Meet CNNMoney's new Tech 30 stock index

The CNNMoney Tech 30 index measures the performance of 30 major technology stocks around the world.

NEW YORK (CNNMoney) Meet the CNNMoney Tech 30: an index of the most important tech stocks.

The goal of the Tech 30 is to give CNNMoney readers a daily look at how shares of the most influential technology companies are faring.

The editors and writers of CNNMoney's technology team picked the 30 companies. To qualify, the stocks had to have shares publicly traded in the United States that are easy for the average investor to buy. (Sorry, Samsung!)

The Tech 30 is a mix of the industry's giants, such as Amazon (AMZN, Fortune 500), Apple (AAPL, Fortune 500), Cisco (CSCO, Fortune 500), Facebook (FB, Fortune 500), Google (GOOG, Fortune 500) and Microsoft (MSFT, Fortune 500).

But we also included Chinese tech titans Baidu (BIDU) and Sina (SINA), European heavyweights SAP (SAP) and ARM Holdings (ARMH) and leaders in more specialized industries such as video game companies Activision Blizzard (ATVI) and Electronic Arts (EA), security firm Symantec (SYMC, Fortune 500) and online travel king Priceline (PCLN, Fortune 500).

Check out the entire CNNMoney Tech 30 portfolio

The pure-tech focus differs from other tech stock barometers. The Nasdaq, for example, is often cited as a "tech index" but only 42% of the composite is made up of tech companies. The S&P 500 Information Technology index includes several stocks that aren't typically considered at the cutting edge of tech, such as MasterCard (MA, Fortune 500), money transfer service Western Union (WU, Fortune 500) and consulting firm Accenture (ACN).

To track the performance of the Tech 30 index, we "invested" $1,000 in play money in each of the 30 stocks on January 2, 2014. So the baseline for the index is $30,000.

The CNNMoney Tech 30! portfolio page displays values for both the index as a whole and the specific stocks. The graphic at the top of the page measures the stocks' performance relative to one another from the beginning of the year. The bubbles for the better-performing stocks will appear larger.

We don't plan to make regular changes to the Tech 30. But if a current Tech 30 company is acquired or goes private, we'll replace it by "investing" in a different stock.

We may also choose to add shares of newly public companies when appropriate. Twitter (TWTR), for example, was not on our original list when we first started thinking about creating the index last summer. But we knew we had to add Twitter to the Tech 30 once it filed for its initial public offering.

We'll include the Tech 30's performance in our daily market writes as well as in stories from our investing and technology writers about these 30 companies.

Check out the CNNMoney Tech 30 here.

Mega Millions Lottery Jumps to $550 Million: What to Do If You Win

The Mega Millions lottery drawing for the whopping $425 million produced no winners for the huge jackpot on Friday night. Friday the 13th did not get to shed its superstitious image of bad luck. The winning numbers of 19 – 24 – 26 – 27 – 70 – 12 were simply not matched. Now the new jackpot will rise up to a massive $550 million.

The last two jumps were up from $400 million and $344 million prior to that. Amazingly, this new $550 million lotto is still just the second largest jackpot ever for the Mega Millions lotto. If a winner for the full amount hits, then they will have the opportunity to take a lump sum cash payment of $295 million, or they can take 30 annual payments of roughly $18.3 million.

24/7 Wall St. wants to remind our readers that winning a vast fortune of this magnitude also brings the need for great responsibility. We have created a simple plan of what instant winners should (and should not do) in twelve steps if they happen to be lucky enough to win a vast fortune such as this.

There are some serious pitfalls for many lotto winners. In fact, it seems ironic to think that problems can arise after winning hundreds of millions of dollars. Can you imagine ending up bankrupt in a few short years? Believe it or not, many lotto winners have lost most of their money or even gone bankrupt just a few years after winning.

The record for the Mega Millions is up at $656 million. That jackpot on March 30, 2012, was split by three winning tickets in Illinois, Kansas and Maryland.

We cannot emphasize enough how important it is for lotto winners to take action and be mindful of pitfalls. Our own 12-step program for lotto winners is intended to be the first-step guide on how to protect your newly won empire. This pertains also to people who unexpectedly inherit large sums of money, win lawsuits with huge judgments, or who come into fortunes in short periods of time. We have evaluated what to do for tax purposes and financial and personal security, as well as what not go splurge on, and many other things.

Strauss: Do ‘old school’ start-ups still work?

Q: Hi Steve – I have an idea for a business, but I also get that the start-up landscape these days seems to be evolving rapidly -- now it seems like it is all about social media, mobility and so on. That is not really my thing. Do you think I can still make a go of it if my start-up is more "old school"? -- Vic

A: Old school is old school for a reason: It usually has stood the test of time and works.

Around here, there in only one thing that we love more than old school, and that is the blending of old school with new school. In other words, what seems to work best is using time-tested ideas and strategies, applying them, and then taking the best of what is the latest and greatest to forge an amalgam that is uber-strong.

One person who really gets that is Subrah Iyar.

In 1996, Iyar co-founded a small company that aimed to solve the growing need for Web conferencing. Back then, the problem for such a business was the lack of bandwidth to handle such a platform (yes, I can hear the dial-up modem squeaking and crackling right now!) But, as the new century was dawning, broadband started to come online, and Subrah Iyar's business began to take hold, obtaining $25 million in funding in 1999.

But even so, no less a competitor than Microsoft sought to enter the field in 2003, buying a big Web conferencing company that year. Yet Subrah and his partner had done things the right way, their small business was small no longer, and they handled the challenge.

Iyar was at least a little nervous, right? Wrong. "It didn't get too scary, because I knew we had done everything based on fundamentals," he says.

Four years later, the fundamentals paid off as they sold WebEx to Cisco Systems for $3.2 billion.

So when Subrah Iyar tells me that start-ups are both the same, and different, than when he started out almost 20 years ago, we are wise to listen, especially because he is at it again, this time with another cool new startup: Moxtra.

Is he trying to remake the desktop! experience again? Of course not. How '90s. No, Moxtra is a mobile app that allows people to share, collaborate, and "interact" with their content (for example, if you are doing a home remodel, Moxtra would allow you, your mate, and your contractors to store, share and update content in real time.)

When I asked him to elaborate on what is different today from the start-up environment back in the '90s, Subrah told me that, while there is more competition today, that is a good thing; it forces one to really think about how to best serve the customer and and to come up with superior solutions for those customers. "It is a different world in a very positive way," he said. Other important changes to consider:

• Making sure that your start-up is mobile ready.

• Understanding that consumers today have more choices, less time, and a greater ability to compare.

But some things are not different. So what still works? Consider:

• "Trust your judgment," this entrepreneur advises. "Have a vision and believe in it. Work to avoid following the latest trends."

• "Don't just "find" a great team, "develop" one."

• "Be sure that you have an intimate knowledge of your own customers and their needs."

In the end, Iyar explained that what is great about entrepreneurship is the chance to come up with an idea, manifest that idea, and get people to use it. "It is a very creative process."

Especially if you do it right.

Today's Tip: Deloitte recently released its annual survey of consumer holiday spending intentions and trends. Polling more than 5,000 U.S. consumers on their expectations for the upcoming season, the survey found:

• Holiday spending is up: Shoppers plan to spend $421 on an average of 12.9 holiday gifts, up 9% from $386 last year.

• The Internet is the top shopping destination: For the first time, the Internet outpaces other shopping spots; 47% of shoppers expect to shop online this year.

Steve Strauss is a lawyer specializi! ng in sma! ll business and entrepreneurship. E-mail him at sstrauss@mrallbiz.com or visit TheSelfEmployed. You can read previous columns, which appear on Mondays, here.

Can Boeing’s Profit Margins Stay Aloft?

Shares of Boeing (BA) have taken off today after the airplane maker reported better-than-expected earnings on strong profits in its commercial-aircraft division. Can they stay aloft?

Associated Press

The Wall Street Journal has the details on Boeing’s earnings:

Boeing reported a profit of $1.16 billion, or $1.51 a share, up from $1.03 billion, or $1.35 a share, a year earlier. Core operating earnings—which adjusts to exclude pension components related to market fluctuations and other items—rose to $1.80 from $1.55. Revenue increased 11% to $22.1 billion.

Analysts polled by Thomson Reuters recently expected per-share earnings of $1.55 and revenue of $21.69 billion…

For the year, the company raised its per-share earnings estimate to $6.50 to $6.65, from its previously increased estimate for a per-share profit of $6.20 to $6.40. Boeing also affirmed its revenue view.

