Tesla gets near-perfect score from Consumer Reports

The Tesla Model S is a nearly perfect car, according to Consumer Reports, with the only issue being its need to recharge which could be a problem on long-distance trips.

NEW YORK (CNNMoney)

The Tesla Model S is about as good as a car ever gets, according to Consumer Reports magazine. The Model S, an all-electric plug-in car, earned a score of 99 out of a possible 100 in the magazine's tests.

The Model S has already won awards from car magazines like Motor Trend and Automobile, but Consumer Reports is widely regarded as being the most influential magazine among car shoppers. Consumer Reports, published by the non-profit group Consumer's Union, purchases all the cars it tests and does not accept paid ads.

The score of 99 means the Tesla Model S, a sedan that can seat as many as seven people, performed as well or better than any automobile the magazine has ever tested. The score is not unprecedented -- most recently, it was earned by the Lexus LX460 in 2009 -- but no car at any price has ever scored higher.

The only reason the Model S didn't earn a perfect score was that it needs time to recharge. Depending on price, the Model S has driving range of between 208 and 265 miles. A full charge takes about six hours from an ordinary 240 volt outlet, according to Tesla.

"If it could recharge in any gas station in three minutes, this car would score about 110," said Jake Fisher, head of auto testing for Consumer Reports.

The Model S tied for the quietest vehicle the magazine has ever tested, was among the most energy-efficient and had excellent scores for acceleration, braking and ride quality.

Gallery - 6 greenest cars in America

"We don't get all excited about many vehicles," said Fisher, "and with this car we really did."

The magazine's raves for the Model S stand in sharp contrast to the treatment received by the competing Fisker Karma which the magazine pilloried, calling it "plagued with flaws." Fisker is now in dire financial trouble.

On other hand, Tesla just announced its first profit and raised sales forecasts for the Model S.

Industry analysts have credited the quality of the Model S, in part, with Tesla's early success in an industry that has not been kind to start-ups. Just recently electric car maker Coda Automotive went under and plug-in car maker Fisker is near its demise. Tesla, meanwhile, is financially healthy thanks to good sales of the Model S plus deals it's reached to supply components to major automakers like Toyota and Daimler as well as sales of electric car credits, earned under California regulations, to other automakers that sell fewer electric cars.

Tesla had previously stated a goal of selling 20,000 Model S cars this year and has now raised that goal.

The question remains whether the car will continue to sell well in the long term, said Todd Turner, an industry analyst with Car Concepts in California. A lot of that will depend on the longer-term dependability of its battery technology, he said.

"All kinds of cars have complexities," he said. "Everything has to work for a very long period of time."

Consumer Reports isn't recommending the Model S, though. At least not yet. To be recommended, a car has to have at least average "predicted reliability," something that's based on reader surveys. Also, a car has to have good crash test scores from the government and from the privately funded Insurance Institute for Highway Safety. Consumer Reports has not yet collected enough data to rule on the Model S's reliability.

So far, the magazine itself has had a couple of minor issues with its test car, Fisher said, including a radio problem that was fixed by an overnight over-the-air software download and a cracked windshield.

To maintain its momentum, Tesla will need to move beyond this car, said Ed Kim, an analyst with the auto marketing consulting firm AutoPacific.

"Ultimately, Tesla's going to have to transition from building six-figure cars for bleeding-edge early adopters to making a car for a more general audience," Kim said.

Tesla's next vehicle is supposed to be the Tesla Model X crossover SUV but, after that, the company's plans call for a less expensive car and, possibly, other products.

First Published: May 9, 2013: 6:01 AM ET

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Reclusive Huawei CEO breaks media silence

Ren Zhengfei, who founded Huawei in 1987, spoke to the media for the first time Thursday.

HONG KONG (CNNMoney)

And then you have Ren Zhengfei, the reclusive chief executive of Huawei. Two and a half decades have passed since Ren founded the telecommunications company in the Chinese city of Shenzhen, and over that time he has never given an interview or press conference.

Until today, that is.

Ren spoke to reporters Thursday in New Zealand, answering questions about cybersecurity and his rumored retirement.

Huawei made its name selling telecom equipment, and specializes in building the routers and switches needed for national communication systems.

Now the industry's second-largest firm, Huawei recently won a contract to build a mobile network in New Zealand. But the Chinese company has been shut out of other markets, including Australia and the United States.

