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You can't change the color of Facebook - it's a virus

Written By limadu on Senin, 11 Agustus 2014 | 23.10

facebook phishing An app claiming to change Facebook's color palette is actually loading malware onto your smartphone or PC.

NEW YORK (CNNMoney)

More than 10,000 people around the world have been duped into downloading the malware, according to a Cheetah Mobile Security blog post.

When Facebook (FB, Tech30) users click on the fake app, it sends them to a malicious website that asks them to watch a tutorial video about how to change the color of their profile page. By agreeing to watch the video, the users give hackers access to their profiles, letting the app spam their friends.

If the user doesn't watch the video, the app will lead PC users to download a pornography video player and smartphone users to download an antivirus app. Both are infected with malware.

The good news is the bad app is pretty easy to get rid of -- just remove the color changer app from the Facebook app settings page. Cheetah Mobile Security also advises affected users to change their passwords.

Facebook color changer scams have been around awhile. It's generally a good idea to avoid anything purporting to change the color of your profile.

Related: Facebook snaps up security startup

There is one safe app for people who are tired of Facebook's blue palette. Google Chrome Users can go to colormyfacebook.com and install a free Web app that changes Facebook's color scheme to just about any color in the rainbow.

No such luck for smartphone users, unfortunately. If you don't like blue on your smartphone, you're just going to have to live with it.

First Published: August 11, 2014: 10:45 AM ET


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Glenn Beck's challenge: Getting onto your TV

NEW YORK (CNNMoney)

His channel, now known as TheBlaze, gained hundreds of thousands of subscribers, making Beck a model for other media personalities that want direct business relationships with their fans. TheBlaze is part of a virtuous circle of conservative media: Beck's free-to-air radio show and free Web site stirs interest in the $10-a-month Internet channel, and all of those outlets help Beck market books, sell tickets to his live stage shows and introduce new hosts.

"I am interested in delivering an experience for people," Beck told me in an interview for CNN's "Reliable Sources." "And I want to be in every -- in every possible venue."

Right now what's mostly missing is a home on traditional television. Yes, the lines between Internet TV and old-fashioned cable TV are blurring, but the vast majority of video-viewing still happens through cable. For the past two years Beck's company, Mercury Radio Arts, has been seeking cable distribution, but to date TheBlaze is only available in a fraction of the 100 million homes that have cable, satellite or some other form of pay TV in the United States.

"He's trying, but it's tough to get carriage," said BTIG analyst Rich Greenfield. A typical cable channel (like CNN) is owned by a company (like Time Warner (TWX)) that also owns a portfolio of other channels (like TNT and Cartoon Network), giving the owner a lot of leverage in its negotiations with distributors. That's what TheBlaze is lacking.

Big cable and satellite distributors "have no incentive to let independent networks on," Greenfield said. "They want to carry fewer channels and they no longer believe more content, even if unique, will add subscribers."

Related: Brian Stelter on the future of media

Indeed, there are many other fledgling channels in the same position as TheBlaze. No other channel, though, is so closely tied to a popular (and polarizing) commentator like Beck.

Beck knew that getting TheBlaze onto cable -- where it could compete with 21st Century Fox's (FOX) Fox News -- would be tough. When I interviewed him at his headquarters in Irving, Texas, I asked him what kind of feedback he has received from distributors like Comcast (CCV) and DirecTV (DTV) -- the country's biggest cable and satellite providers, respectively -- and he laughed.

"I'd probably let our attorneys handle that one," he said.

TheBlaze was initially picked up by the Dish Network (DISH) in 2012, in what was a big coup for Beck at the time. Since then, it has struck distribution deals with about 70 smaller providers. But the industry is top-heavy, and only two of the ten biggest providers, Dish and Cablevision (CVC), have supported TheBlaze so far.

I told Beck about an exchange I had with an executive at one big distributor -- almost as big as Comcast. There's a simple reason why the distributor hasn't picked up TheBlaze yet, the executive said: "What happens if Beck gets hit by a bus tomorrow?"

In other words, what makes the channel worth carrying, besides Beck's own daily talk show?

I left Texas with the impression that Beck is preparing an answer to that question. TheBlaze currently has a number of other conservative and libertarian talk shows, sporadic documentaries and even a series called "Liberty Treehouse" for children. But in the future, if all goes according to plan, it will also have the kind of scripted shows that other cable channels are now known for.

"My focus is on culture," Beck said. "We're working on a few projects that are mainstream television that are ... rooted in history, so to speak."

