1. Start early
More than any one stock or mutual fund pick, the age you start investing will determine how much wealth you build. To illustrate: Employee A starts putting away $100 a month when she's 22. Her money grows at 8 percent a year, and after ten years she stops contributing - and lets her stake grow. Employee B waits until he's 32 to set aside $100 a month, also growing at 8 percent a year, and he keeps it up until he hits 64. When they both retire at 64, she will have $234,600, and he'll have only $177,400. Need we say more?
Thursday, December 14, 2006
American Century Equity Income
American Century Equity Income
Phil Davidson, co-manager of the American Century Equity Income fund, mentions "downside" so often that you might start to think he needs some Zoloft in his coffee. But Davidson isn't dour - he's merely obsessed with avoiding stocks that are ripe for a tumble.Davidson and his co-managers are willing to buy solid stocks of all sizes for their $6.2 billion mostly large-cap portfolio, as long as they find that margin of safety. They also mix in some convertible securities for added income and lower volatility. That kind of conservatism makes the portfolio less likely to keep up during torrid bull runs, but it also serves to limit losses, a key to long-term outperformance. The fund's worst loss in any one calendar year was a 5 percent slide in 2002, a year when the average large-value fund sank 18 percent. Over the past ten years, the fund has gained nearly 13 percent a year, with dollar-weighted returns of nearly 12 percent.Limited risk is one big reason the managers have loaded up on shares of General Electric. The bluest of blue chips has a AAA balance sheet and carries a 2.8 percent dividend yield. That's why Davidson is only too happy to hold on to GE, his top holding, for the long term. "The probability of success with this investment is so high that I don't care if it goes sideways for another year," says Davidson.
Phil Davidson, co-manager of the American Century Equity Income fund, mentions "downside" so often that you might start to think he needs some Zoloft in his coffee. But Davidson isn't dour - he's merely obsessed with avoiding stocks that are ripe for a tumble.Davidson and his co-managers are willing to buy solid stocks of all sizes for their $6.2 billion mostly large-cap portfolio, as long as they find that margin of safety. They also mix in some convertible securities for added income and lower volatility. That kind of conservatism makes the portfolio less likely to keep up during torrid bull runs, but it also serves to limit losses, a key to long-term outperformance. The fund's worst loss in any one calendar year was a 5 percent slide in 2002, a year when the average large-value fund sank 18 percent. Over the past ten years, the fund has gained nearly 13 percent a year, with dollar-weighted returns of nearly 12 percent.Limited risk is one big reason the managers have loaded up on shares of General Electric. The bluest of blue chips has a AAA balance sheet and carries a 2.8 percent dividend yield. That's why Davidson is only too happy to hold on to GE, his top holding, for the long term. "The probability of success with this investment is so high that I don't care if it goes sideways for another year," says Davidson.
Scraping by on $150,000 a year
Scraping by on $150,000 a year
The Schuetts have an enviable income. So why are they having a hard time making ends meet? Plus: How you can do better.
By Josh Hyatt, Money Magazine senior writer
December 14 2006: 11:08 AM EST
NEW YORK (Money Magazine) -- If she thought it would really fix her family's finances, Amy Schuett would make it her New Year's resolution to squeeze every bit of extra spending from the family budget.
But she's already slashed so many little luxuries - the gourmet coffee, the restaurant lunches, the weekly dates with husband Brian - that she's fresh out of ideas. Cable TV? Unplugged. Pool membership? Down the drain.
They've even considered giving up their unlisted phone number. At a cost of $3 a month, this move wouldn't save much - even over, say, 150 years - but it shows how desperate the couple feel about easing their financial strain. "We're struggling week to week to get by," says Brian, 42. "Any money that comes in gets chewed up right away."
Digesting that fact becomes harder when you consider that the Schuetts earn a comfortable living, with Amy, 39, pulling in $150,000 a year as a hospital psychiatrist. True, their income did take a big hit last summer when Brian got laid off from his job as a sales rep for a pharmaceutical firm (he'd been making a base salary of $82,000 a year, plus commissions as high as $24,000).
And they do have four daughters to raise, ages four to nine. But still.
The Schuetts don't have any child-care bills (Brian is now a stay-at-home dad). They don't have credit-card debt. They don't splurge on fancy vacations. And they live in a nice but definitely not luxurious home on a three-acre plot in Elkhorn, Neb., just west of Omaha, where the cost of living is, well, livable.
Yet, says Amy, "We live from one paycheck to the next, we're struggling to save and we never seem to have enough money to do anything fun."
It's a statement that an awful lot of Americans can make these days. About two-thirds of families need their next paycheck to meet their living expenses, according to a recent survey by the American Payroll Association.
While many claim to be clueless about where all their money is going, it's often easy enough for an objective observer to figure out. After all, easy credit makes blowing bucks at the mall (or anywhere else) painless - at least until you find yourself mired in high-interest debt.
And once your lifestyle has been lifted, it becomes utterly unthinkable to live without satellite radio, TiVo, iTunes and Netflix. And is any suburban clan complete without a monstrous SUV in the driveway? (It can't fit in the garage.)
If, like the Schuetts, you're determined to stop living for every payday and start saving, these strategies should help.
Automatic savings: Take it off the top
There's only one thing that stands between the average person and the discipline needed to save on a regular basis: human nature. When it comes to money, "we tend to spend as much as we have," says Susan Kaplan, a financial planner in Newton, Mass.
So take self-discipline out of the equation by enrolling in automatic investing plans through your employer and financial services providers; you tell them how much to deduct from your paycheck or checking account, and the money will be shifted every month into investments of your choice without further ado from you. In effect, you make the discipline of saving your money someone else's job.
Set targets for how much you should be saving for various goals through these automatic investing plans, then slowly work your way up to the goal.
Financial planner Bonnie Hughes, for instance, suggests that you aim to have at least 10 percent of your income directed to a 401(k) or similar retirement account (15 percent would be ideal); 4 percent in a savings account or money-market fund designated for emergencies (you can stop once the account is equal to six months' worth of your living expenses); and another $100 a month going into 529 plans for each of your kids.
The important thing, though, is just to get started with a different way of thinking about money: From this day forward, you will treat saving like a bill and make it the first one you pay each month. And you will no doubt find yourself automatically adjusting your spending downward as a result.
Kaplan notes, "If you never have the money at hand, you can't spend it."
Target big expenses
Some cutbacks, of course, will be necessary to accommodate your now lofty savings goals. Most people trying to break the paycheck-to-paycheck habit focus, as the Schuetts have, on the "latte factor" - the little luxuries (like a daily dose of java at Starbucks) that add up over time.
Don't fool yourself. Small economies are just that: small. If you're really serious about getting a handle on spending, you need to identify the big-ticket drains on your cash flow - and there are always one or two - and do what you must to plug those holes.
If you're honest with yourself, you probably already know what you're spending a small fortune on.
Net Worth: How do you stack up?
Maybe it's extracurriculars for the kids (try adding up the cost of piano lessons and the private math tutor, not to mention sleepaway camp).
Or maybe it's your twiceyearly vacations (winter in the Caribbean? an Alaskan cruise last summer?).
But whether you're genuinely clueless about where your money goes or just don't want to face up to the prospect of giving up or cutting back on something that matters a lot to you, consider avoidance time officially over. Carve out an hour or two to sit down with your spouse to go through your check register and your year-end credit- and debit-card summaries to see what big, discretionary expenses leap out at you. Then talk seriously about what you both can and should do to whittle those bills down.
A closer look at the Schuetts' finances reveals, for example, that a big chunk of their income is eaten up by two rental properties. Brian purchased them thinking they'd generate extra income, but he has yet to find tenants. Even when the properties are finally occupied, the area's softening rental market probably won't allow them to make enough to cover carrying costs.