Related story: Huawei won't hang up on U.S. smartphone market

Lawmakers in the United States are worried that granting Huawei access to domestic networks could open the door to hackers or spies from China. One particularly critical congressional report issued last year concluded that the company's equipment "could undermine core U.S. national security interests."

Huawei has denied the charges, and embarked on a campaign that emphasizes openness and transparency. Ren's decision to break his silence appears to be part of that effort.

Speaking to reporters from four local media outlets on Thursday, Ren downplayed concerns over the security of Huawei's equipment.

"Our business is just like building pipes," Ren said, according to The National Business Review. "Our pipe carries the data and information traffic -- if the water running through the pipe is polluted, I think it is not the pipe that should be blamed."

Related story: Huawei's Guo Ping on his company's unusual governance structure

The founder also addressed his time in the People's Liberation Army -- a circumstance that has raised suspicions in Congress.

According to Fairfax Media, Ren said that at the time, all "exceptional people" would be expected to join the Communist Party.

"At that time my personal belief was to work hard, dedicate myself or even sacrifice myself for the benefit of 'the people'. Joining the Communist Party was in line with that aspiration," Ren said.

The Age reported that Ren also sought to calm speculation about his retirement, saying that the company's novel rotating CEO structure takes care of day-to-day decision making.

Three different executives take turns at the helm every six months.

First Published: May 9, 2013: 6:03 AM ET

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Student debt delays spending, saving - and marriage

Many borrowers are making financial sacrifices due to growing amounts of student loan debt.

NEW YORK (CNNMoney)

About three-quarters of student loan borrowers surveyed said they -- or their children -- have been forced to make sacrifices in order to keep up with student loan payments, according to a survey from the American Institute of CPAs.

Forty-one percent of the more than 200 people surveyed said they have delayed saving for retirement, 40% have put off buying cars, while 29% have postponed home purchases.

Related: Colleges with biggest bang for the buck

Even marriage has been put on hold, with 15% of respondents saying they delayed tying the knot because of student loan debt.

The majority of borrowers said they didn't anticipate having such a difficult time repaying their loans, and 60% feel some amount of regret about the decision to fund their education this way.

"[Graduates in debt] start out with an anchor that slows their progression toward future goals," Ernie Almonte, chair of the AICPA's National CPA Financial Literacy Commission, said in a statement.

Related: 41% of college grads overqualified for what they do

And debt only continues to grow -- exceeding $1 trillion nationwide, with about one in five households carrying student loans. Meanwhile, the average debt load jumped 5% to a new high of $26,600 last year.

Small businesses are even being hurt as a result, according to a new report on private student loans from the Consumer Financial Protection Bureau, the government's consumer watchdog agency.

"Student debt may limit consumers' ability to access small business credit and to save capital," the CFPB said. "If consumers are able to save enough to start a small business, student debt burdens may require them to divert cash away from their businesses so they can keep up with their student loans."

Related: College is free!

To help student loan borrowers better manage their debt, the CFPB said a number of different of options are being considered -- including the ability for private loan borrowers to refinance at a lower rate, set up payment plans when they default or enroll in an income-based repayment program.

"College can open up many opportunities, and we do not want that college degree to become more of a burden than a blessing for those saddled with unmanageable debt in a tough employment market," CFPB director Richard Cordray said in a statement.

First Published: May 9, 2013: 6:05 AM ET

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Make your vacation pals cough up their fair share

(CNNMoney)

"Resentment over money is one of the biggest issues that ruin vacations," says Nadine Davidson, author of Travel With Others Without Wishing They'd Stayed Home.

So before you book this summer's big trip, air your expectations about who will pay for what and how luxuriously (or not) you'll travel. That way, your time together can be all about having fun.

The Ground Rules

Keep it light. Work the topic into a larger discussion about the good times you're going to have, says Patricia Rossi, author of Everyday Etiquette.

Put it in writing. Outline the costs in black and white after your discussion, or have the whole conversation via e-mail if that feels easier.

Prepay separately when you can. Can you each send in half the condo deposit? Buy your own plane tickets? Doing so will prevent headaches later. Or opt for an all-inclusive resort -- you'll have fewer bills to square up.

When You're Face to Face...

