FAA furlough reprieve: 'No fair!'

Lawmakers effectively canceled the furloughs of FAA air traffic controllers in an effort to end airport delays. Critics say Congress shouldn't pick favorites for reprieve from supposed across-the-board budget cuts.

NEW YORK (CNNMoney)

But advocates for everyone else directly affected by the so-called sequester are miffed with the selective undoing of what were supposed to be across-the-board cuts.

"We've got to save the traveling public but I ask the question about 5,000 children in Texas that will lose Head Start or the millions of seniors or our military families that will lose the support because we've got the sequester," Rep. Sheila Jackson Lee, a Democrat from Texas, said Friday.

Joseph Beaudoin, a former federal air traffic controller who now heads the National Active and Retired Federal Employees Association, was glad to see Congress reverse his former colleagues' furloughs. But he is worried about all the other federal government workers who aren't so lucky.

"Last month, Congress took action to ensure that furloughs could be avoided for TSA agents, meat inspectors and border patrol agents. However, hundreds of thousands of federal employees providing services across the United States still face furloughs," Beaudoin said in a statement. "We've had enough of the reactionary legislative response. It is time for Washington to come together to agree to smart, sensible approaches to tackling the budget."

Weary air travelers to get break from furloughs

The liberal activist group MoveOn.org was more scathing, contending the reversal was "solely to appeal to wealthy contributors who fly frequently." It issued an online petition to "demand that any emergency legislation to eliminate airline delays caused by the sequester also restore cuts to Head Start, cancer clinics, housing assistance, food pantries, and unemployment insurance."

Meanwhile, NDD United -- a coalition of 3,200 groups focused on public health, medical research, education and other areas -- sent a letter to Congress before the FAA reprieve was passed. "Damage control is not a sound fiscal policy. We urge you to reject any efforts to pick favorites and instead fix sequestration, once and for all," the letter said.

First Published: April 26, 2013: 5:06 PM ET

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50 million customers hit in LivingSocial hack

LivingSocial is requiring all customers to change their passwords after a cyberattack on its systems.

NEW YORK (CNNMoney)

The daily deals site recently suffered a cyberattack on some of its servers, and customer data for more than 50 million users may have been accessed, the company said late Friday. Credit card data was not affected.

Some users who attempted to log in on Friday were greeted with a message about the "unauthorized access," and were required to reset their passwords.

A LivingSocial spokesman sent CNNMoney a copy of an email that the company is sending to customers, which says the hackers may have accessed names, email addresses, encrypted passwords and the dates of birth for some users.

All LivingSocial users had some data stored on the hacked server, the spokesman said, except for customers in Korea, Thailand, Indonesia and the Philippines. Those countries use TicketMonster and Ensogo, which are on different systems.

The company declined to comment further on details of the hack, instead sharing an internal memo that CEO Tim O'Shaughnessy sent to employees earlier today about it. Tech blog AllThingsD first reported on the hack, citing that internal memo.

Related story: Stop hackers in their tracks

In the message that greeted users attempting to log in, LivingSocial said it is "actively working with law enforcement to investigate this issue."

News of the LivingSocial hack comes three days after the Associated Press Twitter account was compromised. The hackers sent a tweet falsely claiming an attack on the White House had left President Obama injured, sending stocks sharply lower for a brief moment.

First Published: April 26, 2013: 5:37 PM ET

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Stocks on track to cap 4th month of gains in 2013

Click the chart for more stock market data.

NEW YORK (CNNMoney)

Stock market investors will be especially keeping a close eye on how the bankers view the U.S. economy's progress.

Recently, there have been signs that economic growth is losing steam -- job growth slowed in March, retail sales slumped and the manufacturing sector showed signs of weakness.

Still, stocks are on track to end April on a positive note this week, the fourth month of gains for 2013.

The Dow headed for its fifth consecutive up month, and the S&P and Nasdaq are poised for their sixth. So far this month, the Dow Jones industrial average is up 0.9%, while the S&P 500 has gained 0.8% and the Nasdaq is up 0.4%.

But trading could be choppy this week as investors take in another batch of corporate earnings, prepare to face the April jobs report, while digesting the central bank meeting.

Investors are hoping the Fed will pledge to keep up its pace of buying $85 billion in bonds each month, which has helped keep interest rates low. Also overseas, the European Central Bank is meeting Thursday. It is expected to cut the benchmark interest rate as the region's economies continue to struggle.

The commitment from the Fed, ECB as well as other central banks around the world to buy bonds and keep interest rates low until economic growth is stronger and sustainable has helped fuel the global stock market rally. The ongoing stimulus is likely to keep markets lifted.

Related: Google can help you time the market

The closely-watched monthly jobs report for April is scheduled for release on Friday. It will give investors a better idea of whether companies have picked up the pace of hiring, a key driver of the economy. Economists expect the economy to have added 150,000 jobs this month, after just 88,000 in March, according to Briefing.com. The unemployment rate is forecast to hold steady at 7.6%.

Leading up to Friday's jobs report, investors will get snapshots of the labor market from payroll processing firm ADP, Challenger's report on job cuts, and the government's weekly report on initial unemployment claims.

The week's heavy economic calendar also includes reports on personal income and spending, the housing market, manufacturing and consumer confidence.

Related: Fear & Greed index stuck in neutral

The corporate earnings calendar is also busy. Mark Zuckerberg's Facebook (FB), controversial supplements company Herbalife (HLF) and gunmaker Sturm Ruger (RGR) are all on tap to open their books.

More than 100 S&P 500 companies are reporting results this week, including drug makers Pfizer (PFE, Fortune 500) and Merck (MRK, Fortune 500), First Solar (FSLR), credit card companies Visa (V, Fortune 500) and Mastercard (MA, Fortune 500), AIG (AIG, Fortune 500), and Warren Buffett's Berkshire Hathaway (BRKA, Fortune 500).

A slew of media companies are also slated to announce earnings, including CNNMoney parent Time Warner (TWC, Fortune 500), Comcast (CMCSA), Viacom (VIA), CBS (CBS, Fortune 500) and Dreamworks Animation (DWA).

Auto giants General Motors (GM, Fortune 500) and Chrysler parent company Fiat (FIADF) are also expected to report.

More than half of the S&P 500 companies have already reported results, and nearly 70% have topped expectations, according to Thomson Reuters. However, only 43% have exceeded revenue forecasts, which is considerably below the long-term average of 62%.

First Published: April 28, 2013: 11:41 AM ET

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Tesla offers idiot-proof battery warranty

NEW YORK (CNNMoney)

The battery is covered even if an owner fails to follow charging guidelines laid out in the owners' manual. "Any product that needs a manual to work is broken," Musk said.

The only cases in which Tesla (TSLA) would not honor a battery warranty would be a case in which a customer deliberately attempted to damage or destroy the battery, he said.

"If you take a blow-torch to the battery pack or blow it up or use it for target practice" the warranty would be voided, Musk said. Also, of course Tesla would not cover battery damage resulting from a crash. Car insurance will have to pay for that.

The Model S batteries will continue to be covered by either an eight year, 125,000 warranty or an eight-year unlimited mile warranty depending on the size of the battery pack in the car. (The Model S is sold with two different size battery packs.)

So far, Musk said, Tesla has not had a single problem with the batteries themselves failing. Any failures that have occurred have been due to faulty computer chips and other components.

The automaker also announced other improvements to the service it offers Model S owners including nicer loaner cars. "Our service is OK and it needs to be great," Tesla CEO Elon Musk said in a conference call with reporters.

When the vehicles need service, rather than having owners bring their cars to Tesla service centers themselves, Tesla will pick up the cars and owners will be given loaner cars. Tesla's loaner car fleet will now include only top-of-the-line Model S cars, equipped with the 265 mile long-range battery packs, and Tesla Roadster sports cars.

