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US stocks recover; Tiffany shines on earnings gain

By WTOP Staff

ALEX VEIGA
AP Business Writer

Major U.S. stock indexes mounted a solid comeback Wednesday, recovering their losses from the prior day and finishing on track for a weekly gain.

It was the Dow Jones industrial average’s biggest gain in five weeks.

In the absence of any major new economic data, investors focused on companies reporting quarterly earnings or otherwise garnering headlines.

Tiffany & Co. was a favorite early on, vaulting more than 9 percent on a sharp increase in earnings and revenue. Traders also cheered news of Netflix’s plans to make a deeper foray into Europe, sending the Internet video service’s shares up 5 percent.

Investors got a closer look at discussions held by the Federal Reserve’s policymakers in their most recent meeting last month. Wall Street’s reaction was muted, however, and the market kept on the upward trajectory it set upon early on.

U.S. index futures rose before the opening of regular stock trading. The market opened higher and stayed in positive territory throughout the day.

Major indexes have finished higher three of the last four trading days.

“Since there was no real solid news to continue into a two-day sell-off, we’re getting a little bit of a bounce today,” said Joe Peta, a managing director of Novus.

The Standard & Poor’s 500 index gained 15.20 points, or 0.8 percent, to close at 1,888.03. The index is up 2.2 percent for the year.

The Dow Jones industrial average rose 158.75 points, or nearly 1 percent, to end at 16,533.06. The Nasdaq composite index added 34.65 points, or 0.9 percent, to finish at 4,131.54.

The Dow and Nasdaq remain down for 2014.

Small-company stocks also rebounded. The Russell 2000 index rose 5.73 points, or 0.5 percent, to 1,103.63.

Bond prices fell, driving the yield on the 10-year U.S. Treasury note up to 2.54 percent from 2.51 percent late Tuesday.

All 10 industry sectors in the S&P 500 rose, led by consumer discretionary and energy stocks.

The stock market has fluctuated between gains and losses on an almost daily basis as investors try to get a better handle on the trajectory of the economy following a weak start to the year.

That pattern continued even after the S&P 500 hit a high early last week.

In all, the market has changed course from one day to another nearly 60 percent of the time so far this year, something not seen since 2008 during the financial crisis, Peta said.

“It is a schizophrenic market that doesn’t seem to have much of a memory from one day to the next,” he said.

The Fed meeting minutes released Wednesday shed little new light on a key question for many investors: When will the Fed start raising interest rates?

Fed officials discussed how to unwind the support the central bank has given the economy once they decide to begin raising the Fed’s key short-term rate. Because the economy is still recovering, most analysts don’t think the Fed will start raising rates before the second half of 2015.

The market got a more detailed look at corporate America with a new batch of company earnings.

Tiffany said its earnings spiked 50 percent in the first quarter as worldwide sales jumped by double digits and the company raised its prices. The results beat analysts’ expectations and the jeweler raised its earnings forecast for the year. Tiffany’s stock jumped $8.07, or 9.1 percent, to $96.30.

“Retail is very fickle right now, but some sectors are doing well, like luxury,” said Dan Veru, chief investment officer at Palisade Capital Management.

Netflix shares rose $18.93, or 5.1 percent, to $390.60 after the company said it will expand into Germany, France and four other European countries later this year.

Online payments system provider Qiwi vaulted 20.7 percent after the company raised both its profit and revenue outlook for 2014 after a strong first quarter. The stock rose $7.21 to $42.12.

Not all stocks had such a good day.

PetSmart dropped $5.17, or 8.3 percent, to $57.02 after the pet store chain reported disappointing revenue for the first quarter and slashed its earnings outlook for the current quarter and year.

Trading volume was lighter than usual Wednesday, something that’s likely to continue this week as the Memorial Day weekend nears.

Investors will get a fresh batch of data on housing and the economy on Thursday, as well as earnings from Hewlett-Packard, Best Buy and Sears, among others.

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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