1. Opening gambit: "We're so excited to be going to Disney with you. We love the Mickey Mouse theme restaurant. Are there any places you want to try?"

Why it works: Talking about specific activities -- and even eateries -- offers insight into how your pal or relative intends to divvy up his vacation dollars. "Even if someone's in your tax bracket, it doesn't mean they like to spend their travel money the same way," says Davidson.

2. Suggest a split. "Unless you hit the lottery next month, I assume we'll be dividing everything fifty-fifty."

Why it works: Stating upfront how you expect to share costs sets the tone for the whole trip. Be sure to discuss when the money is needed, the deadline for refunds, and what happens if one party has to cancel. Infuse this with humor to make people feel at ease, says Rossi.

3. Take on the burden. "I know the hotel prices in Chicago are outrageous. Why don't I research some cost-effective options?"

Related: How to ask a pal or relative to pay you back

Why it works: Taking the reins can help you avoid the awkwardness that might ensue when, say, your spendy pals suggest the Ritz or your cheap friends pick the Fleabag Inn. Your travel mates are likely to be more receptive to different options if they know it won't create a hassle for them, says Marblehead, Mass., etiquette consultant Jodi R.R. Smith.

4. Propose a practical plan. "Since we're eating lunches at the condo, how about each family sets aside $100 for grocery store runs?"

Why it works: Putting a system in place ensures that no one winds up footing the whole bill, says Lynn O'Rourke Hayes, editor of FamilyTravel.com. Create a communal account or put receipts in a specific place to be tallied up later. Also address how you'll pay for booze, since differences in consumption can cause tension.

5. Ask for alone time. "Seafood isn't really our thing. When you guys go to the surf-and-turf place, we'll head to our favorite taco stand."

Why it works: Making some separate plans allows each party to look forward to things that cater to its budget and tastes. After all, says Smith, "part of the fun of a vacation is the anticipation."

First Published: May 8, 2013: 6:51 PM ET

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Homebuyers clueless about mortgages

One-third of respondents believe lenders are required by law to charge the same fees to all clients. That's wrong. Fees vary and can often be negotiated.

NEW YORK (CNNMoney)

When it comes to mortgages, homebuyers answered basic questions about terms, how to choose a lender and financing wrong nearly one-third of the time, according to an April survey of more than 1,000 current and prospective homeowners by real estate website Zillow.

Among the survey's findings, 31% of buyers don't think it's possible to get a mortgage for less than 5% down; 34% don't know what the term "annual percentage rate" (APR) means and one in four believe you must close with the lender that pre-approves your mortgage.

Related: Tips for buying a home

"All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan," said Erin Lantz, director of mortgages for Zillow. "Buyers should always shop multiple lenders and compare rates and fees and read lender reviews in order to find the best loan for their situation."

One example: 34% of respondents believe lenders are required by law to charge the same fees to all clients for credit reports, appraisals and the like. That's wrong. Fees vary from bank to bank and can often be negotiated.

Related: 5 best markets to buy a home

But it's hard to compare those deals if you don't understand what mortgage terms, like "annual percentage rate," mean. The APR factors into fees, upfront points, origination and underwriting fees and other costs that borrowers use to compare the actual cost of loans.

Such knowledge gaps can have long-term consequences. About 34% of first-time homebuyers think they need a down payment of at least 5% to make a home purchase, but loans insured by the Federal Housing Administration can require as little as 3.5% down.

Related: How much house can you afford?

And 24% of buyers believe the best mortgage deals are available through the banks where they currently have their savings and checking accounts, but often competing lenders can undercut those banks by large margins.

"If a homebuyer can lower their interest rate by even half a percentage point, they can not only increase their purchasing power, but save thousands of dollars over the life of the loan," said Lantz.

For every $100,000 borrowed, a half percentage point lower rate would reduce payments by $28 a month on a 30-year, fixed rate loan. That adds up to more than $10,000 over 30 years. Or borrowers could choose to add that $28 savings to each monthly payment. That would shorten the term of the mortgage from 30 years to just over 27 and save $6,500 in interest paid.

Related: Was my home a good investment?

Another costly mistake: Many house hunters go shopping with financing in place because it enables them to act more quickly if they see a home they want. But 26% of buyers believe that once they're pre-approved, they're obligated to close the deal with those loans, according to the survey. In reality, there's no obligation. If buyers see better terms available they should take them.

