GoldieBlox ad makes Super Bowl history

Debbie Sterling's toy startup GoldieBlox becomes the first small business ever to air an ad during the Super Bowl.

NEW YORK (CNNMoney)

The startup will make Super Bowl history this Sunday by becoming the first small business to have a commercial air on TV during the most-watched event of the year.

GoldieBlox won a contest run by Intuit (INTU), where the grand prize was the 30-second ad that will debut during the third quarter of the game. Intuit will pick up the $4 million cost.

"We still can't believe that we won. We were all crying when we found out," said Debbie Sterling, founder of GoldieBlox, a line of storybooks and toys aimed at getting young girls excited about science and engineering.

GoldieBlox's ad will appear alongside some of the biggest brands in the world such as Budweiser, Cheerios, and Coca-Cola (KO, Fortune 500). Super Bowl commercials typically are dominated by big brands that can afford the hefty price tag.

Related Story: Sneak peek at the Super bowl spots

But GoldieBlox got its start just 18 months ago and has barely 15 employees. Its toys sell in Toys R Us and Target (TGT, Fortune 500).

The ad, which was produced by a top ad agency RPA, puts GoldieBlox shoulder to shoulder with the big leagues, and Sterling hopes the exposure to over 100 million viewers will enable the brand to take a "giant leap forward for our mission."

A Stanford University engineering graduate, Sterling launched GoldieBlox in 2012 after became obsessed with the idea of "disrupting the pink aisle" with a toy that could potentially inspire the next generation of female engineers.

Related Story: Super Bowl creating traffic jam for private jets

She turned to crowdfunding site Kickstarter with the goal of raising $150,000 to fire up her idea.

"We did that in just 4 days," said Sterling. In total, her Kickstarter campaign raised over $285,000. "So yes, we knew we were on to something," she said.

Intuit's contest kicked off last July and asked U.S.-based business with 50 or fewer employees to submit a compelling story about their company.

An online vote determined the top 20 submissions, and then Intuit's 8,000 employees voted to pick four finalists -- GoldieBlox, dog treats maker Barley Labs, organic egg farm Locally Laid Egg Company and natural compost producer POOP. A separate online vote in December determined the grand-prize winner.

Intuit said millions of votes were cast for the entries but declined to say how many went to GoldieBlox.

"GoldieBlox is an outstanding example of the 29 million small businesses across the United States," said Intuit's CEO Brad Smith. "It's clear voters around the world felt the same way."

GoldieBlox's Intuit win, however, isn't its first brush with fame.

Last year, the company created a parody video that featured the Beastie Boys song "Girls." The video, which featured young girls rejecting the "princess" stereotype as they built a complex maze, became a viral hit. But it also brought on a copyright infringement lawsuit by the Beastie Boys for using their song.

GoldieBlox initially countered with its own lawsuit but ultimately removed the song from the video.

Intuit also confirmed that it will hold a similar contest again next year.

First Published: January 30, 2014: 6:17 PM ET

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Hackers attack Yahoo Mail accounts

NEW YORK (CNNMoney)

Yahoo (YHOO, Fortune 500) said it recently identified a coordinated effort by hackers who tried to log into many email accounts with stolen usernames and passwords. The note by Yahoo products executive Jay Rossiter did not immediately say how many accounts were affected.

The company declined to comment further but said it has teamed up with federal law enforcement to investigate the attack.

The credentials were likely taken from a third-party database, Yahoo said.

Related story: Stolen credentials blamed in Target breach

Yahoo said it reset passwords for users who were impacted. The company sent them text messages Wednesday night warning of "unusual activity on the network."

First Published: January 30, 2014: 6:04 PM ET

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Chipotle shares sizzle following red-hot quarter

Chipotle says it plans to open between 180 and 195 new restaurants in 2014.

NEW YORK (CNNMoney)

The burrito chain's stock surged nearly 13% in after-hours trading Thursday following fourth-quarter results showing the company's strong growth continuing.

Chipotle (CMG) posted $844 million in sales, up 21% versus a year prior, and $80 million in earnings. The company is expanding aggressively, opening 56 new restaurants in the fourth quarter, and now has nearly 1,600 locations.

Related: Which country has the cheapest Big Mac?

Chipotle was spun off from McDonald's (MCD, Fortune 500) in 2006, and shares have been on a tear ever since, rising over 60% in the past year alone.

McDonald's meanwhile may be losing its luster. Its stock has been in the doldrums as it's struggled to match new menu offerings from competitors like Burger King (BKW) and Wendy's (WEN).

Related: Burger King tests Chicken and Waffle sandwich

There are still some Chipotle skeptics out there -- hedge fund moguls David Einhorn and Jeffrey Gundlach have made cases against the stock in the past year and a half.

First Published: January 30, 2014: 6:50 PM ET

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What Obama said about women

How much gender affects pay in these five most common jobs occupied by women - or any other job for that matter - is very hard to tease out since so many factors play a role.

NEW YORK (CNNMoney)

And so it was when President Obama on Tuesday touched on issues of concern to working women, with an occasional nod to men: wage discrimination, paid leave to care for family members and low-wage jobs.

Here's what he said and a brief look behind the assertions he made:

Pay: "[Women] still make 77 cents for every dollar a man earns. That is wrong, and in 2014, it's an embarrassment. A woman deserves equal pay for equal work."

Hard to argue with that, but the 77-cents statistic does not convey the point.

All it tells us is how the median annual earnings of full-time, year-round female workers compare with that of full-time, year-round male workers.

It doesn't speak to any of the factors that determine one's pay, such as the type of job chosen, education, experience, tenure, or hours worked. Nor does it reflect the host of less tangible factors that play a role, such as job performance.

Controlling for those factors would shrink the pay gap considerably in many jobs and in some cases all but erase it.

Does that mean there's no gender discrimination in pay? No. But teasing out just how much exists is very hard. Assessments will differ depending on what methodologies are used and what specifically is being compared. The Institute for Women's Policy Research, for instance, estimates that somewhere between a quarter to a third of the 77-cents pay gap may be attributable to discrimination.

Related: Best countries for working moms (and dads)

Child care: "She deserves to have a baby without sacrificing her job. A mother deserves a day off to care for a sick child or sick parent without running into hardship ... ."

Here the president seems to have touched on a few issues: difficulties pregnant working women may face when trying to get or keep a job, along with a lack of paid maternity leave and paid sick leave.

Employers are not allowed to discriminate against pregnant women when it comes to deciding who to hire, fire or promote.

That doesn't mean they never do, though.

Quantifying how widespread the problem may be is difficult, said IWPR study director Ariane Hegewisch. But, she added, pregnancy discrimination is among the fastest growing category of complaints received by the U.S. Equal Employment Opportunity Commission.

Paid maternity leave, meanwhile, is not mandatory in the United States, which is one of only four countries worldwide that don't require it, IWPR notes.

About two-thirds of employees don't have access to paid maternity leave, 80% don't have paid paternity leave and 88% don't have any paid leave to care for any family member, young or old.

As for paid sick days, about 39% of private-sector workers don't have access, nor do 11% of government workers, according to the Bureau of Labor Statistics.

The IWPR uses a slightly different methodology than the BLS, but estimates that among women alone, about 43% don't have access to paid sick leave.

Jobs: "[W]omen hold a majority of lower-wage jobs ..."