Gallery - 8 collectible SUVs

The loaner cars will also be available for sale, at a discounted price, should a Tesla owner decide he or she likes the loaner better than the car he already owns. Tesla also made the previously-required annual service visit entirely optional. The warranty will now be honored even if a Tesla owner never brings the car in for service.

Tesla cars are repaired at service centers that are separate from the showrooms in which the cars are sold. It's a novel system that has brought Tesla into conflict with traditional auto dealers in some parts of the country.
"I've told the Tesla service division that their job is never to make a profit," Musk said. Most auto dealerships make a large portion of their profits from the service department which, Musk pointed out, creates a conflict of interest when it comes to product quality.

"I hate the idea of making money because our product broke," said Musk. "That's just wrong."

These changes to Tesla's service come shortly after Tesla announced new financing options for its electric cars. Tesla is working on improvements to the recently announced financing plan, Musk said in an interview.

"We're going to come out with a modified or improved version as soon as we can get things squared away with our banking partners," he said.

So far, Tesla has sold about 7,000 Model S cars since they went on sale late last year.

First Published: April 26, 2013: 4:05 PM ET

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FAA furlough reprieve: 'No fair!'

Lawmakers effectively canceled the furloughs of FAA air traffic controllers in an effort to end airport delays. Critics say Congress shouldn't pick favorites for reprieve from supposed across-the-board budget cuts.

NEW YORK (CNNMoney)

But advocates for everyone else directly affected by the so-called sequester are miffed with the selective undoing of what were supposed to be across-the-board cuts.

"We've got to save the traveling public but I ask the question about 5,000 children in Texas that will lose Head Start or the millions of seniors or our military families that will lose the support because we've got the sequester," Rep. Sheila Jackson Lee, a Democrat from Texas, said Friday.

Joseph Beaudoin, a former federal air traffic controller who now heads the National Active and Retired Federal Employees Association, was glad to see Congress reverse his former colleagues' furloughs. But he is worried about all the other federal government workers who aren't so lucky.

"Last month, Congress took action to ensure that furloughs could be avoided for TSA agents, meat inspectors and border patrol agents. However, hundreds of thousands of federal employees providing services across the United States still face furloughs," Beaudoin said in a statement. "We've had enough of the reactionary legislative response. It is time for Washington to come together to agree to smart, sensible approaches to tackling the budget."

Weary air travelers to get break from furloughs

The liberal activist group MoveOn.org was more scathing, contending the reversal was "solely to appeal to wealthy contributors who fly frequently." It issued an online petition to "demand that any emergency legislation to eliminate airline delays caused by the sequester also restore cuts to Head Start, cancer clinics, housing assistance, food pantries, and unemployment insurance."

Meanwhile, NDD United -- a coalition of 3,200 groups focused on public health, medical research, education and other areas -- sent a letter to Congress before the FAA reprieve was passed. "Damage control is not a sound fiscal policy. We urge you to reject any efforts to pick favorites and instead fix sequestration, once and for all," the letter said.

First Published: April 26, 2013: 5:06 PM ET

08.36 | 0 komentar | Read More

50 million customers hit in LivingSocial hack

LivingSocial is requiring all customers to change their passwords after a cyberattack on its systems.

NEW YORK (CNNMoney)

The daily deals site recently suffered a cyberattack on some of its servers, and customer data for more than 50 million users may have been accessed, the company said late Friday. Credit card data was not affected.

Some users who attempted to log in on Friday were greeted with a message about the "unauthorized access," and were required to reset their passwords.

A LivingSocial spokesman sent CNNMoney a copy of an email that the company is sending to customers, which says the hackers may have accessed names, email addresses, encrypted passwords and the dates of birth for some users.

All LivingSocial users had some data stored on the hacked server, the spokesman said, except for customers in Korea, Thailand, Indonesia and the Philippines. Those countries use TicketMonster and Ensogo, which are on different systems.

The company declined to comment further on details of the hack, instead sharing an internal memo that CEO Tim O'Shaughnessy sent to employees earlier today about it. Tech blog AllThingsD first reported on the hack, citing that internal memo.

Related story: Stop hackers in their tracks

In the message that greeted users attempting to log in, LivingSocial said it is "actively working with law enforcement to investigate this issue."

News of the LivingSocial hack comes three days after the Associated Press Twitter account was compromised. The hackers sent a tweet falsely claiming an attack on the White House had left President Obama injured, sending stocks sharply lower for a brief moment.

First Published: April 26, 2013: 5:37 PM ET

08.36 | 0 komentar | Read More

Tesla offers idiot-proof battery warranty

NEW YORK (CNNMoney)

The battery is covered even if an owner fails to follow charging guidelines laid out in the owners' manual. "Any product that needs a manual to work is broken," Musk said.

The only cases in which Tesla (TSLA) would not honor a battery warranty would be a case in which a customer deliberately attempted to damage or destroy the battery, he said.

"If you take a blow-torch to the battery pack or blow it up or use it for target practice" the warranty would be voided, Musk said. Also, of course Tesla would not cover battery damage resulting from a crash. Car insurance will have to pay for that.

The Model S batteries will continue to be covered by either an eight year, 125,000 warranty or an eight-year unlimited mile warranty depending on the size of the battery pack in the car. (The Model S is sold with two different size battery packs.)

So far, Musk said, Tesla has not had a single problem with the batteries themselves failing. Any failures that have occurred have been due to faulty computer chips and other components.

The automaker also announced other improvements to the service it offers Model S owners including nicer loaner cars. "Our service is OK and it needs to be great," Tesla CEO Elon Musk said in a conference call with reporters.

When the vehicles need service, rather than having owners bring their cars to Tesla service centers themselves, Tesla will pick up the cars and owners will be given loaner cars. Tesla's loaner car fleet will now include only top-of-the-line Model S cars, equipped with the 265 mile long-range battery packs, and Tesla Roadster sports cars.

Gallery - 8 collectible SUVs

The loaner cars will also be available for sale, at a discounted price, should a Tesla owner decide he or she likes the loaner better than the car he already owns. Tesla also made the previously-required annual service visit entirely optional. The warranty will now be honored even if a Tesla owner never brings the car in for service.

Tesla cars are repaired at service centers that are separate from the showrooms in which the cars are sold. It's a novel system that has brought Tesla into conflict with traditional auto dealers in some parts of the country.
"I've told the Tesla service division that their job is never to make a profit," Musk said. Most auto dealerships make a large portion of their profits from the service department which, Musk pointed out, creates a conflict of interest when it comes to product quality.

"I hate the idea of making money because our product broke," said Musk. "That's just wrong."

These changes to Tesla's service come shortly after Tesla announced new financing options for its electric cars. Tesla is working on improvements to the recently announced financing plan, Musk said in an interview.

"We're going to come out with a modified or improved version as soon as we can get things squared away with our banking partners," he said.

So far, Tesla has sold about 7,000 Model S cars since they went on sale late last year.

First Published: April 26, 2013: 4:05 PM ET

08.36 | 0 komentar | Read More

FAA furlough reprieve: 'No fair!'

Lawmakers effectively canceled the furloughs of FAA air traffic controllers in an effort to end airport delays. Critics say Congress shouldn't pick favorites for reprieve from supposed across-the-board budget cuts.

NEW YORK (CNNMoney)

But advocates for everyone else directly affected by the so-called sequester are miffed with the selective undoing of what were supposed to be across-the-board cuts.

"We've got to save the traveling public but I ask the question about 5,000 children in Texas that will lose Head Start or the millions of seniors or our military families that will lose the support because we've got the sequester," Rep. Sheila Jackson Lee, a Democrat from Texas, said Friday.

Joseph Beaudoin, a former federal air traffic controller who now heads the National Active and Retired Federal Employees Association, was glad to see Congress reverse his former colleagues' furloughs. But he is worried about all the other federal government workers who aren't so lucky.