Existing homeowners can also be guilty of ignorance. Some 20% of homeowners surveyed didn't know that underwater mortgages -- those in which borrowers owe more than their homes are worth -- can be refinanced into lower rate loans.

Related: Boomerang buyers return to market after foreclosure

Finally, the survey found that nearly a third of homeowners are unaware that if they go through a foreclosure or short sale, they may not have to wait the full seven years it takes for their credit score to recover and they can buy a home again.

In reality, some homeowners who do short sales can obtain financing to buy another home in as little as two years.

The Consumer Financial Protection Bureau is hoping to make it easier for homebuyers with simplified mortgage forms that help them compare terms and costs and by creating new rules that will protect homeowners from getting into loans they can't afford.

First Published: May 9, 2013: 12:24 AM ET

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Rich Chinese look abroad to secure wealth

More wealthy Chinese are investing in overseas markets.

HONG KONG (CNNMoney)

One in three wealthy Chinese have investments abroad, according to a new survey from China Merchants Bank and Bain & Company. That's roughly double the number of high net worth individuals who reported making similar investments in 2011.

Of those who have invested abroad, roughly 60% plan to increase their foreign holdings.

The search for overseas returns comes as China seeks to retool the investment-driven economy that lifted tens of millions out of poverty and gave rise to a class of ultra-wealthy citizens.

The path forward, most analysts agree, requires China to move toward an economy in which consumption drives a more sustainable and organic kind of growth.

Many of the wealthiest Chinese earned their riches under the previous model -- and are now looking to preserve their wealth, and in some cases, ease concerns about pollution and education by moving overseas.

This year, wealthy Chinese said their top priorities in managing their money were improved quality of life, education and wealth preservation. In 2009, wealth creation topped the list.

"High net worth individuals in China have been very successful in creating wealth," said Bain partner Jennifer Zeng. "But as wealthy Chinese age, they now face a dilemma in how to preserve wealth and leave it to their families."

The survey suggests that many of the richest Chinese want to establish family trusts, a product offered by very few banks in China.

Related: Meet China's middle class

The emphasis on wealth preservation dovetails with another survey result: many rich Chinese are thinking about leaving the country.

This year, 60% of high net worth individuals reported some interest in moving abroad. Bain found similar results in 2009.

The results of this trend can be seen in the growing number of Chinese seeking passports in return for investment or job creation in overseas destinations. The United States, Canada, Cyprus and Australia all offer residency programs in exchange for investment.

Related: China cracks down on military use of luxury cars

In China, some policymakers have expressed worries about a widening gap between the rich and poor. In an effort to close the gulf, the government has announced wage increases for the poor and tax hikes on the wealthy.

The survey indicates that the ruling Communist Party might have more work to do. The number of high net worth Chinese -- those with at least $1.6 million in investable assets -- has more than doubled in four years to 700,000.

Bain thinks the number will rise further, and estimates the ranks of the super wealthy will expand another 20% by the end of the year.

First Published: May 9, 2013: 4:00 AM ET

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Stocks: Another day, another record?

The Dow and the S&P 500 had record-setting days Tuesday, with the Dow closing above the 15,000 mark for the first time ever.

NEW YORK (CNNMoney)

U.S. stock futures were pointing slightly lower Wednesday, following a headline-grabbing performance on Tuesday.

The Dow closed above 15,000 for the first time ever, and the S&P 500 also finished at a record high. But will the spell hold?

Investors will key off another round of corporate earnings, with results due in the morning from firms including AOL (AOL) and Wendy's (WEN). Tesla (TSLA), News Corp. (NWSA, Fortune 500) and Green Mountain Coffee (GMCR) are up in the afternoon.

Shares of Manchester United (MANU) could be in play after the long-time manager of the English soccer team announced he would retire. This comes less than a year after the company listed in New York.

Fear & Greed Index

Whole Foods (WFM, Fortune 500) shares surged in after-hours trading Tuesday after the supermarket chain reported quarterly earnings that beat estimates.

Shares of Electronic Arts (EA) also rose after hours on the gaming company's strong guidance.

European markets were trending higher in morning trading, with the Euronext 100 index displaying some solid support.

Asian markets ended higher. The Nikkei added 0.7%, the Hang Seng increased 0.8% and the Shanghai Composite rose 0.5%.