Meanwhile, the two houses are expected to appreciate only about 3 percent a year - the couple can do better than that with Treasuries (bonds, at least, will never need expensive new wiring).
But the Schuetts haven't had a heart-to-heart about selling the properties yet because Brian has been so keen on making them work. "Our strategy has been to practice 'avoidance,'" says Amy. "But you don't have to be a psychiatrist to see that."
Tackle the beast head on
Once you've identified your budget busters, you have to devise a plan to cut them down to size. Don't try to deal with every aspect of the problem at once - a prospect so overwhelming that you're doomed to fail.
Instead, St. Paul financial consultant Ruth Hayden suggests scheduling weekly meetings for, say, half an hour to talk about just one slice of the financial challenge or task at hand.
Millionaire Calculator
During the Schuetts' first meeting, for example, the couple might discuss whether they want to keep or sell their rental properties and, if they decide to stick with landlording, what specific steps they should take to improve their chances of turning a profit.
The second meeting might focus on setting up those automatic savings plans (Amy stopped contributing to her 401(k) when cash got tight; the Schuetts don't have college funds for the girls yet either).
At the third session, they can talk about other systems they can use to help them economize. One simple trick, Hayden suggests, is to earmark cash in separate envelopes at the beginning of the week for expenses like takeout food and dry-cleaning; when the envelope is empty, you can't shell out any more on that item.
"It forces you to plan how you'll spend," says Hayden.
Boost your top line
After you've reined in spending to shore up your bottom line, it's worth thinking about how to fatten the top one. Can you make a reasonable case - either to your current employer or to a prospective poacher - that you're due for a raise?
What about taking on some freelance work to make extra money? Amy Schuett, for instance, says she could agree to an occasional speaking engagement or consulting job. Brian plans to ask two friends who own a home remodeling business if they'd consider giving him some part-time work.
Budget for some fun
"The feeling that you can never get ahead can be demoralizing," says Kaplan. So make sure in your zeal to spend less and save more, you still allow yourself a few expenditures that bring your family real pleasure. You just need to figure out in advance how you'll pay for them.
Last year, for instance, Brian's parents gave the Schuetts a horse named Red for their kids to ride. They think it will cost a few hundred dollars a month to feed and care for the animal, and they're willing to give up ballet lessons and gymnastics classes for the girls to pay for it.
The trade-off is worth it, says Brian, because "the kids so love having a horse."
In fact, Amy has already got a name if they get a second horse: Buttercup. "We'll probably have to wait a while for that," says Brian. "We've got another beast to tame first."
The Schuetts have an enviable income. So why are they having a hard time making ends meet? Plus: How you can do better.
By Josh Hyatt, Money Magazine senior writer
December 14 2006: 11:08 AM EST
NEW YORK (Money Magazine) -- If she thought it would really fix her family's finances, Amy Schuett would make it her New Year's resolution to squeeze every bit of extra spending from the family budget.
But she's already slashed so many little luxuries - the gourmet coffee, the restaurant lunches, the weekly dates with husband Brian - that she's fresh out of ideas. Cable TV? Unplugged. Pool membership? Down the drain.
They've even considered giving up their unlisted phone number. At a cost of $3 a month, this move wouldn't save much - even over, say, 150 years - but it shows how desperate the couple feel about easing their financial strain. "We're struggling week to week to get by," says Brian, 42. "Any money that comes in gets chewed up right away."
Digesting that fact becomes harder when you consider that the Schuetts earn a comfortable living, with Amy, 39, pulling in $150,000 a year as a hospital psychiatrist. True, their income did take a big hit last summer when Brian got laid off from his job as a sales rep for a pharmaceutical firm (he'd been making a base salary of $82,000 a year, plus commissions as high as $24,000).
And they do have four daughters to raise, ages four to nine. But still.
The Schuetts don't have any child-care bills (Brian is now a stay-at-home dad). They don't have credit-card debt. They don't splurge on fancy vacations. And they live in a nice but definitely not luxurious home on a three-acre plot in Elkhorn, Neb., just west of Omaha, where the cost of living is, well, livable.
Yet, says Amy, "We live from one paycheck to the next, we're struggling to save and we never seem to have enough money to do anything fun."
It's a statement that an awful lot of Americans can make these days. About two-thirds of families need their next paycheck to meet their living expenses, according to a recent survey by the American Payroll Association.
While many claim to be clueless about where all their money is going, it's often easy enough for an objective observer to figure out. After all, easy credit makes blowing bucks at the mall (or anywhere else) painless - at least until you find yourself mired in high-interest debt.
And once your lifestyle has been lifted, it becomes utterly unthinkable to live without satellite radio, TiVo, iTunes and Netflix. And is any suburban clan complete without a monstrous SUV in the driveway? (It can't fit in the garage.)
If, like the Schuetts, you're determined to stop living for every payday and start saving, these strategies should help.
Automatic savings: Take it off the top
There's only one thing that stands between the average person and the discipline needed to save on a regular basis: human nature. When it comes to money, "we tend to spend as much as we have," says Susan Kaplan, a financial planner in Newton, Mass.
So take self-discipline out of the equation by enrolling in automatic investing plans through your employer and financial services providers; you tell them how much to deduct from your paycheck or checking account, and the money will be shifted every month into investments of your choice without further ado from you. In effect, you make the discipline of saving your money someone else's job.
Set targets for how much you should be saving for various goals through these automatic investing plans, then slowly work your way up to the goal.
Financial planner Bonnie Hughes, for instance, suggests that you aim to have at least 10 percent of your income directed to a 401(k) or similar retirement account (15 percent would be ideal); 4 percent in a savings account or money-market fund designated for emergencies (you can stop once the account is equal to six months' worth of your living expenses); and another $100 a month going into 529 plans for each of your kids.
The important thing, though, is just to get started with a different way of thinking about money: From this day forward, you will treat saving like a bill and make it the first one you pay each month. And you will no doubt find yourself automatically adjusting your spending downward as a result.
Kaplan notes, "If you never have the money at hand, you can't spend it."
Target big expenses
Some cutbacks, of course, will be necessary to accommodate your now lofty savings goals. Most people trying to break the paycheck-to-paycheck habit focus, as the Schuetts have, on the "latte factor" - the little luxuries (like a daily dose of java at Starbucks) that add up over time.
Don't fool yourself. Small economies are just that: small. If you're really serious about getting a handle on spending, you need to identify the big-ticket drains on your cash flow - and there are always one or two - and do what you must to plug those holes.
If you're honest with yourself, you probably already know what you're spending a small fortune on.
Net Worth: How do you stack up?
Maybe it's extracurriculars for the kids (try adding up the cost of piano lessons and the private math tutor, not to mention sleepaway camp).
Or maybe it's your twiceyearly vacations (winter in the Caribbean? an Alaskan cruise last summer?).
But whether you're genuinely clueless about where your money goes or just don't want to face up to the prospect of giving up or cutting back on something that matters a lot to you, consider avoidance time officially over. Carve out an hour or two to sit down with your spouse to go through your check register and your year-end credit- and debit-card summaries to see what big, discretionary expenses leap out at you. Then talk seriously about what you both can and should do to whittle those bills down.
A closer look at the Schuetts' finances reveals, for example, that a big chunk of their income is eaten up by two rental properties. Brian purchased them thinking they'd generate extra income, but he has yet to find tenants. Even when the properties are finally occupied, the area's softening rental market probably won't allow them to make enough to cover carrying costs.
Meanwhile, the two houses are expected to appreciate only about 3 percent a year - the couple can do better than that with Treasuries (bonds, at least, will never need expensive new wiring).
But the Schuetts haven't had a heart-to-heart about selling the properties yet because Brian has been so keen on making them work. "Our strategy has been to practice 'avoidance,'" says Amy. "But you don't have to be a psychiatrist to see that."
