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need to know
Coca-Cola revenue beats, but profit falls short
Wendy's profit, revenue beats expectations
Sears warns on sales, to speed up closures
European stocks seesaw as banks slump
Head-on train crash kills at least 9 in Germany
Greek protests escalate over refugee camps
Film flops hurt 21st Century Fox outlook
Cracking down on college financial-aid cheats


IEA warns oil surplus will be worse than expected
IEA warns oil surplus will be bigger than expected
Oil rises, shrugging off IEA report

Oil industry woes grow as storage levels hit ‘critical level’
Oil woes grow as storage hits ‘critical’ level

99 Cent Gas May Be on Its Way
99-cents-a-gallon gas may be on its way: 24/7 Wall St.

Is the gold rally the real deal or ‘fool’s gold’?
Teen can keep $20,000 gold bar found in lake
Gold one of Wall Street’s best bets early in 2016

Nikkei skids 5% as 10-year bond yield moves negative
Japan minister warns against yen’s ‘rough’ rise

Five questions that Janet Yellen must answer
Yellen may say goal is not to slow the economy
Fed: Too white, too male, too many bankers?
Expansion won’t die of old age: S.F. Fed study

Convertible bonds are alluring as stocks slip
Convertible bonds are alluring as stocks fall


Record number of Americans give up citizenship

Google CEO Sundar Pichai gets $199 million in stock

Europe’s battles: migrants, ‘Brexit’ and ECB
German output, exports drop in December
Roubini: Welcome to the New Abnormal


Resist the urge to buy this stock pullback: J.P. Morgan

Yelp’s billion-dollar path hits a detour
Yelp posts earnings early, CFO to step down


Tesla downward revision is among the biggest
Tesla earnings: Model 3, Model X in focus

Why a selloff in European bank stocks is ominous
Bank stocks have taken enough: analyst
Deutsche Bank shares fall again in bank rout

Computer virus wants to remind you to have a nice day
Justice Department data exposed in breach

23 stocks they’re throwing out with the bathwater

Chipotle wants to give you a burrito — how to get it
What did Chipotle workers do today?

This has been the No. 1 car in America for decades
Cars sink through ice at winter festival
How far can you go on $50 in gas?



/conga/frontpage.html 367429

Markets »

165.88MDow Volume:
Avg Vol: 129.39M
Unchanged
121
Decliners
4802
Advancers
1600
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
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Dow
/quotes/zigman/627449/realtime 16,027 -178 1.10%
Nasdaq
/quotes/zigman/12633936/realtime 4,284 -79 1.82%
S&P 500
/quotes/zigman/3870025/realtime 1,853 -27 1.42%
GlobalDow
/quotes/zigman/629063/realtime 2,081 -22 1.07%
Gold
/quotes/zigman/33772884/delayed 1,196 -2 0.14%
Oil
/quotes/zigman/2260836/delayed 29.56 -0.13 0.44%
FTSE 100
/quotes/zigman/3173262/delayed 5,625 -65 1.14%
DAX
/quotes/zigman/2380246/delayed 8,847 -132 1.47%
CAC 40
/quotes/zigman/3173214/delayed 3,980 -86 2.11%
FTSE MIB
/quotes/zigman/1482176/delayed 15,999 -442 2.69%
IBEX 35
/quotes/zigman/2759620/delayed 7,932 -190 2.34%
Stoxx 600
/quotes/zigman/2380150/delayed 309 -6 1.78%
Asia Dow
/quotes/zigman/6959860/realtime 2,465 -50 1.98%
Nikkei 225
/quotes/zigman/5986735/delayed 16,085 -919 5.40%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 24,021 -266 1.10%
Singapore
/quotes/zigman/1709939/delayed 2,623 +65 2.53%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.01 0.76%
Yen
/quotes/zigman/16008150/realtime/sampled 114.56 -1.29 1.11%
Pound
/quotes/zigman/16008140/realtime/sampled 1.44 0.00 0.01%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.70 -0.01 1.35%
DXY Index
/quotes/zigman/1652083/delayed 96.40 -0.28 0.29%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.41 -0.22 0.25%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.72 -0.03 1.81%
German 10y
/quotes/zigman/15866409/realtime 0.23 +0.01 3.50%
Italy 10yr
/quotes/zigman/15866497/realtime 1.74 +0.04 2.17%
Spain 10yr
/quotes/zigman/15866444/realtime 1.77 +0.01 0.37%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.41 -0.01 0.60%
Japan 10yr
/quotes/zigman/15866525/realtime -0.02 -0.06 163.32%
Crude Oil
/quotes/zigman/2260836/delayed 30 0 0.44%
Gold
/quotes/zigman/33772884/delayed 1,196 -2 0.14%
Corn
/quotes/zigman/25518691/delayed 361 -2 0.48%
DJIA F
/quotes/zigman/48241424/delayed 15,831 -157 0.98%
S&P F
/quotes/zigman/43106711/delayed 1,834 -18 0.96%
Silver
/quotes/zigman/32655632/delayed 15 0 0.49%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 99.75 -4.32 -4.15%
AAPL /quotes/zigman/68270/composite 95.01 0.99 1.05%
GOOG /quotes/zigman/59527964/composite 682.74 -0.83 -0.12%
BAC /quotes/zigman/190927/composite 12.27 -0.68 -5.25%
C /quotes/zigman/5065548/composite 37.81 -2.05 -5.14%
F /quotes/zigman/264304/composite 11.59 0.14 1.22%
T /quotes/zigman/398198/composite 37.11 0.23 0.62%
BP /quotes/zigman/247026/composite 29.92 -0.54 -1.77%
GE /quotes/zigman/227468/composite 28.17 -0.37 -1.30%
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
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 11.96% 11.88% 11.62%
Business 13.12% 13.11% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.30% 14.12%
Airline 15.17% 15.16% 15.10%
Cash Back 15.26% 15.23% 15.27%
Reward 15.28% 15.25% 15.14%
Instant Approval 18.21% 18.18% 18.00%
Bad Credit 22.88% 22.88% 22.73%
Source:CreditCards.com