He said he hopes the first scripted series will debut sometime next year.

Beck asserted that some of the opposition to carrying TheBlaze "is political," something that one of his regular guests, Rep. Louie Gohmert, also suggested earlier this year at a House hearing about Comcast's proposed merger with Time Warner Cable (TWC). Gohmert, a Texas Republican, challenged Comcast executive vice president David L. Cohen, who responded, "There is no judgment being made about carriage of The Blaze based upon political perspective."

Beck's company has come out against the proposed merger because, he said, "these companies are getting so massive that they have almost total control of a portal."

"When I left Fox, I -- my thought was, can a man still have an idea and a dream and go up against the titans and still make it? So far, the answer is yes," he added. "But if you can't crack the cable code without having the big, you know, some big corporation behind you, the answer is no. And I think that's a problem in America."

TheBlaze continues to be available via the Internet for $10 a month. Beck declined to say how many people subscribers he has, but Greenfield, the industry analyst, estimated 400,000.

Meanwhile, the companion news and opinion Web site TheBlaze.com now averages more than 25 million unique visitors per month. Beck describes the overall "footprint" of his company as "50 million people."

The more striking number to me is $90 million -- that's how much Forbes magazine estimates the company earns each year. Much of that still comes from radio, via Beck's daily syndicated show. If he can get TheBlaze carried in most of the 100 million homes with cable -- assuming a small per-subscriber fee is attached -- Beck's company will start to earn well over $100 million a year.

First Published: August 10, 2014: 11:24 AM ET


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Amazon price war: Both sides want you to email a CEO

amazon jeff bezos Amazon CEO Jeff Bezos and his Hachette counterpart should prepare for some reader emails.

NEW YORK (CNNMoney)

The war of words between Amazon, publishing house Hachette and an alliance of authors flared up this weekend, as the parties made their cases directly to readers.

There was still no sign the months-long standoff was any closer to a resolution than when it began in the spring.

That's when Amazon (AMZN, Tech30) started listing some Hachette e-books unavailable and physical copies as delayed, sometimes for several weeks. It has also posted prices higher than those available from other booksellers.

At the center of it all is a fight over how much Amazon should pay Hachette for e-books. Amazon says it should pay less because, it argues, e-books are less expensive to produce and have no resale value.

"With an e-book, there's no printing, no over-printing, no need to forecast, no returns, no lost sales due to out of stock, no warehousing costs, no transportation costs, and there is no secondary market -- e-books cannot be resold as used books," Amazon wrote in an online letter. It called the campaign Readers United.

Related: 5 gadgets that changed Amazon

But Hachette has said Amazon is not properly valuing the e-books. The publisher -- home to the Little, Brown and Grand Central Publishing brands -- said it wants a solution that "preserves our ability to survive and thrive as a strong and author-centric publishing company."

And the writers who have banded together said they're caught in the middle.

"This is no way to treat a business partner. Nor is it the right way to treat your friends," read a two-page ad from Authors United in Sunday's New York Times.

Among the signatories are high-profile Hachette authors Malcolm Gladwell and James Patterson. Those Hachette authors absent from the roll include J.K. Rowling, who has remained quiet on the matter, and Stephen Colbert, who rallied his fans against Amazon in a social media campaign this summer.

Both Amazon and the authors are trying to get readers to rally to their side. Amazon offered up an email address for Hachette CEO Michael Pietsch. The authors said they weren't taking sides, but provided an email address for CEO Jeff Bezos and asked supporters to help "change his mind."

Amazon, because of its size, has significant influence over pricing. But it has lost before. It conceded to the publisher Macmillan in 2010 but still insisted the prices it agreed to pay were "needlessly high for e-books."

First Published: August 10, 2014: 3:06 PM ET


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BuzzFeed raises another $50 million to fund expansion

buzzfeed

NEW YORK (CNNMoney)

The cash infusion, from the giant venture capital firm Andreessen Horowitz, is BuzzFeed's fifth round of funding. It easily eclipses the four prior rounds, which raised a combined $46.3 million.

"We're presently in the midst of a major technological shift in which, increasingly, news and entertainment are being distributed on social networks and consumed on mobile devices. We believe BuzzFeed will emerge from this period as a preeminent media company," Andreessen Horowitz partner Chris Dixon wrote in a blog post describing the investment.

The investment comes a few months after talks fell apart between BuzzFeed and a potential buyer, The Walt Disney Company (DIS). BuzzFeed was "said to have sought upwards of $1 billion," a price tag that Disney was unwilling to consider, according to Fortune, which was the first to report on the talks in April.