Boeing credited strong sales of commercial jets to emerging markets, which are building up their fleets to tap into travel by their rising middle class, and in Europe and the U.S, where airlines are upgrading their old airplanes. Margins in its commercial jet division rose to 11.9%, well ahead of Boeing’s own guidance.

Sterne Agee’s Peter Arment and Josh Sullivan applaud the commercial division’s results and thinks Boeing’s shares can head higher:

As expected, 3Q13 EPS beat but even more impressive was BCA margins exceeded expectations despite ramping deliveries of low margin 787s. The power of BA’s cash generation also began to show through in 3Q13 with $2.3 billion of free cash flows. Simple takeaway is stay long BA and we remain buyers at current levels given our long-term targets as the operating performance continues to provide upside to expectations…

There are several catalysts still in front of BA, such as the 777X launch, the 787-10 orders coupled with extension of the 787 accounting block, and a new buyback authorization. BA continued its  repurchase program in 3Q13 with 7.6 million shares totaling $0.8 billion (current buyback plan totals $1.5 billion-$2 billion in 2013 vs. $1.8 billion now deployed). This commitment taps into the existing $3.5 billion authorization, which is likely reset towards the end of the year as BA completes its milestones for 2013. The 777X launch will occur in November.

RBC Capital Markets’ Robert Stallard acknowledges the strong numbers, but has some concerns:

The very strong BCA margin in the quarter, way ahead of Boeing guidance, is the key positive surprise in these results - and likely to prompt questions as to whether this is a ‘one off’, or whether such levels can be sustained going forward. With the focus on cash, investors are likely to be happy that Boeing is still doing a good job on cash generation, but with the mountain getting bigger we think investor would welcome a step up in the deployment of cash going forward. The boost in the 787 rate has been widely discussed in the past, though given that it doesn’t kick in till 2016, the benefits of this remains some way off.

Stallard rates Boeing, which has gained 69% this year, a neutral.

Boeing has risen 4.2% to $127.65 today, while jet maker Embraer (ERJ) has advanced 2.4% to $33.77 and BAE System (BAESY) has dropped 0.4%. Lockheed Martin (LMT) has ticked up 0.5% to $130.67 and Northrop Grumman (NOC) has jumped 3.7% to $105.25.

Citi sags after announcing mortgage layoffs

NEW YORK (MarketWatch) — Financial stocks sagged on Tuesday, with Citi among the biggest decliners as the lender indicated it was scaling back its mortgage business.

Citigroup (C)  fell, following its announcement late Monday that it will cut 1,000 jobs in its U.S. mortgage business. The cuts are just a small proportion of Citi's overall workforce – it had 253,000 employees as of June 30 – but they're part of a longer pattern. One year ago, Citi had 261,000 workers.

It's a familiar template throughout the entire industry, actually. The mega banks have been cutting jobs across the board to try to goose profits in a time of mediocre revenue growth. Citi said this round of job cuts comes because fewer people are applying for mortgages and refinancings as interest rates rise.

Click to Play Ex-UBS executive under fire over Libor testimony

Alex Wilmot-Sitwell, a former UBS executive, is under fire for testimony he gave to a Parliamentary committee about the Libor scandal.

Citi dipped 43 cents, or 0.9%, to $49.14.

More broadly, the Financial Select Sector SPDR fund (XLF)  fell 0.3%.

Elsewhere in the sector, Twitter plans to list on the New York Stock Exchange when it goes public, according to a report on TheStreet.com. That could be a painful snub to arch-rival Nasdaq (NDAQ)  , the stock exchange that likes to bill itself as the favorite of tech companies.

Though many stock exchanges have been hurt by technical glitches that have made some investors question how safe their money is, Nasdaq had to eat an especially public slice of humble pie last year when the much-ballyhooed public offering of Facebook (FB)   went haywire. That offering, in May 2012, locked out some would-be investors and left others holding shares they didn't want.

NYSE officials never miss a chance to delight in the mistakes of their rival, at least privately, though it's worth noting that the NYSE is itself being dramatically reshaped. The two-centuries-old stock exchange, symbolized by its ornate building at the corner of Wall and Broad, has struggled to stay relevant as high-speed computers replace guys in colored jackets. The NYSE is being bought by a much younger rival, Atlanta-based IntercontinentalExchange, or ICE (ICE)  .

Nasdaq shares actually were higher on the day, up 0.4%. ICE shares slipped 0.1%.

Goldman Sachs (GS)  also fell, losing 0.3%. Goldman is advising Applied Materials on its plans to buy Tokyo Electron Ltd. in an all-stock deal.

Microsoft Paying for Apple's Next Product Cycle

NEW YORK (TheStreet) -- Microsoft (MSFT) recently announced that it will pay at least $200 in in-store credit for an iPad trade-in. While the stipulations vary, it just goes to show that Apple (AAPL) has such a tight grip on the tablet market, competitors are willing to pay for its customers, instead of winning them over the old-fashioned way.

By offering $200, many consumers that have the older iPad models, may be willing to give Microsoft's Surface tablet a shot. [Read: Google's Android Tablets: The Achilles Heel]

However, it may be easy to forget that the Surface has not exactly been a successful tablet thus far. In July it was revealed that Microsoft would be taking a $900 million write-off on its Surface RT inventory. In other words, the consumers aren't really fans.

Now, those same consumers that weren't buying the Surface -- and were instead buying iPads -- can get paid to give Microsoft a second chance. But is that really a good idea, ahead of Apple's impending iPad refresh? Of course not. While there was plenty of hype leading up to the recent iPhone event on Sept. 10, the potentially upcoming iPad event later this fall is, for the most part, being overlooked. While some may still be seething over Apple's seemingly sluggish response to bring new products to the market, it would be a lie to say the new iPhones weren't pretty awesome. They're fast, sleek, sexy and powerful. With fingerprint technology and a 64-bit processor, it's something the market's never seen before. The iPads, I can imagine, won't be any less thrilling. On top of all the new gizmos and technologies is an improved operating system. I think this is actually very important. [Read: Can Gen Y Shake Its Bad Rap at Work?] By creating iOS 7 and having it integrated among all of its mobile devices, Apple is entrenching its users even deeper into its lucrative and enticing ecosystem. When I write an article on my iMac, I can quickly find it on my iPad or iPhone via iCloud. When I want to listen to a song or look at a picture, the iCloud makes it all that much easier to share my own information with myself, however silly that may sound.

But back to my main point: Microsoft is going to drive post-iPad customers willing to try something new, right back into Apple's arms.

By offering the trade-in credit, some open-minded individuals will likely give the Surface a shot, acknowledging that their iPad is feeling a little dated. Trying a non-iOS product and attempting to integrate it into their iOS lives will not likely be a pleasant experience. [Read: US Airways' Biggest Union Wants Contracts Before It Backs Merger]

I'm not saying this as an Apple "fan boy" or whatever some will call it -- I'm sure I'll hear it in the comments section. Surely, some who make the switch will ultimately stay with Microsoft. That's inevitable. But the obvious fact remains: Microsoft had to write down nearly $1 billion worth of its old tablets because they couldn't sell them!

Now, they're paying people to give it shot, an act that will likely end as bad as its first attempt with the Surface. Perhaps even worse. People want premium. People want the best. Apple continues to let the rest of tech slug it out for the low-cost marketshare, while many consumers continue to crave the iPad. Now that it's offering iWork and iLife for free, it gives consumers an even bigger reason to crave the ecosystem. Everything ties together so easily. Those open-minded enough to give the idea of switching a chance, will find themselves dumping their Microsoft tablets just in time to start buying the new iPads. [Read: TV Consolidation Will Only Accelerate, Moody's Says] Microsoft got it wrong the first time, what could have changed? It will be interesting to see how much it writes down next year on the Surface 2. At the time of publication the author was long shares of AAPL. Follow @BretKenwell This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

Bret Kenwell currently writes, blogs and also contributes to Robert Weinstein's Weekly Options Newsletter. Focuses on short-to-intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

Video Game Console Hype Already Too High Before Console Launches?

It is very well known that the video game sector is about to get an entire refresh cycle. Sony Corp. (NYSE: SNE) is launching a new PlayStation and Microsoft Corp. (NASDAQ: MSFT) is about to launch the Xbox One, which is really the Xbox 3. What is interesting is that video game sales themselves are still soft, yet the publishers are almost all making serious gains as well. We cannot help but wonder, if you look at the massive share gains, whether investors have simply priced in all the good news.