Nursing aides, psychiatric aides and home health aides have relatively low pay, and 88% of them are women, Hegewisch said.

Among full-time workers, women make up the majority of those in the bottom 20% of the income distribution.

What's more, she said, among workers who earn the minimum wage or less per hour, women make up the majority.

First Published: January 29, 2014: 5:05 PM ET

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Google to sell Motorola Mobility unit to Lenovo

China-based Lenovo is the world's largest PC maker.

NEW YORK (CNNMoney)

The search giant announced Wednesday that it will sell its Motorola Mobility smartphone unit to Chinese PC maker Lenovo for $2.9 billion, giving up on a business it purchased for $12.5 billion in May 2012.

The deal was Google's largest-ever acquisition, giving it the ability to produce hardware to go along with its Android mobile operating system. But Motorola has been a perpetual money-loser, raising the ire of shareholders and Wall Street analysts.

Google (GOOG, Fortune 500) said it will maintain ownership of the "vast majority" of the Motorola Mobility patent portfolio after the sale.

When Google bought Motorola, the company said it planned to use those patents to ward off lawsuits from Apple (AAPL, Fortune 500) and Microsoft (MSFT, Fortune 500) that threaten Android. Lenovo will be able to license those patents from Google.

In a blog post announcing the deal, Google CEO Larry Page acknowledged that it doesn't make sense for his company to continue manufacturing phones itself.

"[T]he smartphone market is super competitive, and to thrive it helps to be all-in when it comes to making mobile devices," Page wrote. "This move will enable Google to devote our energy to driving innovation across the Android ecosystem."

Google shares rose 2% in after-hours trading.

Related: Can Lenovo do it?

Lenovo chief Yang Yuanqing said the deal "will immediately make Lenovo a strong global competitor in smartphones."

In addition to being the world's largest PC maker, the company is already the No. 4 global smartphone maker after Samsung, Apple (AAPL, Fortune 500) and Huawei. In a conference call with reporters Wednesday afternoon, Lenovo executives said the company will soon be able to sell more than 100 million smartphones annually, challenging Apple and Samsung.

While its phones are already well-known in China and other international markets, Lenovo will continue to use the Motorola brand in the U.S. and Latin America.

"We are confident that we can bring together the best of both companies to deliver products customers will love and a strong, growing business," Yang said.

Lenovo announced another big transaction with an American company last week, agreeing to pay $2.3 billion for IBM's (IBM, Fortune 500) low-end x86 server business.

Page, for his part, said Google's sale "does not signal a larger shift for our other hardware efforts."

Earlier this month, Google announced that it was buying connnected home-appliance maker Nest for $3.2 billion.

"The dynamics and maturity of the wearable and home markets, for example, are very different from that of the mobile industry," Page said. "We're excited by the opportunities to build amazing new products for users within these emerging ecosystems."

First Published: January 29, 2014: 5:31 PM ET

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Stolen credentials blamed in Target breach

NEW YORK (CNNMoney)

Since discovering the breach, "we have taken extra precautions such as limiting or updating access to some of our platforms while the investigation continues," Target spokeswoman Molly Snyder said.

The news adds details about the cause of the Target (TGT, Fortune 500) hack, which remains under investigation. It could be the largest breach in U.S. retail history.

The holiday shopping season breach affected up to 110 million customers, including 40 million credit and debit cards and up to 70 million customers' personal information.

The discount retailer discovered the breach in mid-December, notified customers several days later, and launched an investigation with the help of a private security firm and law enforcement.

Related: Target hack: Tips for all customers

Attorney General Eric Holder spoke about the federal investigation at a Senate hearing on Wednesday.

"The Department of Justice takes very seriously reports of any data breach, particularly those involving personally identifiable or financial information, and looks into allegations that are brought to its attention," he said. "And we are committed to working to find not only the perpetrators of these sorts of data breaches, but also any individuals and groups who exploit that data via credit card fraud."

Since Target's disclosure, high-end retailer Neiman Marcus announced over 1 million customer cards were compromised in a breach last summer. Over the weekend, crafts retailer Michaels said its systems may have been breached.

It isn't immediately clear if these possible attacks were related. Security experts have warned it is likely other companies were targeted by the hackers who hit Target.

First Published: January 29, 2014: 7:53 PM ET

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5 airline fees we hate the most

Baggage fees top the list of most hated airlines fees.

NEW YORK (CNNMoney)

U.S.-based airlines were raking in baggage and reservation change fees at an annualized rate of roughly $6 billion last year, according to the Department of Transportation.

And the fees keep getting worse. United Airlines (USBOX) charges an oversized baggage fee of $200 now and increased its fee for a third checked bag to $125 from $100 in December.

A United spokesman said the hike better enables the airline to recover costs associated with transporting checked bags, especially overweight ones.

Even the cost of taking your Jack Russell Terrier is getting jacked up. Southwest Airlines (LUV, Fortune 500) just raised its pet transport fee to $95 from $75.

"Adjusting the price will allow us to remain competitive in pricing, yet still lower than our competitors," said a spokeswoman for Southwest.

Related: Most complained about credit cards

So which of these fees do we hate most? A recent poll of 6,100 fliers by Airfarewatchdog found these fees to be the most egregious.

1. Baggage fees: Spirit Airlines (SAVE) rang in the new year by hiking many of its baggage fees by up to $6 per bag. The standard fees it charges depend on when you pay. The first checked bag is $21 to $30 if paid at booking, $31 to $40 if paid while checking in online, $45 at the airport, and a whopping $100 at the gate. Overall, the carrier has 24 different baggage fees.

Many of the other major carriers, including American Airlines (AAL), Virgin America and Alaska Airlines (ALK), charge $25 for the first checked bag.

Related: Getaways that give back

There are a few holdouts that don't charge, however. Southwest allows you to check two bags for free and JetBlue (JBLU, Fortune 500) allows you one. Frequent flier participants can also escape the fee.

Another way to avoid them, is to get credit cards affiliated with the airlines that include free checked bags, advises George Hobica, founder of Airfarewatchdog.

2. Change/cancellation fees: Have a last-minute emergency and need to change your flight? It will cost you anywhere from $30 to $200.

"[Passengers] can feel gouged when they get charged. It's not pleasant," said Douglas Kidd, executive director of the National Association of Airline Passengers, an advocate for passengers' rights.

Related: 5 dream trips of a lifetime

Even more infuriating: "With flights so full, the chances are that the airline will collect the $200 fee and turn around and almost immediately sell the seat, perhaps for an even higher fare," said Hobica.

He believes the airlines are charging such high fees because they are trying to get passengers to buy more expensive refundable fares.

3. Advance seat selection: The days when an airline let you sit with your family for free are becoming increasingly rare. Allegiant Air (ALGT), the low-cost carrier, now charges up to $80 for this service, AirTran charges $6 to $20, and Spirit $1 to $50.

An Allegiant spokeswoman said the airline seeks to offer the lowest fares and one way they do that is by offering a menu of services, allowing passengers to customize their travel to their needs and budget.

"For passengers who don't have strong feelings about where they sit, they can travel for a little less," she said.

4. Phone reservation fees: If you have to book your reservation on the phone, most U.S. carriers (Southwest is an exception) charge $10 to $25.

Travelers can easily avoid these fees by booking online for free, explained Hobica.