Tackle the beast head on
Once you've identified your budget busters, you have to devise a plan to cut them down to size. Don't try to deal with every aspect of the problem at once - a prospect so overwhelming that you're doomed to fail.
Instead, St. Paul financial consultant Ruth Hayden suggests scheduling weekly meetings for, say, half an hour to talk about just one slice of the financial challenge or task at hand.
Millionaire Calculator
During the Schuetts' first meeting, for example, the couple might discuss whether they want to keep or sell their rental properties and, if they decide to stick with landlording, what specific steps they should take to improve their chances of turning a profit.
The second meeting might focus on setting up those automatic savings plans (Amy stopped contributing to her 401(k) when cash got tight; the Schuetts don't have college funds for the girls yet either).
At the third session, they can talk about other systems they can use to help them economize. One simple trick, Hayden suggests, is to earmark cash in separate envelopes at the beginning of the week for expenses like takeout food and dry-cleaning; when the envelope is empty, you can't shell out any more on that item.
"It forces you to plan how you'll spend," says Hayden.
Boost your top line
After you've reined in spending to shore up your bottom line, it's worth thinking about how to fatten the top one. Can you make a reasonable case - either to your current employer or to a prospective poacher - that you're due for a raise?
What about taking on some freelance work to make extra money? Amy Schuett, for instance, says she could agree to an occasional speaking engagement or consulting job. Brian plans to ask two friends who own a home remodeling business if they'd consider giving him some part-time work.
Budget for some fun
"The feeling that you can never get ahead can be demoralizing," says Kaplan. So make sure in your zeal to spend less and save more, you still allow yourself a few expenditures that bring your family real pleasure. You just need to figure out in advance how you'll pay for them.
Last year, for instance, Brian's parents gave the Schuetts a horse named Red for their kids to ride. They think it will cost a few hundred dollars a month to feed and care for the animal, and they're willing to give up ballet lessons and gymnastics classes for the girls to pay for it.
The trade-off is worth it, says Brian, because "the kids so love having a horse."
In fact, Amy has already got a name if they get a second horse: Buttercup. "We'll probably have to wait a while for that," says Brian. "We've got another beast to tame first."
Lehman profit tops forecasts
Lehman profit tops forecasts
Investment bank helped by increase in mergers, offerings and trading activity.
December 14 2006: 10:30 AM EST
NEW YORK (Reuters) -- Investment bank Lehman Brothers on Thursday said fiscal fourth-quarter profit rose 22 percent with record revenue from virtually every business line, but investors expecting even better results sent its shares down in premarket trade.
Lehman (Charts), the fourth-largest U.S. securities firm by market value, said net income rose to $1 billion, or $1.72 a share, for the three months ended Nov. 30, from $823 million, or $1.38, in the year-ago period. Net revenue rose 23 percent, to $4.5 billion.
Video
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AOL reaches a consumer complaint settlement in one state. CNN's Ali Velshi is `Minding Your Business' (December 14)
Play video
The results exceeded the average analyst earnings forecast of $1.68 a share, according to Reuters Estimates, but it did so by the smallest margin in six quarters. At the market open, Lehman shares rose 25 cents, to $76.70.
"The majority of the upside was driven by higher fixed-income trading results and M&A revenue, offset slightly by higher compensation and non-comp expenses," Citigroup brokerage analyst Prashant Bhatia said in a research note.
Wall Street firms in the quarter rebounded from a sluggish summer to cap off a record year amid robust M&A and leveraged buyout activity, stock and debt offerings and trading. For the year, Lehman reported record profit of $4 billion with all-time high revenue and a return on equity of 22.3 percent.
Lehman's trading revenue rose 28 percent to $3 billion, fueled by its second-best quarter ever in fixed income markets. Results were driven by customer activity and an increase in asset-based securities, muted by weaker interest rates and currency businesses.
It was a strong performance, surprising investors who still regard Lehman as a bond trading house with a heavy reliance on mortgage markets.
The equities business also had its second-best quarter, rising 8 percent to $900 million on greater market activity and growth in prime brokerage services to hedge funds. These results include private equity gains, which aren't disclosed.
Lehman's investment banking revenue rose 5 percent to a record $858 million, driven by strong debt and stock underwriting activity. Fees from merger and acquisitions, however, fell 7 percent even as the industry wraps up a record year in M&A activity.
Money management and wealth management revenue surged 26 percent to a record $640 million, as managed assets grew to $225 billion from $207 billion in the third quarter. Lehman's book value, watched closely by investors, rose 5 percent to $33.87 a share.
Analysts said Lehman's costs were higher then expected, with compensation and benefits comprising 49 percent of revenue. Salaries and bonuses, reflecting the tremendous growth in revenue, rose 24 percent to $2.24 billion.
Other expenses rose 15 percent, reflecting the company's expansion into new businesses and markets. Headcount worldwide surged 13 percent to 25,936 employees over the past year.
These results, though impressive, paled when compared with Goldman Sachs (Charts), which on Tuesday reported a 93 percent jump in quarterly profit, record annual earnings and an ROE of 34 percent. Bear Stearns (Charts), which also reported results Thursday, said its profit rose 38 percent.
Yet investors are growing more cautious as they look ahead, concerned that Wall Street earnings may have peaked.
"We understand 2006 has been such a great year for M&A, a great deal year," said Scott Armiger, a portfolio manager at Christiana Bank & Trust in Delaware. "We do see the economy slowing and that's got to factor in the investment banks' earnings next year."
Investment bank helped by increase in mergers, offerings and trading activity.
December 14 2006: 10:30 AM EST
NEW YORK (Reuters) -- Investment bank Lehman Brothers on Thursday said fiscal fourth-quarter profit rose 22 percent with record revenue from virtually every business line, but investors expecting even better results sent its shares down in premarket trade.
Lehman (Charts), the fourth-largest U.S. securities firm by market value, said net income rose to $1 billion, or $1.72 a share, for the three months ended Nov. 30, from $823 million, or $1.38, in the year-ago period. Net revenue rose 23 percent, to $4.5 billion.
Video
More video
AOL reaches a consumer complaint settlement in one state. CNN's Ali Velshi is `Minding Your Business' (December 14)
Play video
The results exceeded the average analyst earnings forecast of $1.68 a share, according to Reuters Estimates, but it did so by the smallest margin in six quarters. At the market open, Lehman shares rose 25 cents, to $76.70.
"The majority of the upside was driven by higher fixed-income trading results and M&A revenue, offset slightly by higher compensation and non-comp expenses," Citigroup brokerage analyst Prashant Bhatia said in a research note.
Wall Street firms in the quarter rebounded from a sluggish summer to cap off a record year amid robust M&A and leveraged buyout activity, stock and debt offerings and trading. For the year, Lehman reported record profit of $4 billion with all-time high revenue and a return on equity of 22.3 percent.
Lehman's trading revenue rose 28 percent to $3 billion, fueled by its second-best quarter ever in fixed income markets. Results were driven by customer activity and an increase in asset-based securities, muted by weaker interest rates and currency businesses.
It was a strong performance, surprising investors who still regard Lehman as a bond trading house with a heavy reliance on mortgage markets.
The equities business also had its second-best quarter, rising 8 percent to $900 million on greater market activity and growth in prime brokerage services to hedge funds. These results include private equity gains, which aren't disclosed.
Lehman's investment banking revenue rose 5 percent to a record $858 million, driven by strong debt and stock underwriting activity. Fees from merger and acquisitions, however, fell 7 percent even as the industry wraps up a record year in M&A activity.
Money management and wealth management revenue surged 26 percent to a record $640 million, as managed assets grew to $225 billion from $207 billion in the third quarter. Lehman's book value, watched closely by investors, rose 5 percent to $33.87 a share.