It is no secret to investors that a new video game console refresh cycle will bring massive boosts to video game spending. After all, it is getting close to a decade since any serious video game console upgrade cycle has been seen from Xbox and PlayStation. We are even seeing that the freemium games that rose to power during and after the recession have become diluted, and there are so many that it is hard to differentiate for buyers.

Sony Corp. (NYSE: SNE) is an ADR and its upgrade cycle win might be more tied to Abenomics and TV hopes as well as other issues. Ditto for Micrososft Corp. (NASDAQ: MSFT). But now take a look at GameStop Corp. (NYSE: GME). Its stock skyrocketed after earnings, as it is not going to be circumvented in a download-only mode for gaming consoles yet. Its stock is now back up above $50, which is more than 150% from its lows seen in the past year, and its stock was dead and buried for years. This is a post-recession high, and we cannot just say that it is a strong stock market.

Activision Blizzard Inc. (NASDAQ: ATVI) is the new king of video games, with WoW and Call of Duty being chased by many other titles in its portfolio. This stock finally broke out of a long-term trading range, and at $16.80, it almost looks like its stock “went on sale” when you consider a 52-week high of $18.43. That being said, its market cap of $18.8 billion stands out to any observer as very high. This king of gamers trades at 13 times expected 2014 earnings.

Electronic Arts Inc. (NASDAQ: EA) is the former king of video games. Suddenly, its stock is back above $27, also up more than 150% from its 52-week low. This is a perpetual turnaround, and now new investors deciding to buy shares are gambling that this chart breakout has legs that could take it back to $40 or even $50. Amazingly, that is where the stock was before the wheels blew out here. EA is worth about $8.5 billion again, and its is valued currently at about 18 times expected 2014 earnings.

Take-Two Interactive Software Inc. (NASDAQ: TTWO) is another breakout chart, hitting a 52-week high of $19.00 on Thursday, also a post-recession high. The hype here is based on the next Grand Theft Auto release for the new gaming consoles. The new GTA should be a top seller, and the best seller ever for its series. The $1.6 billion market cap actually sounds almost cheap by comparison to the rest of the crowd. If you blend the earnings estimates ahead, it trades at close to 11 times forward earnings estimates.

The last of the would-be larger winners from the video game console refresh cycle is Advanced Micro Devices Inc. (NYSE: AMD). Nothing went right for years and years here, yet suddenly AMD finds its processors leading the charge to the point where everyone is overlooking that the PC business stinks for the distant number-two processor company. AMD shares trade just over $4 and have more than doubled off the lows of the past year. Its market cap is not even quite at $3 billion, but 2014 is expected to reverse losses. That being said, AMD trades at about 26 times expected 2014 earnings.

On the death of freemium games, we would call this more of a serious watering down rather than a death. Zynga Inc. (NASDAQ: ZNGA) investors may dispute this, now that the stock is under $3 after having been above $10 after its late-2011 IPO. Nothing has gone right for Zynga, and things are boring enough that investors only now are pointing out that a floor may be in place because of its mountain of cash. The company is just trying to maintain whatever user base it can.

New video game investors have to weigh the runs already seen off the major floors that were put in place. There are many other companies that are in the mix as well.

U.S. Stocks Fluctuate After Weekly Decline Amid Japan GDP

U.S. stocks fell, giving the Standard & Poor's 500 Index its fifth drop in six sessions, as data showed a slowdown in Japan's economic growth and investors awaited tomorrow's report on America's retail sales.

Tesla Motors Inc. declined 3.7 percent as Lazard Capital Markets LLC downgraded the carmaker's shares. Sysco Corp. fell 5.8 percent after results missed analysts' estimates. Apple Inc. advanced 2.8 percent after winning a patent-infringement battle against Samsung Electronics Co. BlackBerry (BBRY) Ltd. rallied 10 percent as the company's board said it is exploring alternatives, including a possible sale.

The S&P 500 (SPX) fell 0.1 percent to 1,689.47 at 4 p.m. in New York, extending its loss from a record high to 1.2 percent. The Dow Jones Industrial Average declined 5.83 points, or less than 0.1 percent, to 15,419.68. About 5 billion shares changed hands on U.S. exchanges, 20 percent below the three-month average.

"We have growth frustratingly low offset by discount rates that are unnaturally low," Joe Costigan, director of equity research at Bryn Mawr Trust Co. in Bryn Mawr, Pennsylvania, said in a phone interview. His firm oversees $6.7 billion. "As long as that's the case, the market will stay locked at least into September and you'll see days like this with low volume and really not a lot of conviction."

The S&P 500 declined 1.1 percent last week, its biggest drop in seven weeks, and the Dow dropped 1.5 percent in the period, snapping a string of six weekly advances, amid growing speculation the Federal Reserve will pare bond purchases this year as the economy strengthens.

S&P Rally

The S&P 500 has rallied 18 percent so far in 2013 and closed at a record 1,709.67 on Aug. 2. The index is trading at 15.3 times projected earnings, up from 13.1 times on the first trading day of this year. That compares with a five-year average of 13.9 times, data compiled by Bloomberg show.

Better-than-estimated corpor! ate earnings and central bank stimulus, including record-low borrowing rates, have helped equities rally, with the S&P 500 surging more than 150 percent from its bear-market low in 2009.

Of the 450 companies in the S&P 500 that have reported quarterly results this period, 72 percent have exceeded analysts' profit estimates, with earnings rising 2.8 percent, data compiled by Bloomberg show.

"We've seen a rally with a multiple expansion and not necessarily earnings growth," Jeff Schwarte, a money manager who helps oversee about $290 billion in Des Moines, Iowa, at Principal Global Investors, said by phone. "We need to see earnings, we need to see some resolution on tapering."

Economic Data

Investors have been scrutinizing economic data to determine whether growth is strong enough for the Fed to curtail its monthly bond buying. A Commerce Department report tomorrow will show that retail sales rose for a fourth consecutive month in July, economists surveyed by Bloomberg predicted. A Fed release on Aug. 15 may show factories, mines and utilities increased their output in July. On Aug. 16, reports will probably show that housing starts and building permits rebounded last month.

In Asia, government reports showed Japan's gross domestic product growth slowed from the first quarter to a pace below economists' forecasts while Chinese factor production increased a higher-than-expected 9.7 percent in July.

Stock swings have narrowed. The S&P 500's average intraday price changes averaged about 0.7 percent over the past 30 days, the smallest fluctuation since a comparable period ended Feb. 21, data compiled by Bloomberg.

The Chicago Board Options Exchange Volatility Index, or VIX, retreated 4.5 percent to 12.81. The equity volatility gauge reached its 2013 peak in June and has since dropped 37 percent.

Weighing Penalties

Seven of 10 main groups in the S&P 500 fell today, with utility and energy stocks sinking at least 0.5 perc! ent to le! ad the retreat.

JPMorgan Chase & Co. lost 0.8 percent to $54.09, the stock's seventh straight decline. Prosecutors are weighing penalties for the bank, including a fine and a reprimand, related to allegations staff tried to conceal losses last year, the New York Times reported. The U.S. may announce charges as early as this week against former London-based employees, a person familiar with the matter said.

Tesla (TSLA) slumped 3.7 percent to $147.38. Investors are pricing in the company's development into a successful premium manufacturer similar to Porsche Automobil Holding SE over the next decade, and any "execution issues" with its electric car models could send the shares down to $100, Aditya Satghare, an analyst with Lazard, wrote in a note to clients.

Sysco, Apple

Sysco fell 5.8 percent, the most in the S&P 500, to $32.99. The food distributor said it will not meet its fiscal 2015 earnings forecast as weak restaurant traffic hurt profit.

Apple advanced 2.8 percent to $467.36, snapping a four-day losing streak. The U.S. International Trade Commission on Aug. 9 said Samsung Electronics infringed two Apple patents and issued an order banning imports of products using the iPhone maker's multitouch features and headphone jack detection.  F5 Networks (FFIV) Inc. gained 3.1 percent to $92.70. Barclays Plc analyst Ben Reitzes upgraded the Internet software provider to overweight from equalweight, citing improved prospects in the company's networking business and "significant" opportunities to provide security solutions.

BlackBerry jumped 10 percent, the most since March 11, to $10.78. The mobile device maker said it has formed a special committee to explore options including a sale of the company or a joint venture. Its shares slumped 18 percent this year through the end of last week.

