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need to know
A billion people were on Facebook Monday
Icahn discloses stake in Freeport McMoRan
Autodesk beats earnings expectations
GameStop tops expectations; shares rise
China fears trigger emerging market outflows
Bank of New York Mellon tech woes hit prices
Apple to host Sept. 9 product event
Business investment stars in GDP report
Wall Street’s missing a closed-end bargain
The best jobs for millennials
CEO pay surged last year
The happiest and least happy countries
Apple closing in on Fitbit as for wearable crown
Stock rout hits hedge-fund yearly gains hard

Poll shows Biden running stronger than Clinton
Republican wants more than the sequester

Donald Trump says he’s OK with raising taxes on himself
Trump: I’m OK with raising taxes on myself

Bezos is clear about what Amazon’s culture is

Keep calm and make money in a crazed market
This market swell may be dangerous to ride
Amid chaos, new investors jumped into stocks

Wal-Mart: Demand is reason for its gun decision

Where your
Chinese food is delivered by plane

Sorry, Uber, but this is the end of the IPO party

Star-studded content up Netflix’s sleeve
'Mr. Robot' season finale postponed

Beijing, ‘Loch Ness monster’ in mystery of China rally

China takes unusual action to tame yuan expectations
China’s unusual action to tame yuan views
Analysts dismiss fears of a China hard landing

Jim Rogers: Don’t rule out a commodity bull run
Commodities are ripe for a rebound

How the media just can’t spot economic crisis

6 ‘services’ that help hackers get rich

4 things you didn’t know could be hacked
How vulnerable are U.S. markets to hackers?


$14 to send message-bearing potatoes


How to throw a  birthday party for under $100
Only half of Americans with kids have wills

Millennials are clueless about cellphone etiquette
Millennials realize growing up is hard to do

/conga/frontpage.html 353496

Markets »

171.98MDow Volume:
Avg Vol: 109.98M
Unchanged
150
Decliners
1105
Advancers
5358
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,655 +369 2.27%
Nasdaq
/quotes/zigman/12633936/realtime 4,813 +115 2.45%
S&P 500
/quotes/zigman/3870025/realtime 1,988 +47 2.43%
GlobalDow
/quotes/zigman/629063/realtime 2,361 +50 2.17%
Gold
/quotes/zigman/662444/delayed 1,124 -1 0.06%
Oil
/quotes/zigman/2331095/delayed 42.66 +4.06 10.52%
FTSE 100
/quotes/zigman/3173262/delayed 6,192 +213 3.56%
DAX
/quotes/zigman/2380246/delayed 10,316 +318 3.18%
CAC 40
/quotes/zigman/3173214/delayed 4,658 +157 3.49%
FTSE MIB
/quotes/zigman/1482176/delayed 22,201 +727 3.39%
IBEX 35
/quotes/zigman/2759620/delayed 10,290 +306 3.06%
Stoxx 600
/quotes/zigman/2380150/delayed 362 +12 3.46%
Asia Dow
/quotes/zigman/6959860/realtime 2,753 +52 1.92%
Nikkei 225
/quotes/zigman/5986735/delayed 18,574 +198 1.08%
Hang Seng
/quotes/zigman/2622475/delayed 21,839 +758 3.60%
Shanghai
/quotes/zigman/1859015/delayed 3,084 +156 5.34%
Sensex
/quotes/zigman/1652085/delayed 26,231 +517 2.01%
Singapore
/quotes/zigman/1709939/delayed 2,945 +72 2.52%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 0.00 0.01%
Yen
/quotes/zigman/16008150/realtime/sampled 121.02 -0.01 0.00%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.03%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.72 +0.00 0.01%
DXY Index
/quotes/zigman/1652083/delayed 95.76 +0.48 0.50%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.27 +0.00 0.00%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.19 +0.01 0.40%
German 10y
/quotes/zigman/15866409/realtime 0.75 +0.04 5.49%
Italy 10yr
/quotes/zigman/15866497/realtime 1.93 -0.05 2.73%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 -0.03 1.54%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.87 +0.02 1.11%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 +0.02 4.00%
Crude Oil
/quotes/zigman/2331095/delayed 43 +4 10.52%
Gold
/quotes/zigman/662444/delayed 1,124 -1 0.06%
Corn
/quotes/zigman/7599553/delayed 375 +1 0.33%
DJIA F
/quotes/zigman/38649152/delayed 16,650 +401 2.47%
S&P F
/quotes/zigman/30356461/delayed 1,989 +51 2.64%
Silver
/quotes/zigman/3134148/delayed 14 +0 2.64%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.73 2.54 2.91%
AAPL /quotes/zigman/68270/composite 112.92 3.23 2.94%
GOOG /quotes/zigman/30194416/composite 637.61 8.99 1.43%
BAC /quotes/zigman/190927/composite 16.44 0.38 2.37%
C /quotes/zigman/5065548/composite 53.44 1.16 2.22%
F /quotes/zigman/264304/composite 13.56 0.35 2.65%
T /quotes/zigman/398198/composite 33.44 0.75 2.29%
BP /quotes/zigman/247026/composite 33.03 1.93 6.21%
GE /quotes/zigman/227468/composite 25.01 1.00 4.16%
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Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

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The End of Money-Market Funds?

