Where's the fear in the stock market?

NEW YORK (CNNMoney)

The CBOE volatility index, or VIX (VIX), measures investors' expectations for market volatility in the near term.

Often referred to as Wall Street's "fear gauge," the VIX fell last week to its lowest level since before the financial crisis struck.

On Friday, it dipped below 11 for the first time since February 2007. Consider that at this point last year, the index was oscillating between 15 to 17. In June 2009, the VIX was hovering around 30.

What does this mean?

The apparent lack of fear in the market could be a red flag. Stocks have been in a bull market for more than five years, and some worry that investors have become complacent.

In another sign of the bullish tone, CNNMoney's Fear & Greed index, which is based on the VIX and several other measures, is back above the level that indicates "extreme greed" in the market.

Related: The bull market at 5: Not old yet

But others argue that the mood is not as cavalier as it seems.

Dan Greenhaus, chief market strategist at BTIG, said the idea that investors are complacent is "utter and total nonsense." He says there's "no shortage of worries" among the clients of his brokerage firm.

Greenhaus said investors are concerned about Federal Reserve policy, sluggish economic growth and lackluster corporate earnings, to name a few.

In fact, traders are worried enough to be looking for ways to hedge the expected rise in volatility.

Joe Bell, senior equity analyst at Schaeffer's Investment Research, said investors have been stocking up on call options for the VIX, which are derivative contracts designed to pay off when the index rises.

"Yes, volatility is low," he said. "But it's not like no one is talking about how volatility is low -- and they're buying hedges."

Last week, the Dow Jones Industrial Average and the S&P 500 both hit fresh record highs after solid economic news on the jobs front and further stimulus measures from the European Central Bank.

The Dow is a mere 75 points from breaking the 17,000 level. It crossed the 16,000 marker late last year.

Related: Finally! Job market returns to 2008 peak

JJ Kinahan, chief derivatives strategist at TD Ameritrade, said it's not surprising to see the VIX at its current level given the stock market's recent performance.

"We are at all-time highs, so you would expect the VIX to be at the lower end of it's range," he said.

The steady move higher this year has encouraged more investors to put money to work in the stock market, which helps keep a lid on volatility.

In any case, the lull in the VIX may not last much longer.

This week brings the expiration of a slew of derivatives contract, a quarterly phenomenon known as quadruple witching, said Kinahan

"That's when you could see some pressure on the VIX," he said.

First Published: June 8, 2014: 2:57 PM ET

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T-Mobile is at a crossroads, so is the U.S. wireless industry

T-Mobile CEO John Legere, speaking from inside the cover of a Trapper Keeper.

NEW YORK (CNNMoney)

Sprint (S) and T-Mobile (TMUS), are close to finalizing a $32 billion merger proposal, according to reports this week. If approved by regulators, the deal would unite the nation's third- and fourth-largest carriers into a combined entity with subscriber numbers comparable to industry leaders AT&T (T, Tech30) and Verizon (VZ, Tech30).

The rumored merger has generated skepticism from some industry observers who worry about the creation of another telecom behemoth. But both Sprint and T-Mobile have been losing money consistently, and they argue that they need to combine to take on their larger competitors.

T-Mobile has provided a strong argument for the virtues of competition in recent months. Since the beginning of last year, the company has been engaged in an aggressive marketing campaign dubbed its "uncarrier" strategy. The goal is to upend the mobile industry, and it's been doing that by eliminating contracts, dropping international roaming charges and offering to pay competitors' customers $650 to switch over.

The company is also investing heavily to upgrade its infrastructure and expand its high-speed 4G-LTE network.

Sprint, AT&T and Verizon have all cut prices in response to T-Mobile's campaign, and they have begun moving away from two-year contracts as well.

This is the scenario the Justice Department envisioned when it blocked AT&T from buying T-Mobile back in 2011, saying the deal "would eliminate the important price, quality, product variety, and innovation competition that an independent T‑Mobile brings to the marketplace."