J.C. Penney

Newmont Mining Corp., the world's second-biggest gold producer, gained 4.7 percent to $30.90 for the largest increase in the S&P ! 500, as t! he precious metal rose a fourth day, the longest rally in almost a month. Barrick Gold Corp, Newmont Mining's bigger rival, added 4.5 percent to $18.21.

J.C. Penney Co. gained 2.3 percent to $13.17. The stock erased an earlier decline people familiar with the situation said shareholders Soros Fund Management LLC and Glenview Capital Management LLC support the current management team in a dispute between Bill Ackman and Chairman Tom Engibous over the company's leadership.

Ackman, whose Pershing Square Capital Management LP owns about 18 percent of the retailer's shares, asked his fellow J.C. Penney directors last week to expedite the search for a new chief executive officer and to replace Engibous. The stock tumbled 5.8 percent Aug. 9 and has lost 33 percent this year.

Facebook Could Triple Its Revenue With 1 Move

When Facebook (NASDAQ: FB  ) shares soared 30% the day after the social network reported its blowout earnings I couldn't help wishing I had emulated my Facebook CAPScall in my real-money portfolio. Too late. Or is it? Is there still upside left to Facebook's stock?

"Facebook Premium"
Pandora One subscribers grew 114%, year over year, in the company's most recent quarter. In fact, the ad-free version of its streaming music was the company's fastest growing revenue stream during the quarter.

What does this have to do with Facebook? According to Twitter co-founder Biz Stone, giving members an option to pay for an ad-free Facebook experience along with a few other exclusive benefits could generate an additional $12 billion in revenue, annually.

Pandora has Pandora One for $36 per year. Flickr has an Ad Free account for $50 per year and a Doublr account (ad free plus 2 terabytes of photo and video space) for $500 per year. Facebook has ... well, on Facebook you must endure advertisements whether you like it or not. For now.

Was Biz Stone right?
Maybe.

Greenlight decided to put Stone's assumptions to the test, polling 500 Facebook users. The study revealed several interesting tidbits.

As it turns out, not every Facebook user appreciates ads. Surprise, right? Greenlight's survey showed that about 70% of respondents never or rarely click on ads or sponsored listings. Greenlight CEO suggests this means that this is "indicative that consumer apathy [for advertisements on Facebook] is very real."

Just how many members would pay for an ad-free experience?

Source: Facebook Newsroom.

Fifteen percent. In fact, 8% indicated that they would spend $5 or more per month.

If 15% of Facebook's 1.15 billion members paid $7.50 per month for an ad-free experience, Facebook could earn an additional $1.25 billion every month. That would have essentially tripled Facebook's second-quarter revenue.

Why not?
If some members would love to pay for an ad-free service, Facebook should let them. With revenue like this, Facebook could spend more time on improving the user experience and less time spicing up its ad business.

This is just one way Facebook could increase its revenue. I recently detailed a way Instagram could contribute to the top line, too. Certainly there are even more ways Facebook could monetize its lockdown on more than 1 billion of the earth's population.

During Facebook's first year as a public company, I missed the mark. Facebook doesn't need to grow into its valuation with existing streams of revenue. It just needs to introduce new streams. Easier said than done, but still a realistic development.

I may have missed the party, but I still might buy Facebook shares.

Meanwhile, I'll be more careful to not quickly dismiss growth stocks as overvalued. Fortunately, there's a service to help. Motley Fool co-founder David Gardner, founder of the world's No. 1 growth-stock newsletter, has developed a unique strategy for uncovering truly wealth-changing stock picks. And he wants to share it, along with a few of his favorite growth stock superstars, with you! It's a special 100% free report called "6 Picks for Ultimate Growth." So stop settling for index-hugging gains, and click here for instant access to a whole new game plan of stock picks to help power your portfolio.

Forget Ford! This Hidden Auto Play Is a Dividend Giant

The auto industry has been in full celebration mode lately, as the most recent figures from Ford and General Motors suggest that the recovery from the near-death experience that U.S. automakers suffered during the financial crisis is largely complete. Yet, by looking beyond the automakers themselves, investors can find an even more lucrative stock that has delivered better long-term returns, and consistently raised its dividend every year for well over half a century.

Genuine Parts (NYSE: GPC  ) is hardly a household name, but you'll find it among the largest producers of auto parts in the industry, and its NAPA Auto Parts stores are widely known among vehicle owners and mechanics alike. Unlike Ford and GM, you'll also find Genuine Parts on the list of Dividend Aristocrats, where admission is determined by whether a company can manage to boost its dividend payouts to shareholders every single year for at least a quarter century. Only a few dozen stocks make the cut, demonstrating their staying power even through tough times. Let's take a closer look at Genuine Parts to see whether it can use recent success in the auto industry to sustain its long streak of rewarding dividend payouts to investors.

Dividend Stats on Genuine Parts

Current Quarterly Dividend Per Share	$0.5375
Current Yield	2.8%
Number of Consecutive Years With Dividend Increases	57 years
Payout Ratio	49%
Last Increase	March 2013

Source: Yahoo! Finance. Last increase refers to ex-dividend date.

What's up with Genuine Parts lately?
Genuine Parts hasn't hesitated to share its wealth with shareholders lately, both in terms of its dividend, and through share-price increases. The stock has soared more than 30% so far this year as the company benefits from the overall strength in the industry.

What's interesting, though, is that historically, auto-parts makers are seen as relying on the lack of success among automakers. After all, new cars don't need parts nearly as often as older cars do, and when Ford and GM perform well, their customers don't have to rely as much on Genuine Parts or competitors AutoZone (NYSE: AZO  ) and Advance Auto Parts (NYSE: AAP  ) for replacements. Yet, even though Advance's 15% gain, and AutoZone's 20% rise year to date, aren't quite as substantial as Genuine Parts, they still signal a paradigm shift in the way investors look at the industry, perhaps recognizing that for every new car sold, there's usually a used car that gets traded in, and so good news for Ford and GM sales might actually translate into more business for the parts industry.

Another part of the explanation might come from Genuine Parts' other businesses. Office products and electronics haven't been big growth areas lately, but the company's sales of bearings and hydraulic and pneumatic components to industrial users give it valuable diversification from its auto-part focus. Strong relationships with its commercial customers have helped the company sustain its momentum, and even though the company missed estimates in its most recent quarter, CEO Tom Gallagher believes that the remainder of the year should improve from its poor first-quarter performance.

Genuine Parts dividend data by YCharts.

As you can see, Genuine Parts hasn't been stingy with its dividends lately. After a series of tiny increases in the early 2000s, the company has accelerated its dividend growth, with increases of 10% in 2012, and almost 9% earlier this year. Yet, with the company only paying out about half its earnings in dividends, Genuine Parts' earnings growth seems more than ample to produce further increases in dividends in the future.

When will Genuine Parts raise its dividends again?
Genuine Parts just raised its dividend in March, so it would be extraordinary for the company to boost its payout again before 2014. But as long as prospects in the industry keep improving, investors should look for good things from Genuine Parts.

Another promising area for the auto industry is China, which is already the world's largest auto market -- and it's set to grow even bigger in coming years. A recent Motley Fool report, "2 Automakers to Buy for a Surging Chinese Market," names two global giants poised to reap big gains that could drive big rewards for investors. You can read this report right now for free -- just click here for instant access.

Click here to add Genuine Parts to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

The Stock Market's Next Move

 Traders got the short-term bounce we were looking for last Thursday.   At the highs yesterday, the S&P 500 was about 45 points above where it closed last Wednesday. That's a 2.8% gain in just three trading days.   Now, of course, the question is... What's next?   To get that answer, let's take a look at the charts.    First up is the Volatility Index ("VIX")...     The red circles indicate all the VIX sell signals – which are the same as broad stock market buy signals – we've seen over the past year. Notice how each time the VIX popped outside its upper Bollinger Band (BB) and then closed back below it, the index dropped nearly all the way down to its lower BB over the next few weeks.   If this chart is any sort of a guide, the VIX is likely headed lower over the next few weeks. And a falling VIX is usually good for rising stock prices.    This chart of the McClellan Oscillator shows a similar pattern...     The McClellan Oscillator is a momentum indicator that helps point out overbought and oversold conditions. As you can see in the chart above, each time the oscillator dropped below its lower BB, the reversal rallied the chart all the way back up to its upper BB.   This indicator also suggests stock prices can work higher over the next few weeks.    Finally, here's a look at the S&P 500...     The blue lines outline the rising channel the stock market has enjoyed for the past six months. The decline in late May merely tested the support line of that channel. Now stocks are bouncing. And based on the previous indicators, a bounce could take the index all the way back up to the resistance line of the channel and perhaps to a new, all-time closing high.   I haven't turned bullish here. And I'm not suggesting traders get overly aggressive on the long side. I still think that once the index breaks the support line of this rising channel, it'll get real ugly, real fast. But it's still too early to get aggressive on the short side.   The S&P 500 looks like it could make another push up toward new all-time highs before stocks roll over into a correction.   – Jeff Clark

U.K. Stocks Decline as FTSE 100 Index Trims Monthly Gain

U.K. stocks declined, with the FTSE 100 (UKX) Index posting two consecutive weekly losses for the first time since November, even as the equity benchmark completed the longest streak of monthly gains since its inception.