Regulators are finishing a plan to make money market funds safer, but critics say the proposal could ruin their appeal for many savers.

The Securities and Exchange Commission reportedly plans to unveil a two-part plan to stabilize money funds, which are short-term investment vehicles used by individual investors and institutions to park cash. According to a report in the Wall Street Journal, the SEC’s goal is to limit losses for shareholders during times of financial stress, such as in 2008 when one fund “broke the buck,” or fell below the steady $1-per-share asset value that investors have come to expect. Investors have also worried about money-market funds’ exposure to the European debt crisis; the current proposal would require fund firms to set aside more capital to boost liquidity, and perhaps put restrictions on how quickly investors can access their money.

But while the measures may shore up the money-fund market, critics say they could also lead to fewer options and higher fees for investors. In recent years, firms have been waiving fees in an effort to keep yields above zero for investors and they’ve just barely been successful: the average yield on a taxable money market fund is .02% according to iMoneyNet, a money market researcher. Many fund providers have been forced to cut back their offerings or get out of the business completely. The number of funds dropped by more than  20% to 631  in 2011 from 805 in 2007, according to the latest data available from the Investment Company Institute. The new requirements could force “more providers to exit the money fund business,” Greg McBride, senior financial analyst for Bankrate.com.

The proposal comes as investors, less spooked by the stock market and searching for better yields elsewhere, have been bailing from the funds. Assets in money market funds have dropped to $2.7 trillion now from a peak of $3.9 trillion in 2009, according to the Investment Company Institute.

To be sure, the proposal still needs to be voted on and could change before it is approved, with at least three of the five commissioners needed to approve the proposals before submitting them for public comment. An SEC spokesman said in a statement that SEC Chairman Mary L. Schapiro ”is advocating structural reforms to money market funds to address their susceptibility to runs and provide a buffer against losses.  The staff is actively preparing a reform proposal for Commission consideration.”

Still, advisers recommend that investors looking for better yields should turn to high-yield savings accounts. The average yield on savings accounts is close to 0.4%, but some banks offer up to 0.9%, according to Bankrate.com. However, savers will have to wait a few days for transfers to clear before they can invest the money in stocks or other asset classes, says McBride. Another option, says Cargile: Short-term bond funds, many of which yield more than 1%. Experts say investors should keep in mind that short-term bonds can drop in value when interest rates rise, though they should fall less than longer-term bonds.

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (5 of 7)

View all Comments »
    • As an institutional investor, MMFs are essential to daily liquidity. Sure the yield is minimal but the ability to do SOMETHING with cash and have guaranteed access to it every day is important. I worked at retail company who saw their seasonal spike in sales drive cash balances up to over 2 Billion. Banks won’t take deposits like that. I think the recent example of BoNY actually CHARGING their customers with over $50M on deposit is a sign of how little the banks want money on their books (since they aren’t lending there’s no money to be made). While MMFs are useless for the average person, for corporations they are absolutely essential and these changes will only drive companies into other products. The consequences of which have yet to be talked about. With just under 3 Trillion in assets, the MMF industry is the primary buyer of short term debt (Repo’s, CP, LOCs etc). If this market dries up there’s going to be a big hole to fill. Funny how one of the biggest causes of the crisis in 2008 was the lack of liquidity … and here we are trying to prevent a crisis like 2008 by removing liquidity. Some lessons are never learned.

    • Money market funds became popular in the late 70′s / early 80′s when yields were in the teens and risk was perceived to be negligible. It looks to me like they have become obsolete, at least for the time being.

About Real-Time Advice

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MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

New York Markets After Hours

need to know
A billion people were on Facebook Monday
Icahn discloses stake in Freeport McMoRan
Autodesk beats earnings expectations
GameStop tops expectations; shares rise
China fears trigger emerging market outflows
Bank of New York Mellon tech woes hit prices
Apple to host Sept. 9 product event
Business investment stars in GDP report
Wall Street’s missing a closed-end bargain
The best jobs for millennials
CEO pay surged last year
The happiest and least happy countries
Apple closing in on Fitbit as for wearable crown
Stock rout hits hedge-fund yearly gains hard

Poll shows Biden running stronger than Clinton
Republican wants more than the sequester

Donald Trump says he’s OK with raising taxes on himself
Trump: I’m OK with raising taxes on myself