"Last month, Congress took action to ensure that furloughs could be avoided for TSA agents, meat inspectors and border patrol agents. However, hundreds of thousands of federal employees providing services across the United States still face furloughs," Beaudoin said in a statement. "We've had enough of the reactionary legislative response. It is time for Washington to come together to agree to smart, sensible approaches to tackling the budget."

Weary air travelers to get break from furloughs

The liberal activist group MoveOn.org was more scathing, contending the reversal was "solely to appeal to wealthy contributors who fly frequently." It issued an online petition to "demand that any emergency legislation to eliminate airline delays caused by the sequester also restore cuts to Head Start, cancer clinics, housing assistance, food pantries, and unemployment insurance."

Meanwhile, NDD United -- a coalition of 3,200 groups focused on public health, medical research, education and other areas -- sent a letter to Congress before the FAA reprieve was passed. "Damage control is not a sound fiscal policy. We urge you to reject any efforts to pick favorites and instead fix sequestration, once and for all," the letter said.

First Published: April 26, 2013: 5:06 PM ET

08.36 | 0 komentar | Read More

50 million customers hit in LivingSocial hack

LivingSocial is requiring all customers to change their passwords after a cyberattack on its systems.

NEW YORK (CNNMoney)

The daily deals site recently suffered a cyberattack on some of its servers, and customer data for more than 50 million users may have been accessed, the company said late Friday. Credit card data was not affected.

Some users who attempted to log in on Friday were greeted with a message about the "unauthorized access," and were required to reset their passwords.

A LivingSocial spokesman sent CNNMoney a copy of an email that the company is sending to customers, which says the hackers may have accessed names, email addresses, encrypted passwords and the dates of birth for some users.

All LivingSocial users had some data stored on the hacked server, the spokesman said, except for customers in Korea, Thailand, Indonesia and the Philippines. Those countries use TicketMonster and Ensogo, which are on different systems.

The company declined to comment further on details of the hack, instead sharing an internal memo that CEO Tim O'Shaughnessy sent to employees earlier today about it. Tech blog AllThingsD first reported on the hack, citing that internal memo.

Related story: Stop hackers in their tracks

In the message that greeted users attempting to log in, LivingSocial said it is "actively working with law enforcement to investigate this issue."

News of the LivingSocial hack comes three days after the Associated Press Twitter account was compromised. The hackers sent a tweet falsely claiming an attack on the White House had left President Obama injured, sending stocks sharply lower for a brief moment.

First Published: April 26, 2013: 5:37 PM ET

08.36 | 0 komentar | Read More

A decade of iTunes singles killed the music industry

After Apple's iTunes Music Store debuted on April 28, 2003, sales of 99-cent digital singles surged. But that had a disastrous impact on overall music revenue.

NEW YORK (CNNMoney)

Since the introduction the iTunes Music Store on April 28, 2003, music sales have plummeted in the United States -- from $11.8 billion in 2003 to $7.1 billion last year, according to the Recording Industry Association of America. When adjusted for inflation, revenue has been more than halved since Apple (AAPL, Fortune 500) launched the iTunes Music Store.

Interestingly, during that same time, people have been buying more music than ever. How is that possible? It's because the iTunes Music Store popularized the cheap digital single.

After manhandling the major record labels during a series of now-legendary negotiations, then-Apple CEO Steve Jobs was able to initially offer digital albums for $10 and any individual track off that album for 99 cents.

That changed the music industry forever. When music sales reached their peak in 2000, Americans bought 943 million CD albums, and digital sales weren't even a blip on the radar. By 2007, however, those inexpensive digital singles overtook CDs -- by a wide margin -- generating 819 million sales to just 500 million for the CD.

Related: See iTunes' evolution from the early days to iTunes 11

Last year, there were 1.4 billion digital singles sold, dwarfing CD sales by a factor of 7. More than three-quarters of all music-related transactions were digital singles last year, according to the RIAA.

Apple's iTunes is behind that sea change. According to NPD estimates, iTunes is currently responsible for 63% of all digital music sales. Even after the emergence of competition from Amazon and Google.

The popularity and ease of downloading cheap digital singles has transformed the industry. Not since the vinyl era has the single been this popular. The smaller, cheaper "45" record dominated music in the 1950s and '60s, but the music industry wised up in the '70s.

Vinyl, cassette and CD singles were always cheaper for consumers, but manufacturing costs were not. Nor was the space required to house them in stores. Thus, the single became harder and harder to come by.

Related: How iTunes crushed music sales

The reality is if singles were as available a decade ago as they are now, they would have been just as popular. Music nerds notwithstanding, the average music listener has really only cared about a few tracks off an album at most.

So how was it that the iTunes Music Store, with its proprietary file format and limited device support, that led this charge?

By the time the iTunes Music Store arrived, the iPod was well on its way to becoming a run away success, which meant that Apple already had an installed base of customers using iTunes.

Competitors, such as Rhapsody, were mostly concerned with streaming music. Most crucially, their files weren't designed for use on the iPod, let alone most other MP3 players.

Without the iPod, iTunes and its music store were seemingly innocuous. But the magical combination of buying a song instantly and taking it with you anywhere gave music lovers a good reason to ditch the CD.

Can music sales ever come back? Likely not, says NPD analyst Russ Crupnick. He believes musicians will have to increasingly rely on touring, merchandise sales and endorsement deals to make up for lost album sales.

The subscription streaming services of Spotify and other music apps could help bolster the business, Crupnick says, but the thought of those bringing the industry back to its former peak seems lofty.

Ironically, it could be Apple that is in danger of losing its grip on the music business. Whether or not Apple can maintain its relevance in digital music could very well depend on its ability to transition to the streaming subscription model, which is rapidly adding users.

Nevertheless, the iTunes Music Store's effect on the way people buy music over the past 10 years has ensured that the music industry will never again be the same.

First Published: April 25, 2013: 5:22 PM ET

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Soros reveals stake in J.C. Penney; stock surges

Soros disclosed a passive stake in J.C. Penney on Thursday.

NEW YORK (CNNMoney)

The hedge fund mogul revealed a 7.9% stake in the retailer on Thursday. The investment is worth nearly $265 million at Thursday's closing price of $15.24.

Soros is now the fourth-largest shareholder in the company, according to Bloomberg, and has taken a passive stake.

J.C. Penney (JCP, Fortune 500) shares surged on the news in after-hours trading, rising more than 7%.

Related: Penney wins round in Martha Stewart court fight with Macy's

Soros joins fellow hedge-fund celebrity Bill Ackman as one of J.C. Penney's major shareholders.

Earlier this month, the troubled department-store chain announced that CEO Ron Johnson was leaving the company after just a year and a half.

Johnson, a former Apple (AAPL, Fortune 500) executive, had instituted ambitious changes to J.C. Penney stores in an attempt to remake the brand. Sales plummeted during his tenure, however, sinking 28% in the fourth quarter versus a year prior.

J.C. Penney tapped Mike Ullman, Johnson's predecessor as CEO, to take the reins once more. The company has since consulted with investment firm Blackstone in an attempt to raise up to $1 billion and remain solvent.

First Published: April 25, 2013: 6:39 PM ET

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Stop hackers in their tracks

LONDON (CNNMoney)

This week's Associated Press Twitter scandal is the latest in a string of increasingly high-profile social media hijacking cases that has highlighted the vulnerability of all corporate social media accounts.

Devin Redmond, CEO and co-founder at Nexgate, formerly known as Social iQ Networks, told CNNMoney his technology would have thwarted the latest AP tweet before it was sent out, and would have done so immediately without human oversight.

Nexgate's clients include global banks, big pharma companies and media organizations that use the company's technology, ProfileLock, to secure their social media accounts, keeping hackers from sending out damaging messages and preventing alterations to user profiles.

