO, the most commonly used score by lenders, still only scores people who have had active accounts within the past six months.

"Until other scoring models look at more credit history or use other ways to score, there's going to continue to be a large number of people who don't have scores under the models used by lenders and will therefore be denied credit," said Ulzheimer.

But FICO says it is able to score nearly 95% of consumers with thin credit files and 75% of consumers with no credit files by looking at alternative data like bank accounts.

While new scoring models can help millions land loans and better rates, the best way to ensure you don't get denied is to start building credit on your own, said Ulzheimer.

First Published: August 14, 2013: 6:08 AM ET

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Ex-JPMorgan bankers charged over London Whale bet

Two former London bankers have been charged in connection with massive losses racked up by JPMorgan last year.

LONDON (CNNMoney)

Javier Martin-Artajo and Julien Grout worked for the London arm of JPMorgan (JPMPRD)'s chief investment office. Martin-Artajo was head of Europe and Grout was a trader on the team that made the complex credit derivatives bet that ultimately generated losses of more than $6 billion.

The criminal charges are the first to be filed in connection with the losses, and include wire fraud and conspiracy to commit wire fraud, falsify books, records and SEC filings.

In a statement issued via law firm Norton Rose Fulbright, Martin-Artajo said he was confident he would be cleared of any wrongdoing. Grout's lawyer could not be immediately reached for comment.

Related: JPMorgan settles electricity manipulation case for $410 million

The losses on the London trades, which drew on federally-insured deposits, stoked new concerns about the stability of big banks. JPMorgan has previously said it has recordings, emails and other documents that suggest traders may have been hiding the losses as they began to balloon.

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

Related: 10 firms named as first Libor trial begins

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

Ina Drew, the former head of the CIO, earlier this year placed much of the blame for the massive loss on London traders, who she said inflated the value of their positions and failed to calculate losses accurately. She defended her role, saying she did not engage in any misconduct.

First Published: August 14, 2013: 10:28 AM ET

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British police looking into BBC's severance payments

New York Times chief executive Mark Thompson was the director general of the BBC during the time that many of the severance payments that are under investigation were made.

NEW YORK (CNNMoney)

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

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

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

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

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

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

Related: The New York Times is not for sale

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

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

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

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Sheryl Sandberg sells $91 million of Facebook stock

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

NEW YORK (CNNMoney)

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

It amounts to about $91 million.

Related: Facebook investor: I'm buying more

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

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

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

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

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

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

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

Click chart for more markets data.

NEW YORK (CNNMoney)

All three major indexes shed about 1% last week.

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

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

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

Related: The new CNNMoney Portfolio

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

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

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

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

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

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Postal Service loses less but cash crunch looms

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

WASHINGTON (CNNMoney)

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

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

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

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

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

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

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

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

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

Related: The Postal Service would love to ship you beer

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

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

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

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

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

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

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

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

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

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

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

NEW YORK (CNNMoney)

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

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

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

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

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

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

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

Are you an Apple Store employee? Share your story!

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

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

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

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

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

NEW YORK (CNNMoney)

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

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

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

Related: JPMorgan settles electricity manipulation case for $410 million

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

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

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

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

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