First Published: May 8, 2013: 5:39 AM ET

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IRS workers protest spending cuts

IRS workers rallied against government spending cuts on Tuesday. Click on the image to view more protestors.

NEW YORK (CNNMoney)

Known as the sequester, the cuts will wipe $600 million from the IRS's budget this year, forcing the agency's nearly 100,000 employees to be furloughed without pay for up to seven days. The furlough days will begin May 24 and will be spread out among separate pay periods.

The National Treasury Employees Union, which organized Tuesday's rally, said the IRS brings in 93% of the revenue used to fund the federal government and $1 invested in the IRS brings a $7 return from collections, so shutting operations down for five days will only serve to reduce revenue and boost the deficit.

Related: Check out the protestors (and their signs)

To send a message to Congress, NTEU has been holding protests across the country. Tuesday's rally was the biggest so far, with hundreds of workers in attendance.

Not only will these furloughs impact taxpayers, who will likely see long wait times for assistance and fewer audits, but IRS employees are worried about the financial hit they'll take without a full week of pay.

Cheryl Lassiter, who has worked as an IRS auditor in New York for 33 years, is single and cares for her elderly mother in North Carolina who is struggling through terminal cancer.

"I live paycheck-to-paycheck, so if something comes up I really hope I have [the money]," said 53-year-old Lassiter. "I was going down to see [my mother] for Memorial Day, but I did a budget analysis and decided not to go because I better save my money."

Related: Spending cut bright spot: Fewer IRS audits

If money gets really tight, she said she would consider getting a second job in retail.

Overall, IRS employees will lose about $160 to $400 per day, depending on their position, estimates John Kelshaw, a tax appeals officer at the IRS and president of the New Jersey NTEU chapter.

Another auditor, Edward Filistowicz, said he switched to a cheaper cell phone plan, is cutting back on spending and putting more into savings in order to prepare for the five days without pay. He also plans to spend those days calling Congress and telling them to get their act together.

Peter Dinicola, who has worked at the IRS for 10 years as a contract specialist, is also bracing for the cut.

Related: Meals on Wheels budget cuts: 'Slowly developing crisis'

"My mortgage payment is half a month's salary, so I'll have to dig into savings," said Dinicola.

The furloughs just compound the financial issues for federal employees who are facing pay freezes for the third year in a row, and many also worry that a shrinking budget will also lead the IRS to eliminate its performance bonuses.

Catherine Ficco, an auditor who has worked at the IRS for 23 years, said she plans to send her 13-year-old twins to a less expensive summer camp this year because she won't have the means to afford the more expensive camp they have attended for the past seven years.

Sharyn Phillips, an estate and gift tax auditor who is supporting her ill husband who retired five years ago, isn't even sure how hard the furloughs will hit her yet.

"I've never experienced a time when I wasn't working, so I've never had to budget in a no-pay day," said Phillips. "I've already had a pay freeze for three years and now with five days of furloughs, it just makes things more difficult. And expenses only go up -- my bills don't shut down."

First Published: May 8, 2013: 6:14 AM ET

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Many early tax filers still waiting for refunds

Some early filers are getting fed up that their tax refunds still haven't arrived.

NEW YORK (CNNMoney)

Taxpayers claiming education credits on Form 8863 encountered their first delay when the IRS said it wouldn't be able to start processing the forms until mid-February because it needed to update its systems. Then, on March 12, the IRS said several tax software providers erroneously filed more than 600,000 returns containing the 8863 form --resulting in delays of up to six weeks from the date they were filed.

That meant most of these filers were expecting refunds by the end of March or beginning of April at the latest.

But since then, hundreds of angry comments have been posted on Facebook and other online tax forums from filers who claim they still haven't received their refunds.

"Sooooo effing angry!!!! Still processing three months now no update," one member of the Club 8863 Facebook group wrote last week.

"Still waiting I've had no changes since feb. starting to getting mad bc I was told I would definitely have it by April 22 and then that changed to May 6. And now nothing," wrote another filer. Another woman said her electricity was going to be shut off unless she gets the money soon.

Related: How to survive a tax audit

Jolee Singleton, from Lakeland, Fla., filed her taxes on Feb 14. She said she made sure to get them in as soon as possible because she needed the $1,000 refund for rent and car payments as she searched for a full-time job. But after calling the IRS every week to check in on the status, she's still waiting. In the meantime, her truck was repossessed because she couldn't keep up with payments, and she doesn't start her new job until next week.