5. Fees for last-minute frequent flier award tickets: A few airlines charge their loyal customers a fee of $75 to book flights with their frequent flier miles within 21 days of less of their departure date.

Hobica says the airlines will waive the fee for higher status frequent fliers. So those who have been dinged in the past may be motivated to build up more miles in order to avoid the fee in the future.

Kidd sees it much differently. "It's a good way to lose passenger loyalty," he said.

First Published: January 28, 2014: 5:43 PM ET

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U.K. lawmakers tell Queen to cut expenses

Silly hat expenditures remain robust.

NEW YORK (CNNMoney)

U.K. lawmakers issued a report Tuesday criticizing the management of the British monarch's finances, calling for the Royal Household to cut expenses and improve its budget management.

"The Queen has not been served well by the Household and by the Treasury, which is responsible for effective scrutiny of the Household's financial planning and management," House of Commons MP Margaret Hodge said.

The rebuke comes as average Britons contend with harsh austerity measures aimed at shrinking the country's debt.

The British government announced a new round of spending cuts earlier this month, with the goal of slashing spending by about $100 billion over the next four years. Around half of the cuts will hit welfare programs, putting more strain on some of the country's most vulnerable residents.

Related: JPMorgan's Dimon gets pay hike despite legal woes

Tuesday's report noted that the Royal Household spent over $55 million in the 2012-13 budget period, exceeding its funding allocation by $3.8 million and forcing it to dip into reserves.

The lawmakers called on the palace to find cost efficiencies and do a better job of maintaining its historic properties.

"Back in March 2012, 39% of the Royal estate was assessed as below what the Household deemed to be an acceptable condition," Hodge said. "Now it is likely to be worse, with some properties in a dangerous or deteriorating condition."

First Published: January 28, 2014: 5:21 PM ET

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Turkey's central bank hikes rates to combat sell-off

Turkey's central bank heads into a crisis meeting on raising rates to defend the lira, despite government claims that the economy is solid.

NEW YORK (CNNMoney)

The announcement came following an emergency meeting convened in response to the crisis. The bank increased its key overnight lending right well beyond what analysts were expecting to 12% from 7.75%.

Other emerging market currencies, including Argentina's peso and India's rupee, have also been hit by expectations that the Federal Reserve and the Bank of England will pull back on their stimulus measures, which have driven inflows to developing economies in recent years.

Related: Emerging markets rattled as anxiety rises

Over the past month, the Turkish lira has sunk to record lows against the dollar, and weakened sharply against the euro. It stabilized Tuesday on expectations that the country's central bank would act, and extended gains following the announcement.

Turkish stocks have also struggled of late as a wide-ranging probe into public sector corruption continues to spook investors.

Police have so far detained scores of high-profile suspects, including the sons of three ministers, a mayor and the chief executive of a major state bank. The investigation has undermined the government of Prime Minister Recep Tayyip Erdogan ahead of national elections in August.

First Published: January 28, 2014: 5:55 PM ET

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Should I take my pension's lump sum offer?

Start researching your options at least a year before your desired retirement date to figure out what the best fit is for you.

NEW YORK (CNNMoney)

Choosing between monthly pension payments for life or one, large lump sum payment can affect your income and lifestyle for decades to come, so it's a decision that shouldn't be taken lightly.

"People need to think very carefully about whether a lump sum is their best option," said Nancy Hwa, a spokesperson for the Pension Rights Center.

Related: Couple with pension plans play too safe to win

Susan Fulton, founder of FBB Capital Partners in Bethesda, Md., recommends you start researching options at least a year before your retirement date. Here are some key factors to consider:

Your retirement savings: Beyond your pension, do you have any other retirement savings?

If not, consider this: Taking the lump sum means you will need to make sure the money lasts for decades. For most people, that means investing the money through an IRA. While your nest egg could grow larger, it also means you risk losing some or all of that cash if the market takes a dive or if you make a bad investment.

So, if you have little-to-no extra savings cushion, the security of receiving a monthly check may allow you to sleep better at night.

If you have enough savings to cover your essential retirement expenses and can afford to invest the lump sum, then your money will have the chance to grow. Since most private pension plans don't provide cost of living increases, investing the money will give you the chance to at least try to keep up with inflation.

Related: Pensions ask retirees to pay back tens of thousands

Your health: Did your parents live into their 90s? Are you nearing retirement and still feeling younger than ever? Lump sum payments are calculated based on average life expectancies. So if you choose the lump sum but live longer than those calculations figured, you could run out of funds.

If you're in poor health and worry that you won't live long enough to receive many pension checks, you will likely get more out of a lump sum.

Calculator: Will you have enough for retirement?

Monthly pension payments typically stop arriving when you die, unless you opt for a survivor option that will allow your spouse to continue receiving payments for his or her lifetime. Any leftover proceeds from a lump sum, however, can be left to your heirs.

Your pension plan's financial health: To make sure your pension plan isn't on the brink of running out of money, and your benefits aren't at risk, do some research.

Request a copy of your plan's annual report, called a form 5500. Look for the funding ratio, or the amount of money that the plan has set aside to pay its future obligations. Typically, a healthy pension fund will have a ratio of at least 80%.

Even if your plan becomes insolvent, the Pension Benefit Guaranty Corp., which insures private pension plans, will take over and pay your benefits. But there is an annual limit to what it will pay (in 2014, nearly $60,000 for single-employer plans).

If you're in a significantly underfunded plan and your promised pension is larger than that limit, a lump sum could be a safer option.

What you would do with the money: Opt for the lump sum? Don't go booking that around-the-world cruise yet. The only way to avoid a major tax bill is to roll over the lump sum payment directly into an Individual Retirement Account.

If you don't have investing experience, you may want to hire a financial adviser to help you invest those funds. Just remember, that means paying investment management fees, which can eat away at your savings.

Related: Where's the Yelp for financial advisers?

Before taking a lump sum, Fulton recommends meeting with a few financial advisers to learn their investment strategy and fee structure. Be skeptical of anyone promising soaring returns, especially since retirees should typically invest in more conservative assets.

"A great deal is at risk," Fulton said. "The most important thing is that you really, really need to take your time doing it."

First Published: January 27, 2014: 6:10 PM ET

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Investor apologizes for Nazi comparison, stands by message

Here's what a "literal knight" looks like.

NEW YORK (CNNMoney)

The venture capitalist apologized Monday for comparing criticism of the wealthy to a wave of Nazi attacks on Jews ahead of the Holocaust, but doubled down on his warning about anti-rich "radicalism."

Perkins came under fire this past weekend after penning a letter to the editor in the Wall Street Journal in which he compared Nazi persecution of the Jews to "the progressive war on the American one percent."

"This is a very dangerous drift in our American thinking. Kristallnacht was unthinkable in 1930; is its descendent 'progressive' radicalism unthinkable now?" Perkins wrote, referencing an infamous 1938 evening in which Nazis and their supporters killed dozens of Jews and imprisoned 30,000 in concentration camps.

The comments quickly provoked a storm of criticism online. In an interview with Bloomberg TV Monday, Perkins acknowledged that Kristallnacht was "a terrible word to have chosen."

"I regret the use of that word," he said. "I don't regret the message at all."

Related: Tech company buses draw criticism in San Francisco

Perkins noted that his former business partner, Eugene Kleiner, had escaped Nazi rule in Austria and had admonished him to "never imagine that the unimaginable cannot become real."