Related: T-Mobile's record year comes at a cost

So far, T-Mobile's efforts have paid off in the form of increased market share. The company said last month that it added a record 2.4 million subscribers in the first three months of this year, its fourth consecutive quarter with over 1 million total net additions.

But these efforts have come at the cost of narrowing margins and widening losses. T-Mobile finished the first quarter with a loss of $151 million, up from $20 million in the last three months of 2013.

"They can't continue this forever because it will cost them too much money, so the question is what's next," said industry analyst Jeff Kagan.

Some analysts see the carrier's recent moves as an effort to boost its asking price in a potential acquisition. T-Mobile CEO John Legere said last month that consolidation in the industry was "a matter of when and not if," and that his company could benefit from the additional scale and assets a merger would offer.

Masayoshi Son, CEO of Sprint parent SoftBank, calls the U.S. wireless industry a duopoly, and says sustainable competition will emerge only with a third strong competitor.

Sprint and T-Mobile did not respond to requests for comment.

The merger proposal has yet to be officially announced, but antitrust officials already have a lot on their plates.

AT&T announced last month that it hopes to buy America's biggest satellite television provider, DirecTV (DTV), in a deal worth almost $50 billion. Comcast (CMCSA), meanwhile, is trying to acquire Time Warner Cable (TWC), a $45 billion deal that would create the country's dominant provider of television channels and Internet connections.

"So much is in flux," Kagan said. "The industry is changing, and regulators now have to look at it from a new perspective."

Akshay Sharma, an analyst with Gartner, said the Justice Department would likely look more favorably on Sprint's bid for T-Mobile than AT&T's failed effort from a few years ago, given Sprint's smaller size.

Should the deal fall through, T-Mobile could prove an attractive acquisition target for another big tech company like DISH Network (DISH) or an overseas carrier. What's clear is that neither T-Mobile nor Sprint can afford to maintain the status quo too much longer.

"It's innovate or die," Sharma said. "They just can't sit idle."

First Published: June 8, 2014: 3:01 PM ET

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Obama expected to promise student loan relief

Who owes? See the status of student borrowing.

WASHINGTON (CNNMoney)

The official said Obama will expand the criteria for an alternative repayment program, which caps monthly payments for certain federal student loans at 10% of a borrower's discretionary income.

The changes would allow an additional 5 million borrowers to qualify and will be available beginning in December 2015, the official said.

The alternative payment programs are designed to help borrowers struggling under the weight of student loans. They include forgiveness programs for on-time payments and public-sector employees. Teachers can have their balance canceled after ten years, for example. Low-income borrowers can have their balance canceled after 20 or 25 years of on-time payments.

Borrowers who don't quality for forgiveness but use a repayment program find their monthly payments reduced but spread out over a longer period of time. That means they will pay more over the lifetime of the loan, as there is additional time for interest to accrue.

Income-based repayment and Pay As You Earn aren't available for borrowers who turn to private institutions rather than the government.

Related: Student loans will cost more this fall

The official said Obama will also voice support for a Democratic proposal on Capitol Hill that would allow borrowers to refinance their student loans. The proposal by Sen. Elizabeth Warren would extend current rates for new borrowers to those with outstanding loans at higher rates.

"While Congress decides what it's going to do, I will keep doing whatever I can without Congress to help responsible young people pay off their loans -- including new action I will take this week," Obama said in his weekly address on Saturday.

He was scheduled to make the announcement at a 1:45 p.m. event The New York Times first reported the news.

Student loans have been in the spotlight as the amount of debt skyrocketed, taking second place to only home mortgage debt, according to the Consumer Financial Protection Bureau.

On Tuesday, Obama is scheduled to discuss student loan debt and other education topics in a chat on the website Tumblr.

--CNN's Rachael Shackelford contributed to this report

First Published: June 8, 2014: 6:30 PM ET

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Lunch with Warren Buffett goes for $2.2 million

NEW YORK (CNNMoney)

Each year on eBay, Buffett auctions off an invitation to lunch. The proceeds go to GLIDE, a charity that runs a number of anti-poverty programs in San Francisco.