"When you owe the government money they want it right away. When they owe you money, they are not in a hurry," she said. "I have almost lost my house too, and will soon if I don't get my refund."

H&R Block, one of the software companies that acknowledged it was encountering issues filing returns in March, said in late April that 90% of its impacted customers have now received their refunds. The 10% who still haven't may have been flagged by the IRS for other reasons, the firm said. To apologize, it sent $25 vouchers to impacted customers who filed in H&R Block-owned locations.

Related: Spending cut bright spot: Fewer IRS audits

But that's not enough for some filers -- even those who finally did receive their refunds. Kathleen Fisher, who has been an active member of the Club 8863 Facebook group and helps taxpayers get in touch with local officials and the Taxpayer Advocate Service, the watchdog arm of the IRS, said people paid hundreds of dollars in tax preparation fees so getting a mere $25 back is an insult.

Some taxpayers' filing fees have already been put into collections because they aren't able to afford them without their refunds, while others took out refund anticipation loans and are paying steep interest as they wait for their refunds -- which they needed in order to pay off the loans, Fisher said.

The IRS wouldn't say how many Form 8863 filers still haven't received their refunds, but it said a small group may have been impacted by additional issues that the IRS was continuing to work on -- and that these returns have finally been processed.

Related: 12 audit red flags

"A small additional set of returns with education credits cleared our review process in recent days. As a result, these taxpayers should start seeing their refunds or refund dates shortly -- assuming there are no other issues with their tax returns," the IRS said in a statement.

As these people anxiously watch their mailboxes or bank accounts for that direct deposit from the IRS, nearly 98 million taxpayers have already received refunds, according to the latest IRS filing statistics. The IRS says that most refunds are issued in less than 21 days, and the average refund is $2,657 -- down slightly from last year's average refund of $2,716.

First Published: May 8, 2013: 6:29 AM ET

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Current deficit plunges 32%

NEW YORK (CNNMoney)

A major reason: A big jump in tax revenue.

Tax collections rose by $220 billion -- or 16% -- between the start of the fiscal year on Oct. 1 through April 30. Individual and payroll taxes accounted for $184 billion of that increase.

The tax haul rose sharply primarily because wages and salaries were higher, the payroll tax cut of the past two years expired on Jan. 1 and the fiscal cliff deal brokered over New Year's raised tax rates on high earners.

Spending, meanwhile, fell 1.9% year over year, the CBO estimated.

The biggest percentage drop occurred in the payment of unemployment benefits, which were down nearly 25%, or $15 billion. Defense spending fell 5.3%, or $20 billion, and "other activities" -- primarily spending on nondefense programs -- fell 8.6%, or $58 billion.

Related: Deficits are falling. For now.

Less was spent, for instance, on housing assistance, energy programs and international assistance, along with the TARP bank bailout and on mortgage giants Fannie Mae and Freddie Mac.

Spending in some categories, however, was higher. Medicare, Medicaid and Social Security outlays combined rose by $50 billion, or between 6% and 7%.

While the country has still racked up an estimated $489 billion deficit in the first seven months of this year, that's about a third less than the $720 billion recorded for the same period last year.

Higher than expected revenue and lower spending has pushed back the real deadline for when Congress must raise the debt ceiling until as late as October.

And it's easing pressure on Congress to cut a big debt deal anytime soon.

Later this month, the CBO is expected to publish its revised estimates for spending, taxes and deficits over the next 10 years. Earlier this year, it estimated an annual deficit for 2013 of $845 billion, but some budget observers have said they expect the deficit for this year will come in lower than that.

First Published: May 7, 2013: 5:55 PM ET

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Whole Foods shares surge as growth continues

NEW YORK (CNNMoney)

Shares of the grocery chain surged 8% in after-hours trading Tuesday after the firm posted quarterly earnings that beat expectations and increased its earnings guidance.

Revenue this past quarter increased 13% versus a year prior, while same-store sales increased 6.6%. The company also announced a two-for-one stock split that will increase the total shares of common stock outstanding from roughly 185 million to 370 million.

Whole Foods (WFM, Fortune 500) focuses on healthy and upscale products, competing with chains like Trader Joe's and Fairway.