"My point was that when you start to use hatred against a minority, it can get out of control," he told Bloomberg.

"It's absurd to demonize the rich for being rich and for doing what the rich do, which is get richer by creating opportunity for others," he added. "I think the rich as a class are threatened through higher taxes, higher regulation and so forth."

The lengthy interview then took a turn for the bizarre, as Perkins boasted of owning an "underwater airplane" and a watch worth "a sixpack of Rolexes." He added that he was "a literal knight" in Norway based on his philanthropic efforts there.

Among Perkins' critics in recent days was his old firm, Kleiner Perkins Caufield & Byers, which said it was "shocked" by the letter. Perkins accused KPCB of "throw[ing] me under the bus," and said the organization had been in decline since he left.

"I'm at peace with myself, and the fact that everybody now hates me is part of the game," he said.

First Published: January 27, 2014: 7:50 PM ET

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Farm bill ends subsidies, cuts food stamps

A food pantry New York City.

WASHINGTON (CNNMoney)

The deal could trim as much as $90 a month from food stamps for 850,000 recipients.

The farm bill would last five years and needs to pass both chambers and then be signed by the president.

The bill could be passed before the spring planting season. That's significant because farmers need to know early how it might affect prices and what to expect for their corn, wheat or tobacco yields.

The bill changes the current agricultural subsidy system. It ends direct payments to farmers for planting crops and replaces it with a revamped, beefed-up crop insurance program.

"Today's bipartisan agreement puts us on the verge of enacting a five-year Farm Bill that saves taxpayers billions, eliminates unnecessary subsidies, creates a more effective farm safety-net and helps farmers and businesses create jobs," said Sen. Debbie Stabenow, a Michigan Democrat who chairs the Senate agriculture panel.

The changes to food stamps would trim $8 billion from the program over the next 10 years, according to congressional aides. That's less than the $39 billion that Republicans had wanted to cut from the program, but double what Democrats had suggested.

Lawmakers say the deal will prevent 17 states from doling out more generous food stamps to people who get federal help to heat or cool their homes, even if the help is as little as $1. They stress the move won't cut families from food stamps, it will just shrink the amount some families get.

850,000 may get $90 less in food stamps

Advocates for the poor are irate. The newly-proposed reductions come just months after the $11 cut from food stamp checks that went into effect on Nov. 1, when the recession-era boost in funding ended.

Since then, food pantries have reported larger crowds, as families exhaust their allotment before the month ends.

Currently, the Supplemental Nutrition Assistance Program, the official name for food stamps, feeds 47 million people.

Related: Dairy prices won't spike

Meanwhile, the bill ensures that the federal government will avoid re-implementing a 1940s era subsidy program that could have caused the price of milk to double to $7 a gallon from the current national average of $3.50.

First Published: January 27, 2014: 8:03 PM ET

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ATM outage strands U.K. bank customers

NEW YORK (CNNMoney)

A Lloyds Banking Group (LLDTF) spokeswoman said the three-hour outage had been resolved but did not know how many customers had been unable to use their cards.

Issues with in-store purchases were resolved by 6 p.m. local, and ATM outages were resolved by 7:30 p.m. At 7:45 p.m. local, the bank's customer service hotline was still warning callers "we're extremely busy at the moment" because the bank was "experiencing issues with some credit cards and debit card transactions."

One bank executive took to social media, directly answering customer complaints and questions. He said the outage was caused by a server failure.

"My apologies to TSB customers having problems with their cards. I'm working hard with my team now to try to fix the problems," wrote Paul Pester. He is CEO of TSB Bank, which split off from Lloyds in September but is one of several banks that he tweeted "use the same IT systems."

Related: ATM heist thieves pocket $3 million in just hours

The banking group has suffered other payment outages, including one when the two banks split and divvied up their retail locations and customer accounts.

First Published: January 26, 2014: 4:03 PM ET

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Will stocks break out of their rut?

Stocks haven't performed well this year, but can they reverse course this week?

NEW YORK (CNNMoney)

Investors will be closely watching a barrage of big events that will determine whether the rally can get back on track or send the market even lower.

Corporate earnings, economic data, the Federal Reserve and President Obama are all on tap to make news.

Investors will also be keeping close tabs on volatile emerging markets. Concerns about China, Argentina and Turkey contributed to the sell-off last week.

Earnings keep on coming: The latest results from some heavy hitters will roll in this week. Apple (AAPL, Fortune 500), Yahoo! (YHOO, Fortune 500), Facebook (FB, Fortune 500), Amazon (AMZN, Fortune 500) and Google (GOOG, Fortune 500) are all on deck from the world of tech.

Pfizer (PFE, Fortune 500), Visa (V, Fortune 500), Boeing (BA, Fortune 500) and AT&T (T, Fortune 500)are also set to report.

Related: How much should you hold in stocks?

And investors will get earnings from the new American Airlines (AAL) for the first time since it merged with U.S. Airways.

Fed time: The Fed will reveal its latest policy decision Wednesday. At its previous meeting, the Fed announced plans to begin scaling back its massive stimulus program by $10 billion per month to $75 billion in monthly bond purchases, citing signs of economic growth. At the time, the market cheered this so-called tapering.

Related: Here comes the end of QE

But even though the economy only added 74,000 jobs in December, many market observers expect the Fed will continue to cut back on its quantitative easing.

Brad McMillan of Commonwealth Financial Network said that economic data besides the jobs report has been positive. He believes the Fed will reduce its purchases by another $10 billion a month.

McMillan added that the Fed would only create more market uncertainty if it didn't stick to winding down its program as expected. Some might interpret the lack of further tapering as a sign the Fed thinks the economy has taken a turn for the worse.

"The Fed has to give the impression that they know what they're doing and they're in control," he said. "To back off after just one month would signal a lack of conviction in their previous decision."

The meeting is also the last one for Fed chairman Ben Bernanke. Current Fed vice chair Janet Yellen will take over the top job in February.

Bring on the data: A slew of economic reports will also help investors gauge the state of the economy.

The most important will be gross domestic product for the fourth quarter. That period included the government shutdown and holiday shopping season. GDP grew at an impressive 4.1% annual pace in the third quarter, so investors will be watching to see if that trend continued for the remainder of the year.

There are signs that bond investors may be nervous about the economy. The yield on the 10-year Treasury has fallen to 2.73% -- its lowest level since late November. Bonds have outperformed stocks so far this year. And that usually happens when investors are worried and seeking to put money in less risky assets.

Related: Jack Lew: U.S. could grow by 3% this year

Investors will also get new home sales figures on Monday and the Case-Schiller home price index on Tuesday.

And after a season of so-so holiday sales, the consumer will be in focus, with reports on consumer confidence and personal income out Tuesday and Friday, respectively.

State of the Union? More like state of the economy: President Obama will give his State of the Union address Tuesday night. While it's unlikely to move the markets, investors will be listening for any major policy announcements on Obamacare, energy and the many economic problems facing the middle class.

First Published: January 26, 2014: 9:29 AM ET

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Investor compares U.S. wealth debate to Nazi Germany

Tom Perkins, pictured in September 2013.