This year's winning bid, from a man from Singapore named Andy Chua, was more than double last year's of just over $1 million. The highest ever was in 2012, at $3.5 million.

Since the auction began 15 years ago, it has raised nearly $16 million for the organization.

Past winners include hedge fund manager David Einhorn, though most bidders remain anonymous. GLIDE did not provide more details about Chua.

Related: Buffett laughs at the 'persecuted' 1%

The winner will be allowed to invite up to seven friends to have lunch with Buffett at the New York City steakhouse Smith & Wollenksy.

GLIDE operates on a budget of about $18 million. It serves more than 850,000 free meals a year, offers affordable housing, and operates a health clinic in a city with one of the highest levels of inequality in the country.

"The demand keeps growing," said GLIDE founding president Janice Mirikitani. "In this area, the cost of living is very high and a lot of people can't afford to pay for both food and rent," she said.

Buffett is one of the world's leading philanthropists. He started The Giving Pledge in 2010, an effort that has signed up more than 100 billionaires around the globe. They have pledged to donate half of their net worth during their lifetime, or at their death.

Richest Americans in history

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First Published: June 7, 2014: 7:07 AM ET

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GM recalls 106,000 more vehicles

The 2012 Chevrolet Camaro is part of a new recall from GM.

NEW YORK (CNNMoney)

The automaker issued four more recalls Friday, adding 105,688 vehicles to the more than 15.8 million cars and trucks it has recalled worldwide this year.

The new recall affects about 36,000 vehicles including the 2012 Buick Verano, Chevrolet Camaro, Cruze and Sonic, which have a problem that can prevent the airbag from deploying in a crash. The flaw has been linked to one crash where someone suffered an injury.

A separate issue that could prevent the passenger airbag from deploying properly affects 87 Chevrolet Sparks from model years 2012 and 2014, as well as Buick Encores from model year 2013. Another airbag issue affects 37 Chevrolet Corvettes from model year 2014. Neither of those problems have been linked to a crash, the company said.

Related: GM deleted references to engines stalling

The largest, but less serious recall issued Friday affects 70,000 vehicles including some Chevrolet Silverado LD and HD models, as well as GMC Sierra LDs, Tahoes, Suburbans and Yukons from model years 2014 and 2015. They have a problem that could disable the audible chime that warns drivers and passengers that a front seat belt is not buckled or that the driver's door is opened while the key is in the ignition. GM is not aware of any crashes or injuries related to the issue. It affects

GM (GM) will send letters to customers letting them know when they can bring their vehicles into a dealership to be repaired.

The new recalls come one day after the company released an internal report examining why it took more than a decade to recall 2.6 million cars for a faulty ignition switch. That problem has been linked to at least 13 deaths. GM CEO Mary Barra announced that 15 employees have been dismissed and five more have been disciplined over the matter.

First Published: June 6, 2014: 4:57 PM ET

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77-year-old trader: How I made a lot of money

Paul Glandorf began investing seriously when he retired in his early 60s.

NEW YORK (CNNMoney)

At age 77, he is anything but a stereotypical Wall Street trader. He lives in Ohio and prefers casual "retiree clothing." (He put on a tie for this photo.) But his returns would make many top investors salivate.

He participated in an investing competition in 2013 where you had to buy five stocks on January 1 and hold them through the end of the year. His portfolio finished the year with a whopping 71% return.

Four of his picks -- LinkedIn (LNKD, Tech30), 3D Systems (DDD), Fidelity National (FNF) and Valeant Pharmaceuticals (VRX) -- did extremely well. Then there was Lululemon (LULU) -- the yoga apparel retailer whose shares sank more than 20%.

Glandorf took second place in the contest. And he still grumbles about Lululemon.

Learning to invest in retirement: For much of his life, Glandorf didn't have time to think about the stock market.

He was a pipe fitter who went on to start his own successful construction business in Cincinnati, Ohio.