Other news accounts at the time said BuzzFeed valued itself at "nearly $1 billion."

The $50 million from Andreessen Horowitz values BuzzFeed at "about $850 million," according to The New York Times, which was the first to report on the new funding round. (Amazon (AMZN, Tech30) founder Jeff Bezos bought The Washington Post last year for $250 million.)

Related: BuzzFeed fires viral politics editor for plagiarizing

BuzzFeed has become an emblem for the good and the bad of the digital age -- where first-hand news accounts from foreign lands live side by side with listicles sponsored by advertisers.

The company's financial results are closely held, but Dixon said in his blog post that it is "consistently profitable, and will generate triple digit millions in revenues this year."

Related: Future of media

With the new round of funding, the company will expand its news coverage and what it calls BuzzFeed Life, which includes lifestyle sections like food, parenting and style. Ben Smith, BuzzFeed's editor in chief, said on Twitter that "we're going to be looking to double our incredible foreign desk."

The headcount of the lifestyle team will roughly triple.

BuzzFeed will also expand its video unit, henceforth known as BuzzFeed Motion Pictures. The unit recently moved onto a 45,000-square-foot lot in Hollywood -- not bad for a site sometimes stereotyped as a home for cat videos.

First Published: August 10, 2014: 10:52 PM ET


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Stocks: 3 things to know before the open

S&P futures 2014 08 11 Click chart for in-depth premarket data.

LONDON (CNNMoney)

U.S. stock futures were jumping Monday, and Kinder Morgan (KMI) shares were up by 10% in premarket after the energy infrastructure company announced it was hiking its dividend and would spend more than $40 billion to buy out smaller shareholders.

Here are the other three things you need to know before the opening bell rings in New York:

1. Risk fears fade: Investors have been worried about geopolitical uncertainty in recent weeks. But U.S. stocks closed higher Friday and it looks like markets are shaking off some of those fears.

"Markets continue to differentiate between the humanitarian crises in Gaza and Iraq, which are not market drivers, and the Ukraine conflict which has far more potential to spill over to asset prices. The lack of news on the last of these supports the risk bounce," said Kit Juckes, a market strategist at Societe Generale.

On Friday, the Dow Jones Industrial Average and the S&P 500 both gained more than 1%, while the Nasdaq advanced 0.8%.

Related: Fear & Greed Index

2. International markets: Turkey is in the spotlight Monday after Turkish Prime Minister Tayyip Erdogan reportedly won the race to become the country's first directly-elected president. Market reaction has been muted, with the main Turkish index pointing slightly lower.

European markets were all higher in early trading. The main markets had declined Friday.

Asian markets also closed the day with gains.

Related: CNNMoney's Tech30

3. Earnings: Priceline (PCLN, Tech30) and food service distributor Sysco (SYY) will report earnings before the open.

American Apparel (APP) will report after the close.

First Published: August 11, 2014: 5:05 AM ET


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GM loses bid to stop key recall lawsuit

NEW YORK (CNNMoney)

A Georgia state judge on Saturday denied GM's attempt to stop the case brought by Brooke Melton's parents, according to Lance Cooper, the family's attorney.

Brooke Melton, 29, was killed on a rainy evening in 2010 when her 2005 Chevrolet Cobalt hydroplaned, hit an oncoming car and tumbled off the road into a ditch.

Her parents settled with General Motors last fall, months before GM (GM) recalled 2.6 million vehicles with the faulty switch.

Earlier this year, GM admitted that some employees were aware of the problem with the switch 10 years earlier.

The Meltons' effort to overturn the settlement alleges the company lied about not knowing of the flaw. Saturday's ruling allows them to move toward a trial.

The Meltons said their daughter was a cautious driver. Although she was going slightly above the speed limit, they doubted she was to blame for the crash. "I knew in my heart and in my gut there was something wrong with the car, that it wasn't her fault," her father, Ken Melton, told CNNMoney's Poppy Harlow in a May interview.

The Melton case helped push the recall scandal to the surface.

Related: GM's most popular pickup is this year's most recalled vehicle

Cooper's firm hired an engineering expert who discovered that the switch had been redesigned to make it harder to inadvertently turn the vehicle off while driving.

It was the first known time anyone besides General Motors and its supplier were aware of the issue.

General Motors said it was "disappointed in the court's decision." It said it believed the September 2013 settlement had been reached in "good faith" and barred additional legal action.