ProfileLock takes a digital 'snapshot' of all the settings on a social media account, ensuring that if and when those account settings are changed, the system can automatically change them back and alert employees to the alterations.

Related: Find trending tunes with Twitter's #Music app

Of course, in the recent AP case, it was a false tweet about explosions in the White House that was so damaging, not any particular profile changes.

Still, Redmond says his company would have caught the tweet because ProfileLock would have recognized that it came directly through the Web interface for the AP's Twitter account, instead of via the news agency's approved social media publishing platform, SocialFlow.

"We would have caught that, we would have removed the content automatically and sent a notification to the owner," said Redmond.

Nexgate's technology not only helps companies dodge hackers, it also keeps them safe from embarrassing mishaps.

For example, a profane tweet accidentally sent by an employee through a corporate Facebook (FB) account would be caught and deleted immediately with Nexgate's SocialPatrol application, which monitors social media for profanity, bullying, pornography and other sensitive content.

"You really just want to put guardrails on there, so the moment something starts going off the tracks you can catch it and fix it," said Redmond. "We're there to deal with the next generation of social security challenges now that companies are so heavily invested in social media."

But not everyone believes that these kinds of technical solutions will be effective in the end.

"People are trying to react to a problem by throwing technology at it. But it's the people that are the problem," said Vikas Bhatia, a New York-based cyber risk adviser, who maintains that big companies must have more integration between their IT teams and marketing teams to ensure social media accounts are secure.

First Published: April 25, 2013: 8:59 PM ET

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Tax refund delayed? H&R Block might give you $25

NEW YORK (CNNMoney)

The tax preparation firm said Wednesday it is sending $25 gift cards to customers who filed their taxes in company-owned H&R Block (HRB) locations and were impacted by a processing delay of returns claiming education credits.

H&R Block said changes in the way the IRS processes Form 8863, which is used to claim education credits, led to the delays. In March, the IRS said that more than 600,000 education credit returns had been improperly filed by tax software providers, including H&R Block.

Related: How to survive an IRS audit

As a result, those refunds were expected to be delayed for up to six weeks. But H&R Block said Wednesday that most people ended up receiving their refunds much sooner, and more than 90% of its customers impacted by the delay have now received their refunds or have been notified that a refund is on its way.

The firm wouldn't say how many customers experienced delays or how many will receive the $25 payments, which are being loaded onto H&R Block's prepaid Emerald Cards. But qualifying customers should receive them in the mail soon.

Related: 12 tax audit red flags

And H&R Block is hoping the delays this tax season won't scare off customers.

"The problem was a system disconnect in processing the form that unfortunately further delayed the return. This delay was not caused by something the tax professional did -- or did not do," H&R Block said in a statement.

First Published: April 24, 2013: 5:06 PM ET

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GE Capital halts lending for gun shop purchases

GE Capital has halted its lending program for purchases from gun shops.

NEW YORK (CNNMoney)

GE Capital, which provides consumer financing services, had previously provided lending services to gun shops to help consumers finance firearm purchases. Earlier this year, the company sent letters to shops notifying them that the program would be terminated for future purchases.

The move was the result of "a more rigorous audit process... in light of industry changes, new legislation and tragic events that have caused widespread reexamination of policies on firearms," GE Capital spokesman Russell Wilkerson said in an e-mail.

GE Capital had in 2008 stopped providing financing services to new merchants whose primary business was selling firearms. The move to nix the remaining relationships will affect less than 75 retailers and is an "immaterial" part of the company's sales volume, Wilkerson said.

Related: A fourth-generation gunsmith

It will not affect financing for guns bought at major retailers like Wal-Mart (WMT, Fortune 500) and Dick's Sporting Goods (DKS, Fortune 500), which sell guns along with a range of other items.

The decision comes months after the deadly shooting in Newton, Conn., which is not far from GE's headquarters in Fairfield, Conn. In the wake of the shooting, gun and ammunition sales have soared as lawmakers have considered stricter gun control measures.

A Wells Fargo (WFC, Fortune 500)spokeswoman said that the firm decided to stop its gun shop financing program nearly 10 years ago. Citigroup (C, Fortune 500) said that they do not provide retail financing at gun shops. Bank of America (BAC, Fortune 500) did not return requests for comment.

First Published: April 24, 2013: 5:23 PM ET

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Lawmakers probe government loan to Fisker as carmaker struggles

The Fisker Karma.

NEW YORK (CNNMoney)

Fisker laid off most of its employees earlier this month and missed its first loan payment to the Department of Energy on Monday. The Treasury Department has already seized $21 million in an effort to recover some taxpayer funds, but most of the $192 million remains at risk.

Republicans from the Committee on Oversight and Government Reform called Fisker's problems an example of ill-advised government intervention in the private sector, and questioned whether the company had benefited from alleged ties to the Obama administration.

Democrats dismissed these concerns and noted that the DOE loans for alternative-energy-based vehicles have been largely successful, with 98% of the roughly $8 billion awarded to five companies on track to be repaid. Ford (F, Fortune 500), Nissan (NSANF), Tesla (TSLA) and the Vehicle Production Group have also benefited from DOE loans.

Overall, the Department of Energy's clean-energy loan program -- authorized during the Bush administration -- has disbursed $17 billion and faces total losses of up to $780 million should Fisker file for bankruptcy.

While the carmaker could recover some additional funds through asset sales in bankruptcy, it appears in danger of joining solar-panel maker Solyndra as one of the program's high-profile failures.

Rep. Jim Jordan, a Republican from Ohio, said Fisker "never should have received taxpayer money." Noting the $107,850 price tag of Fisker's Karma plug-in sedan, Jordan said taxpayers "effectively subsidized luxury, novelty vehicles for the likes of Justin Bieber, Leonardo DiCaprio and Al Gore."

Jordan and other Republicans also alleged that Fisker backers were in regular contact with Obama administration officials, questioning whether the company had benefited from "crony capitalism."

Related: Carmakers take the Valley

Henrik Fisker rejected this allegation, noting that he had initially been approached to participate in the Department of Energy program by an official from the Bush administration. Nicholas Whitcombe, an official from the DOE's loan programs office, said the department made funding decisions based only "on the merits of the transaction."

"We conduct rigorous due diligence to protect taxpayers' interests," he said.

Democratic lawmakers noted that one of Fisker's key backers had contributed money to Republican political candidates, accusing GOP committee members of partisan grandstanding. Rep. Gerald Connolly of Virginia likened the proceedings to "a Soviet show trial."

Fisker suspended production of its only car, the Karma, in February. That followed a recall of most of the cars built in the second half of last year due to a possible problem with their battery-cooling systems and negative reviews from Consumer Reports.

The Energy Department originally promised Fisker $529 million three years ago. But as the company quickly fell into financial trouble, the department pulled back on that commitment and halted loan disbursements to Fisker in June 2011, after it had received $192 million.

Fisker has been seeking new investors to help revive its business, but has been unable to get back on track with the planned production of a smaller, less expensive plug-in sedan.

CNNMoney's Chris Isidore contributed reporting.

First Published: April 24, 2013: 7:07 PM ET

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Nike pulls "Boston Massacre" shirts following bombings

Nike has pulled shirts that read "Boston Massacre" - a reference to the Yankees-Red Sox rivalry - in light of the tragedy in Boston last week.

NEW YORK (CNNMoney)

The phrase references a four-game sweep of the Red Sox by the Yankees in 1978 that was part of an epic late-season collapse for Boston. The T-shirts in question were printed in Yankee colors, with drops of blood splattered over the lettering.

Following the fatal attacks in Boston, Nike (NKE, Fortune 500) "took immediate action last week to remove this product from distribution," company spokesman Brian Strong said in an email.

"The shirts being referenced are older baseball shirts that were predominantly being sold through our Factory Store Outlets," Strong said.