Analysts said Lehman's costs were higher then expected, with compensation and benefits comprising 49 percent of revenue. Salaries and bonuses, reflecting the tremendous growth in revenue, rose 24 percent to $2.24 billion.
Other expenses rose 15 percent, reflecting the company's expansion into new businesses and markets. Headcount worldwide surged 13 percent to 25,936 employees over the past year.
These results, though impressive, paled when compared with Goldman Sachs (Charts), which on Tuesday reported a 93 percent jump in quarterly profit, record annual earnings and an ROE of 34 percent. Bear Stearns (Charts), which also reported results Thursday, said its profit rose 38 percent.
Yet investors are growing more cautious as they look ahead, concerned that Wall Street earnings may have peaked.
"We understand 2006 has been such a great year for M&A, a great deal year," said Scott Armiger, a portfolio manager at Christiana Bank & Trust in Delaware. "We do see the economy slowing and that's got to factor in the investment banks' earnings next year."
Costco pulls plug on $4 drug plan
Discount warehouse says it was losing money on the program; will instead offer 100 pills for $10.
December 14 2006: 1:53 PM EST
CHICAGO (Reuters) -- Costco said Thursday it has stopped filling prescriptions at $4 for a 30-day supply, citing the costs, but instead is offering 100 pills for $10.
The warehouse club operator had initially matched Wal-Mart's (Charts) plan to sell certain generic drugs for $4 per 30-day prescription. Wal-Mart began its drug discount program in early September, which was matched by rival Target (Charts), among others.
Video
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CNN's Maggie Lake profiles Xerox's Anne Mulcahy. (December 11)
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But at that price, Costco (Charts) was losing money, Chief Financial Officer Richard Galanti said during a conference call with analysts, noting that just the cost of the pharmacist, the bottle and regulatory record keeping was more than $4.
Galanti conceded Costco could lose customers who insist on paying $4 per prescription. Still, under Costco's new program those customers with chronic ailments will ultimately pay 10 cents per pill, compared with about 13 cents per pill under the monthly $4 plan.
"We will certainly share with them what they are paying per pill for $10 by comparison," Galanti said, adding that "sometimes you have to deal with an intelligent loss of sales."
Galanti said customers could still buy 30-day prescriptions, but the price would be higher than $4.
December 14 2006: 1:53 PM EST
CHICAGO (Reuters) -- Costco said Thursday it has stopped filling prescriptions at $4 for a 30-day supply, citing the costs, but instead is offering 100 pills for $10.
The warehouse club operator had initially matched Wal-Mart's (Charts) plan to sell certain generic drugs for $4 per 30-day prescription. Wal-Mart began its drug discount program in early September, which was matched by rival Target (Charts), among others.
Video
More video
CNN's Maggie Lake profiles Xerox's Anne Mulcahy. (December 11)
Play video
But at that price, Costco (Charts) was losing money, Chief Financial Officer Richard Galanti said during a conference call with analysts, noting that just the cost of the pharmacist, the bottle and regulatory record keeping was more than $4.
Galanti conceded Costco could lose customers who insist on paying $4 per prescription. Still, under Costco's new program those customers with chronic ailments will ultimately pay 10 cents per pill, compared with about 13 cents per pill under the monthly $4 plan.
"We will certainly share with them what they are paying per pill for $10 by comparison," Galanti said, adding that "sometimes you have to deal with an intelligent loss of sales."
Galanti said customers could still buy 30-day prescriptions, but the price would be higher than $4.
Social Networks In For a Big 2007?
Remember when everyone still thought MySpace, Facebook and the whole social network scene was a nothing but a fad?
Marketers were reluctant to display their products over the new- fangled media and everyone kept waiting for the sites to fail.
They're still waiting, eMarkerter senior analyst Debra Williamson wrote in a report released today.
According to the report, advertising on social networks has become the top priority for online marketers.
The research firm is predicting that 2007 ad spending on US social networking sites will jump to $865 million from $350 million in 2006 a close to three-fold jump. By 2010, the report estimates, spending will reach $2.15 billion.
But Williamson said the growth could slide before then if social networks do not develop adequate measures of return on investment for their advertisers.
"The longer existing social networks take to develop adequate ROI metrics, the bigger the opening for a next generation of networks that are built from the ground up to accommodate advertising," Williamson said in the report.
The report said MySpace will lead the market and account for 60 percent of U.S. online social network ad spending in 2007, earning $525 million compared to $180 million in 2006.
The eMarketer report also contents that international expansion will play a key role in that growth.
Emarketer is not alone in its rosy view of social networking's money-making prospects. In September, RBC Capital markets analyst Jordan Rohan said MySpace might be worth $15 billion in three years.
It's numbers like those that helped spur Google to sign a $900 million deal with Fox Interactive to provide search and sell advertising for MySpace late last summer.
Marketers were reluctant to display their products over the new- fangled media and everyone kept waiting for the sites to fail.
They're still waiting, eMarkerter senior analyst Debra Williamson wrote in a report released today.
According to the report, advertising on social networks has become the top priority for online marketers.
The research firm is predicting that 2007 ad spending on US social networking sites will jump to $865 million from $350 million in 2006 a close to three-fold jump. By 2010, the report estimates, spending will reach $2.15 billion.
But Williamson said the growth could slide before then if social networks do not develop adequate measures of return on investment for their advertisers.
"The longer existing social networks take to develop adequate ROI metrics, the bigger the opening for a next generation of networks that are built from the ground up to accommodate advertising," Williamson said in the report.
The report said MySpace will lead the market and account for 60 percent of U.S. online social network ad spending in 2007, earning $525 million compared to $180 million in 2006.
The eMarketer report also contents that international expansion will play a key role in that growth.
Emarketer is not alone in its rosy view of social networking's money-making prospects. In September, RBC Capital markets analyst Jordan Rohan said MySpace might be worth $15 billion in three years.
It's numbers like those that helped spur Google to sign a $900 million deal with Fox Interactive to provide search and sell advertising for MySpace late last summer.
Technical Analysis: Stocks Stall Out
With the Nasdaq underperforming and the market turning choppy here, stocks may be set up to sell the news on the Fed meeting tomorrow, which would certainly be surprising, since there's little doubt about the outcome: no change in rates and the Fed remains on guard against inflation. The market appears to be a little disappointed that there's no rate cut coming in the near future, which may be the reason for the choppiness here. The Nasdaq (first chart below) is stuck in a very narrow range here: about 2452 to the upside, and 2430 to the downside. A break of either level should be worth a good move. The S&P (second chart) faces major resistance at 1421, and support is 1412, 1403-1404, 1400 and 1396. The Dow (third chart) remains stuck at 12,355-12,361 resistance, and support is 12,270, 12,240 and 12,200. Bond yields (fourth chart) are trying to recover from Friday's damage; tough talk on inflation could be good for bonds tomorrow.
P&G eyes stronger growth and fewer distribution spots
By Jessica Wohl
CHICAGO (Reuters) - Procter & Gamble Co. (PG.N: Quote, Profile , Research) said on Thursday that it should return to double-digit earnings per share growth in its next fiscal year and will cut the number of its distribution sites in half as it forges ahead with the integration of Gillette.
The company also stood by its sales and profit forecasts for the current fiscal second quarter as it met with analysts and investors at its headquarters in Cincinnati.
"I don't think there were any surprises to anyone," said SunTrust Robinson Humphrey analyst Bill Chappell, who attended Thursday's meeting.
Over the past few years, P&G has worked on expanding higher-margin businesses such as bringing the Olay line beyond skin lotions and creams into serums and peels. It has also worked on its relationships with retailers, moved some of its marketing spending away from television and taken a closer look at how to sell its products to lower income consumers, particularly in developing countries.