NEW YORK (CNNMoney)

"Writing from the epicenter of progressive thought, San Francisco, I would call attention to the parallels of fascist Nazi Germany to its war on its 'one percent,' namely its Jews, to the progressive war on the American one percent, namely the 'rich,'" he wrote, opening a letter to the editor of the Wall Street Journal.

"This is a very dangerous drift in our American thinking. Kristallnacht was unthinkable in 1930; is its descendent 'progressive' radicalism unthinkable now?" he concluded.

The venture capital firm he co-founded -- Kleiner Perkins Caufield & Byers -- lists him as a "partner emeritus" but distanced itself from his comments.

"Tom Perkins has not been involved in KPCB in years. We were shocked by his views expressed today in the WSJ and do not agree," an online posting from the firm read.

Perkins told CNN's Dan Simon on Sunday he stood by his comments. "As for criticism of the letter, everyone is entitled to his or her opinion," he said.

In an email to the news outlet Bloomberg, he dismissed the views of his former firm.

"[O]ur philosophies and strategies have drifted so far apart that now my name means little on the door," the outlet said he wrote.

"In the Nazi area it was racial demonization, now it is class demonization," Perkins wrote.

On Kristallnacht in 1938, almost 100 Jewish people were killed and 30,000 imprisoned in concentration camps amid destructive riots that targeted Jewish-owned businesses and synagogues.

In the letter, he claims evidence of "a rising tide of hatred of the successful one percent," including protests surrounding private buses that transport technology workers from San Francisco to the campuses of companies like Google (GOOG, Fortune 500). He also takes aim at the San Francisco Chronicle, which he claims spends "virtually every word" demonizing the rich and has launched "libelous and cruel attacks" on his ex-wife, Danielle Steel, an author and philanthropist.

Another prominent investor was criticized for referencing the Nazis. In 2010, Blackstone chief Stephen Schwarzman reportedly likened an Obama administration proposal to raise tax rates for hedge funds to a war, then added, "It's like when Hitler invaded Poland in 1939." He later apologized.

First Published: January 26, 2014: 1:08 PM ET

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Buckle up! 2014 will be a bumpy ride

BlackRock CEO Laurence Fink: "I hear way too much optimism going forward -- we're going to be in a world of much greater volatility."

Davos, Switzerland (CNNMoney)

Financial experts at the World Economic Forum in Davos were cautiously optimistic about the outlook for growth in 2014, but the beginning of the end of post-crisis emergency financial support will be bumpy.

The Dow just had its worst week since 2011. And emerging market currencies got hit hard as investors fled riskier assets.

Investors were troubled by signs of weakness in China's huge manufacturing sector and a looming default in the shadow banking system. Expectations that the Federal Reserve will continue to pull back monetary stimulus pushed things along.

"I hear way too much optimism going forward -- we're going to be in a world of much greater volatility," said BlackRock CEO Laurence Fink.

Related: Cry for me Argentina? Peso plunges

Investors had been encouraged by "good, consistent" central bank policy around the world in recent years, he said. But the next impetus for growth would depend on governments in China, Japan, the U.S. and Europe delivering on promised economic reforms.

"That troubles me, because there has been great consistency of governments dragging their feet," Fink said.

Monetary policy is already beginning to change in the U.S. and U.K., in response to stronger growth and falling unemployment.

The Federal Reserve has begun to "taper" its purchases of government bonds, and some analysts predict the Bank of England will raise interest rates as early as the fourth quarter.

Bank of England Governor Mark Carney said there was "no immediate need" for an increase in the cost of borrowing, and that when it comes, the process will be gradual.

But the return to more normal levels of market volatility would feel worse than it is, coming after an extended period of calm, he said.

Related: India headed for 8% growth

The International Monetary Fund upgraded its forecast for world growth on Tuesday. It warned that the outlook would depend on the impact of the withdrawal of central bank support.

"This is clearly a new risk on the horizon, and it needs to be watched," IMF Managing Director Christine Lagarde said.

The flow of money back to the U.S. and other developed economies would not affect emerging markets uniformly, she added. Investors would differentiate based on political stability, commitment to reform, and signs of financial weakness.

"The risk is there, but well managed emerging markets will be able to cope with it," said Montek Ahluwalia, deputy chairman of India's planning commission.

Fink said too much attention was paid to the actions of the Fed and other central banks, and not enough to the reforms needed to respond to the massive technological changes that are destroying jobs.

First Published: January 25, 2014: 11:22 AM ET

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Michaels stores: Possible data 'attack'

The country's largest crafts chain said Saturday it learned recently of 'possible fraudulent activity' on some customer payment cards, suggesting there may have been a breach.

NEW YORK (CNNMoney)

Michaels said Saturday that it learned recently of "possible fraudulent activity" on some of its customers' payment cards, suggesting there may have been a breach.

CEO Chuck Rubin said the company has not confirmed a breach, but wanted to alert customers.

"We are concerned there may have been a data security attack on Michaels that may have affected our customers' payment card information and we are taking aggressive action to determine the nature and scope of the issue," Rubin said in a statement.

The company gave no additional information on the possible breach, including how many customers may be involved, when those customers shopped at Michaels, and if the possible breach affected online or in-store shoppers.

In recent weeks Target (TGT, Fortune 500) and Neiman Marcus have each acknowledged breaches.

The attack on Target affected as many as 110 million customers, including 40 million credit and debit card shoppers at the height of the holiday shopping season.

Neiman Marcus said a three-month breach in the summer and fall affected 1.1 million customers.

Michaels says it operates more than 1,100 stores in the U.S. and Canada.

First Published: January 25, 2014: 2:42 PM ET

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Weather Channel-DirecTV blackout: No end in sight

TV channel owners and distributors usually haggle in private. But the dispute between the Weather Channel and DirecTV underscores how contentious the negotiations can become.

NEW YORK (CNNMoney)

On Friday, DirecTV Chief Executive Mike White published a letter online blasting television channels for acting like "it's their absolute birthright to be paid more and more each year for the same content they offer, regardless of how many customers actually watch their channels."

White didn't stop there. He asserted that the Weather Channel's total audience has been declining as consumers gravitate to the Web.

"Why should DirecTV customers pay more for a channel they are watching far less?" he wrote.

White's letter was unusual. Television channel owners and distributors usually haggle in private and come up with carriage agreements that both sides can live with.

The dispute between the Weather Channel and DirecTV underscores how contentious the negotiations can become.

Related: Cable TV competition from the Web

White asserted in his letter that DirecTV believes the channel is only worth "one-quarter" of the price the channel wants.

According to research firm SNL Kagan, the Weather Channel earns about 13 cents per television subscriber per month. During the dispute, the channel has said that it's asking for a penny more, while DirecTV is asking it to accept a 20% reduction, or roughly 10 cents per subscriber per month.

The more drastic reduction that White described in his letter is basically unheard of in the television business.

But White's stated logic may appeal to many of his customers: "In every other industry, when the demand for any product is reduced, prices go down, they don't go up. That is the heart of this issue."

In response, Weather Channel spokeswoman Shirley Powell said that DirecTV's decision to drop the channel "has nothing to do with keeping costs down for consumers." She noted that DirecTV recently said it would raise its prices by 4.4% on average.

Related: Verizon bets on future of TV

For his part, White conceded that DirecTV was raising its prices along with other TV providers like Comcast, Dish and Time Warner Cable. But he blamed the content providers.