But the closer he edged to retirement, the more he took an interest in how his funds were invested. He started to wonder if he could do better than some of the folks managing his money.

In his early 60s, Glandorf started a stock club. Fifteen people showed up to the first meeting at the pipe fitters' training school in Cincinnati.

"We called the club the Stock Wizards because the majority of the group were the exact opposite," Glandorf says. "You have to laugh at yourself in life."

The investing club is still going, although it now meets at a senior center. Glandorf has become something of a local stock prodigy.

Calling him the "Oracle of Ohio" -- a nod to famed investor Warren Buffett, the Oracle of Omaha -- might not be far off.

Related: Investors LOVE Warren Buffett

'Oracle of Ohio': Glandorf made a 57% return last year with his overall portfolio. So even though it was hard to lose money last year, it's still notable that he did much better than the S&P 500's 30% gain.

Since he took over managing and trading his own funds in 2001, he is clearly doing something right. Glandorf said that he typically invests about $10,000 each in a portfolio of about 75 to 80 stocks. So that means he is putting between $750,000 to $800,000 to work in the market.

"When I invest, I really look at the fundamentals and the technicals of a stock," he explains. "A lot of times I don't even know what the names of the companies are. I just know them by symbol."

His investing philosophy harkens back to his days as a small business owner. He knew he would have to investigate the competition.

The online stock research program MarketSmith is his bedrock. He prefers to buy stocks and hold them for awhile, but he logs on to the site every day to run several screens that generate about a dozen stocks that look good based on the various financial criteria he has developed.

Related: How I saved $1 million or more

Paul's list of stocks: The stocks that pop up on the screen make it into "Paul's list," an email that now goes out to many friends, family and past and current members of the Stock Wizards.

"We've got some fellas that short stocks and play options. The Wizards invest in many different ways. I only invest in one way: I invest in aggressive growth type stocks," he says.

"Usually 80% of my selections make money and 20% are losers," he says. That's been a pretty constant over time, except at the end of 2007.

Predicting the Great Recession: Perhaps his biggest accomplishment as an investor was recognizing America's great financial crisis. He made over 50% in 2007 and then got entirely out of the market, a rarity for him.

"I told everybody that I knew to sell their stocks at the end of 2007," he says. "I was positive the market was going to tank."

Glandorf stays pretty humble about his good fortune, noting that while he timed it right getting out of the market, it's tough to know when to jump back in.

Related: See the economy recovery in 17 charts

Some of the stocks he likes now include: Illumina (ILMN), Alexion Pharmaceuticals (ALXN), Actavis (ACT), and United Rentals (URI). All of these are up more than 20% this year with Illumina up over 50%.

He rattles off the tickers on the phone and conceded that he's not even sure what some of these companies do. But he knows their earnings history and forecasts and things like their price-to-earnings ratios.

Another rule of his: Always invest in equities or cash, no bonds.

The joy of his life these days -- besides his grandchildren -- is teaching others how to invest. While he tries to give advice, he lets people do what they think is best.

"I always tell people to only invest the amount of money they could afford to lose, although I don't think they'll lose much investing the way I do," he says proudly.

First Published: June 7, 2014: 8:05 AM ET

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Uber valued at $18.2 billion

Uber's latest funding round values the company at $17 billion.

NEW YORK (CNNMoney)

The four-year old company has been a giant success story, growing its operation to 128 cities in 37 countries and providing transportation to millions of customers.

Uber started as a business that sends customers luxury cabs at a touch of a button. It has since expanded to lower-cost cars and delivery service with its UberX service.

The latest funding round of $1.2 billion -- soon to be $1.4 billion, after other investors chip in -- includes institutional investors, mutual funds, private equity and venture capital partners, Uber said in a blog post. That values the company at $17 billion on top of the $1.2 billion in funding.

Uber already has some high-profile backers, including Google (GOOGL, Tech30) Ventures, which invested $250 million last year. Although Uber did not name any of its new investors, there have been several reports that one of them is mutual fund giant Fidelity Investments.

