The new deal eases restrictions on traveling to the country and allows Americans to bring home some of those famous cigars.+ READ ARTICLE
The stock market is projected to continue its upward climb as the U.S. economy grows in 2015.+ READ ARTICLE
There should be good news for job seekers in 2015 as the US economy continues to rebound.+ READ ARTICLE
More than 140 million Americans are expected to shop on Black Friday, while some plan to get great deals online on Cyber Monday.+ READ ARTICLE
Facebook bus drivers voted to join the Teamsters union to try to bridge the gap in wages between the drivers and their passengers.+ READ ARTICLE
A big drop in fuel prices — sparked by an oversupply of oil — means Americans have been enjoying the prices at the pump.+ READ ARTICLE
On Tuesday, Target announced it will be closing 11 U.S. stores, making a total of 19 closures in less than 12 months.
In the aftermath of last year’s monumental data breach of customer credit card information—not to mention years of underwhelming sales at some retail locations—Target decided to close eight stores in May, including two stores in the Las Vegas area and two stores in Ohio. This week, Target announced it will be closing 11 more stores in the U.S., including two Chicago-area locations and three Targets in Michigan.
The 11 stores will be shut down by February 1, 2015. “The decision to close a Target store is only made after careful consideration of the long-term financial performance of a particular location,” a company statement accompanying the announcement explained. “In most cases, a store is closed as a result of seeing several years of decreasing profitability,” a Target spokesperson added in an email to (Minneapolis) StarTribune.
There are roughly 1,800 Target stores in the U.S., and the number of planned closures pales in comparisons to the likes of troubled chains such as RadioShack and Sears. Yet it’s worth noting that that Target’s reputation among shoppers and the retail industry as a whole has declined greatly since the pre-recession years, when the cheap-chic darling was belovedly known as “Tarjhay.”
Over the summer, Target hired a new CEO, Brian Cornell, a former CEO at PepsiCO Americas Foods, with the hopes that new leadership could help the company rebound from its troubling slump, as well as the embarrassing and costly data breach that potentially compromised the information of well over 100 million customers. More recently, Target introduced its plans for the 2014 winter holiday season, which include a special offer of free shipping with no minimum purchase required on all orders placed at target.com through December 20.
Ritholtz Wealth Management CEO Josh Brown, a.k.a. the Reformed Broker, explains the relationship between media coverage and financial bubbles.+ READ ARTICLE
It's been nearly four years since the national average for a gallon of regular gasoline started with a $2. But on Saturday, we'll drop below the $3 mark.
That’s according to AAA, which measured the national average at a flat $3 (actually $3.003) as of Friday, and forecasts that the run of 1,400+ days of $3+ gasoline will end as of Saturday, November 1, 2014. The last time the price of a gallon of regular gas was under $3 nationally was December 2010.
Gas prices have been dropping roughly 1¢ per day lately, and the national average right now is about 70¢ less than the high for 2014, reached in spring. AAA notes that after the steady autumn decline in prices at the pump, more than 6 out of 10 U.S. gas stations are already selling gasoline starting under the $3 mark.
Like the Dow hitting 17,000, the fact that gas prices are dropping below the $3 milestone may sound impressive, but when viewed clinically and dispassionately, it’s not that big of a deal—a tiny incremental shift that’s part of a larger trend, not some big and sudden change—and it probably shouldn’t cause you to alter your behavior in the slightest. Sure, there’s a subconscious mental bump consumers get when gas prices start with the number $2, and perhaps some dollar stores and discount chains will benefit during the holiday season because low-income consumers will be able to spend a little more freely because the cost of fueling up is down. And yes, retailers and the economy in general will fare better when gas prices are in the $3 vicinity rather than the $4 or $5 range.
Overall, however, the effect on the economy of decreasing gas prices—even gas prices dropping below $3—is expected to be minimal, due in part because few anticipate fuel costs staying at such depressed rates for long. “Paying less than $3.00 for gas is a welcome holiday gift that may not last nearly as long as many would hope,” Bob Darbelnet, CEO of AAA, said via press release. “It is possible that lower gas prices will soon be a faded memory, so enjoy it while you can. The days of paying more than $3.00 per gallon for gas have regrettably not gone away.”