"These choices are paying off and our business is healthy," said Chief Financial Officer Clayt Daley during the company presentation, which was broadcast on the Internet.
At the same time, P&G has grown through acquisitions, most notably the October 2005 purchase of Gillette for $57 billion.
Shares of P&G, a component of the Dow Jones industrial average <.DJI> were up 15 cents to $63.55 after rising as high as $63.78 on the New York Stock Exchange.
Chappell said that while the company outlined how things are moving forward, such as plans for two new Gillette razors - a new version of Fusion for men and Venus Breeze for women - there were "no surprises, no real new information."
CHICAGO (Reuters) - Procter & Gamble Co. (PG.N: Quote, Profile , Research) said on Thursday that it should return to double-digit earnings per share growth in its next fiscal year and will cut the number of its distribution sites in half as it forges ahead with the integration of Gillette.
The company also stood by its sales and profit forecasts for the current fiscal second quarter as it met with analysts and investors at its headquarters in Cincinnati.
"I don't think there were any surprises to anyone," said SunTrust Robinson Humphrey analyst Bill Chappell, who attended Thursday's meeting.
Over the past few years, P&G has worked on expanding higher-margin businesses such as bringing the Olay line beyond skin lotions and creams into serums and peels. It has also worked on its relationships with retailers, moved some of its marketing spending away from television and taken a closer look at how to sell its products to lower income consumers, particularly in developing countries.
"These choices are paying off and our business is healthy," said Chief Financial Officer Clayt Daley during the company presentation, which was broadcast on the Internet.
At the same time, P&G has grown through acquisitions, most notably the October 2005 purchase of Gillette for $57 billion.
Shares of P&G, a component of the Dow Jones industrial average <.DJI> were up 15 cents to $63.55 after rising as high as $63.78 on the New York Stock Exchange.
Chappell said that while the company outlined how things are moving forward, such as plans for two new Gillette razors - a new version of Fusion for men and Venus Breeze for women - there were "no surprises, no real new information."
Lehman profit rises 22 percent
NEW YORK (Reuters) - Investment bank Lehman Brothers Holdings Inc. (LEH.N: Quote, Profile , Research) on Thursday said fiscal fourth-quarter profit rose 22 percent with record revenue from virtually every business line, but investors expecting even better results sent its shares down in premarket trade.
Lehman, the fourth-largest U.S. securities firm by market value, said net income rose to $1 billion, or $1.72 a share, for the three months ended November 30, from $823 million, or $1.38, in the year-ago period. Net revenue rose 23 percent, to $4.5 billion.
The results exceeded the average analyst earnings forecast of $1.68 a share, according to Reuters Estimates, but it did so by the smallest margin in six quarters. Lehman shares fell 1.8 percent to $75.01 in premarket trading.
Wall Street firms in the quarter rebounded from a sluggish summer to cap off a record year amid robust M&A and leveraged buyout activity, stock and debt offerings and trading. For the year Lehman reported record profit of $4 billion with all-time high revenue and a return on equity of 22.3 percent.
Lehman's investment banking revenue rose 5 percent to a record $858 million, driven by strong debt and stock underwriting activity. Fees from merger and acquisitions, however, fell 7 percent.
Trading revenue rose 28 percent to $3 billion, fueled by robust fixed income markets and the firm's second-best stock trading quarter.
Money management and wealth management revenue surged 26 percent to a record $640 million, as managed assets grew to $225 billion from $207 billion in the third quarter.
These impressive results, though, paled when compared with Goldman Sachs Group, which on Tuesday reported a 93 percent jump in quarterly profit, record annual earnings and an ROE of 34 percent.
Bear Stearns Cos. ( which also reported results Thursday, said its profit rose 38 percent.
Lehman's shares were up 19 percent this year, compared with a 13 percent advance by the benchmark
Lehman, the fourth-largest U.S. securities firm by market value, said net income rose to $1 billion, or $1.72 a share, for the three months ended November 30, from $823 million, or $1.38, in the year-ago period. Net revenue rose 23 percent, to $4.5 billion.
The results exceeded the average analyst earnings forecast of $1.68 a share, according to Reuters Estimates, but it did so by the smallest margin in six quarters. Lehman shares fell 1.8 percent to $75.01 in premarket trading.
Wall Street firms in the quarter rebounded from a sluggish summer to cap off a record year amid robust M&A and leveraged buyout activity, stock and debt offerings and trading. For the year Lehman reported record profit of $4 billion with all-time high revenue and a return on equity of 22.3 percent.
Lehman's investment banking revenue rose 5 percent to a record $858 million, driven by strong debt and stock underwriting activity. Fees from merger and acquisitions, however, fell 7 percent.
Trading revenue rose 28 percent to $3 billion, fueled by robust fixed income markets and the firm's second-best stock trading quarter.
Money management and wealth management revenue surged 26 percent to a record $640 million, as managed assets grew to $225 billion from $207 billion in the third quarter.
These impressive results, though, paled when compared with Goldman Sachs Group, which on Tuesday reported a 93 percent jump in quarterly profit, record annual earnings and an ROE of 34 percent.
Bear Stearns Cos. ( which also reported results Thursday, said its profit rose 38 percent.
Lehman's shares were up 19 percent this year, compared with a 13 percent advance by the benchmark
Bear Stearns profits rise on merger fees and debt
By Tim McLaughlin
NEW YORK (Reuters) - Bear Stearns Cos. (BSC.N: Quote, Profile , Research) said on Thursday quarterly net income soared 38 percent, helped by gains from fees for merger advice and underwriting debt.
A Wall Street powerhouse in packaging home loans into mortgage-backed bonds, Bear Stearns said it turned in its best quarter ever, easily beating Wall Street expectations. Shares rose nearly 3 percent after the investment bank recorded its fifth straight year of record profit.
Net income was $563 million, or $4 a diluted share, for the fourth quarter ended November 30, compared with $407 million, or $2.90 a diluted share, in the year-earlier quarter. The average estimate was $3.36 a share, according to Reuters Estimates.
Net revenue rose to $2.41 billion over the year-earlier period. Compensation expenses fell 2.6 percentage points to 43.6 percent of net revenue.
Prudential Equity Group analyst Michael Mayo said the lower than usual compensation expense may have helped earnings by as much as 33 cents per share. That was partly offset by a higher tax rate, driven by increased profits.
Investment banking net revenue climbed 58 percent to $364 million on higher underwriting and merger and acquisition transaction volumes.
Bear Stearns Chief Financial Officer Sam Molinaro said the company's M&A backlog was at a record level at the end of the quarter.
On a conference call, analysts expressed concern about exposure to the subprime mortgage market, which involves loaning money to people with spotty credit histories.
NEW YORK (Reuters) - Bear Stearns Cos. (BSC.N: Quote, Profile , Research) said on Thursday quarterly net income soared 38 percent, helped by gains from fees for merger advice and underwriting debt.
A Wall Street powerhouse in packaging home loans into mortgage-backed bonds, Bear Stearns said it turned in its best quarter ever, easily beating Wall Street expectations. Shares rose nearly 3 percent after the investment bank recorded its fifth straight year of record profit.
Net income was $563 million, or $4 a diluted share, for the fourth quarter ended November 30, compared with $407 million, or $2.90 a diluted share, in the year-earlier quarter. The average estimate was $3.36 a share, according to Reuters Estimates.
Net revenue rose to $2.41 billion over the year-earlier period. Compensation expenses fell 2.6 percentage points to 43.6 percent of net revenue.
Prudential Equity Group analyst Michael Mayo said the lower than usual compensation expense may have helped earnings by as much as 33 cents per share. That was partly offset by a higher tax rate, driven by increased profits.