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Encore
A blog about living in and planning for retirement

Can State and Local Pension Promises Be Altered?

The perception is that public employees have much greater protections with respect to their defined-benefit plans than their private-sector counterparts. While the Employee Retirement Income Security Act of 1974 — the governing law in the private sector — protects benefits earned to date, state laws or constitutions prevent public-plan sponsors from reducing future benefits for current employees. Thus, if the employer wants to reduce the future accrual of benefits, such a change can apply only to new hires.

But in a recent blog post, I described how actions taken by plan sponsors have shown that public-sector benefit promises are less secure than one would have thought before the financial crisis.

Plan sponsors have reduced the pension wealth of current employees by increasing required employee contributions so that while the employee continues to accrue the expected benefit, the net contribution from the employer has been reduced. In the case of retirees, sponsors have reduced or suspended cost-of-living adjustments. And these changes have been upheld in a number of courts.

Thus, to the extent that protections exist, they must apply only to “core” benefits. Most states protect core benefits under the U.S. Constitution’s Contract Clause or similar provisions in state constitutions. To determine whether a state action is unconstitutional under the Contract Clause, the courts apply a three-part test. First, they determine whether a contract exists. This process determines when the contract was formed and what it protects. Second, the courts determine whether the state action constitutes a substantial impairment to the contract. If the impairment is deemed substantial, then the court must determine whether the action is justified by an important public pur­pose and if the action taken in the public interest is reasonable and necessary.

The strength of the protections depends on where the protections are located. Constitutional provisions are harder to overcome than statutes or case law. Only three states — Alaska, Illinois and New York — have explicit constitutional provisions that protect future as well as past benefits for current employees. In these states, changing benefits for existing employees is virtually impossible without amending the state constitution. Other states where benefits are protected have statutes that expressly adopt the contract clause theory or judicial decisions that have ruled the relationship to be contractual. Interestingly, for 13 states, the protections apply only once benefits are vested, and eight states protect benefits only once the employee is eligible for retirement.

Two states that protect benefits under the contract clause — New Jersey and Rhode Island — have passed legislation that explicitly reduces core benefits for current employees. These cuts have been challenged, and the cases are currently in the courts. The outcome of these challenges will provide some information on how much freedom states actually have to change future benefits for current employees. The answer may well hinge on whether the court accepts the argument that there is an important public purpose for such changes.

A failure to permit such changes would have serious consequences. First, limiting pension reductions to new workers reduces pension costs only slowly over time. Second, exempting current workers from cuts creates a two-tiered compensa­tion system under which workers doing similar jobs would receive different amounts based solely on when they were hired. Finally, allowing public employees to enjoy greater protections than their private-sector counter­parts is perceived by many as unfair.