"[W]e are forced to raise our prices annually due to programmers like the Weather Channel, demanding to be paid more and more each year," he wrote. He said DirecTV "will be forced" to pay 8% more for programming in 2014 and that it was passing on to its customers only a 3.7% increase.

White's letter sent a message to DirecTV customers: Don't switch to another provider, because channels like the Weather Channel are forcing them to raise rates, too.

DirecTV provides television service to about 20 million homes, totaling roughly one in six households in the United States. Before the dispute with the Weather Channel, DirecTV introduced an upstart channel, WeatherNation, as an alternative.

White admitted in Friday's letter that WeatherNation is not an "exact substitute" -- far from it -- but said it "offers our customers what they want at a fraction of the price."

One of White's main points is the same one that outside analysts have pushed: The television version of the Weather Channel is being cannibalized by the parent company's Web sites and apps. The channel's Weather.com is one of the preeminent sources for online weather information.

"Our customers tell us the Weather Channel is their fourth choice when looking to access weather information," White said. "They first turn to mobile devices and computers for instant weather information and then to local news sources that have a better grasp on local conditions."

Last week, on CNN's "Reliable Sources," I asked Weather Channel meteorologist Jim Cantore if the channel's apps were pulling people away from TV.

"Here's my analogy," he said. "If your knee is starting to ail a little bit, you may go online and see what the symptoms may be. But at the end of the day, you're going to the doctor to find out what's going on with that." The flagship television channel, he said, is the doctor.

But the back-and-forth between the Weather Channel and DirecTV suggests that DirecTV subscribers won't be seeing that doctor anytime soon.

First Published: January 25, 2014: 7:31 PM ET

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Nissan spanked over fake dune-climbing ad

NEW YORK (CNNMoney)

So Nissan and its advertising agency have entered into a proposed settlement with the Federal Trade Commission over charges of deceptive advertising. Neither Nissan (NSANF) or its advertising agency, TBWA Worldwide, will pay any fines. They simply agree not to make any more misleading ads.

The ad aired in October and November of 2011. In making it, the truck and the dune buggy were actually pulled up the hill using cables, according to the FTC. That means the ad, which is shot to look as if it were done by an amateur with a cell phone camera, does not accurately show the true capabilities of an unaltered Nissan Frontier.

Plenty of TV ads show vehicles doing absurd things -- like jumping on and off moving trains -- but those ads depict situations that are completely unbelievable and, so, don't actually mislead anyone. In the case of the Nissan Frontier ad, someone might actually think the truck could do this.

"Special effects in ads can be entertaining, but advertisers can't use them to misrepresent what a product can do," said Jessica Rich, Director of the FTC's Bureau of Consumer Protection. "This ad made the Nissan Frontier appear capable of doing something it can't do."

Gallery - 10 priciest collector cars from Scottsdale auctions

"Under the proposed settlements, Nissan and TBWA cannot misrepresent any material quality or feature of a pickup truck through the depiction of a test, experiment, or demonstration," according to the FTC's statement. Special effects can still be used, however, as long as they do not misrepresent the truck or its capabilities.

Nissan and TBWA both said they take their "commitment to fair and truthful advertising seriously" and that they are "committed to complying with the law."

The proposed settlement will be available for public comment for 30 days before the FTC decides to make it final.

First Published: January 24, 2014: 3:56 PM ET

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Sony gets rights to Sandberg's 'Lean In'

Sony Pictures has acquired the film rights to Sheryl Sandberg's book "Lean In."

NEW YORK (CNNMoney)

Sony Pictures confirmed that it has acquired the rights to make the Facebook (FB, Fortune 500) COO's book into a movie.

Published in March 2013, "Lean In: Women, Work and the Will to Lead" encourages women to advance their careers. If the film stays true to the book, it won't be so much a biography of Sandberg, who recently became one of the youngest female billionaires ever, as a manifesto advising women on how to achieve professional success.

Sandberg also launched an organization, Lean In, to further promote her message. She will donate her proceeds from the film to the foundation, according to Deadline, which reported the story earlier.

While there were few specifics available about the movie or the deal, Deadline said Sony Pictures (SNE), which made "The Social Network" about Facebook CEO Mark Zuckerberg -- tapped Nell Scovell to write the script. Scovell helped Sandberg write the book.

--CNN's David Daniel contributed to this report.

First Published: January 24, 2014: 5:54 PM ET

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Sam's Club laying off 2% of workers

Sam's Club will lay off 2% of its workforce.

NEW YORK (CNNMoney)

That's 2% of the workforce for the wholesale club chain, which has nearly 600 locations in the United States.

A little less than half of the employees affected are assistant managers, according to Sam's Club spokesman Bill Durling. Before the layoff, each club's fresh section -- which sells meat, poultry, seafood, dairy, produce and baked goods -- had six managers. Half of those jobs have been eliminated. Instead there will be three fresh section managers, who will be paid more, Durling said.

The company eliminated some hourly positions too.

Each employee affected by the cut will be paid for 60 days and is encouraged to look for other jobs at Sam's Clubs or its parent company, Wal-Mart, (WMT, Fortune 500)stores. If they cannot find a job within the company, they will receive some severance, Durling said.

Durling said that the company also plans to add at least fifteen more stores in the next year.

--CNN's Poppy Harlow contributed to this report.

First Published: January 24, 2014: 7:18 PM ET

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Jack Lew: U.S. could grow by 3% this year

Davos, Switzerland (CNNMoney)

"We have a good first quarter underway, I believe," Lew said at the World Economic Forum in Davos, Switzerland.

Lew was reluctant to make a specific prediction about the rate of expansion this year, but said there were reasons to believe growth in the world's biggest economy would "break through 3%."

He believes that, freed from last year's drag of tax rises and spending cuts, and with business confidence strong, the economy should accelerate sharply from last year.

"I really think there is every reason to be hopeful that we will do well this year," Lew said.

Related: My minimum wage isn't a living wage

In its latest forecast Tuesday, the International Monetary Fund upgraded its projection for U.S. economic growth in 2014 to 2.8% from 2.6%, citing stronger domestic demand and the boost from smaller spending cuts as a result of the recent budget deal.

The IMF estimates U.S. growth of 1.9% in 2013.

While the U.S. is recovering at a faster pace than other developed economies, Lew said there was still a way to go in creating jobs and making work pay.

Related: Economic mobility: No better, no worse

"We don't think it's OK to work full time and be below poverty," he said. "Until every American who wants a job has a job, we'll have more work to do."

Lew also cautioned companies against rushing to do business with Iran following an interim deal that limits the country's nuclear program in exchange for lighter sanctions.

President Hassan Rouhani said earlier Tuesday that Iran would continue with its peaceful nuclear program, and will push to re-engage with the world to build its economy.

"I've been very clear that business should be very clear headed about going to do business in Iran because the sanctions regime has not been lifted," Lew said.

He said it was way too early to predict the outcome of negotiations with Iran aimed at securing a comprehensive, long-term agreement on the future of its nuclear program.

First Published: January 23, 2014: 1:39 PM ET

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Oops! Pentagon didn't actually order 80,000 new BlackBerries

Smartphone maker BlackBerry didn't sell 80,000 new phones to the Pentagon, but the sale of most of its Canadian real estate holdings will help its finances.