Investment banking net revenue climbed 58 percent to $364 million on higher underwriting and merger and acquisition transaction volumes.
Bear Stearns Chief Financial Officer Sam Molinaro said the company's M&A backlog was at a record level at the end of the quarter.
On a conference call, analysts expressed concern about exposure to the subprime mortgage market, which involves loaning money to people with spotty credit histories.
Heartland poised for entrepreneurial growth
Thanks to a booming organic market and increased communication technology, there is good reason to think the American Heartland will be the next entrepreneurial frontier, according to a new report.
The report by the New America Foundation, Rebuilding America's Productive Economy: A Heartland Development Strategy, found that increasing demand for organic alternative biofuels is creating business opportunities in the Plains states, while technology advancements and lower costs of living are driving a population shift to support these Heartland businesses.
"In contrast to the picture of emptying towns and embattled farmers so often portrayed by the media, we see the Heartland as a potential hotbed of capitalist creation and innovation," wrote co-author Joel Kotkin, who is also an Inc. contributing editor.
Kotkin and co-author Delore Zimmerman point out two booming industries that are especially dependent on Middle America's ample acreage -- organic agriculture and biofuel.
Consumer interest in organic food is on the rise, according to the report. Between 1992 and 1997, certified organic cropland in the United States doubled to 1.3 million acres. By 2003, 2.3 million acres of cropland and pasture were devoted to organic production.
The states with the most organic cropland include North Dakota, Minnesota, Montana, Wisconsin, Colorado, and Iowa.
The demand for biofuels is also rising. Between 2000 and 2005, worldwide ethanol production jumped 165 percent to 12.2 billion gallons a year, and the production of biodiesel more than tripled to 790 million gallons.
The American Heartland is well-positioned to meet that demand as well. A 2005 report from the Department of Agriculture estimated that the United States has the land to produce 1.3 billion dry tons of biomass -- enough to supply 30 percent of the nation's current demand for transportation fuels
The report by the New America Foundation, Rebuilding America's Productive Economy: A Heartland Development Strategy, found that increasing demand for organic alternative biofuels is creating business opportunities in the Plains states, while technology advancements and lower costs of living are driving a population shift to support these Heartland businesses.
"In contrast to the picture of emptying towns and embattled farmers so often portrayed by the media, we see the Heartland as a potential hotbed of capitalist creation and innovation," wrote co-author Joel Kotkin, who is also an Inc. contributing editor.
Kotkin and co-author Delore Zimmerman point out two booming industries that are especially dependent on Middle America's ample acreage -- organic agriculture and biofuel.
Consumer interest in organic food is on the rise, according to the report. Between 1992 and 1997, certified organic cropland in the United States doubled to 1.3 million acres. By 2003, 2.3 million acres of cropland and pasture were devoted to organic production.
The states with the most organic cropland include North Dakota, Minnesota, Montana, Wisconsin, Colorado, and Iowa.
The demand for biofuels is also rising. Between 2000 and 2005, worldwide ethanol production jumped 165 percent to 12.2 billion gallons a year, and the production of biodiesel more than tripled to 790 million gallons.
The American Heartland is well-positioned to meet that demand as well. A 2005 report from the Department of Agriculture estimated that the United States has the land to produce 1.3 billion dry tons of biomass -- enough to supply 30 percent of the nation's current demand for transportation fuels
Want to be an eBay millionaire? Consider moving to NJ
An estimated 750,000 Americans now make all or part of their living on eBay -- and many of those online entrepreneurs hail from smaller towns, according to eBay's "Community Counts" project, which identified the site's most active communities.
During a three-week period in November, the online marketplace tracked how many times people from each ZIP code listed, sold, bid on, or bought items in auction. They also tracked participation in community forums and charitable activity through eBay Giving Works. Some 52 million of these activities took place during the study.
Based on the number of transactions per capita during the sample period, eight of the top 10 most active eBay communities are smaller towns. Lumberton, N.J., was the most active community, followed by Nashville, Tenn., Henderson, Nev., Las Vegas; Talpa, Texas, Graton, Calif., Farmington, Ky., Coaldale, Colo., Indian Trail, N.C., and Walnut, Ind.
"The eBay community has changed the economic fabric of America by enabling entrepreneurs to compete globally, no matter where they make their home," Bill Cobb, president of eBay North America said in a statement.
As a prize for being named No. 1 eBay Community for 2006, the company will host a celebration in Lumberton, N.J., and make a $10,000 contribution on behalf of the ZIP code's residents to a local charitable organization they choose from a list of possible beneficiaries.
During a three-week period in November, the online marketplace tracked how many times people from each ZIP code listed, sold, bid on, or bought items in auction. They also tracked participation in community forums and charitable activity through eBay Giving Works. Some 52 million of these activities took place during the study.
Based on the number of transactions per capita during the sample period, eight of the top 10 most active eBay communities are smaller towns. Lumberton, N.J., was the most active community, followed by Nashville, Tenn., Henderson, Nev., Las Vegas; Talpa, Texas, Graton, Calif., Farmington, Ky., Coaldale, Colo., Indian Trail, N.C., and Walnut, Ind.
"The eBay community has changed the economic fabric of America by enabling entrepreneurs to compete globally, no matter where they make their home," Bill Cobb, president of eBay North America said in a statement.
As a prize for being named No. 1 eBay Community for 2006, the company will host a celebration in Lumberton, N.J., and make a $10,000 contribution on behalf of the ZIP code's residents to a local charitable organization they choose from a list of possible beneficiaries.
Most small-businesses don't offer retirement benefits
Only 14 percent of the nation's small-business owners offer a 401(k) plan to their employees, and 63 percent do not offer any retirement benefits at all, according to a new survey.
And those levels do not appear headed for change. Just 17 percent of respondents said they feel a strong obligation to offer retirement benefits, and 46 percent said they felt no obligation, according to the study by Harris Interactive, a Rochester, N.Y., market-research firm and ShareBuilder, an online brokerage.
The survey found that owners who do not provide retirement benefits fail to do so for a variety of reasons. Fifty-four percent said they didn't have enough employees to make it worthwhile, 28 percent cited a financial inability to match contributions, and 26 percent blamed unstable business circumstances.
"Small businesses employ half of all private-sector employees in America and serve as our economy's growth engine," ShareBuilder CEO Jeff Seely said in a statement. "Given the rising cost of health care, uncertainty about Social Security, and longer life expectancy, it's imperative that America's small business owners understand their crucial role in addressing the looming retirement crisis."
However, some companies have found that shelling out for retirement benefits helps them compete for talent against bigger competitors. Guy Stone, president of Blue Tech, a San Diego-based IT-consulting firm, now offers a 401(k) with employer contribution for employees with tenures longer than three months. "We're at a very competitive point in the IT-services business, and we're always competing with large corporations," he said. "We have to match or exceed their benefits."
Stone agreed that offering such benefits is an increased burden for smaller firms, but less of a financial one than many might think.
"It's the time commitment more than anything else," Stone said. "Someone needs to implement it, keep track of it all, and advise employees on what they can and cannot do."
And those levels do not appear headed for change. Just 17 percent of respondents said they feel a strong obligation to offer retirement benefits, and 46 percent said they felt no obligation, according to the study by Harris Interactive, a Rochester, N.Y., market-research firm and ShareBuilder, an online brokerage.
The survey found that owners who do not provide retirement benefits fail to do so for a variety of reasons. Fifty-four percent said they didn't have enough employees to make it worthwhile, 28 percent cited a financial inability to match contributions, and 26 percent blamed unstable business circumstances.
"Small businesses employ half of all private-sector employees in America and serve as our economy's growth engine," ShareBuilder CEO Jeff Seely said in a statement. "Given the rising cost of health care, uncertainty about Social Security, and longer life expectancy, it's imperative that America's small business owners understand their crucial role in addressing the looming retirement crisis."
