- Henry Blodget at Daily Ticker17 hrs ago
Apple (AAPL) reports earnings Wednesday after the market close. Wall Street is not expecting particularly impressive results. The focus of most Apple investors appears to be on the new products Apple is expected to roll out in the second half of this year.
And those products are indeed critical for the company and its stock price.
A few years ago, Apple was one of the greatest growth stories in the stock market. For more than a decade, the company astounded Wall Street with one smashing quarter after another. Eventually, Apple's lead in smartphones and tablets seemed insurmountable, and Apple's stock price soared above $700 per share.
But then the premium smartphone market hit maturity, and smaller, cheaper tablets began to gobble up more and more market share.
And now Apple is no longer a growth company.
- Nicole Goodkind at Daily Ticker19 hrs ago
Characters like Jordan Belfort (the DiCaprio-depiction) and Gordon Gekko fill the big screen and young minds with dreams of Wall Street grandeur and luxury. And maybe once-upon-a-time working for a big bank was full of such excess, but today, says Kevin Roose, it’s less about a spoil of riches and more about long hours and thankless work.
Roose followed eight young Wall Street hopefuls over the course of three years for his book "Young Money." What he found was that the job wasn’t quite what they expected it to be. “It wasn’t anything like The Wolf of Wall Street,” he says.
“It was like a dystopian nightmare. They got there and were immediately thrust into these jobs where they were working sometimes 100 to 110 hours a week. There’s a thing called the bankers 9-to-5…where you show up for work at 9am and you don’t leave until the next day at 5am.”
- Morgan Korn at Daily Ticker21 hrs ago
To make it far in Hollywood, one needs talent, looks and a good agent. Some of Hollywood's biggest stars have been able to secure multi-millions for movie projects that otherwise would have netted them only a small fortune. Take A-list celeb Sandra Bullock, for instance. Her Oscar-nominated performance in "Gravity" earned her rave reviews...and an estimated $70 million paycheck. Bullock was paid $20 million upfront for her role in Alfonso Cuaron's space thriller and then received a big cut of the movie's box office receipts; "Gravity" took in $710 million worldwide.
Bullock's decision to forgo her usual salary in exchange for back end points is not unusual: Bruce Willis, Cameron Diaz, Johnny Depp, Keanu Reeves and Tom Hanks have also reaped huge financial rewards for clever contracts.
"If you’re really an A-list star and you’ve got negotiating clout...you can share in the pot of gold," says Adam Markovitz, senior writer at Entertainment Weekly, in the video above.
- Nicole Goodkind at Daily Ticker1 day ago
Home values in more than 1,000 U.S. cities are expected to surpass their pre-2008 levels within the year, according to a new report released today by Zillow.
"It's definitely a mixed bag of news,” says Humphries in the video above. “On the one hand you’re happy that home prices are recovering so nicely. On the other hand home values were definitely overvalued in 2006 and the fact that just so shortly after the greatest housing recession of the century we’re already seeing a lot of metros return to their peak levels is a sign for how robust the recovery is...but some markets are definitely in danger of overheating again.”
He continues: "In some markets, people are spending more of their incomes on a mortgage than they did during the 15 years before the housing runoff," says Humphries. "Broadly speaking though, at a national level we think homes are still very affordable."
- Bernice Napach at Daily Ticker1 day ago
There is "absolutely no doubt" in Thomas Piketty's mind that increased inequality in the U.S. contributed to the financial crisis that slammed the housing and financial markets in 2007 and 2008. The author of this year's hot-selling economics book, Capital in the Twenty-First Century,writes, "One consequence of increasing inequality was virtual stagnation of the purchasing power of the lower and middle classes in the United States, which inevitably made it more likely that modest households would take on debt, especially since unscrupulous banks and financial intermediaries .... offered credit on increasingly generous terms."
- Lauren Lyster at Daily Ticker1 day ago
French economist Thomas Piketty has been making many headlines in the U.S. with his message that income inequality is not going away and will probably get worse.
Nobel Prize winner Robert Shiller says the U.S. should take action now to protect against this future scenario by indexing income taxes to inequality. He outlined his proposal this month in The New York Times.
"Some measure of inequality is necessary in any functioning capitalist economy," he says in the video above. "The risk is that it will get much worse in the future."
- Aaron Task at Daily Ticker1 day ago
By his own admission, Thomas Piketty is "better about analyzing the past than the future" and says his much ballyhooed book Capitalism in the Twenty-First Century is "primarily a book about the history of wealth."
But the Paris School of Economics professor has touched a nerve -- The New York Times says he is getting "rock star" treatment -- largely because of the policy prescriptions he's recommending to address rising income inequality, not for providing a 700-page history lesson.
- Lauren Lyster at Daily Ticker4 days ago
> The markets head into the week after taking a breather from the selloff. After hitting a two-month low, last week the Dow (^DJI) rose 2.4% posting the biggest weekly gain since December. Meanwhile, the S&P 500 rose 2.7% (^GSPC) posting the best weekly gain since July. And embattled sectorsof the market including biotech and Internet stocks climbed more than 3%.