Uber believes it is making positive changes in the transportation industry, claiming it is creating 20,000 new jobs per month.

Related: It's not a tech bubble -- it's tech roulette

"With our growth and expansion, the company has evolved from being a scrappy Silicon Valley tech startup to being a way of life for millions of people in cities around the world," said Travis Kalanick, Uber's CEO, in a blog post.

"This 'Uber' way of life is really a reflection of our mission to turn ground transportation into a seamless service and to enable a transportation alternative in cities that makes car ownership a thing of the past," he added.

But Uber is also no stranger to controversy.

Related: Uber is worth more than Barbie

Uber's dynamic pricing model leads to fares that grow by as much as eight fold during periods of extreme demand. Last winter's massive snow storms and New Year's Eve are prime examples of when minimum fares surged well above $100, and per-mile charges were more than $30.

The company has also been accused of employing questionable tactics to recruit its drivers.

Gett, which allows users to order cars with a smartphone app, claimed earlier this year that Uber employees in New York ordered and canceled over a hundred of its cars during a span of three days in January. The aim: collect the drivers' cell phone numbers and recruit them to work for Uber. The company since apologized.

Several locations have also cracked down on Uber, suing the company for violating its taxi laws. Most recently, the state of Virginia's Department of Motor Vehicles sent a cease-and-desist order to Uber and its competitor Lyft on Thursday, saying drivers would be fined if they continued operating.

First Published: June 6, 2014: 1:48 PM ET

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Heartbleed Part 2: The handshake bug

There's yet another problem with OpenSSL, the safety feature guarding our private Web communication. It's targets the handshake between your computer and a website.

NEW YORK (CNNMoney)

You can call this one the "handshake bug."

Computers and Web servers initiate secure conversations with one another in a process known as a "handshake." But this week, security researchers discovered a flaw in the way they shake hands. The bug allows a hacker operating between you and a website -- say, connected to the same public Wi-Fi network -- to snoop in on your Internet session.

Here's the good news: The handshake bug isn't as devastating as Heartbleed. The only major browsers it affects are for Google's Android mobile operating system. And for a hacker to exploit the bug, you and the website must both be running vulnerable versions of the encrypting software, known as OpenSSL.

But it's yet another wake up call that your Internet security relies on a few volunteers. The OpenSSL Foundation is a tiny team of computer programmers that only recently started getting additional financial support from many companies that rely on this software. The Linux Foundation said OpenSSL has received about half of the $5.4 million that companies have donated so far to the Core Infrastructure Initiative, an effort to better secure the Internet.

In fact, many security researchers say the only reason we spotted the handshake bug is because, post-Heartbleed, more volunteers are combing through the OpenSSL computer code. The world can thank Masashi Kikuchi, a software security expert at the small Japanese consulting firm Lepidum who decided to look through the code himself.

"The biggest reason why the bug hasn't been found for over 16 years is that code reviews were insufficient," Kikuchi wrote in a blog post.

Related story: Fast in-flight Wi-Fi coming to Europe

The bug has been fixed, and now it's up to Web browser makers and website servers to update their systems. According to Adam Langley, a senior researcher at Google (GOOG), these Web browsers are safe:

• Internet Explorer
• Firefox
• Chrome (for desktop, iOS)
• Safari

According to Qualys (QLYS) engineering director Ivan Ristic, these browsers are vulnerable:

• Android
• Chrome (for Android)

"We shouldn't be surprised that there are more flaws in OpenSSL," said Jean Taggart, a researcher at antivirus maker Malwarebytes. "Security is a process, not a product."

And if you're still worried about the handshake bug? Keep yourself clean. Don't use strangers' Wi-Fi.

First Published: June 6, 2014: 2:10 PM ET

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GM recalls 106,000 more vehicles

The 2012 Chevrolet Camaro is part of a new recall from GM.

NEW YORK (CNNMoney)

The automaker issued four more recalls Friday, adding 105,688 vehicles to the more than 15.8 million cars and trucks it has recalled worldwide this year.