Related: Two victims; GM counts only one

The company established a victim compensation program led by attorney Ken Feinberg and had received at least 125 claims as of late last week. The Meltons have said they're not interested in that or any other settlement with GM this time.

The decision green-lights the pre-trial legal steps, including witness depositions and the exchange of evidence.

The case is schedule to go to trial in April 2016, but could be heard sooner, the Melton family attorney said.

First Published: August 10, 2014: 7:36 PM ET


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We Native Americans are 'poster children' for no Internet access

loris taylor Loris Taylor of the Hopi Nation has been a leading figure in the effort to bridge the digital divide for Native Americans.

NEW YORK (CNNMoney)

He brings his handmade jewelry, paintings and bronze sculptures to art shows to advertise his work. He'd rather be able to stay at home and sell his pieces online, potentially reaching a larger audience. But he has no Internet access.

That's because Bahe lives on the Navajo Nation reservation in northeast Arizona, in an area about 45 miles from the nearest town.

"The only thing we know how to do to get access to the outside world is smoke signals, and the wind doesn't blow our way anymore," said Bahe with a laugh.

Bahe's 16-year-old grandson attends school off the reservation and wants to take college-level courses online for school credit, like his classmates do. But, like his grandfather, he doesn't have Internet at home on the reservation.

"He feels like his friends are more advanced than he is at school; he feels left behind," said Bahe.

Bahe's situation is not uncommon. It's what the majority of those living on Native American lands in the United States face every day. The broadband penetration rate across the 566 federally recognized tribes is less than 10%, according to a Native Public Media and New America Foundation analysis.

"Students will drive to neighboring cities and sit in the McDonald's (MCD) parking lot to get connectivity," said Traci Morris of the Chickasaw Nation of Oklahoma. She co-authored the study and is the director of the American Indian Policy Institute at Arizona State University. In a new report, Morris notes that the lack of broadband access even includes key community institutions on reservations, such as libraries.

Related: 4 ways fast lane could change your Internet service

The country's major broadband providers tend to pass over rural tribal lands, in favor of wiring more densely populated urban areas. Wiring homes for broadband is expensive, and they can get a bigger bang for their buck in cities and towns, explained Morris.

Regulatory hurdles also have dissuaded Internet companies from wiring reservations. Doing business in a reservation begins with a lengthy, multi-tiered bureaucratic process that starts with the Bureau of Indian Affairs, and includes navigating each sovereign tribal nation's unique system of governance.

The FCC's Tribal Government Engagement Obligation initiative hinges on meaningful, collaborative relationships between carriers and tribal leadership, but there's no one-size-fits-all solution. Developing a system of best practices will have to happen on a case-by-case, tribe-by-tribe basis -- and that will take time, explained an FCC official.

Cyclical and endemic poverty on tribal lands is another impeding factor to getting reservations online. Native American and Alaskan Natives have the highest poverty rate by race in the United States, with nearly one-third of those on reservations living below the federal poverty line, according to 2012 U.S. Census data.

Derek White, general manager at Gila River Telecommunications based outside of Phoenix, Arizona, is one of the just 11 native telecommunications companies on tribal lands. Half of his residential customer base from the Gila River community gets Internet access from his service, but he says cost of both connectivity and devices, like laptops and tablets, is a huge barrier for Native Americans.

"Our community is still in a state where we have to decide between communications -- or water, food and gas in the car," said White.

In the past, the problem went largely unaddressed by the U.S. government. Native Americans were always placed in the "Other" box when it came to data collection on broadband services in America, explained Loris Taylor of the Hopi Nation, and CEO of the Arizona-based Native Public Media.

"We were not mentioned at all," she recalled. " Native Americans are the most invisible, most underserved, and, as a result, most vulnerable group. We are the poster children of non-access to what drives the economy and the world today."

As a part of the FCC's efforts to confront the problem, its four-year old Office of Native Affairs and Policy is engaged in a series of training and consultation workshops on tribal lands in Idaho, California, Minnesota, Oklahoma and on the East coast. The goal, in part, is to educate stakeholders about FCC policies and for the U.S. government to learn better what the different Native American populations' unique needs are.

The FCC is incentivizing broadband companies to bring Internet service to Native American territories by offering federal subsidies.

Related: Harlem: New York's new tech hub?

But the solution isn't as simple as just providers showing up. White, from the Gila River community, has begun consulting with outside providers who are coming in. He is sharing culturally-specific information to help facilitate better engagement with native leadership.