Related: Crowdfunding campaigns for Boston victims

Nike rival Adidas, meanwhile, is selling shirts reading "Boston stands as one" on its website, with all proceeds going to the One Fund Boston relief effort.

"There has been an overwhelming demand for the Boston Tribute Tee since its launch last week, and we were out of stock within a day," Adidas spokeswoman Katja Schreiber said in an email. "Due to the overwhelming demand, we decided to further extend our support."

Additional tribute merchandise has popped up on eBay and at local retailers.

CNN's Jennifer Sholar and CNNMoney's James O'Toole contributed reporting.

First Published: April 23, 2013: 3:30 PM ET

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Stocks vs. bonds: How we decided

(Money Magazine)

Yet many blue-chip companies that appeal to conservative investors are now paying shareholders more in dividends than bond owners are getting in interest, which hasn't really been the case since the early 1950s.

This raises an intriguing question: Should you stick with the bonds or take a spin with the stocks?

"There are a lot of great sleep-at-night companies with dividend policies that deliver more income today and better growth going forward," says James Morrow, manager of Fidelity Equity Income.

Yet the risks are exponentially greater with stocks. Sure, you can earn half a percentage point more or so in yield by going with equities. Even the bluest of blue chips, though, can lose half of their value in a roller-coaster market.

Fixed income never gets that scary. Even if it did, you could always hold on tight to your bonds until the ride comes to an end -- at maturity, when you'll recoup your investment. By doing so, you'd earn only the interest, but that's likely to be the case anyway, as bond prices probably won't rise much as the 30-year fixed-income bull winds down.

With equities, you get no guarantees of stable prices or future dividend checks.

So when does the stock make more sense than the bond? (This is not, by the way, a matter of changing your overall asset allocation. You hold bonds for diversification, not just income.)

To answer that, MONEY began by looking at large, industry-leading businesses with higher-than-average dividend yields and that have issued intermediate-term bonds with a yield to maturity -- the rate you'd get by buying existing bonds today -- greater than the 1.9% on 10-year Treasuries.

Screening out shares that have been too volatile of late or had disappointing dividend growth produced the field of six blue chips.

Fund managers and analysts then weighed in on whether the bond or the stock was the better deal for conservative income investors.

One key factor in their analysis: the payout ratio, the percentage of current earnings used for dividends. The lower the ratio, the better the chance a business can deliver solid dividend growth. The pros also assessed the relative strength of each stock and underlying risks, such as valuations. Here are the verdicts. (LINK TO GALLERY)

First Published: April 23, 2013: 5:42 PM ET

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Apple's profit crunch continues

NEW YORK (CNNMoney)

The tech titan's profit fell 18% last quarter, and its gross profit margin declined by nearly 10 percentage points. Though Apple's earnings fell less than Wall Street analysts expected, its margin came in well below their forecasts.

Shares of Apple (AAPL, Fortune 500) initially popped about 5% in after-hours trading, but the gains lost steam and turned flat later in the evening.

Squeezed profit has been a troubling trend for Apple. Many customers are opting to buy older iPhones and the cheaper iPad mini -- devices that are less profitable to Apple.

Without a major, market-disrupting new device, investors have feared that trend will continue. Apple's stock has fallen by nearly 24% so far this year, a phenomenon that CEO Tim Cook "deemed very frustrating to all of us" while on a post-earnings conference call with analysts.

Apple made sure to address those disgruntled investors: The company increased its impressive cash hoard to $144.7 billion, and it plans to hand some of that back to shareholders by increasing its quarterly dividend to $3.05 per share. That comes after activist shareholder David Einhorn pressured Apple to stop hoarding its cash and provide more value to stockholders.

Apple's dividend yield is now 3%, as of the close of trade on Tuesday, up from 2% before the increase. That brings Apple's dividend yield in line with Cisco (CSCO, Fortune 500) and Microsoft (MSFT, Fortune 500).

What's more, Apple upped its stock buyback plan to $60 billion from the $10 billion level announced in 2012 . The company says it's the largest stock buyback in corporate history, and Apple will issue debt in order to complete it. Credit rating agency S&P promptly issued Apple a 'AA+' corporate credit rating, which is just one level below a perfect "AAA."

All that serves as a welcome distraction from some lousy product news. Supply chain issues have plagued the latest batch of iPhones, an ongoing issue that the company mentioned on the conference call.

Apple still managed to sell 37.4 million iPhones last quarter, compared with 35.1 million in the same quarter last year. While that's a hefty amount of iPhones, Apple typically doubles its iPhone sales over the year -- that's what's happened for the past four years in the second fiscal quarter, until now.

IPad sales came in at 19.5 million, compared to 11.8 million a year ago. Mac sales were flat at about 4 million, but Cook said on the conference call that the PC market "still has a lot of life in it. And we're going to continue to innovate in it."

In all, Apple's sales were $43.6 billion last quarter, coming in just above Wall Street's estimates, according to median estimates compiled by Thomson Reuters. Apple netted $9.5 billion in profit for its fiscal second quarter, down from $11.6 billion in the same period a year ago. The company's gross profit margin fell to 37.5%.

For the current quarter, Apple expects sales of about $34.5 billion, well below analysts' median estimate of $38.2 billion. The company expects its margins to continue declining, to between 36% and 37%.

First Published: April 23, 2013: 5:00 PM ET

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Internet sales tax: What you need to know

A sales tax on online purchases could be coming to a browser near you soon.

NEW YORK (CNNMoney)

The law would allow 45 states and the District of Columbia to demand that online retailers collect sales tax on purchases. Estimates are that consumers would be spending between $12 billion to $23 billion more a year due to the increased tax collection.

Here's what you need to know about the current law on online purchase and what would happen under the legislation:

When is an Internet retailer required to collect sales tax under current law?

Essentially states can only demand that online retailers that have a physical presence in their states -- such as a store, a warehouse or a factory -- collect sales taxes on purchases by residents of that state. Technically people who buy goods online tax free are supposed to make sales tax payments on those purchases to their home state. But estimates are that only about 1% of buyers comply with those widely unenforced laws.

Who would pay sales tax under the proposed legislation?

Sellers with more than $1 million a year in sales would be responsible for collecting the tax from buyers in the 45 states plus D.C. that currently charge sales tax. Even if an online retailer provides "tax-free" purchases as a way of attracting customers, the way many now offer free shipping, it would be responsible for paying the sales taxes to the various states. That would likely raise the cost of the item charged consumers.

How much in taxes will be paid?

This is tough to say. The most widely quoted study shows that there would be $12 billion in taxes, but that study is from 2009 and online purchases have risen significantly since then. Some estimates are that tax collection could be nearly double that amount. The highest statewide sales tax is the 7.5% rate in California, but local sales taxes raise the rate to about 10% in some locations.

Who is supporting the legislation?

The National Retail Federation is one of the most active voices in support of the proposal, as it is concerned its brick-and-mortar members are losing sales to online competitors. Amazon.com (AMZN, Fortune 500), the largest online retailer, is also backing the bill. It is expanding the number of warehouses nationwide, so most Americans already pay sales tax on their Amazon purchases. So Amazon doesn't want a competitive disadvantage with other online retailers that have a smaller geographic footprint.

Who is opposing the proposal?

Many online retailers are opposed, saying it would create an administrative nightmare to comply with the law, and that higher taxes would hurt their sales. On Sunday, eBay (EBAY, Fortune 500) CEO John Donahoe sent an e-mail message to millions of users asking them to contact members of Congress. The e-mails went to eBay members who simply buy online in addition to its millions of sellers. Donahoe advocates a threshold of $10 million in annual sales or 50 employees before an online retailer would have to start collecting sales taxes.

Related: eBay and Amazon's battle over online sales tax

What is the status of the legislation?