However, some companies have found that shelling out for retirement benefits helps them compete for talent against bigger competitors. Guy Stone, president of Blue Tech, a San Diego-based IT-consulting firm, now offers a 401(k) with employer contribution for employees with tenures longer than three months. "We're at a very competitive point in the IT-services business, and we're always competing with large corporations," he said. "We have to match or exceed their benefits."
Stone agreed that offering such benefits is an increased burden for smaller firms, but less of a financial one than many might think.
"It's the time commitment more than anything else," Stone said. "Someone needs to implement it, keep track of it all, and advise employees on what they can and cannot do."
New search engine gives fast, easy access to info
IBM and Yahoo have partnered to provide a search engine for small businesses. Using Yahoo's search interface, the engine works within a business' internal network in order to give small and midsize businesses fast and easy access to their own information.
The engine can be used to search within the company's network, including databases and data-management systems, but also to search the regular Internet.
The service stands as a direct challenge to enterprise search software sold by Google and similar products offered by Microsoft, Oracle, and SAP.
Launched December 13, the basic search engine is free, but IBM plans to charge for advanced-search tools.
Personalized Gift Cards
With the holiday season in full swing, MasterCard Worldwide has unveiled a new online service that allows small businesses to personalize gift cards with their company logos.
Introduced December 12 at MasterCardGiftCard.com, the gift cards can also be customized to include the recipient's name and an embossed message, and are available in any denomination from $10 to $500.
"We know that small-business owners are always looking for creative ways to positively showcase their business," Bruno Perreault, the head of MasterCard's Global Small Business and Mid-Sized Enterprises group, said in a statement. The gift cards are a "direct and easy way" to do that, he said.
The engine can be used to search within the company's network, including databases and data-management systems, but also to search the regular Internet.
The service stands as a direct challenge to enterprise search software sold by Google and similar products offered by Microsoft, Oracle, and SAP.
Launched December 13, the basic search engine is free, but IBM plans to charge for advanced-search tools.
Personalized Gift Cards
With the holiday season in full swing, MasterCard Worldwide has unveiled a new online service that allows small businesses to personalize gift cards with their company logos.
Introduced December 12 at MasterCardGiftCard.com, the gift cards can also be customized to include the recipient's name and an embossed message, and are available in any denomination from $10 to $500.
"We know that small-business owners are always looking for creative ways to positively showcase their business," Bruno Perreault, the head of MasterCard's Global Small Business and Mid-Sized Enterprises group, said in a statement. The gift cards are a "direct and easy way" to do that, he said.
Stressed-out parents cost companies $300 billion
By not adapting to the needs of working parents, U.S. employers might be losing as much as $300 billion a year in lost productivity, new research shows.
In a survey of 1,755 working parents nationwide, one in 20 said they were severely impacted by concerns about after-school childcare, according to researchers at Brandeis University and Catalyst, a New York-based non-profit research firm.
There are about 53 million parents in today's workforce, Labor Department figures show.
The level of stress they feel at work can manifest itself in everything from minor workplace disruptions to lower job satisfaction, and can be "very toxic to employee attitudes, work performance, and well-being," said Karen Gareis, a social psychologist who led the study.
The study found parents who work longer hours, have greater responsibility for childcare at home, or whose children spend more unsupervised time risk the highest stress levels.
Since older children were more likely to spend unsupervised time after school, parents tended to worry more about them and less about children in kindergarten though grade 5, the study found. Though working mothers were slightly more prone to worry about their children, workplace stress generally cuts across gender, racial, and ethnic lines, the study found.
Stress over after-school care is an "equal-opportunity issue," Ilene Lang, the president of Catalyst, said in a statement.
By contrast, parents with low stress levels were those who felt they had more control over their work schedules, or have a partner whose work schedule allowed them to be home after school, the study found.
In a survey of 1,755 working parents nationwide, one in 20 said they were severely impacted by concerns about after-school childcare, according to researchers at Brandeis University and Catalyst, a New York-based non-profit research firm.
There are about 53 million parents in today's workforce, Labor Department figures show.
The level of stress they feel at work can manifest itself in everything from minor workplace disruptions to lower job satisfaction, and can be "very toxic to employee attitudes, work performance, and well-being," said Karen Gareis, a social psychologist who led the study.
The study found parents who work longer hours, have greater responsibility for childcare at home, or whose children spend more unsupervised time risk the highest stress levels.
Since older children were more likely to spend unsupervised time after school, parents tended to worry more about them and less about children in kindergarten though grade 5, the study found. Though working mothers were slightly more prone to worry about their children, workplace stress generally cuts across gender, racial, and ethnic lines, the study found.
Stress over after-school care is an "equal-opportunity issue," Ilene Lang, the president of Catalyst, said in a statement.
By contrast, parents with low stress levels were those who felt they had more control over their work schedules, or have a partner whose work schedule allowed them to be home after school, the study found.
New search engine gives fast, easy access to info
IBM and Yahoo have partnered to provide a search engine for small businesses. Using Yahoo's search interface, the engine works within a business' internal network in order to give small and midsize businesses fast and easy access to their own information.
The engine can be used to search within the company's network, including databases and data-management systems, but also to search the regular Internet.
The service stands as a direct challenge to enterprise search software sold by Google and similar products offered by Microsoft, Oracle, and SAP.
Launched December 13, the basic search engine is free, but IBM plans to charge for advanced-search tools.
Personalized Gift Cards
With the holiday season in full swing, MasterCard Worldwide has unveiled a new online service that allows small businesses to personalize gift cards with their company logos.
Introduced December 12 at MasterCardGiftCard.com, the gift cards can also be customized to include the recipient's name and an embossed message, and are available in any denomination from $10 to $500.
"We know that small-business owners are always looking for creative ways to positively showcase their business," Bruno Perreault, the head of MasterCard's Global Small Business and Mid-Sized Enterprises group, said in a statement. The gift cards are a "direct and easy way" to do that, he said.
The engine can be used to search within the company's network, including databases and data-management systems, but also to search the regular Internet.
The service stands as a direct challenge to enterprise search software sold by Google and similar products offered by Microsoft, Oracle, and SAP.
Launched December 13, the basic search engine is free, but IBM plans to charge for advanced-search tools.
Personalized Gift Cards
With the holiday season in full swing, MasterCard Worldwide has unveiled a new online service that allows small businesses to personalize gift cards with their company logos.
Introduced December 12 at MasterCardGiftCard.com, the gift cards can also be customized to include the recipient's name and an embossed message, and are available in any denomination from $10 to $500.
"We know that small-business owners are always looking for creative ways to positively showcase their business," Bruno Perreault, the head of MasterCard's Global Small Business and Mid-Sized Enterprises group, said in a statement. The gift cards are a "direct and easy way" to do that, he said.
Princess Diana's death not murder: police
By Paul Majendie and Mark Trevelyan
LONDON (Reuters) - Princess Diana was not the victim of a murder plot when she and her lover died in a tragic car accident in 1997, a British police inquiry found on Thursday.
Diana's death triggered a string of conspiracy theories that British spies or even her ex-husband, heir-to-the-throne Britain's Prince Charles, had plotted the accident because her relationship with Dodi al Fayed was embarrassing the royal household.
"On the evidence available now, there was no conspiracy to murder any of the occupants of that car. This was a tragic accident," former police chief John Stevens said after a three-year investigation. I'm satisfied that no attempt has been made to hold back information and we are confident that the allegations made are unfounded," he said.
Echoing the findings of a French probe into the accident, Stevens said tests showed the limousine's chauffeur Henri Paul had been drinking before the high speed crash in a Paris road tunnel.