NEW YORK (CNNMoney)

"The Department of Defense is not planning to purchase upwards of 80,000 BlackBerry devices," a Pentagon spokesman said in a statement.

The confusion began when the DoD said in a Jan. 16 press release that it launched a new mobile network that would support 80,000 BlackBerries in addition to 1,800 iPhones, iPads, and Android devices. Shares soared 5% the following day.

The problem is that those 80,000 BlackBerry smartphones are existing devices -- not new ones. So down shares came tumbling after The Verge first reported the Pentagon's clarification.

Despite Thursday's setback, BlackBerry shares have been on a tear in 2013 -- up 38% so far. Investors have enthusiastically embraced new CEO John Chen -- who took the top spot only recently and has been successful turning around other companies.

Real estate sale drives stock: Investors particularly supported Chen's latest move, announcing earlier this week that BlackBerry would sell most of its real estate in its home country in a bid to raise much needed cash. BlackBerry shares had been up 19% this week prior to Thursday.

The real estate in question totals over 3 million square feet -- or nearly the same amount of office space in the Pentagon. Blackberry said it will lease back much of the space and will stay in its hometown near Toronto.

"BlackBerry remains committed to being headquartered in Waterloo," John Chen, the company's CEO, said in a statement. "This initiative will further enhance BlackBerry's financial flexibility, and will provide additional resources to support our operations as our business continues to evolve."

The company wouldn't say how much it expects to make off the sale. Peter Misek, a managing director at Jefferies & Co. that covers Blackberry, thinks it will be at least $450 million.

Misek does not see the move as an act of desperation or an indication that the company may move elsewhere.

"He's raising fortress levels of cash to show people that this company is going to be around, at least in the near term," Misek said of CEO Chen's move. "It's a really smart idea."

Related: BlackBerry CEO may have golden touch

Struggling business: BlackBerry (BBRY) sure needs the cash. The company has $3.2 billion in cash but has been bleeding money and subscribers for the better part of a year as customers flock to other smart phones, such as Apple's (AAPL, Fortune 500) iPhone or Samsung's Galaxy.

Last quarter BlackBerry announced a huge $4.4 billion loss, including a $1 billion writedown on the failed Z10 smartphone. Sales fell 56% from the same time a year prior. Earlier this fall it said it was laying off 4,500 employees -- 40% of its work force -- and gave up on a bid to sell itself.

BlackBerry's losses going forward are expected to be much more manageable -- maybe $300 million a quarter for the next couple of quarters, said Misek. Ideally, the company would return to profitability sometime after that.

First Published: January 23, 2014: 4:03 PM ET

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Microsoft sales soar 14%

Microsoft shares rise after company reports strong second quarter sales that beat analyst estimates

NEW YORK (CNNMoney)

The software giant posted solid shipments of the Xbox One, selling 3.9 million of the new game consoles. Microsoft has been neck-and-neck with rival Sony (SNE), which launched the PlayStation 4 console a week before the Xbox One went on sale.

Microsoft also doubled sales of its Surface tablet, bringing in nearly $900 million in revenue from the device. That's a positive turnaround for a device that got off to such a slow start last year that the company was forced to write down nearly $1 billion in inventory.

But PC sales continued to haunt Microsoft: Consumer sales of Windows 7 and Windows 8 fell 20% last quarter, the company said. The company said overall Windows revenue fell just 3% in the quarter, as a 12% increase in businesses licensing the software offset the awful consumer sales.

Overall, Microsoft said in a statement that its fiscal second quarter sales topped $24.5 billion -- a 14% jump from the same time last year. Profit rose 3% to $6.6 billion and 78 cents per share.

Wall Street analysts were expecting revenue of $23.7 billion and earnings per share of 68 cents, according to a survey conducted by Thomson Reuters.

Microsoft (MSFT, Fortune 500) shares rose 4% in after hours trading.

"It's a good quarter to ride out on," said BGC Partners analyst Colin Gillis, referring to the impending departure of Microsoft CEO Steve Ballmer.

Related: Microsoft CEO should be...

It was a good quarter for Microsoft, but the real question, he said, is who is going to succeed Ballmer.

"What direction are they going to take the company," he said. "They need to get it done."

Microsoft is expected to announce a successor sometime in the next month or two.

Microsoft's stock, like the broader market, enjoyed a healthy 2013 -- rising 38%. But Microsoft hasn't carried that success into 2014.

Weighing on the stock is uncertainty surrounding who will succeed Ballmer, declining PC sales and the rise of PC alternatives such as smart phones and tablets -- a segment the company has not been able to dominate.

First Published: January 23, 2014: 4:21 PM ET

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Lew: Raise debt ceiling before late February

Treasury Secretary Jack Lew makes it official in a letter to Congressional leaders: They must move before end of February to raise nation's debt ceiling to ward off any risk of a U.S. default.

NEW YORK (CNNMoney)

Otherwise, he said, the Treasury Department will run out of tricks to ensure that the United States can continue to pay all its bills in full and on time.

The nation's borrowing limit is suspended until Feb. 7. After that, unless Congress has acted, Treasury will have to deploy special accounting maneuvers to avert the risk of a U.S. default.

Lew said in a letter to congressional leaders that he does "not foresee any reasonable scenario" in which those so-called extraordinary measures would last past late February. "This is in large part because the government experiences large net cash outflows in the month of February, due to tax refunds," he wrote.

For example, last February Treasury paid out a total of $230 billion, versus an average of $45 billion in other months, Lew noted.

That's the same message he delivered last week in a public interview at the Council on Foreign Relations.

In that interview he also stressed that any last-minute drama over the debt ceiling could cut the U.S. economy's potential for growth and undermine confidence.

"Why would anyone want to hurt the U.S. economy and hurt the recipients of payments they're entitled to?" Lew said.

"Everyone knows these obligations are not made when you raise the borrowing authority. The obligations are made when you vote on appropriations bills and when you vote on tax bills."

And, he added, it causes undue anxiety among investors and consumers when lawmakers push the issue to the last minute.

First Published: January 22, 2014: 4:09 PM ET

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Netflix stock soars 16% on huge subscriber growth

Netflix's best subscriber growth in three years helped send the stock soaring in after-hours trading.

NEW YORK (CNNMoney)

In international markets, including Canada and Latin America, the service gained another 1.7 million subscribers, allowing Netflix to surpass the 10 million mark overseas for the first time. Overall, Netflix ended 2013 with over 44 million members, the company said in its quarterly letter to shareholders Wednesday afternoon.

Neflix's (NFLX) subscriber totals came in ahead of many estimates, causing the stock to rise sharply -- about 16% -- in after-hours trading.

Netflix's revenues were $1.2 billion in the quarter, up from $1.1 billion in the prior quarter, reflecting gains during the holiday season. Its net income was $48 million, up from $32 million.

Room for growth: For months now, there has been an active debate in media and investment circles about how big Netflix may or may not become. On Wednesday the company projected a gain of another 2.25 million subscribers in the U.S. and 1.6 million internationally in the first quarter of the year, which in both cases would improve on its first-quarter performance last year.

Related: Court strikes down net neutrality rules

In their letter, Netflix CEO Reed Hastings and Chief Financial Officer David Wells called that a "great outcome," because even with 33 million members in the United States, the copmany still has "years of member growth ahead."

They attributed the fourth quarter's subscriber uptick to "service improvements, marketing effectiveness, and sales of Internet connected devices."