The legislation has strong bipartisan support, with the lead sponsors in both houses being Republicans. But it has never been able to get out of committee for a vote on the floor of either chamber before now. Democrat Max Baucus, the chairman of the Senate Finance Committee, has kept the legislation from advancing. Baucus is from Montana, one of the five states without a sales tax.

Senate Majority Leader Harry Reid has taken the unusual step of bypassing the Finance panel, and scheduled a procedural vote on the measure in the Senate later Monday. The legislation could be in its final form later this week, though a vote might not come until after the coming recess.

Passage in the House is less certain. but the measure does have bipartisan support there as well. Norton Francis, senior research associate of the Urban-Brookings Tax Policy Institute, said that even members of the House Republican leadership support the plan.

First Published: April 22, 2013: 2:39 PM ET

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Netflix stock surges 25% on solid subscriber growth

Netflix trounced Wall Street's earnings expectations thanks to a big increase in video streaming subscribers.

NEW YORK (CNNMoney)

Netflix signed up more than 2 million new U.S. streaming subscribers in the first quarter, which was at the top end of the company's own predictions. The first quarter included the launch of Netflix's most ambitious original series to date: "House of Cards," starring Kevin Spacey.

The strong subscriber gains helped Netflix handily beat analysts' earnings estimates. Profit, excluding one-time debt-related charges, came in at 31 cents per share, while analysts polled by Thomson Reuters were expecting earnings of 19 cents per share.

Sales just topped $1 billion, in line with expectations.

Netflix (NFLX) shares soared 25% in after-hours trading following the company's earnings announcement. That jump could be attributed partially to Netflix's high percentage of short sellers, or investors who "borrow" shares expecting to sell when the price drops. If the stock goes higher, short sellers are forced to buy up shares and cover their positions.

Related story: New Netflix Facebook app lets users share viewing history

Netflix's quarterly earnings report is investors' first look at Netflix's original content plan, which the company first announced in late 2011. Netflix is rolling out a long list of original series this year: A second season of "Lilyhammer," a new season of the canceled "Arrested Development," a kids show from DreamWorks Animation, a new series from horror king Eli Roth, one from comedian Ricky Gervais and another from "Weeds" creator Jenji Kohan.

Hastings said Monday that if the original content is successful in the coming months, Netflix could expand its stable to 20 or more shows.

"In the next two years, it's a modest increase," he said in a conference call with analysts. "If that were wildly successful for us, as the first three shows have been, we could continue to expand to 20 or north, but that would be dependent on what happens the rest of this year."

Though Netflix's results were solid, the company still struck a defensive tone in its letter to shareholders.

"Long term, we believe the value of our original series ... will be borne out as we add more seasons of already popular shows like 'House of Cards' and further series," the company wrote. "Harry Potter was not a phenomenon in book one, compared to later books in the series."

Netflix has reason to be defensive, as analysts have expressed two big concerns about the original content approach. First, the company is releasing all episodes at once -- which means someone could sign up with a free trial for a month to watch "House of Cards" and cancel right afterward.

Netflix addressed that issue head-on in its letter, saying fewer than 8,000 people "gamed" the free trial offer during the quarter.

"Our decision to launch all episodes at once created enormous media and social buzz, reinforcing our brand attribute of giving consumers complete control over how and when they enjoy their entertainment," Netflix wrote in its release.

Critics are also concerned that original series can be costly -- "House of Cards" reportedly cost $100 million for two seasons.

But Netflix spokesman Joris Evers told CNNMoney earlier this year that the company spent about the same amount on "House of Cards" as it would have on an exclusive streaming deal with an outside studio.

Those studios have demanded more for their valuable content over the past two years, as they can now shop their shows around to Netflix rivals: Hulu, Redbox (CSTR), Amazon (AMZN, Fortune 500) and more. HBO (owned by CNNMoney parent company Time Warner (TWX, Fortune 500)) and CBS (CBS, Fortune 500)' Showtime are also expanding their streaming offerings.

That competition has crunched Netflix's streaming growth in the United States, although the last two quarters have each brought more than 2 million new streaming subscriber signups. That gives Netflix a current total of nearly 29.2 million subscribers.

Hastings told analysts that "House of Cards" had generated "a very nice impact" in subscriber growth, "but a gentle impact, not one that's an overnight impact."

Netflix expects that growth to slow in the current quarter. For the second quarter overall, the company expects to add only 230,000 to 880,000 new U.S. streaming customers.

Hastings downplayed concerns that password-sharing could be a problem for the company, saying it was appropriate in the case of immediate family.

"We really don't think that there's much going on of the, 'I'm going to share my password with a marginal acquaintance,'" he said.

CNNMoney's James O'Toole contributed reporting.

First Published: April 22, 2013: 4:33 PM ET

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Cybercrime's easiest prey: Small businesses

Small businesses are the 'most victimized'

NEW YORK (CNNMoney)

A data breach investigations report from Verizon (VZ, Fortune 500), to be released Tuesday, will show that small businesses continue to be the most victimized of all companies.

Of the 621 confirmed data breach incidents Verizon recorded in 2012, close to half occurred at companies with fewer than 1,000 employees, including 193 incidents at entities with fewer than 100 workers.

A separate report from cybersecurity firm Symantec (SYMC, Fortune 500) confirmed that trend. It found cyberattacks on small businesses with fewer than 250 employees increased 31% in 2012, after growing by 18% in the prior year.

It's a pattern that Kevin Thompson, senior analyst with Verizon's RISK team, says he has noticed for the past six years.

Larger corporations have upped the ante against cybercrime recently, investing heavily in sophisticated security strategies. That's forced cybercriminals to look for other ways in.

"A typical small business doesn't have a 50-person IT department and every computer protected," said Andrew Singer, director of Symantec's small business group. "They don't have the money for it."

Related Story: Shodan: The scariest search engine on the Internet

Increasingly, cybercriminals are using smaller businesses as a stepping stone. Smaller suppliers or partners of large companies often "offer the path of least resistance" into a major corporation's network, noted Singer.

Another tactic some more patient cybercriminals are using is targeting small companies in growth industries, such as health care or manufacturing. The bad guys hope that their targets could be acquired by a larger corporation in a year or two. Meanwhile, they lie in wait -- if and when the company merges or is acquired, they gain access to breach the system of the larger parent company.

Despite the statistics, too many small businesses think they're invulnerable. Some believe their small business would be a boring target for hackers.

That's a mistake, said Vikram Thakur, Symantec's principal security response manager. Small businesses can't afford to remain complacent or ignorant about the risk of being a cyberattack target.

"Small businesses retain very valuable information for hackers, like customers' credit card numbers, intellectual property, and money in the bank," he said. "Small companies are lucrative victims, too. That's making the target on their back even bigger."

The most common tactics cyberattackers use against small businesses include "ransomware" scams that lock computers and demand a ransom fee. Attackers also use malicious software designed to steal information from employees' mobile devices and malware that uses a small businesses' website as bait to gain access to a larger company's database.

As cyberattacks proliferate against them, Verizon's Thompson said the most important lessons for small businesses are the most basic: Use good passwords, update your antivirus software and don't expose your essential business services to the Internet.

First Published: April 22, 2013: 9:24 PM ET

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AB InBev and Modelo merger set to move forward

Anheuser-Busch InBev and Grupo Modelo are currently the number-one and -three brewers in the U.S. market, respectively.

NEW YORK (CNNMoney)

The Justice Department announced Friday that it had reached a settlement with Anheuser-Busch InBev and Grupo Modelo to resolve the anti-trust suit it filed earlier this year in response to their proposed merger.

Under the agreement, Anheuser-Busch InBev (BUD) can move ahead with plans to acquire the 50% of Grupo Modelo (GPMCF) it does not already own for $20.1 billion, but it must sell Modelo's U.S. business in order to preserve competition in the American beer market. It must also sell one of Modelo's brewing facilities in Mexico.