Diana's sons, Princes William and Harry, said in a statement that they "trust these conclusive findings will end speculation surrounding the death of their mother".
Stevens told reporters Diana was not pregnant when she died and "was not engaged and was not about to get engaged".
The death of the "People's Princess", the world's most photographed woman, sparked an outpouring of grief in Britain. Queen Elizabeth and the royal family were harshly criticized for not openly sharing the national sense of loss.
LONDON (Reuters) - Princess Diana was not the victim of a murder plot when she and her lover died in a tragic car accident in 1997, a British police inquiry found on Thursday.
Diana's death triggered a string of conspiracy theories that British spies or even her ex-husband, heir-to-the-throne Britain's Prince Charles, had plotted the accident because her relationship with Dodi al Fayed was embarrassing the royal household.
"On the evidence available now, there was no conspiracy to murder any of the occupants of that car. This was a tragic accident," former police chief John Stevens said after a three-year investigation. I'm satisfied that no attempt has been made to hold back information and we are confident that the allegations made are unfounded," he said.
Echoing the findings of a French probe into the accident, Stevens said tests showed the limousine's chauffeur Henri Paul had been drinking before the high speed crash in a Paris road tunnel.
Diana's sons, Princes William and Harry, said in a statement that they "trust these conclusive findings will end speculation surrounding the death of their mother".
Stevens told reporters Diana was not pregnant when she died and "was not engaged and was not about to get engaged".
The death of the "People's Princess", the world's most photographed woman, sparked an outpouring of grief in Britain. Queen Elizabeth and the royal family were harshly criticized for not openly sharing the national sense of loss.
FACTBOX-Five facts about Sen. Tim Johnson
Reuters) - U.S. Sen. Tim Johnson, a South Dakota Democrat, was hospitalized on Wednesday after suffering a possible stroke, Johnson's office said.
Following are five facts about Johnson, 59.
* Johnson graduated from the University of South Dakota with Phi Beta Kappa academic honors and went on to earn a master's degree in Public Administration and a law degree from there.
* After Johnson completed his graduate studies at South Dakota, he worked as a budget analyst for the Michigan State Senate Appropriations Committee. Three years after starting his own law practice, Johnson was elected to the South Dakota House of Representatives in 1978 and then re-elected in 1980. After serving in the state House for four years, Johnson ran for the state Senate and was elected in 1982 and 1984.
* Johnson was elected to the U.S. House of Representatives in 1986. He served as South Dakota's congressman for five terms before being elected to the Senate in 1996. He serves on the Senate Appropriations Committee, the Senate Budget Committee, the Senate Banking Committee, the Senate Energy and Natural Resources Committee, and the Senate Indian Affairs Committee.
* In 2004, Johnson battled prostate cancer. After surgery, all tests showed him clear of the disease.
(Source: www.johnson.senate.gov)
Following are five facts about Johnson, 59.
* Johnson graduated from the University of South Dakota with Phi Beta Kappa academic honors and went on to earn a master's degree in Public Administration and a law degree from there.
* After Johnson completed his graduate studies at South Dakota, he worked as a budget analyst for the Michigan State Senate Appropriations Committee. Three years after starting his own law practice, Johnson was elected to the South Dakota House of Representatives in 1978 and then re-elected in 1980. After serving in the state House for four years, Johnson ran for the state Senate and was elected in 1982 and 1984.
* Johnson was elected to the U.S. House of Representatives in 1986. He served as South Dakota's congressman for five terms before being elected to the Senate in 1996. He serves on the Senate Appropriations Committee, the Senate Budget Committee, the Senate Banking Committee, the Senate Energy and Natural Resources Committee, and the Senate Indian Affairs Committee.
* In 2004, Johnson battled prostate cancer. After surgery, all tests showed him clear of the disease.
(Source: www.johnson.senate.gov)
FACTBOX-US senator's condition is rare and dangerous
(Reuters) - U.S. Democratic Sen. Tim Johnson was in critical condition on Thursday after undergoing brain surgery for a rare condition, congenital arteriovenous malformation.
-- A congenital arteriovenous malformation occurs when the arteries connect directly to the veins in a part of the brain, without a cushion of tiny capillaries to slow the flow of blood from the arteries.
-- When they burst and bleed, they often kill patients before they can get to the hospital.
-- Quick surgery can stop the bleeding and prevent brain damage.-- Like an aneurysm, these malformations cause few or no symptoms unless they burst. They can occasionally cause headaches or seizures.
-- Corrective treatment closes the connection, sending blood to stronger vessels in the brain. Full recovery is possible.
-- A congenital arteriovenous malformation occurs when the arteries connect directly to the veins in a part of the brain, without a cushion of tiny capillaries to slow the flow of blood from the arteries.
-- When they burst and bleed, they often kill patients before they can get to the hospital.
-- Quick surgery can stop the bleeding and prevent brain damage.-- Like an aneurysm, these malformations cause few or no symptoms unless they burst. They can occasionally cause headaches or seizures.
-- Corrective treatment closes the connection, sending blood to stronger vessels in the brain. Full recovery is possible.
Key Sen. Johnson in critical condition
By Richard Cowan and Thomas Ferraro
WASHINGTON (Reuters) - Democratic Sen. Tim Johnson was in critical condition on Thursday after brain surgery, the U.S. Capitol physician said, an illness that could deprive Democrats of their precarious hold on the incoming Senate.
The party narrowly wrested control from President George W. Bush's Republicans in the U.S. Congress in last month's elections, gaining just a 51-49 majority in the Senate when it convenes in three weeks.
However, if Johnson, 59, were to leave office, Republicans could gain control of the Senate, leaving Vice President Dick Cheney in the key position of breaking tie votes."We're all praying for a full recovery, we're confident that will be the case," Senate Democratic leader Harry Reid told reporters.
Adm. John Eisold, attending physician of the United States Capitol, said Johnson had undergone brain surgery for a rare and often fatal condition, and was in critical condition. He said it was not known whether more surgery would be needed.
"Senator Tim Johnson was found to have had an intracerebral bleed caused by a congenital arteriovenous malformation," Eisold said in a statement. "The senator is recovering without complication. ... It is premature to determine whether further surgery will be required or to assess any long-term prognosis."
He did not say if Johnson was in a coma or where in the brain the malformation was found.
Johnson, who had prostate surgery in 2004, was taken to George Washington University Hospital on Wednesday with stroke-like symptoms after he verbally stumbled and seemed confused in a radio interview with reporters.
WASHINGTON (Reuters) - Democratic Sen. Tim Johnson was in critical condition on Thursday after brain surgery, the U.S. Capitol physician said, an illness that could deprive Democrats of their precarious hold on the incoming Senate.
The party narrowly wrested control from President George W. Bush's Republicans in the U.S. Congress in last month's elections, gaining just a 51-49 majority in the Senate when it convenes in three weeks.
However, if Johnson, 59, were to leave office, Republicans could gain control of the Senate, leaving Vice President Dick Cheney in the key position of breaking tie votes."We're all praying for a full recovery, we're confident that will be the case," Senate Democratic leader Harry Reid told reporters.
Adm. John Eisold, attending physician of the United States Capitol, said Johnson had undergone brain surgery for a rare and often fatal condition, and was in critical condition. He said it was not known whether more surgery would be needed.
"Senator Tim Johnson was found to have had an intracerebral bleed caused by a congenital arteriovenous malformation," Eisold said in a statement. "The senator is recovering without complication. ... It is premature to determine whether further surgery will be required or to assess any long-term prognosis."
He did not say if Johnson was in a coma or where in the brain the malformation was found.
Johnson, who had prostate surgery in 2004, was taken to George Washington University Hospital on Wednesday with stroke-like symptoms after he verbally stumbled and seemed confused in a radio interview with reporters.
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