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 20)

View all Comments »
    • Like G. Lee, my husband was a public employee – a high school teacher in Illinois. For 39 years he paid his portion, but the state put their portion into current operating expenses or capital projects. Since the system hasn’t been fully funded for many years, the funds are now woefully inadequate. I agree with those who say the politicians need to be turned out. The only problem is there is rarely anyone new and truly interested in his / her constituency who runs for office, at least in our area. Beyond that, when my husband started working and until the past 10 – 15 years or so, salaries in the private sector were considerably higher than what he and his colleagues were making,taking into account the education and experience level, along with their contributions to society. Remember when new attorneys took in starting salaries greater than what teachers made after 40 years? Now, however, with the current economic crisis, the tables have turned. The Chicago Tribune has printed a series of exposes and I applaud that. What I don’t understand is the claim that retired public employees get free medical insurance. We’ve been paying an average of $1,750 monthly for ours. I don’t know who those other retirees are. Clearly, something must be done and change that starts with new hires will not make a big difference for many years. So that doesn’t seem feasible either. Someone who can think creatively and without bias needs to start contributing ideas to solve this funding / taxing problem.

    • Well, it’s readily apaprent that the Baby Boomers have no problem with devouring their own children (and everyone else’s.)So, I know that I will never receive a pension or social security benefits with anything near the spending power they will enjoy. They will clean the carcass and leave the rest of us with the bones. Has it occurred to anyone else that the Social Welfare State has caused the declining birth rate in the West? I mean, why bear the expense of having children when “the government” will look after you in your old age. Hence, the current demographic disaster. Democracy is nothing more than a tyranny of the majority. The Baby Boomers can still outvote the rest of us because of their sheer numbers. They will vote to steal our money. When they begin to die off and the younger generations outnumber them, they will vote to withdraw the level of benefits now supplied. So, those of us in the middle (Gen Xers) will be doubly screwed. Wewill have to fund those ahead of us and will be denied benefits by those behind us. Has anyone else heard that Social Security recipients are now demanding they also get this recession bailout money?God help us.

    • Everyone assumes that States and Municipalities are in fiscal trouble because of pensions. Shouldn’t we investigate where the tax money actually went, before implementing austerity measures? I suspect that a large amount went to unnecessary redevelopment projects, financed with outlandish bond schemes, which nobody wants to take credit for. Let’s open the books, and start indicting government leaders who made these fiscal problems possible.

    • it is time for the young of our country to grasp the fact that they have no future as long as the government continues to make believe that they will be able to pay the outlandish obligations to state local and federal retired persons. The main difference between us and Greece is the Chinese willingness to hold our dept. If only one party could appeal to this group which has no interest in the rest of the republican social agenda. I assume this maturation of the republicans will take place in 8 yrs. So enjoy your pensions for the time being in 8 yrs the rest of us will be making things more equal.

About Encore

  • Encore examines the changing nature of retirement, from new rules and guidelines for financial security to the shifting identities and priorities of today’s retirees. The blog also explores news that affects retirement, from the Wall Street Journal Digital Network and around the web. Lead bloggers are reporter Catey Hill and senior editor Jeremy Olshan. Other contributors include The Wall Street Journal’s retirement columnists Glenn Ruffenach and Anne Tergesen; the Director for the Center for Retirement Research at Boston College, Alicia Munnell; and the Director of Research for Pinnacle Advisory Group, Michael Kitces, CFP.

MarketWatch - Stock Market Quotes, Business News, Financial News

New York Markets Open in:

Futures: /quotes/zigman/43106711/delayed S&P 500 -1.0% /quotes/zigman/48241424/delayed DOW -1.0% /quotes/zigman/43108768/delayed NASDAQ -1.1%

need to know
Coca-Cola revenue beats, but profit falls short
Wendy's profit, revenue beats expectations
Sears warns on sales, to speed up closures
European stocks seesaw as banks slump
Head-on train crash kills at least 9 in Germany
Greek protests escalate over refugee camps
Film flops hurt 21st Century Fox outlook
Cracking down on college financial-aid cheats


IEA warns oil surplus will be worse than expected
IEA warns oil surplus will be bigger than expected
Oil rises, shrugging off IEA report

Oil industry woes grow as storage levels hit ‘critical level’
Oil woes grow as storage hits ‘critical’ level

99 Cent Gas May Be on Its Way
99-cents-a-gallon gas may be on its way: 24/7 Wall St.

Is the gold rally the real deal or ‘fool’s gold’?
Teen can keep $20,000 gold bar found in lake
Gold one of Wall Street’s best bets early in 2016

Nikkei skids 5% as 10-year bond yield moves negative
Japan minister warns against yen’s ‘rough’ rise

Five questions that Janet Yellen must answer
Yellen may say goal is not to slow the economy
Fed: Too white, too male, too many bankers?
Expansion won’t die of old age: S.F. Fed study

Convertible bonds are alluring as stocks slip
Convertible bonds are alluring as stocks fall


Record number of Americans give up citizenship

Google CEO Sundar Pichai gets $199 million in stock

Europe’s battles: migrants, ‘Brexit’ and ECB
German output, exports drop in December
Roubini: Welcome to the New Abnormal


Resist the urge to buy this stock pullback: J.P. Morgan

Yelp’s billion-dollar path hits a detour
Yelp posts earnings early, CFO to step down


Tesla downward revision is among the biggest
Tesla earnings: Model 3, Model X in focus

Why a selloff in European bank stocks is ominous
Bank stocks have taken enough: analyst
Deutsche Bank shares fall again in bank rout

Computer virus wants to remind you to have a nice day
Justice Department data exposed in breach

23 stocks they’re throwing out with the bathwater

Chipotle wants to give you a burrito — how to get it
What did Chipotle workers do today?