"Large carriers have that mentality of being the big fish," said White. "A carrier may just say, 'We're going to put a 300-foot tower in your community and it's going to be the greatest thing since sliced bread,' without doing any assessment of the impact on the community."

Still, the demand for Internet is definitely there.

"They know the Internet is the great equalizer -- for their kids especially -- and they want it," said Morris.

Today, everything from applying to jobs, to doing research for school work, to paying bills is done online. Native advocates and community members recognize the unprecedented opportunity the Internet poses for entrepreneurship and economic growth, increased civic engagement, and better education and health care for their nations -- still in the process of rebuilding.

"The resilience of Indian country never ceases to amaze me. We know our communities. We get things done with limited means. We are adaptable people, or we wouldn't still be here," said Morris. "It's a matter of getting a seat at the table."

First Published: August 11, 2014: 6:56 AM ET


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Kim Kardashian's selfies coming soon in hardcover

kim kardashian selfish Kim Kardashian, pictured here in Paris shortly before her May wedding to Kanye West, will publish a new book of selfies called - wait for it! - "Selfish."

NEW YORK (CNNMoney)

It seems hard to believe, but the reality-TV diva actually has a stash of photos that haven't been tweeted, instagrammed or otherwise posted anywhere else.

"Selfish" was written by Kardashian and features many "never-before-seen personal images" of her, according to Rizzoli, a publisher specializing in illustrated coffee table books.

Kardashian, who is famously famous for being famous, has tweeted tons of photos of herself -- and her various body parts -- to her 22.7 million Twitter (TWTR, Tech30) followers as she documents her glamorous lifestyle with rapper-husband Kanye West and daughter North.

Related: Kim Kardashian's game makes $700,000 a day

For instance, she recently posted a work entitled "The Many Moods of Me" to Instagram. It features nine photos in tic-tac-toe "Brady Bunch" grid style, but just one person -- Kardashian -- with nearly-identical facial expressions in each.

While Kardashian images are plentiful and free online, the 352-page hardcover will cost $20 when it hits the market next April.

This is not Kardashian's first book. She co-authored a novel, "Dollhouse," in 2012 with her sisters Kourtney and Khloe. According to the back flap, the novel is about "three beautiful, loving and deeply loyal sisters who are the heart and soul of their family." It also has a leopard print cover.

First Published: August 11, 2014: 10:15 AM ET


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Live in a multimillion-dollar home for $2,500

starre showhome The Starres in front of their $1.3 million dollar Showhome in Carlsbad, Calif.

NEW YORK (CNNMoney)

As home managers, Calvenn and Crystena Starre rent a $1.3 million home in Carlsbad, Calif., for just $2,500 a month -- about a third of what it would cost normally.

They're "hired" by Showhomes, a Nashville company that helps sell high-end homes. It preps the homes to look "lived in"... by finding people to actually live in them, at a very discounted rate.

Currently, there are 200 home managers, who reside in the home until it's sold (it usually takes about three to six months). They watch for any maintenance issues and make the home look desirable (food in the fridge, clothes in the closet) for prospective buyers.

But not everyone can get the gig -- Showhomes' acceptance rate is about 40%. Residents must undergo online background checks, including criminal and rental histories. They're typically white-collar professionals who are in a city temporarily, newly divorced or, in the Starre's case, a family of five looking for a quick and easy rental.

Related: 10 best cities to launch a startup

With Showhomes, the Starres didn't need to make a long-term commitment -- they could leave their furniture in storage until they figured out where they wanted to live long term.

But what was a temporary move became a way of life. Over the past two years, they've lived in five different Showhomes -- ranging from $900,000 to $1.3 million in value -- all in the San Diego area. The amenities have included everything from tennis courts to pools.

"It's a way to live in a really inexpensive way," said Matt Kelton, chief operating officer of Showhomes, which has 58 franchises in 18 states.

But it's not all a walk in the park. Showhomes has a number of restrictions for home managers.

"You can't be a smoker, you can't have a bunch of pets, no religious items -- things that can deter [a buyer] one way or another," added Kelton.

Personal items like family photos, sports teams and political paraphernalia are also prohibited. And then there's the prospective buyers who could be surveying their home at a moment's notice.

"We give up certain parts of our lives [for] the reduced rent," said Calvenn.

They also have to move every time a place sells, with just about a month's notice, and maintain a spotless home in the meantime.

"You have to keep it clean and model home-ish," said Crystena Starre, a stay-at-home mom to her three kids. "We got to teach the kids, 'We need to put things away.'"

