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Dow inches to record as earnings reports wind down

By WTOP Staff

BERNARD CONDON
AP Business Writer

NEW YORK (AP) — The Dow Jones industrial average hit a record on Friday, but without much conviction after a choppy day of trading during which investors couldn’t make up their minds whether to buy or sell.

The blue-chip index flitted between small gains and losses at least a dozen times, and ended up beating its old record set last week by less than 2.5 points, or just 0.02 percent.

“The market is having trouble finding direction here,” said David Kelley, JPMorgan Funds’ chief global strategist. But he added, “I believe for the rest of the year, a warming economy … will push the market up.”

The Standard & Poor’s 500 index also eked out a gain, but is no higher than it was in early March, after waffling between weekly gains and losses most of that time.

On Friday, stocks fell broadly from the open as investors took in the latest corporate earnings reports. It was an odd day in which winners became losers, and vice versa.

Stocks of utilities have been in favor lately because of their stable earnings and fat dividends, but investors dumped them Friday, and they closed 1.4 percent lower. That was the biggest drop of the S&P 500’s ten sectors.

By contrast, a few big-name Internet stocks that had been crushed in a recent sell-off in that industry managed healthy gains.

Netflix announced it was raising prices for new subscribers of its streaming video service and investors cheered, lifting its stock 2 percent. Tesla Motors and LinkedIn, both down more than 10 percent since April, rose 2 percent and 2.5 percent, respectively.

The Dow edged up 32.37 points for the day, or 0.2 percent, to 16,583.34. That narrowly beat its previous record high of 16,580.84 set on April 30.

The S&P 500 index rose 2.85 points, or 0.2 percent, to 1,878.48. The Nasdaq composite rose 20.37 points, or 0.5 percent, to 4,071.87.

Mixed messages from earnings reports left investors without clear direction.

CBS fell $1.27, or 2 percent, to $56.74 after reporting late Thursday that its first-quarter revenue had fallen short of analysts’ projections. Sales from advertising slumped 12 percent.

Ralph Lauren dropped $3.18, or 2 percent, to $148.81 after its forecast for sales for the current quarter disappointed investors.

Hilton Worldwide Holdings rose 43 cents, or 2 percent, to $23.07 after exceeding analysts’ expectation for earnings. And Gap rose $1.28, or 3 percent, $40.52. The clothes store chain reported strong sales for April and issued a forecast for the current quarter that was better than investors were expecting.

With most companies out with their results, first-quarter earnings for the S&P 500 are expected to rise 3.4 percent, according to S&P Capital IQ. That’s a respectable performance but still down from a nearly 8 percent gain in the fourth quarter.

Companies reporting earnings next week include Macy’s, Deere & Co., Cisco Systems and Wal-Mart and Nordstrom.

Investors were also watching the situation in Ukraine. On Friday, fierce fighting in eastern Ukraine left at least seven dead. Pro-Russian militants are pressing ahead with plans for an independence referendum this weekend despite objections from Moscow.

Erik Davidson, deputy chief investment officer of Wells Fargo Private Bank, said investors are still jittery five years after the financial crisis sent stocks tumbling to 12-year lows.

“There is always this worry about what is the next shoe to drop,” he said. “So places we only learned about before in geography class become important: Crimea, Ukraine.”

The yield on the 10-year Treasury note rose to 2.62 percent from 2.61 percent on Thursday. The price of oil fell 27 cents, or 0.3 percent, to $99.99 a barrel.

Among other stocks making big moves:

— Symantec rose 66 cents, or 3 percent, to $20.79. The security software maker said cost cuts helped boost its fourth-quarter profit margins and net income.

— News Corp. rose 89 cents, 5 percent, to $18. The publishing company, which owns The Wall Street Journal, reported net income fell in its fiscal third quarter, but still beat analysts’ expectations due to better book publishing. That unit thrived thanks to of the “Divergent” series, which was launched as a movie in March.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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