A FINANCIAL NEWSLETTER CONNECTING SAVVY WOMEN TO FINANCIAL RESOURCES

 

 

13, JUNE, 2016, MONDAY

 


NOTEWORTHY


50 Dead In Worst Mass Shooting In US History

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Read more from IBT


STOCK MARKET CLOSE



BOND MARKET CLOSE

Treasury Bills, Notes and Bonds
Most recent issues
Maturity % yield Change
3-month 0.2562% +0.0002
6-month 0.4177% +0.0067
2-year 0.73% –0.0045
5-year 1.17% +0.0037
10-year 1.64% +0.0048
30-year 2.45% +0.0078

MARKET COMMENTARY

Stock Losses Mount in Disappointing End of Week

Losses piled upon losses in the final hour of trading Friday, pulling benchmark indices lower for the week.

The S&P 500 was down 0.91%, the Dow Jones Industrial Average slid 0.66%, and the Nasdaq declined 1.29%.

Traders also appeared wary ahead of next week’s Federal Reservemeeting. A rate hike in June isn’t likely anymore, but investors instead will be on high alert for any clues as to when another increase could come.

The chances of a rate hike in June dropped to 2% probability, according to the CME Group, after the number of U.S. jobs added to payrolls in May came in well below expectations. Chances of a rate hike in June were higher than 20% at the end of May.

Read more from The Street


WHAT DID OIL DO?

Crude oil on Friday fell further from 11-month highs achieved earlier in the week. The commodity held onto steep losses through the afternoon session after a weekly read on the oil industry showed the number of active oil rigs climb by 3 to 328, its second straight week of gains.

West Texas Intermediate crude oil was down 3% to $49.07 a barrel.

Read more from The Street


STOCKS IN THE NEWS 

In stock news, Tesla Motors (TSLA) refuted reports it is under review for potential safety issues in its Model S suspension. The electric carmaker said in a blog post Thursday that “there is no safety defect” and “since we own all of our service centers, we are aware of every incident that happens with our customer cars.”

Urban Outfitters (URBN) fell after warning that same-store sales in the current second quarter were declining in the mid single-digit percentage range. Analysts had expected same-store sales to grow 1.1% in the period. Same-store sales in the year-ago quarter climbed 4%.

H&R Block (HRB) rose after topping fourth-quarter estimates on its top- and bottom-lines. The tax preparer also raised its quarterly dividend by 10% to 22 cents a share. Total returns for the latest tax season fell 4.5%.

JM Smucker (SJM) was downgraded from buy to hold with a $143 price target at Jefferies. The firm said the move was a valuation call as the stock has risen 16% over the past six months.

Coca-Cola European Partners (CCE) stock coverage was reinstated with a buy rating and $47 price target at Deutsche Bank Friday morning. The firm said it sees “fundamental upside from share gains, growth in stills, synergies and cost savings using considerable free cash flow in shareholder-friendly ways.”

JetBlue (JBLU) slid Friday after the company released disappointing May data. The airline reported that capacity growth outpaced traffic in May and it cut its capacity growth outlook for 2016. For the full year, JetBlue lowered its capacity growth forecast to between 8.0% and 9.5% from 8.5% to 10.5%.

Read more from The Street


HEADLINE BUZZ

Wall Street Journal

Shooting at Gay Nightclub Kills 50, Wounds 53 in Worst Mass Shooting in U.S. History


New York Times


Bloomberg Business

50 Dead in Florida Nightclub Shooting, Worst in US History


International Business Times

Orlando Shooting Live Updates: Authorities Investigate Terrorism As Motive In Gay Nightclub Massacre


The Guardian

Florida nightclub shooting: 50 killed and 53 injured in ‘act of terror’ – rolling updates


The Telegraph

Orlando gay club shooting: 50 dead as US citizen identified as terrorist gunman


SMART IDEAS


LEARN

3 Critical Lessons Maria Sharapova Just Served Up to Entrepreneurs

getty_514191860_95936CREDIT: Getty Images

On Wednesday, June 8, 2016, a three-person tribunal from the International Tennis Federation (ITF) ruled that Maria Sharapova had gone out of bounds for using a newly banned substance, meldonium (mildronate). Sharapova now faces a two-year ban from her sport, even though she asserts the use of the substance was medically based. Inside this scandal are hidden lessons that can help any entrepreneur keep their eye on the ball.

1. Admit errors early

2. Stay on top of new rules

3. Speak with clarity and keep ambiguity out of your intentions

It’s up to you to play a good game

Read more from INC


EARN

From Tourist to Mogul: How 3 Americans Found Business Success Abroad

20160503162954-david-marmatzImage credit: Katherine Wolkoff

His story: When I graduated from college, friends went to Manhattan to interview for corporate jobs. I found that terrifying — as did two of my closest buddies, Daniel Saxe and Daniel Smetana. We wanted adventure. So, in July 2004, we traveled to the archipelago of Bocas del Toro, Panama, and rented a single room in a rustic bungalow balanced on stilts over the water.