For homeowners, Showhomes is piece of mind that costs just .5% to 1.25% of the list price (this can vary and decreases the longer a home stays on the market).

Radiologist Bernie Schupbach first worked with Showhomes in Fox Valley, Ill., when he put his home on the market six years ago.

"I was living probably 20 miles away, and it was hard to get down to check on it," explained Schupbach. "There was always ongoing concern of a water pipe breaking or animal infestation or vandalism in the interim between visits."

Schupbach didn't have to worry about finding and vetting renters -- or about the state of his home before it sold.

"We only communicated with [the home managers] if there was a problem," said Schupbach.

Related: Facebook launched my startup

Schupbach's home was on the market for several years during the recession. It ultimately sold for around $500,000, and he had such a good experience that he employed Showhomes to stage his new home for buyers (which is the other half of the company's business).

And while Kelton says one man was a home manager for 15 years, moving from home to home, the majority do it for a much shorter period of time because of the "nomadic lifestyle" it requires.

As for the Starres, the wealth of knowledge they've acquired from living in different San Diego neighborhoods has helped them narrow down where they want to put down roots. They soon plan to purchase their own home.

First Published: August 11, 2014: 10:10 AM ET


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Corporate America's 'report cards' are strong

corporate america Second quarter earnings and sales have been better than expected.

NEW YORK (CNNMoney)

The quarterly "report cards" from Corporate America are honor roll quality.

About 90% of the companies in the S&P 500 have reported earnings so far for the second quarter. Nearly three quarters of them were better than expected. That's a very high percentage, and it's being driven largely by performance.

In the end, earnings are expected to be up 9.9% over last year, according to S&P Capital IQ, which compiles estimates from Wall Street analysts.

That would represent a significant improvement over the first quarter, when earnings rose just 3.4%. The "polar vortex" weather put a damper on economic activity, and therefore corporate profits, in the first three months of the year.

Some of the biggest surprises in the second quarter were in the health care industry. Tenet Health Care (THC), Gilead Sciences (GILD), Hospira (HSP)and Biogen Idec (BIIB) were among the standouts in terms of earnings. Certain telecommunications companies, such as AT&T (T, Tech30), had less spectacular results.

It's been 1,043 days since the last stock market correction

The better-than-expected batch of earnings is also remarkable because analysts did not drastically lower their forecasts in the run up to earnings season.

"It's not as if the bar was extremely low," said Art Hogan, chief market strategist at Wunderlich Securities.

Back in January, analysts expected earnings to increase 10.3% in the second quarter. That forecast was lowered to 6.6% by July, but was still relatively optimistic compared with past quarters.

However, the real surprise has been at the "top line" of companies' balance sheets.

Among the companies that have reported so far, 64% had sales figures that exceeded analysts' expectations. That percentage is well above the average of 55% over the past four years, according to FactSet.

Sales aren't exploding per se, but revenue is expected to have increased 4.9% in the second quarter, up from 3.9% in the first quarter.

Companies have been struggling with tepid revenue growth in the years since the Great Recession. Many have resorted to cost cutting in order to maintain profitability. Now, the hope is that earnings will be supported by actual sales growth.

Related: The 'Disney economy' is back

"It's been an exceptionally strong earnings season from a growth -- revenue as well -- standpoint," Dan Greenhaus, chief market strategist at BTIG, wrote in a note to clients. That's "ironic given how poorly stocks have traded of late," he added.

The Dow Jones industrial average has tumbled more than 3% in recent weeks since hitting its most recent all-time high on July 16. The Dow rebounded on Friday and is up on Monday, but investors have clearly been rattled by intensifying conflicts in Iraq and Israel, as well as a showdown between Russia and the West over Ukraine.

Related: How to stay safe in a scary market

But the outlook for U.S. stocks is still bullish, according to Bob Browne, chief investment officer for Northern Trust. He expects earnings to grow at least 8% over the next 12 months, which should help support stock prices going forward.

In addition, he said stocks are trading at "reasonable valuations" and should continue to benefit from the Federal Reserve's low interest rate policy.

The S&P 500 currently trades at 15 times next year's earnings estimates, which is in-line with the long-term average. In other words, stocks aren't cheap, but they're not expensive either.

At the same time, the Fed is not expected to hike interest rates until the middle of next year, though some investors belive it could happen sooner. The central bank's stimulus policies have been a big driver of the five year-old bull market in stocks.

First Published: August 11, 2014: 11:53 AM ET


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