Imagination Technologies Group Plc (IMG) dropped 4.5 percent as Bank of America Corp.'s Merrill Lynch unit recommended that investors sell the shares. London-listed mining companies pared their first monthly advance since January as Rio Tinto Group and Glencore Xstrata Plc both fell at least 2.5 percent.

The FTSE 100 lost 73.9 points, or 1.1 percent, to 6,583.09 at the close in London. The gauge dropped 1.1 percent this week. It has still climbed 2.4 percent in May, for a 12th month of gains and the longest winning streak since the gauge was formed in 1984. The broader FTSE All-Share Index declined 1 percent today, even as it rose for a 12th month for the first time since the benchmark measure began in 1962. Ireland's ISEQ Index slipped 0.5 percent.

"The market is perhaps going to be more volatile from here," Xavier Lagrandie, who helps manage about $40 billion at Lombard Odier Investment Managers, said in a telephone interview from Geneva. "Still, this is a short-term pull-back, and I'd see a correction of 5 to even 10 percent as an opportunity to put more money to work again."

Treasury Yields

The yield on benchmark 10-year U.S. Treasuries (USGG10YR) has increased 48 basis points in May, its biggest monthly advance since December 2010, amid speculation that the Federal Reserve will taper its debt-buying program as economic data improves.

"It's understandable that at some point interest rates go up a bit, but rates are still extremely low," Lagrandie said. "We've seen an economic recovery in the U.S., which supports global growth, though Europe continues to lag behind."

U.S. consumer sentiment climbed in May to the highest level since July 2007. The Thomson Reuters/University of Michigan index of consumer confidence rose to 84.5 from 76.4 in April, according to a final reading today. Economists had predicted a gain to 83.7.

Business activity in the U.S. increased this month to the highest level in 14 months. The MNI Chicago Report's business barometer rose to 58.7 in May, from 49 in April. Economists surveyed by Bloomberg had forecast an increase to 50. A reading above 50 signals expansion.

Economic Growth

The U.K. economy will grow faster than previously forecast over the next three years, the British Chambers of Commerce said today. Gross domestic product will rise 0.9 percent this year, 1.9 percent next year and 2.4 percent in 2015, compared with previous forecasts of 0.6 percent, 1.7 percent and 2.2 percent, the London-based lobby group said.

A U.K. consumer-sentiment index published by GfK NOP Ltd. climbed 5 points to minus 22 this month. That matched the reading in November, which was the strongest in 18 months.

The number of shares changing hands in FTSE 100-listed companies was 49 percent greater than the average of the past 30 days, data compiled by Bloomberg showed.

Imagination Technologies dropped 4.5 percent to 351.4 pence. Merrill Lynch lowered its rating on the designer of chips for mobile devices to underperform, the equivalent of a sell recommendation, from neutral. The brokerage said that lower prices for smartphones and tablet computers sold in emerging markets will reduce the royalties that the company collects from every sale.

A gauge of London-listed mining companies slipped 2.1 percent, paring its advance in May to 1.7 percent. Rio Tinto, the world's second-largest raw-materials producer, slipped 2.6 percent to 2,857 pence, while Glencore decreased 3.1 percent to 323.1 pence. Vedanta Resources Plc (VED) slid 3.4 percent to 1,262 pence.

Lonmin Plc (LMI) jumped 2.8 percent to 295 pence, extending its biggest weekly rally in almost four months. Morgan Stanley upgraded the shares to overweight from equal weight, meaning that investors should buy more of the shares. The brokerage described their valuation as attractive.

Retail Sales, Producer Prices Raise Red Flags on Economy

Sarah Bentham/AP WASHINGTON -- U.S. retail sales declined in September as consumers pulled back on spending for a range of items, a worrisome economic signal that helped fuel a sell-off on Wall Street. The report Wednesday, along with data showing a drop in producer prices, led investors to bet the Federal Reserve would delay hiking interest rates until late 2015 at the earliest to keep support for the economy in place. Retail sales, which account for about one-third of consumer spending, dropped 0.3 percent last month, the Commerce Department said. It was the first decrease since January. Economists had expected a decline given a slower pace of sales reported by automakers and a fall in gasoline prices that cut into receipts at service stations. But the breadth of the weakness was surprising. Sales were down 0.2 percent even when stripping out automobiles, gasoline, building materials and food services. Economists polled by Reuters had predicted an increase in this reading, which provides a pretty good gauge of overall consumer spending. "Consumers have turned more cautious," said Ted Wieseman, an economist at Morgan Stanley (MS) in New York, who cut his third-quarter economic growth forecast to 3.1 percent from 3.4 percent on the figures. Prices for U.S. stocks tumbled as much as 3 percent during the day, although the Standard & Poor's 500 index (^GPSC) closed down just 0.8 percent. Investors, already spooked by signs of economic weakness overseas, rushed into the safe haven of U.S. government debt, pushing yields down sharply, while the dollar fell against the euro and the yen. Inflation Under Wraps Sales at clothing retailers dropped 1.2 percent and receipts at sporting goods shops edged down 0.1 percent. Overall sales would have fallen further but the release of Apple's iPhone 6 lifted sales at electronics and appliance stores. Receipts at auto dealers fell 0.8 percent, as did sales at service stations. Sounding a less dour note, the Fed said in its so-called Beige Book that the economy continued to expand at a "modest to moderate" pace across much of the nation in recent weeks. Wage growth, however, remained modest in most areas, even as employers bid up wages in some particular industries, it said. With wages under wraps, inflation has failed to gain a toehold, and the Fed said businesses reported little if any change in prices over the past several weeks. In a separate report, the Labor Department said prices received by U.S. producers actually fell 0.1 percent in September, the first decline in more than a year. While Fed officials have been concerned that inflation has been stuck below their 2 percent target, other signs of strength in the economy had left them optimistic they would finally be able to raise benchmark overnight rates from zero by mid-2015. As recently as Tuesday, San Francisco Fed President John Williams told Reuters the central bank should only delay a rate hike if inflation or wages failed to perk up. The reports on Wednesday suggested he may be kept waiting a bit longer. "Little inflation pressure [is] in the pipeline," economists at RBS said in a note to clients.

Wine in a can, a keg, a carton...and it's not bad

NEW YORK (CNNMoney) Jordan Kivelstadt decided to ditch glass wine bottles after he literally kicked a keg.

Kivelstadt was working on a bottling line in California and one day in 2008, things didn't go well. Bottling is a precise process, one wrong move and production can come to a shattering halt.

"I had a bad bottling day and I sulked back into the winery and kicked the keg we stored some of the wine in. Then I realized: why can't I sell wine in this?"

So he did. And he's not the only one getting innovative: Glass bottles are facing increased competition on wine shelves.

Kivelstadt launched Free Flow Wines in 2009 as a wine-in-a-keg producer and the company has since begun working with more than 200 brands to put their products in kegs to distribute to restaurants. He said there are more than 80,000 of his kegs floating around the country and that the majority of the wines sell for $8-$15 a glass, with a couple climbing to $20.

The argument for keeping wine in a glass bottle is that it helps a wine age properly. However, according to Kevin Zraly, founder of the Windows on the World Wine School, 90% of wine is meant to be consumed within one year. "That means any of those can be put out in vessels outside the glass bottle and still be good wine."

Many of the bottle replacements are more cost effective because they reduce shipping and operational costs for winemakers.

But these alternatives aren't your grandmother's boxed wine. "It's quality...it's not that sweet, sickly, manufactured wine that we saw our grandparents drink," said Gwendolyn Osborn, director of education at Wine.com. "You can find quality red blends that aren't going to give you a headache within five minutes."