The proposed buyer is Constellation Brands -- a wine and liquor producer whose brands include Robert Mondavi and SVEDKA Vodka -- which will acquire the assets for roughly $4.75 billion. Constellation will then have the exclusive right to sell Modelo products in the U.S.

The settlement is subject to a 60-day comment period before it goes before a judge for approval.

The Justice Department's Bill Baer called the agreement "a win for the $80 billion U.S. beer market and consumers."

"Before the merger, there were two competitors -- Modelo and ABI -- and ABI owned a substantial stake in Modelo. The companies' proposed merger would have reduced those two competitors to one -- ABI," Baer said in a statement. "The proposed settlement announced today will create an independent, fully integrated and economically viable competitor to ABI."

ABI was created in 2008 when Belguim's InBev took over Anheuser-Busch in a $52 billion transaction. It currently leads all brewers with a 39% share of the U.S. beer market, producing more than 200 brands including Budweiser, Busch, Michelob and Stella Artois.

Modelo, based in Mexico, is number three in the U.S. market with a 7% share. It produces Corona Extra, the top-selling import in the U.S., as well brands like Modelo Especial and Pacifico.

Related: Small craft breweries hit it big

The two companies originally announced ABI's planned takeover last year, but the Justice Department sued to block the transaction. The companies announced a revised deal in February that was largely similar to the agreement announced Friday.

ABI said that once a judge signs off on the agreement, it will "move swiftly to complete the pending transactions" with Modelo and Constellation.

The Modelo merger "has always been about Mexico and making Corona more global in all markets other than the U.S.," ABI spokeswoman Laura Vallis said in an email. The combination, she added, will create "a significant growth opportunity worldwide from combining two leading brand portfolios and distribution networks."

As part of the new agreement, Constellation must expand production of current Modelo products for the U.S. market in order to help preserve competition. Constellation CEO Rob Sands called the deal "a significant milestone for Constellation as the most transformational event in the history of our 68-year-old company."

"Overall, this transaction will nearly double the sales of our company, significantly enhance our earnings and free cash flow, diversify our profit stream and provide new avenues for growth," Sands said in a statement.

Modelo did not immediately respond to a request for comment.

Constellation (STZ) shares closed up 2.5% Friday following the announcement, while Anheuser-Busch InBev rose 1.7%.

First Published: April 19, 2013: 6:02 PM ET

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Netflix hopes for 'House of Cards' boost

Netflix is hoping its investment in original programming, including Kevin Spacey's "House of Cards," pays off in the form of new subscribers.

NEW YORK (CNNMoney)

The streaming video company will report first-quarter earnings on Monday, and the first question on many investors' minds will be about how the splashy Kevin Spacey political thriller "House of Cards" performed.

Netflix's biggest original series to date reportedly cost an eye-popping $100 million to produce and shoot two seasons. The company hopes that investment pays off in the form of new subscribers.

Netflix (NFLX) first announced the original programming scheme in late 2011, and since then, executives and spokespeople have repeated the party line: "We want to become HBO faster than HBO can become Netflix."

To do that, Netflix is rolling out a long list of original series this year in addition to "House of Cards." The slate also includes a second season of "Lilyhammer," an upcoming new season of the canceled show "Arrested Development," a new series from horror-flick master Eli Roth, one from comedian Ricky Gervais and another from "Weeds" creator Jenji Kohan.

The price tags might be high, but Netflix spokesman Joris Evers insisted to CNNMoney in February that the company spent about the same amount on "Cards" as it would have on an exclusive streaming deal with an outside studio.

Those expensive licensing deals are precisely why Netflix is branching out. Studios have demanded more for their valuable content in the past two years, as they can now shop their shows around to other services: Hulu, Redbox (CSTR), Amazon (AMZN, Fortune 500) and more. HBO (owned by CNNMoney parent company Time Warner (TWX, Fortune 500)) and CBS (CBS, Fortune 500)' Showtime are also expanding their streaming offerings.

Related story: New Netflix Facebook app lets users share viewing history

The content licensing bills weighed significantly on Netflix's profit last year, as the company earned just $17 million for all of 2012. Plus, Netflix is on the hook for at least $5.6 billion over the next few years to pay for its licensing deals.

That's a hefty bill, but some analysts have also expressed concern about the costs of the original series. Others have dinged Netflix's choice to release all episodes at once, pointing out that someone could sign up for a month to watch "Arrested Development" and promptly cancel.

But CEO Reed Hastings is convinced original programming is the way to set Netflix on the right path for the long term. In February, Netflix said it's considering issuing debt in order to raise capital and fund more series.

Investors appear optimistic. After a massive sell-off that lasted from late 2011 through all of 2012 -- which some industry watchers deemed an overreaction to Netflix's troubles -- the stock is up an incredible 80% so far in 2013.

Netflix isn't the only company with its eye on original content, however. Amazon posted 14 new TV pilots online on Friday, letting users watch for free and asking them to provide feedback on which should become full series.

First Published: April 21, 2013: 10:32 AM ET

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Stocks: Apple, Amazon, Netflix earnings on tap

Click the chart for more stock market data.

NEW YORK (CNNMoney)

One of the most anticipated reports will come from Apple (AAPL, Fortune 500) on Tuesday. The iPhone maker's stock hit a 52-week low last week as shareholders worried about the company's performance.

Last week's sell-off was mostly sparked by a weak sales outlook from chip company Cirrus Logic (CRUS), a key Apple supplier. Cirrus makes audio chips used in the latest iterations of the iPhone and iPad mini. Investors worried that this could signal a weak outlook for sales of those Apple products.

Wall Street expects the company to report a profit of $10.13 a share, a 15% drop from three months ago.

Related: Apple needs the iTV soon

Several other tech companies are also slated to report, including Amazon (AMZN, Fortune 500), Zynga (ZNGA), AT&T (T, Fortune 500), Sprint Nextel (S, Fortune 500)and Motorola (MSI, Fortune 500).

Netflix (NFLX) will also come out with earnings on Monday. Investors will be looking to see if the streaming video company's big bet on its original series "House of Cards" paid off.

Airlines will be on tap, too. United Continental (UAL, Fortune 500), US Airways (LCC, Fortune 500), JetBlue (JBLU), SouthWest (LUV, Fortune 500), and Delta (DAL, Fortune 500) will come out with earnings throughout the week, as will airplane manufacturer Boeing (BA, Fortune 500).

Auto companies Ford (F, Fortune 500) and Mazda (MZDAF) will also be in play. On the oil and energy front, Hess (HES, Fortune 500), Exxon Mobil (XOM, Fortune 500) and Chevron (CVX, Fortune 500) are expected out.

Starbucks (SBUX, Fortune 500), Procter & Gamble (PG, Fortune 500) and YUM Brands (YUM, Fortune 500) will also report.

Overall, analysts expect earnings for S&P 500 companies to rise by 2% for the first quarter, according to S&P Capital IQ. But earnings season is far from over. So far, 104 companies in the S&P have reported, with 70 beating forecasts, 23 missing and 11 in line.

In economic news, the advance estimate for first quarter gross domestic product will come out on Friday.

U.S. economic growth was weak at the end of last year, as GDP rose at a mere 0.4% annual rate in the fourth quarter. Still, it is much better than the original estimate of a 0.1% decline.

Several reports on the U.S. housing market are due out, including new and existing home sales and the FHFA housing price index.

Last week, the U.S. stock market suffered the worst week of 2013, with the Dow Jones Industrial Average, S&P 500 and Nasdaq all falling more than 2%.

First Published: April 21, 2013: 12:17 PM ET

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Another Honda recall: 225,000 SUV's and minivans affected

The 2012 CRV is among the vehicles affected by the Honda recall.

