Unlimited Data Options Grow Limited

The all-you-can-eat era of smartphone data plans is nearing the end.

Verizon said Wednesday that customers still on its $30-a-month unlimited plan – which was already discontinued for new users — may be forced to upgrade to new usage-based billing as early as this summer. “As you come through an upgrade cycle and you upgrade in the future, you will have to go onto the data share plan,” CFO Fran Shammo told attendees at the J.P. Morgan Technology Media and Telecom conference. The new pricing and other details have yet to be announced, although the plans will likely allow customers to share data allotments between multiple devices. A Verizon spokesman declined to provide further details.

Will Bigger iPhone Screens Mean More Ads?

The supersize screens Apple plans for its new iPhones may be better for watching movies, playing games, or reading e-books. But analysts say all that extra display space could come at a price: more ads.

Figuring out how to cram advertising onto smartphones without overwhelming the rest of the screen remains one of the great challenges for mobile apps, experts say. In fact, Facebook expressed such concerns in the prospectus for its IPO. But with Apple reportedly increasing its iPhone screen from 3.5 to 4 inches, there may create more options for mobile ads. “Bigger screen translates to more real estate available for ads, making mobile ads more likely,” says Michael Pachter, managing director of equity research at Wedbush Securities.

Can Department Stores Win Back Shoppers?

Mid-priced department stores like J.C. Penney and Kohl’s tried to compete with online retailers and discounters by cutting back on endless promotions and adding celebrity clothing lines. But experts say weak results like the ones J.C. Penney released late Tuesday indicate that rather than keep changing with the times, they should embrace their past.

Department stores continue to lose ground. They accounted for 10% of retail spending in the 1980s, 5% in 2000 and around 2.5% currently, according to consulting firm Customer Growth Partners. And that trend shows no signs of ending. J.C. Penney swung to a fiscal first-quarter loss, with sales falling by 20% to $3.15 billion. Earlier this month, Kohl’s and Sears also reported weaker than expected sales. Analysts say these companies all have one thing in common: they cater to recession-scarred, middle income customers. “Upscale stores are doing terrifically and mass department stores are doing terribly,” says Howard Davidowitz, chairman of Davidowitz & Associates, a New York-based retail consultant and investment bank.

J.P. Morgan May Turn Loss Into Gain

J.P. Morgan Chase (JPM), America’s biggest bank, admitted last week it lost $2 billion on a derivatives trade that its chief executive, James Dimon, called “flawed” and “poorly reviewed.” Its shares have tumbled in response.

And that presents an opportunity for the bank to make its money back and then some.

Avoid Bank Tellers, Save Cash

As banks continue to push the self-serve approach, many consumers are finding it may cheaper to get service without a smile.

A growing number of banks are adding feature-laden ATMs, video tellers and other technologies to let customers complete a wider variety of banking tasks on their own, according to a report in The Wall Street Journal on Tuesday. For example, you might be able to purchase a money order or withdraw cash in increments other than $20 bills.  Some banks estimate they have cut costs by up to 40% by trading tellers for technology.

What Facebook’s IPO and Treasurys Have in Common

Facebook’s forthcoming stock offering and United States Treasury notes would seem to occupy opposite ends of the risk-reward spectrum of investments. But the two share similarities.

The 10-year Treasury recently yielded 1.79%, not far from its historic low yield of 1.67% reached in September. Bond yields move opposite prices, so as buyers become more eager, yields fall. Since 1962, 10-year Treasurys carried an average yield of 6.7%.

Another Down Week for the Dow?

Portfolios took another hit on Monday, prompting some investors to ask their advisers if the recent downturn is reason enough to start selling.

Including today, stocks have fallen 8 days out of the last 9 – with last week the Dow posting its worst five-day stretch in five months. And some analysts say they’re expecting more of the same this week and beyond. Historically, May has been a poor-performing month: The S&P 500 has returned an average 1.2% during the month each year going back to 1945, the poorest for all rolling six month stretches, according to S&P Capital IQ. Since 1950, the market’s strongest months have been December, April, November and March.

Will Yahoo CEO’s Fall Keep Résumés Honest?

You might think Yahoo CEO Scott Thompson’s resignation last weekend after a battle over his allegedly fabricated résumé would inspire job seekers to be more honest.  But experts say public embarrassments stemming from inaccurate or exaggerated credentials have done little to thin the ranks of fiction writers.

Thompson, who took the reins last January, quit after the board obtained evidence allegedly contradicting his earlier claim of innocence about his misstated academic record. Though Thompson’s decision to step down was also influenced by a diagnosis of thyroid cancer, The Wall Street Journal reported Monday, an executive-search firm provided Yahoo with details that appeared to show he had knowingly claimed to have a computer-science degree some years ago.

Banks: Back to Risky Business?

J.P. Morgan’s $2 billion trading blunder may be embarrassing for the bank, but for regular investors still scarred by the 2008 financial crisis it raises a broader concern: Has risky trading returned to Wall Street?

J.P. Morgan CEO Jamie Dimon / Photo: Getty Images

J.P. Morgan’s losses stem from so-called derivatives, complex financial instruments that banks use both to hedge risk and speculate. The bank said on Thursday that it made a series of aggressive bets on the continued economic recovery using derivatives tied to the values of corporate bonds,  but that they backfired last month. Derivatives, of course, are the same investments widely credited with playing a major role in the near collapse of the global banking system four years ago; they’ve been under scrutiny from Congress and regulators ever since.

While regular investors may see J.P. Morgan’s misfire as a return to the reckless trading practices of the mid-2000s, some market pros counter that those strategies never really went away. There are currenlty $27 trillion in outstanding derivatives pegged to bonds, according to the Depository Trust & Clearing Corporation. While that’s down from $29 trillion at the end of last year, the figure has been rising since 2009, when it bottomed out at $25 trillion.

Will J.P. Morgan Woes Whack Fund Investors?

It’s not just J.P. Morgan Chase (JPM) shareholders who are cringing today, following reports yesterday of the bank’s $2 billion in trading losses on bad derivatives bets. The stock plunged 8% Friday morning – which could impact the millions of investors who indirectly own the stock through mutual funds and exchange-traded funds.