"The structural presentation of wine is changing, that's for sure," said Andrew Streeter, a specialist in consumer packaging. He pointed to aluminum cans, pouches, paper bottles, plastic bag-lined boxes and polyethylene terephthalate (PET) bottles as leading contenders for disrupting wine packaging.

Streeter expects wine to become so portable in 10 years that it will be "much more like [carrying] a stick of gum."

Bandit wines, which come in Tetra Pak cartons made mainly from paper and come in 1 liter and 500mL sizes, have been around since 2004 and according to Bob Torkelson, president of Trinchero Family Estates, the brand sells a quarter of a million cases per year.

The Union Wine Co. in Oregon offers 375-mL cans with pinot noir and pinot gris. It's the same wine packaged into the company's bottles, and the suggested retail price is $6 a can or $24 for a four pack. There are around two glasses of wine per can, and the company asks that you "keep your pinkie down" when drinking it.

Demand for more eco-friendly options has also spurred new bottles to hit wine shelves.

Sonoma County-Calif. based Truett-Hurst launched Paperboy and California Square last year. Paperboy's bottle is made from recycled cardboard with a plastic liner and is 85% lighter than a glass bottle, according to its winemaker Virginia Lambirx. It retails for around $12-$14 a bottle. Despite being described as "good- quality wine" by Lambirx she said, "it's not going to appeal to the super wine snobs [because] it doesn't have a cork closure or come in a glass bottle."

Knowing this, the company also introduced California Square, which has the shape of a typical olive oil bottle. It's still made out of glass, but Lambirx said the square shape uses less material to store and ship. The line features a Russian River Valley Chardonnay, Paso Robles Three Red Blend and Paso Robles Cabernet.

When it comes to innovation, Kivelstadt said the wine industry is its own worst enemy. After all, it took nearly 10 years for the industry to accept a screw top.

But Zraly said consumers also have to play a role to embracing innova! tion. "It! 's time to take wine off its pedestal; that wine is sacred liquid that can only be consumed by few and involve a big production."

5 Stocks Set to Soar on Bullish Earnings

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

Read More: 5 Stocks Poised for Big Breakouts

This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if Wall Street doesn't like the numbers or guidance.

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.




With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

Read More: 5 Low-Priced Stocks to Trade for Big Gains

Layne Christensen

My first earnings short-squeeze trade idea is water management, construction and drilling services player Layne Christensen (LAYN), which is set to release numbers on Tuesday before the market open. Wall Street analysts, on average, expect Layne Christensen to report revenue of $217.17 million on a loss of 49 cents per share.

The current short interest as a percentage of the float for Layne Christensen is extremely high at 16.3%. That means that out of the 19.45 million shares in the tradable float, 3.17 million shares are sold short by the bears. This is a high short interest on a stock with a very low tradable float. Any bullish earnings news could easily spark a sharp short-covering rally that forces the bears to start covering some of their positions.

From a technical perspective, LAYN is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been uptrending a bit over the last month, with shares moving higher off its 52-week low of $10.10 to its recent high of $11.80 a share. During that uptrend, shares of LAYN have been making mostly higher lows and higher highs, which is bullish technical price action. Shares of LAYN have now started to move back above its 50-day moving average and it's quickly moving within range of triggering a big breakout trade post-earnings.

If you're bullish on LAYN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $11.80 to $12.68 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 221,491 shares. If that breakout triggers post-earnings, then LAYN will set up to re-test or possibly take out its next major overhead resistance levels at $13.93 to $15.50 a share.

I would simply avoid LAYN or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some near-term support levels at $10.81 to $10.63 a share and then below its 52-week low of $10.10 a share with high volume. If we get that move, then LAYN will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible downside targets off that move are $9 to $8 a share.

Read More: 12 Stocks Warren Buffett Loves in 2014

Triangle Petroleum

Another potential earnings short-squeeze play is independent oil and gas player Triangle Petroleum (TPLM), which is set to release its numbers on Monday after the market close. Wall Street analysts, on average, expect Triangle Petroleum to report revenue $119.29 million on earnings of 16 cents per share.

The current short interest as a percentage of the float for Triangle Petroleum is extremely high at 15.4%. That means that out of the 75.23 million shares in the tradable float, 11.64 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 16.2%, or by 1.62 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of TPLM could easily rip sharply higher post-earnings as the shorts rush to cover some of their positions.

From a technical perspective, TPLM is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways and consolidating for the last two months and change, with shares moving between $10.15 on the downside and $12.48 on the upside. Shares of TPLM have now started to move back above its 50-day moving average and it's starting to push within range of triggering a big breakout trade post-earnings above the upper-end of recent sideways trading chart pattern.

If you're in the bull camp on TPLM, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $12.14 a share to its 52-week high at $12.48 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 1.35 million shares. If that breakout materializes post-earnings, then TPLM will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that move are $15 to $17 a share.

I would simply avoid TPLM or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $11.39 a share with high volume. If we get that move, then TPLM will set up to re-test or possibly take out its next major support levels at $10.68 to $10.15 a share, or its 200-day moving average of $9.72 a share.

Read More: Warren Buffett's Top 10 Dividend Stocks

Vera Bradley

Another potential earnings short-squeeze candidate is retailer of functional accessories for women Vera Bradley (VRA), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Vera Bradley to report revenue of $116.78 million on earnings of 19 cents per share.

The current short interest as a percentage of the float for Vera Bradley is extremely high at 40.8%. That means that out of the 21.83 million shares in the tradable float, 8.9 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.4%, or by 373,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of VRA could easily trend sharply higher post-earnings as the shorts move to cover some of their positions.

From a technical perspective, VRA is currently trending above its 50-day moving average and just below its 200-day moving average, which neutral trendwise. This stock recently formed a double bottom chart pattern at $18.92 to $18.75 a share. Following that bottom, shares of VRA have started to uptrend, with the stock moving higher from its low of $18.75 to its intraday high of $22.80 a share. That move has now pushed shares of VRA within range of triggering a near-term breakout trade post-earnings.

If you're bullish on VRA, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $23 a share to its 200-day moving average of $24.32 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 457,581 shares. If that breakout begins post-earnings, then VRA will set up to re-test or possibly take out its next major overhead resistance levels at $28 to its 52-week high at $30 a share. Any high-volume move above $30 will then give VRA a chance to trend well north of that level.

I would avoid VRA or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $20.46 a share to more near-term support at $19.75 a share with high volume. If we get that move, then VRA will set up to re-test or possibly take out its next major support levels at $18.75 to its 52-week low of $17.27 a share.

Read More: 10 Stocks Carl Icahn Loves in 2014

Titan Machinery

Another earnings short-squeeze prospect is full service agricultural and construction equipment stores operator Titan Machinery (TITN), which is set to release numbers on Tuesday before the market open. Wall Street analysts, on average, expect Titan Machinery to report revenue of $442.37 million on earnings of 10 cents per share.

The current short interest as a percentage of the float for Titan Machinery is extremely high at 28.8%. That means that out of the 16.98 million shares in the tradable float, 4.90 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 2.2%, or by 107,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of TITN could easily rip sharply higher post-earnings as the shorts rush to cover some of their trades.

From a technical perspective, TITN is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last three months, with shares moving lower from its high of $18.25 to its recent low of $12.12 a share. During that downtrend, shares of TITN have been consistently making lower high and lower lows, which is bearish technical price action. That said, shares of TITN have now started to rebound modestly off that $12.12 low and it could be setting up for a rebound trade post-earnings off oversold levels.

If you're bullish on TITN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $14 to $14.73 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 161,872 shares. If that breakout starts post-earnings, then TITN will set up to re-test or possibly take out its next major overhead resistance levels at $16.50 to $18.25 a share.

I would simply avoid TITN or look for short-biased trades if after earnings it fails to trigger that breakout and then takes out its 52-week low of $12.12 a share with high volume. If we get that move, then TITN will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible downside targets off that move are $9 to $8 a share.

Read More: 10 Stocks Billionaire John Paulson Loves in 2014

Francesca's

My final earnings short-squeeze play is retail boutiques chain operator Francesca's (FRAN), which is set to release numbers on Tuesday before the market open. Wall Street analysts, on average, expect Francesca's to report revenue of $99.78 million on earnings of 26 cents per share.