According to the company's quarterly filings, the last time it gained more than 2.3 million American subscribers in a quarter was during the first quarter of 2011. Back then, it added 3.3 million subscribers, but the comparison is inexact because its streaming and DVD-by-mail services were still linked.

International expansion: Outside the United States, Netflix continued to operate at a loss due to expansion efforts, but it lost less in the fourth quarter -- $57 million -- than at any other time in 2013. The company projected that it'll lose $42 million in the first quarter of this year.

Confirming the suspicions of some investors, Hastings and Wells said Netflix plans later to launch a "substantial" European expansion later this year.

"Our success this year in international net additions and shrinking contribution losses confirms our belief that there is a big international opportunity for Netflix," they said.

New pricing strategy: The executives also updated shareholders on the company's experiments with tiered pricing. Last spring, Netflix started to sell a $11.99 plan that allowed up to four family members to stream at the same time. More recently it started to test a $6.99 single-stream plan for new customers.

Related: Verizon bets on the future of television

Hastings said on a Wednesday afternoon conference call that Netflix is "probing around the edges" about the best pricing structure for the streaming service.

"We're trying to figure out some models of good-better-best price tiering that make sense and provide some flexibility for our customers, at least for our new customers," Hastings said.

He and Wells emphasized in their shareholders letter that they're not in any hurry to raise prices or make other changes. They added that if the company does change the pricing structure, existing members would get "generous grandfathering of their existing plans and prices."

That means the company appears to have learned from its Qwikster disaster, when it separated the DVD-by-mail and streaming services, in effect hiking prices dramatically for many customers. But the grandfathering strategy also means any future price hikes would result in "no material near-term revenue increase," the company said.

Net neutrality: Wednesday's shareholder letter also included Netflix's first comments about net neutrality since a federal court ruled that the government doesn't have the right to regulate how Internet service providers deliver websites like Netflix.

Hastings and Wells said that, in principle, an Internet service provider "can legally impede the video streams that members request from Netflix ... to get Netflix to pay fees to stop this degradation."

They indicated that they'd "vigorously protest" that if it happened, but predicted that it won't because broadband providers "don't want to galvanize government action" and do want to sell higher-priced, higher-bandwidth packages.

First Published: January 22, 2014: 4:43 PM ET

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eBay spikes after-hours on Icahn proposal

Activist investor Carl Icahn wants eBay to spinoff PayPal into a separate company.

NEW YORK (CNNMoney)

In its fourth quarter earnings release, eBay (EBAY, Fortune 500) said Icahn wants the tech giant to spin off PayPal into its own company.

EBay said it has previously explored separating PayPal, but decided against it.

"EBay is a big contributor to PayPal's growth and expansion," eBay CEO John Donahoe said on a conference call with investors Wednesday.

Icahn's proposal for a separation is a "distraction," he said.

EBay also posted fourth quarter earnings Wednesday that edged past analyst expectations, but it was the Icahn news that really moved the stock.

Besides the spinoff proposal, Icahn also acquired a 0.82% stake in the company earlier this month and nominated two of his employees for seats on eBay's board of directors, eBay said.

Related: Carl Icahn ups Apple stake to $3 billion

The irony: PayPal used to be its own company, until eBay bought it in 2002 for $1.5 billion.

So what changed?

It's all about the mobile-payment business.

In recent years, PayPal has steadily grown its share of eBay's overall sales.

And hot-startups such as Square, along with more established players as Google, are upping the ante, all battling for a bigger piece of the mobile-payment pie.

The situation is not lost on eBay.

The company bought online payment platform Braintree in September for $800 million, and has been integrating it with PayPal.

Related: Paying by phone? What to watch out for

Ebay, one of the stocks in CNNMoney's Tech 30 Index, has roared back since depths of the financial crisis. Recently though, it has lost some steam, gaining only about 2% in the last year as analysts worry it may have overheated.

The 77-year old Icahn is known to take sizable positions in companies and then aggressively advocate for change in the name of shareholder value.

He recently bought a stake in Apple (AAPL, Fortune 500) and has publicly campaigned for the cash-rich company to give more money back to investors in the form of a $150 billion stock buyback.

On Wednesday, he increased his investment in Apple by $500 million to $3 billion.

Apple has repeatedly rebuffed Icahn's proposal.

While Icahn is known to be tough in his attempts to shake up companies, he knows when to back off.

In 2012, he took a position in Netflix (NFLX) and said the company would be a nice takeover target for a larger firm looking to add streaming video to its portfolio.

But Netflix fought back hard and Icahn surrendered.

Netflix has had an amazing run since then, netting Icahn a tidy 460% profit.

First Published: January 22, 2014: 7:01 PM ET

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Opinion: Why growing income inequality matters

The concern about growing income inequality is not about begrudging the wealthy their success, says economist Jared Bernstein. The worry is that it is curbing everyone else's economic potential.

Washington, D.C. (CNNMoney)

First, by giving a major address on the issue, President Obama elevated it to front-page status. Next, high visibility politicians with very different views than the president on such matters, like Sen. Marco Rubio and Rep. Paul Ryan, also embraced the topic. Sen. Rubio called the inequality trends "startling" and agreed that they "deserve attention."

Now, I'll be the first to admit that Washington has been dysfunction junction for a long time now, but I consider this to be progress: Policymakers who agree on almost nothing agree that the level of inequality facing America today is a big problem. The first step to getting better is to recognize you're not well.

Of course, there will always be gaps between the resources of American households at different points in the income scale. There may be some out there who seek equality of outcomes, but I don't know them.

Yet, while we don't always achieve it, most Americans deeply value equality of opportunity.

I believe the reason that policymakers of all stripes are now talking about inequality is that they worry, as do many analysts like myself who've been working on this a long time, that the historically high levels of economic disparity threaten the opportunities of those on the wrong side of the economic divide.

Opposing view: Mobility is the problem, not income inequality

Ask yourself this question: Is America a meritocracy, meaning that regardless of the status of your birth, you're free to go as far as your inherent talents will take you?

It's a question I pose to audiences all the time, and most people recognize that we are not there yet. In fact, we're far from it. Research shows that not only is the correlation between parents' income and education a reliable predictor of how their kids do, but that correlation is higher here than in most other advanced economies.

In other words, while knowing a baby's zip code won't tell you for certain how successful they'll be as a grownup, it tells you more than it should.

But how does this relate to income inequality? First of all, there's a strong, positive relationship between countries with high inequality and that zip code problem. That suggests the two are linked, and that when high levels of income inequality persevere, barriers to getting ahead -- opportunity barriers -- will arise.

Some indicators suggest this process is already at work in the United States:

• There's a wide and growing gap in how much parents invest in their kids. High-income families spend increasingly more on tutoring, art, sports, books, and so on relative to low-income families.
• The academic achievement gap on standardized tests between students for low- versus high-income families has increased by 40% over the last 30 years, the period of rising inequality.
• College attainment has increased much more among kids from wealthy families. The wealthier your family, the more likely you are to go to a top-tier college.

To many Americans, that's why we worry about the heights to which inequality has grown. Not because we begrudge the wealthy their success, but because we want our own kids to be able to realize their economic potential.

And society's growing economic disparities are threatening that most basic aspiration.

First Published: January 21, 2014: 6:25 PM ET

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