We reached out to the owner of the Mondo Taitu hostel — a ramshackle clapboard house in nearby Isla Colon—and were just in time. He’d decided to leave the island and was looking to sell. Within three weeks, it was ours.

Read more from Entrepreneur


CREATE


The 14 most successful Kickstarter projects of all time and where they are today

the-pebble-time-smartwatch-holds-the-all-time-kickstarter-record-with-20338986-raised-since-it-launched-in-may-2015-its-provided-a-solid-well-reviewed-alternative-to-the-apple-watch

The Pebble Time smartwatch holds the all-time Kickstarter record, with $20,338,986 raised. Since it launched in May 2015, it’s provided a solid, well-reviewed alternative to the Apple Watch.

For many entrepreneurs, Kickstarter represents a level playing field where good ideas can find people with the cash to help make their dream a reality.

Indeed, without Kickstarter, we’d never have the Pebble smartwatch, highly anticipated games like “Shenmue 3,” or the “Veronica Mars” movie.

Here’s a look at the most successful Kickstarter projects of all time, and where they are today. Spoiler alert: Despite their rocky recent history, Pebble shows up a bunch.

Read the list from BI


MARKETING

 8 Do’s and Don’ts of Influencer Marketing

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When it comes to getting major influencers to help with your marketing efforts, you can be embarking down a treacherous path. While it’s crucial to on-board folks who have a lot of sway with your market, you have to be careful not to rub them the wrong way.

1. Do choose your influencers wisely.

First, and probably most importantly, is to choose the right influencers to reach out to

2. Do amplify influencer messages.

Influencers are often under tremendous pressure to drive traffic to their message, so anything you can do to help them do that will be noticed and greatly appreciated.

3. Do offer influencers something to entice them.

Sometimes, just building the relationship might not be enough.

4. Do use an evangelical approach.

Remember who you’re approaching. Top influencers respond to a different kind of value propositions than regular users.

4. Do use an evangelical approach.

Remember who you’re approaching. Top influencers respond to a different kind of value propositions than regular users.

6. Don’t forget to build influencer relationships.

Remember our suggestion in the do’s section about courting your influencer?

Read more from Entrepreneur


SMART INSIGHTS


INVESTING

4 Reasons Why Fund Managers Prefer Individual Stocks (BRK-A, VOO)

Warren Buffett, at the 2016 Berkshire Hathaway Inc. (NYSE: BRK-A) annual meeting, denounced the expensive fee structure levied by hedge funds and recommended the use of index funds for most investor portfolios. He also noted that the high fees associated with hedge funds and other high-cost products benefit the fund’s managers, not the investors. Still, fund managers prefer to fill their portfolios with individual stocks over index funds, and here is why.

Read more: 4 Reasons Why Fund Managers Prefer Individual Stocks (BRK-A, VOO) | Investopedia


RETIREMENT AND SAVING

Immediate Annuities: More Income and Lower Taxes

Many investors nearing retirement usually become risk-averse, and annuities are a great choice and often beocome a valuable investment tool. Immediate annuities, though, sometimes get a bad rap because once you buy one, you generally can’t get your principal back. However, this drawback has a silver lining: immediate annuities can provide an attractive tax break.

The following is a continuation of the above hypothetical example of a single female taking the standard tax deduction. Let’s assume she has $100,000 to invest, that the corporate bonds and tax-free bonds each pay 5% interest, and the immediate annuity has the same payout as shown earlier.

Scenario No.1 Scenario No.2 Scenario No.3
Corp. Bond Interest Tax-Free Interest Imm. Annuity Interest
Interest from Bond Investment $5,000 $5,000 $2,087
Pension $25,000 $25,000 $25,000
Social Security $10,000 $10,000 $10,000
Non-Taxed Income $5,557
Total Income $40,000 $40,000 $42,644
Social Security Subject to Tax $5,350 $5,350 $3,544
Gross Income $35,350 $30,350 $30,631
Total Federal Tax $3,524 $2,774 $2,811
Net income $36,476 $37,226 $39,833
Source: Tax computations by Turbo Tax™ 2005 1040 software, using 2006 tax rates.

Compared to the corporate bond, the immediate annuity will reduce her federal tax by $713 and increase her income by $3,357 each year. And even though the income tax is $37 less with the tax-free bond, her net income is $2,607 more with the immediate annuity!

Read more: Immediate Annuities: More Income and Lower Taxes | Investopedia


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