The current short interest as a percentage of the float for Francesca's is very high at 17.8%. That means that out of the 41.85 million shares in the tradable float, 7.46 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of FRAN could easily rip sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, FRAN is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock recently formed a double bottom chart pattern at $12.39 to $12.45 a share. Following that bottom, shares of FRAN have started to uptrend, with the stock moving higher from $12.45 to its recent high of $14.90 a share. Shares of FRAN are now starting to trend within range of triggering a major breakout trade above some key near-term overhead resistance levels post-earnings.

If you're in the bull camp on FRAN, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $14.90 to $15.69 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 1.01 million shares. If that breakout develops post-earnings, then FRAN will set up to re-test or possibly take out its next major overhead resistance levels at $17.34 to $19.97 a share.

I would avoid FRAN or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support at $13.17 a share with high volume. If we get that move, then FRAN will set up to re-test or possibly take out its 52-week low of $12.39 a share. Any high-volume move below that level will then push shares of FRAN into new 52-week-low territory, which is bearish technical price action.

To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>5 Rocket Stocks Ready for Blastoff This Week

>>Must-See Charts: How to Trade 5 Huge Stocks

>>5 Breakout Stocks Under $10 Set to Soar

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Superior Returns and Advisory Services, ‘for Free’

DFA advisor Eric Nelson says investors can beat the performance of index funds and in so doing get the tremendous value an advisor offers essentially for free.

The Servo Wealth Management principal is wont to sift through data to find how to eke out extra basis points of return.

In a recent post, Nelson follows this familiar format by comparing the performance of three investment approaches over the past 10 years: conventional active management versus index investing versus what he calls “structured investing.”

Looking at seven different asset classes (six stock portfolios and one bond category), Nelson finds that active management performed the worst, trailing the index in five out of seven cases.

But the performance results are actually worse than they appear, he says, because of what is known as “survivorship bias”: As many as 40% of these funds have performed so poorly that even in the space of 10 years they have been shut down, their unflattering data unfactored from the category’s average.

Index funds, by simply mimicking an appropriate benchmark and keeping costs low, beat active funds, but fall short of the performance of “structured funds” in all seven categories — by 1% or more in many instances.

Structured funds, like those offered through Dimensional Fund Advisors, are managed to capture higher risk and higher return characteristics that are found in areas such as small-cap and value investing. Nelson says they are taking index investing to the next level by accenting higher returns and extending the benefit of lower costs by avoiding portfolio turnover.

The difference among these alternatives can be seen especially vividly in the case of U.S. large value stocks, where active funds delivered average returns of 7.1%, index funds 8% and structured funds 9%; in the emerging markets category, the spread was 11.2%, 12.6% and 13.5% for active, index and structured funds respectively.

Discussion board critics have assailed Nelson’s approach, arguing that DFA funds are inaccessible to individual investors without an advisor, whose added fees would erode the funds' purported advantage.

But Nelson turns that argument on its head by arguing that advisory fees are not paid for fund access but rather for essential wealth management services, and that those services are essentially delivered “for free” as a result of structured funds' superior historical performance.

“What I tell prospective clients…is: Hiring me most likely will not cost you anything above the results you'll earn investing on your own,” Nelson tells ThinkAdvisor.

The reason for these “free” advisory services, though, has less to do with investment performance and more to do with the discipline a good advisor can impose on naughty investor behavior.

Nelson asks: “If the average investor is costing themselves 2%+ per year [according to three estimates from the St. Louis Fed, Morningstar and John Bogle that Nelson discusses in his current blog post] due to poor decisions, is paying me 0.5% to 0.75% to avoid those bad decisions a net cost?  Or are you 1.25% to 1.5% per year ahead assuming you are the average investor?”

While expressing confidence that structured funds will maintain their investment advantage into the future, Nelson echoes standard investment industry diction in adding that “it’s certainly not something I can guarantee.”

But sounding like a seasoned financial advisor, he says there is something that is a pretty sure bet:

“If you are an emotional investor, on the other hand, and prone to chase performance and buy high/sell low, we can almost guarantee you'll never change.  A leopard can't change its spots, as they say.”

But apart from the crucial help in maintain investor discipline, Nelson says his wealth management services also include help with minimizing taxes, setting long-range investment and estate plan goals as well as risk management through insurance.

What is ultimately at issue for every advisor is their value proposition.

“If you don't have one or can't articulate it, you're in trouble and will lose clients and prospects to the DIY movement, lower-cost advisors or robos,” the Servo principal warns.

“Mine's pretty simple,” he adds, going through the arithmetic.

“1) Taking someone from active management to indexing equals +1% per year.

“2) Ensuring they stay disciplined and avoid the behavior gap equals +2% per year.

“3) Adopting a long-term, growth-oriented allocation with an emphasis on equities compared to the bond-heavy, short-term volatility focused traditional plans (like "age in bonds") we commonly see equals +1.5% per year.

“4) ‘Taking indexing to the next level’ with an asset class approach and structured, institutional-class mutual funds equals +1% per year.

“5) Continually addressing evolving wealth concerns like taxes, estate, risk (life, health care, etc.) and providing continuity in the event of primary client's death/impairment [is] different for everyone.

“So I say: pay me 0.75% per year, or cost yourself upwards of 5% per year,” he concludes. “Your choice.”

5 Stocks Giving Their Shareholders A Raise With Higher Dividends

Dividend stocks are sometimes referred to as defensive stocks since many investors flee to them in an economic downturn. Their dividends, if sustainable, provide a minimum level of positive return. This cushions the downward pressure from the market. Better yet, great dividend companies not only sustain their dividends in a downturn - they actually raise them.

Below are several stocks displaying confidence in the future by increasing their cash dividends:Target Corporation (TGT) operates general merchandise stores in the United States and Canada. June 11th the company increased its quarterly dividend 21% to $0.52 per share. The dividend is payable September 10, 2014 to stockholders of record on August 20, 2014. The yield based on the new payout is 3.6%.Caterpillar (CAT) manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. June 11th the company increased its quarterly dividend 16.6% to $0.70 per share. The dividend is payable Aug 20, 2014 to stockholders of record on July 21, 2014. The yield based on the new payout is 2.6%.Essex Property Trust (ESS) operates as a self-administered and self-managed real estate investment trust in the United States. June 11th the company increased its quarterly dividend 7.4% to $1.30 per share. The dividend is payable July 15, 2014 to stockholders of record on June 30, 2014. The yield based on the new payout is 2.9%.Best Buy (BBY) operates as a multi-national, multi-channel retailer of technology products in the United States, Canada, China, and Mexico. June 10th the company increased its quarterly dividend 12% to $0.19 per share. The dividend is payable October 2, 2014 to stockholders of record on September 11, 2014. The yield based on the new payout is 2.6%.Manhattan Bridge Capital (LOAN) provides short-term, secured, and non–banking loans to real estate investors to fund their acquisition and construction of properties in the New York Metropolitan area. June 10th the company increased its quarterly dividend 250% to $0.07 per share. The dividend is payable July 15, 2014 to stockholders of record on July 10, 2014. The yield based on the new payout is 9.3%. Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.Full Disclosure: No position in the aforementioned securities. See a list of all my dividend growth holdings here.Related Posts - 13 Dividend Growth Stocks With A Good Yield/Growth Mix - High Yield, High Risk Dividend Stocks - Dividend Stocks vs. Dividend ETFs - If Only I Had Known About These Dividend Stocks... - 10 Dividend Stocks Delivering The Secret To Success

About the author:Dividends4LifeVisit Dividends4Life at: http://www.dividend-growth-stocks.com/

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Best Things to Buy at Whole Foods

Whole Foods Market is often jokingly referred to as "Whole Paycheck" because this natural-foods chain sells higher-priced organic fare and specialty items. Check out with a cart of grass-fed, hormone-free ground beef, organic heirloom tomatoes and artisan-crafted cheese, and you could easily pay twice as much as you would spend for similar conventional items at a grocery store. But is the ritzy reputation always warranted?

SEE ALSO: 11 Things Not to Buy at Warehouse Clubs

Surprisingly, there are deals to be had at Whole Foods. You heard right: Even bargain-conscious shoppers can find well-priced goods at this high-end grocer. That's great news for those of us who are in the habit of making one trip to Whole Foods for splurge items and a second trip to the grocery store for staples such as milk and pasta.