This has been the No. 1 car in America for decades
Cars sink through ice at winter festival
How far can you go on $50 in gas?



/conga/frontpage.html 367429

Markets »

165.88MDow Volume:
Avg Vol: 129.39M
Unchanged
121
Decliners
4802
Advancers
1600
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 16,027 -178 1.10%
Nasdaq
/quotes/zigman/12633936/realtime 4,284 -79 1.82%
S&P 500
/quotes/zigman/3870025/realtime 1,853 -27 1.42%
GlobalDow
/quotes/zigman/629063/realtime 2,081 -23 1.07%
Gold
/quotes/zigman/33772884/delayed 1,196 -2 0.14%
Oil
/quotes/zigman/2260836/delayed 29.55 -0.14 0.47%
FTSE 100
/quotes/zigman/3173262/delayed 5,625 -65 1.14%
DAX
/quotes/zigman/2380246/delayed 8,847 -132 1.47%
CAC 40
/quotes/zigman/3173214/delayed 3,980 -86 2.11%
FTSE MIB
/quotes/zigman/1482176/delayed 16,000 -441 2.68%
IBEX 35
/quotes/zigman/2759620/delayed 7,932 -190 2.34%
Stoxx 600
/quotes/zigman/2380150/delayed 309 -6 1.78%
Asia Dow
/quotes/zigman/6959860/realtime 2,465 -50 1.97%
Nikkei 225
/quotes/zigman/5986735/delayed 16,085 -919 5.40%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 24,021 -266 1.10%
Singapore
/quotes/zigman/1709939/delayed 2,623 +65 2.53%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.01 0.76%
Yen
/quotes/zigman/16008150/realtime/sampled 114.56 -1.29 1.11%
Pound
/quotes/zigman/16008140/realtime/sampled 1.44 0.00 0.01%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.70 -0.01 1.35%
DXY Index
/quotes/zigman/1652083/delayed 96.40 -0.28 0.29%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.41 -0.22 0.25%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.72 -0.03 1.90%
German 10y
/quotes/zigman/15866409/realtime 0.23 +0.01 2.86%
Italy 10yr
/quotes/zigman/15866497/realtime 1.74 +0.04 2.13%
Spain 10yr
/quotes/zigman/15866444/realtime 1.77 +0.01 0.37%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.41 -0.01 0.60%
Japan 10yr
/quotes/zigman/15866525/realtime -0.02 -0.06 163.32%
Crude Oil
/quotes/zigman/2260836/delayed 30 0 0.47%
Gold
/quotes/zigman/33772884/delayed 1,196 -2 0.14%
Corn
/quotes/zigman/25518691/delayed 361 -2 0.48%
DJIA F
/quotes/zigman/48241424/delayed 15,831 -157 0.98%
S&P F
/quotes/zigman/43106711/delayed 1,834 -18 0.99%
Silver
/quotes/zigman/32655632/delayed 15 0 0.49%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 99.75 -4.32 -4.15%
AAPL /quotes/zigman/68270/composite 95.01 0.99 1.05%
GOOG /quotes/zigman/59527964/composite 682.74 -0.83 -0.12%
BAC /quotes/zigman/190927/composite 12.27 -0.68 -5.25%
C /quotes/zigman/5065548/composite 37.81 -2.05 -5.14%
F /quotes/zigman/264304/composite 11.59 0.14 1.22%
T /quotes/zigman/398198/composite 37.11 0.23 0.62%
BP /quotes/zigman/247026/composite 29.92 -0.54 -1.77%
GE /quotes/zigman/227468/composite 28.17 -0.37 -1.30%
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
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 11.96% 11.88% 11.62%
Business 13.12% 13.11% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.30% 14.12%
Airline 15.17% 15.16% 15.10%
Cash Back 15.26% 15.23% 15.27%
Reward 15.28% 15.25% 15.14%
Instant Approval 18.21% 18.18% 18.00%
Bad Credit 22.88% 22.88% 22.73%
Source:CreditCards.com

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