The new recall affects about 36,000 vehicles including the 2012 Buick Verano, Chevrolet Camaro, Cruze and Sonic, which have a problem that can prevent the airbag from deploying in a crash. The flaw has been linked to one crash where someone suffered an injury.

A separate issue that could prevent the passenger airbag from deploying properly affects 87 Chevrolet Sparks from model years 2012 and 2014, as well as Buick Encores from model year 2013. Another airbag issue affects 37 Chevrolet Corvettes from model year 2014. Neither of those problems have been linked to a crash, the company said.

Related: GM deleted references to engines stalling

The largest, but less serious recall issued Friday affects 70,000 vehicles including some Chevrolet Silverado LD and HD models, as well as GMC Sierra LDs, Tahoes, Suburbans and Yukons from model years 2014 and 2015. They have a problem that could disable the audible chime that warns drivers and passengers that a front seat belt is not buckled or that the driver's door is opened while the key is in the ignition. GM is not aware of any crashes or injuries related to the issue. It affects

GM (GM) will send letters to customers letting them know when they can bring their vehicles into a dealership to be repaired.

The new recalls come one day after the company released an internal report examining why it took more than a decade to recall 2.6 million cars for a faulty ignition switch. That problem has been linked to at least 13 deaths. GM CEO Mary Barra announced that 15 employees have been dismissed and five more have been disciplined over the matter.

First Published: June 6, 2014: 4:57 PM ET

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GM: Recall death toll may be more than 13

Warren, Mich. (CNNMoney)

That's notable considering that the automaker has been holding firm on that number, as recently as a Thursday morning press conference.

GM counts crash victims using a fairly narrow definition as to how deaths can be connected to the problem. The flaw can turn the car's engine off while driving, disabling its airbags, anti-lock brakes and power steering.

GM only counted drivers and front seat passengers who were killed in head-on accidents in which the air bag did not deploy. Passengers who died in side-impact accidents weren't counted because airbags aren't designed to deploy in side crashes. Fatalities of back seat passengers were also excluded from the total, because there are no rear airbags.

Related: GM's botched recall shows "a pattern of incompetence and neglect"

But by midday Thursday GM said that it is prepared to raise the death toll tied to the ignition switch, based on the criteria that will be set by independent compensation expert Kenneth Feinberg. GM hired Feinberg to administer a program to compensate those killed or injured in accidents.

"Once Ken Feinberg determines the criteria and administers the program, GM will release the number of fatalities and serious physical injuries," said a GM spokesperson.

Feinberg told CNNMoney Thursday that he doesn't know whether the families of side-impact crash victims or those in the back seat will be compensated by GM.

"I don't want to say anything until I get input from GM, the lawyers and public interest groups," he said. He expects to send preliminary criteria to the interested parties next week, and to have a final formula within several weeks.

David Friedman, the acting administrator of the National Highway Traffic Safety Administration, has said that he thinks GM's count of 13 fatalities will climb. GM's tally also sparked objections from plaintiff attorneys, auto safety advocates and families of some of those killed in the recalled cars.

All of them argue that the ignition flaw could cause an accident on its own, regardless of whether airbags and power steering were working.

Related: Mary Barra's 7 most significant quotes on the recall

"They're playing with numbers," said Beth Melton. whose daughter Brooke was killed in a side-impact accident in 2010 when the ignition switch turned off the Cobalt she was driving. The car went into a skid on rain-slicked roads.

"They don't count Brooke's death, and she's dead because of that ignition switch," said Melton.

Natasha Weigel is another ignition switch fatality that isn't included on GM's list because she was in the back seat of a car. Her friend, Amy Rademaker, who was killed in the same accident while riding in the front seat, is on the list.

"I don't understand how Amy can be on that list and not Natasha," said Ken Rimer, Weigel's stepfather. "Had the ignition switch not failed, they'd both be alive."

-- CNNMoney's Jennifer Liberto contributed to this report.

First Published: June 5, 2014: 2:08 PM ET

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