We visited Whole Foods, Harris Teeter, Kroger, Trader Joe's and even Walmart to compare prices on a number of popular products. We also consulted a recent comparison of Whole Foods and Safeway conducted by Cheapism.com. Prices may vary across the nation, but the list below shows that some items are cheaper or the same price at Whole Foods than similar items sold in the grocery stores we surveyed. All are original full prices -- not sale prices. Of course, you may be able to find better deals when items go on sale or when discounts are offered. Download a coupon app to your smart phone, or try one of these strategies to save on groceries without coupons.

Organic Items

Frozen organic yellow corn. A 16-ounce package of store-brand yellow corn was the same price at Whole Foods, Trader Joe's and Kroger -- $1.99 -- and a buck less than at Safeway.

Organic brown sugar. The price of a 24-ounce bag is the same at Whole Foods as at Trader Joe's and Walmart and about $1 less than at Safeway.

Organic chicken broth. A 32-ounce carton of Whole Foods 365 Everyday Value organic chicken broth was at least 40 cents less than at the supermarkets we checked.

Organic coconut oil. This oil, which can be used for cooking and for skin and hair care, is about $2 less for a 14-ounce jar of the 365 Everyday Value brand at Whole Foods than same-size jars at Kroger and Safeway.

Organic maple syrup. On first glance, the prices of organic maple syrup appeared to be cheaper at some of the supermarkets we checked -- but their bottles were smaller. Per ounce, the Whole Foods brand was the cheapest we found (along with the Trader Joe's brand).

Organic milk. Whole Foods had the lowest price on a gallon of organic milk by far. Its 365 Everyday Value brand was at least $1 less than a gallon of organic milk at several of the other stores we checked. It was priced at an incredibly low $3.69 at the Whole Foods in Nashville, Tenn., that we checked and $4.99 in a Seattle Whole Foods that Cheapism.com checked. (Walmart actually had the highest price, at $6.48.)

Organic peanut butter. At $4.99 for an 18-ounce jar, Whole Foods had the best price for its 365 Everyday Value organic peanut butter. Trader Joe's had the same price for a 16-ounce jar.

Organic peeled carrots. A 1-pound bag of small, peeled carrots sold for 20 cents to 30 cents less at Whole Foods than at the other stores we checked. The exception was Trader Joe's, which had the same price of $1.69 for a 1-pound bag.

Organic popcorn. A 6-ounce bag of organic popcorn was $1 less at Whole Foods than at Kroger and about 70 cents less than a 5-ounce bag at Safeway.

Non-Organic Items

Baguettes. At $1.29 per baguette, Whole Foods beat the price of baguettes at the other stores we checked -- even Trader Joe's -- by 70 cents.

Cereal bars. We found the same price -- $1.99 -- for a box of six cereal bars at Whole Foods and Trader Joe's. The Whole Foods' price beat Walmart's by a penny. And a box of eight cereal bars at Safeway was $2.99, according to the Cheapism study.

Extra virgin olive oil, cold processed. At $6.49, a 33.8-ounce bottle of Whole Foods 365 brand olive oil was several dollars less than the same-size bottles of olive oil at all of the other stores we checked except Trader Joe's, which had the same price.

Grains. The prices on some grains -- not all -- sold at Whole Foods were cheaper. For example, the per-pound price of jasmine rice sold in the bulk ("scoop your own") section of Whole Foods was nearly half as much of the price of bagged jasmine rice at Walmart. Whole Foods also had the lowest per-pound price that we found of quinoa and buckwheat.

Greek yogurt. A 32-ounce container of Greek Gods brand yogurt was almost 70 cents less at Whole Foods than the same brand of yogurt sold at Walmart and the Trader Joe's brand.

Pasta. At 99 cents per 16-ounce package, the price for Whole Foods 365 Everyday Value brand pasta matches the price of pasta at Trader Joe's, and undercuts the prices at Kroger and Walmart by a penny.

Salsa. Some varieties of the 365 Everyday Value 16-ounce jars of salsa were priced at $1.99 -- 50 cents less than Trader Joe's 12-ounce jars of salsa and 40 cents less than Kroger's Private Selection salsa.

Shredded mozzarella. Prices on imported and specialty cheeses at Whole Foods can be high. But for $3.99, you can't beat the price on a 16-ounce bag of 365 Everyday Value shredded mozzarella -- even at Trader Joe's and Walmart. An 8-ounce package of cream cheese also costs slightly less at Whole Foods than at the other stores we checked.

Whole almonds. At $5.99 per pound, whole almonds were at least $2 less than at all of the supermarkets we checked except Trader Joe's, which had the same price.

Know Your Mortgage Options Before Buying Your First Home

Applying for and getting a mortgage is one of the most daunting obstacles to overcome when shopping for a home. The process can be especially scary and confusing for first timers who may be unfamiliar with the various programs out there, or the advantages and disadvantages of each. Here is a quick rundown of the types of mortgages available, to help decide which may be the best option for your own situation.

Fixed-rate traditional
This is the most common type of mortgage these days, and although it comes in a variety of lengths, they typically run either 15 or 30 years. Generally, banks want a sizable down payment and a good credit score, both of which can make them difficult to get for a first-time buyer. The typical down payment is 20% on one of these loans, but now that lending markets are beginning to loosen a bit, I have seen mortgages advertised with as little as 5% down. 

With a traditional mortgage, the lower your down payment is, the higher credit score the bank will typically want. Every bank is different, but if a FICO score of 680 is required if you put 20% down, a 740 might be expected with just 5% upfront.

Another decision to make is the time frame. A 15-year mortgage carries with it a higher monthly payment, but you'll pay a lot less in interest over the life of the loan. For example, a $200,000 loan at 4.5% would have monthly payments of $1,410 and $1,013 for 15- and 30-year terms, respectively. However, over the life of the loan, the 15-year option would save you more than $110,000 in interest.

Adjustable rate
Similar to fixed rate in terms of qualifications, adjustable-rate loans can be a good choice in certain economic climates. Basically, it means that your interest rate will change over time, and will be tied to an index that reflects how much it costs the lender to borrow money. This can be beneficial when rates are at cyclical highs, but that is certainly not the case now. If you can lock in a low rate for the life of the loan, why take the chance with an uncertain interest rate?

Even though rates shot up in the latter half of 2013, they are still relatively low on a historical basis. Consider the highs and lows in the following chart for a better idea of when an adjustable-rate mortgage might be a good idea. I would say that once the average 30-year rate moves close to 6% (maybe a few years down the road), adjustable-rate mortgages may be worth a look.

U.S. 30 Year Mortgage Rate data by YCharts

FHA
The Federal Housing Administration's lending standards are designed to allow buyers who either don't have a lot of cash to put down, or don't have a high enough credit score to be able to buy a home. This makes FHA loans very popular among first-time buyers. As of this writing, the FHA requires just 3.5% down and a FICO score of 580, or even lower if the down payment is higher (although specific lenders may have slightly higher requirements).  This flexibility does not come cheap, and there are several costs to be aware of before applying for an FHA mortgage.

The FHA charges a 1.75% upfront fee when issuing a loan, in addition to requiring borrowers to pay FHA mortgage insurance as long as they have the loan. This is charged at an annual rate of 1.35% of the average loan balance. 

So, on our $200,000 example, this means an upfront fee of $3,500 plus a mortgage insurance payment of $225. This adds more than 20% to the monthly principal and interest payment, a significant expense.

USDA
The U.S. Department of Agriculture guarantees mortgages offered to buyers of homes in rural areas. Just like FHA loans, they have relatively easy qualifications when compared with traditional loans, and offer up to 100% financing. However, you must purchase in a rural area as defined by the USDA, and be under the maximum income requirement for the particular county you're interested in.

VA
If you or your spouse ever served in the armed forces, a VA loan could be a very attractive option for you. VA loans are available with no down payment whatsoever, and have similar credit requirements as FHA loans. Unlike FHA loans, they require no mortgage insurance, making them a very attractive option to those who qualify.

Foolish final thoughts
If you can afford the down payment and have the credit necessary to obtain a good interest rate, it almost always makes more sense to get a traditional mortgage. 

However, the FHA has been increasing its fees and lending standards for a few years now, and we are already seeing 5% down payment traditional mortgages designed to compete with the FHA. As the economy improves and credit loosens a bit more, we'll begin to see a shift away from FHA loans, which seems to be the government's goal. In the meantime, if it's all you can qualify for, an FHA loan still may be cheaper than paying rent.

The best dividend stocks
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks, as a group, handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks, in particular, are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.