NEW YORK (CNNMoney)

In the U.S., the recall affects roughly 128,000 Honda CR-V's and 59,000 Odysseys from model years 2012 and 2013, as well as 17,500 Acura RDX's from 2013, Honda said in a statement. Some 14,000 CR-V's, 4,500 Odysseys and 2,300 RDX's in Canada are also being recalled.

Honda said that in sub-freezing temperatures, these vehicles may be shifted out of park even with the brake pedal isn't depressed. There haven't been any complaints, crashes or injuries reported in connection with this issue, the Japanese automaker said.

Honda (HMC) will notify vehicle owners of the problem and direct them to dealerships where the issue will be resolved free of charge. Owners can check if their vehicle needs to be repaired at www.recalls.honda.com and www.recalls.acura.com.

This week's recall follows several similar headaches in the past few months.

In January, the company announced the recall of 748,000 Odyssey minivans and Pilot SUVs because of problems with their airbags. In March, the automaker ordered the recall of 180,000 vehicles in the United States, and almost 250,000 worldwide, because of a defect that could potentially cause the brakes to be applied inadvertently.

Just last week, Honda announced the recall of 1.1 million vehicles in order to replace their passenger airbag inflators.

In all cases, the company said it was not aware of any injuries resulting from the problems.

First Published: April 19, 2013: 12:53 PM ET

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Boeing Dreamliner cleared to fix battery, start flying again

The Federal Aviation Administration cleared Boeing to make fixes to the battery system of the 787 Dreamliner. That paves the way for the aircraft to start flying again.

WASHINGTON (CNNMoney)

Nearly 50 Dreamliners have been grounded for the last four months, after two fires on Japanese jets prompted the FAA to order the planes grounded on Jan. 16.

Since then, Boeing (BA, Fortune 500) has redesigned the battery system. Next week, all airlines that have the 787 aircraft will start to install the new systems with the help of special teams deployed by Boeing, said spokesman Marc Birtel. He couldn't say when the 787 Dreamliners would begin flying again.

Boeing basically revamped the internal battery components to minimize the chances of a short circuit. It also improved the insulation of the battery cells, and created a new "containment and venting" system that is supposed to prevent overheating from affecting the plane.

"Safety of the traveling public is our number one priority. These changes to the 787 battery will ensure the safety of the aircraft and its passengers," said Transportation Secretary Ray LaHood.

The move to approve the planes for flight has been expected. FAA Administrator Michael P. Huerta predicted at a Senate hearing on Tuesday that it would happen soon.

Boeing has already completed 20 tests with the new battery technology, Huerta said during that hearing.

United Airlines (UAL, Fortune 500), which has six of the jets, is the only U.S. airline to take delivery of the Dreamliners so far. Boeing's customers are eager to get them into service, since they use lightweight composite materials that greatly improve fuel economy.

The Dreamliner has sold well in Asia and the Middle East, where airlines depend on long-range flights for much of their business, and can benefit most from the improvements in fuel economy.

The problems with the new battery technology have already prompted Boeing's European rival Airbus to revert to standard nickel-cadmium batteries in its A350 plane. The A350 had been designed to compete with the Dreamliner, and is due to make its first test flight in the middle of this year.

The approval for the battery fix comes just a few days before the National Transportation Safety Board, which investigates traffic and aircraft incidents, will convene for a two-day investigation into the fires.

Boeing's shares were up 2% Friday afternoon.

-- CNN's Mike Ahlers contributed to this report.

First Published: April 19, 2013: 4:02 PM ET

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AB InBev and Modelo merger set to move forward

Anheuser-Busch InBev and Grupo Modelo are currently the number-one and -three brewers in the U.S. market, respectively.

NEW YORK (CNNMoney)

The Justice Department announced Friday that it had reached a settlement with Anheuser-Busch InBev and Grupo Modelo to resolve the anti-trust suit it filed earlier this year in response to their proposed merger.

Under the agreement, Anheuser-Busch InBev (BUD) can move ahead with plans to acquire the 50% of Grupo Modelo (GPMCF) it does not already own for $20.1 billion, but it must sell Modelo's U.S. business in order to preserve competition in the American beer market. It must also sell one of Modelo's brewing facilities in Mexico.

The proposed buyer is Constellation Brands -- a wine and liquor producer whose brands include Robert Mondavi and SVEDKA Vodka -- which will acquire the assets for roughly $4.75 billion. Constellation will then have the exclusive right to sell Modelo products in the U.S.

The settlement is subject to a 60-day comment period before it goes before a judge for approval.

The Justice Department's Bill Baer called the agreement "a win for the $80 billion U.S. beer market and consumers."

"Before the merger, there were two competitors -- Modelo and ABI -- and ABI owned a substantial stake in Modelo. The companies' proposed merger would have reduced those two competitors to one -- ABI," Baer said in a statement. "The proposed settlement announced today will create an independent, fully integrated and economically viable competitor to ABI."

ABI was created in 2008 when Belguim's InBev took over Anheuser-Busch in a $52 billion transaction. It currently leads all brewers with a 39% share of the U.S. beer market, producing more than 200 brands including Budweiser, Busch, Michelob and Stella Artois.

Modelo, based in Mexico, is number three in the U.S. market with a 7% share. It produces Corona Extra, the top-selling import in the U.S., as well brands like Modelo Especial and Pacifico.

Related: Small craft breweries hit it big

The two companies originally announced ABI's planned takeover last year, but the Justice Department sued to block the transaction. The companies announced a revised deal in February that was largely similar to the agreement announced Friday.

ABI said that once a judge signs off on the agreement, it will "move swiftly to complete the pending transactions" with Modelo and Constellation.

The Modelo merger "has always been about Mexico and making Corona more global in all markets other than the U.S.," ABI spokeswoman Laura Vallis said in an email. The combination, she added, will create "a significant growth opportunity worldwide from combining two leading brand portfolios and distribution networks."

As part of the new agreement, Constellation must expand production of current Modelo products for the U.S. market in order to help preserve competition. Constellation CEO Rob Sands called the deal "a significant milestone for Constellation as the most transformational event in the history of our 68-year-old company."

"Overall, this transaction will nearly double the sales of our company, significantly enhance our earnings and free cash flow, diversify our profit stream and provide new avenues for growth," Sands said in a statement.

Modelo did not immediately respond to a request for comment.

Constellation (STZ) shares closed up 2.5% Friday following the announcement, while Anheuser-Busch InBev rose 1.7%.

First Published: April 19, 2013: 6:02 PM ET

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Another Honda recall: 225,000 SUV's and minivans affected

The 2012 CRV is among the vehicles affected by the Honda recall.

NEW YORK (CNNMoney)

In the U.S., the recall affects roughly 128,000 Honda CR-V's and 59,000 Odysseys from model years 2012 and 2013, as well as 17,500 Acura RDX's from 2013, Honda said in a statement. Some 14,000 CR-V's, 4,500 Odysseys and 2,300 RDX's in Canada are also being recalled.

Honda said that in sub-freezing temperatures, these vehicles may be shifted out of park even with the brake pedal isn't depressed. There haven't been any complaints, crashes or injuries reported in connection with this issue, the Japanese automaker said.

Honda (HMC) will notify vehicle owners of the problem and direct them to dealerships where the issue will be resolved free of charge. Owners can check if their vehicle needs to be repaired at www.recalls.honda.com and www.recalls.acura.com.

This week's recall follows several similar headaches in the past few months.

In January, the company announced the recall of 748,000 Odyssey minivans and Pilot SUVs because of problems with their airbags. In March, the automaker ordered the recall of 180,000 vehicles in the United States, and almost 250,000 worldwide, because of a defect that could potentially cause the brakes to be applied inadvertently.

Just last week, Honda announced the recall of 1.1 million vehicles in order to replace their passenger airbag inflators.

In all cases, the company said it was not aware of any injuries resulting from the problems.

First Published: April 19, 2013: 12:53 PM ET

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