Bezos is clear about what Amazon’s culture is

Keep calm and make money in a crazed market
This market swell may be dangerous to ride
Amid chaos, new investors jumped into stocks

Wal-Mart: Demand is reason for its gun decision

Where your
Chinese food is delivered by plane

Sorry, Uber, but this is the end of the IPO party

Star-studded content up Netflix’s sleeve
'Mr. Robot' season finale postponed

Beijing, ‘Loch Ness monster’ in mystery of China rally

China takes unusual action to tame yuan expectations
China’s unusual action to tame yuan views
Analysts dismiss fears of a China hard landing

Jim Rogers: Don’t rule out a commodity bull run
Commodities are ripe for a rebound

How the media just can’t spot economic crisis

6 ‘services’ that help hackers get rich

4 things you didn’t know could be hacked
How vulnerable are U.S. markets to hackers?


$14 to send message-bearing potatoes


How to throw a  birthday party for under $100
Only half of Americans with kids have wills

Millennials are clueless about cellphone etiquette
Millennials realize growing up is hard to do

/conga/frontpage.html 353496

Markets »

171.98MDow Volume:
Avg Vol: 109.98M
Unchanged
150
Decliners
1105
Advancers
5358
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,655 +369 2.27%
Nasdaq
/quotes/zigman/12633936/realtime 4,813 +115 2.45%
S&P 500
/quotes/zigman/3870025/realtime 1,988 +47 2.43%
GlobalDow
/quotes/zigman/629063/realtime 2,361 +50 2.17%
Gold
/quotes/zigman/662444/delayed 1,124 -1 0.06%
Oil
/quotes/zigman/2331095/delayed 42.66 +4.06 10.52%
FTSE 100
/quotes/zigman/3173262/delayed 6,192 +213 3.56%
DAX
/quotes/zigman/2380246/delayed 10,316 +318 3.18%
CAC 40
/quotes/zigman/3173214/delayed 4,658 +157 3.49%
FTSE MIB
/quotes/zigman/1482176/delayed 22,201 +727 3.39%
IBEX 35
/quotes/zigman/2759620/delayed 10,290 +306 3.06%
Stoxx 600
/quotes/zigman/2380150/delayed 362 +12 3.46%
Asia Dow
/quotes/zigman/6959860/realtime 2,753 +52 1.92%
Nikkei 225
/quotes/zigman/5986735/delayed 18,574 +198 1.08%
Hang Seng
/quotes/zigman/2622475/delayed 21,839 +758 3.60%
Shanghai
/quotes/zigman/1859015/delayed 3,084 +156 5.34%
Sensex
/quotes/zigman/1652085/delayed 26,231 +517 2.01%
Singapore
/quotes/zigman/1709939/delayed 2,945 +72 2.52%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 0.00 0.00%
Yen
/quotes/zigman/16008150/realtime/sampled 121.02 -0.01 0.01%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.04%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.72 +0.00 0.03%
DXY Index
/quotes/zigman/1652083/delayed 95.75 +0.47 0.50%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.27 +0.00 0.00%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.19 +0.01 0.40%
German 10y
/quotes/zigman/15866409/realtime 0.75 +0.04 5.49%
Italy 10yr
/quotes/zigman/15866497/realtime 1.93 -0.05 2.73%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 -0.03 1.54%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.87 +0.02 1.11%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 +0.02 4.00%
Crude Oil
/quotes/zigman/2331095/delayed 43 +4 10.52%
Gold
/quotes/zigman/662444/delayed 1,124 -1 0.06%
Corn
/quotes/zigman/7599553/delayed 375 +1 0.33%
DJIA F
/quotes/zigman/38649152/delayed 16,650 +401 2.47%
S&P F
/quotes/zigman/30356461/delayed 1,989 +51 2.63%
Silver
/quotes/zigman/3134148/delayed 14 +0 2.64%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.73 2.54 2.91%
AAPL /quotes/zigman/68270/composite 112.92 3.23 2.94%
GOOG /quotes/zigman/30194416/composite 637.61 8.99 1.43%
BAC /quotes/zigman/190927/composite 16.44 0.38 2.37%
C /quotes/zigman/5065548/composite 53.44 1.16 2.22%
F /quotes/zigman/264304/composite 13.56 0.35 2.65%
T /quotes/zigman/398198/composite 33.44 0.75 2.29%
BP /quotes/zigman/247026/composite 33.03 1.93 6.21%
GE /quotes/zigman/227468/composite 25.01 1.00 4.16%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
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  • /quotes/zigman/55989606/composite ACI+38.11%
  • /quotes/zigman/107036/composite ULTA+1.39%
  • /quotes/zigman/68719/composite ADSK+1.77%
  • /quotes/zigman/44001502/composite JNUG+19.08%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

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  • Personalized news and quote email alerts
  • Editorial e-newsletters about personal finance, mutual funds and market-specific coverage
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