The company has booked sales growth of better than 10% in the past few years, and expects sales to increase 13.6% in the 2013 fiscal year. It currently has 349 locations and is in the process of expanding, with plans to open three more stores this quarter and 12 in the upcoming quarter.

Whole Foods co-founder and co-CEO John Mackey said in a statement that the company believes it will "continue to gain market share as we accelerate our new store openings."

Whole Foods says that over the long term, it sees the possibility of 1,000 stores in the United States, as "consumer demand for natural and organic products continues to increase." The chain said it also sees "great promise" in Canada and the U.K.

First Published: May 7, 2013: 6:24 PM ET

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Oil companies target America for investment

The domestic oil boom is prompting U.S. oil firms to sell assets overseas and invest the money in American projects.

NEW YORK (CNNMoney)

Last year ConocoPhillips (COP, Fortune 500) announced plans to sell its stake in Kazakhstan's Kashagan oil field -- the largest energy project in the world -- for $5 billion. It was just one of at least six major foreign sales last year for Conoco, which totaled nearly $11 billion, according to industry data provider PLS.

Much of that money is being redirected to investments Conoco has in Texas' Eagle Ford Shale and North Dakota's Bakken Shale, according to PLS Managing Director Brian Lidsky. Conoco did not return a call seeking comment.

American oil firm Hess (HES, Fortune 500) did something similar, selling over $4 billion of assets in the U.K., Azerbaijan and Russia. A company spokesman said that money went to a number of different initiatives, including paying down debt and building up the company's balance sheet. The spokesman said Hess invested $3.1 billion in North Dakota in 2012, where the company boosted its oil production by 55%.

U.S. oil companies Devon (DVN, Fortune 500), Marathon (MARA), Anadarko (APC, Fortune 500), Murphy (MUR, Fortune 500) and Noble Energy (NBL) have all sold overseas assets in the last couple of years. In addition to Texas and North Dakota, PLS said the money has gone, at least in part, to Colorado's Niobrara and Pennsylvania's Marcellus Shale.

"Everyone is looking to increase their presence in the United States," said Joe Stanislaw, an independent senior energy adviser at the consulting firm Deloitte.

Related story: America has an energy boom. Now what?

The reason is pretty straightforward: It's generally easier to do business in the United States than in many other places.

Unlike Libya, Iraq and other places that take 90% or more of a company's profits, taxes and royalties in the United States seldom exceed 50%. The geology is better known. The rule of law is strong. Workers are skilled and infrastructure is available. There's little risk of violence.

"The political risk in the United States is they may try to shut you down," Stanislaw said. "They're not going to blow up your camp."

The energy boom in the United States -- made possible by new drilling technology and techniques -- has been well-documented. The country is on track to surpass Saudi Arabia as the world's leading oil producer by 2020.

The expansion certainly comes with environmental risks. The widespread use of hydraulic fracturing, or fracking, to crack the shale rock and allow oil and gas to flow has raised concerns over water contamination and earth quakes. Air pollution, congestion, and other problems plague energy boom towns.

But the boom has brought jobs -- a trend that's likely to accelerate.

More than $5 trillion is expected to be invested in U.S. shale and other "unconventional" energy developments by 2035, according to the consultancy IHS. The money is coming from both U.S. companies and foreign firms eager to get in on the boom.

Some 1.7 million people currently work in or around these new energy plays. By 2035, IHS expects the energy boom to directly or indirectly support 3.5 million American jobs. Around 700,000 of those jobs are expected to materialize within the next two years.

"That's a sizable number of jobs in an economy with a fairly slack labor market," said IHS economist John Larson.

The benefits will ripple beyond states sitting on top of the shale formations, Larson said.

One out of every four jobs already created has taken place in a state that's not seeing any new drilling, by IHS's estimate. The tally includes ancillary hiring such as real estate professionals in New York, insurance agents in Boston or heavy equipment makers in Illinois that are all benefiting, one way or another, from the country's energy boom.

First Published: May 8, 2013: 12:35 AM ET

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Stocks: Another record day ahead?

The S&P 500 closed at a record high of 1,618 on Monday. The Nasdaq added 0.4%, while the Dow Jones Industrial Average slipped 4 points.

NEW YORK (CNNMoney)

U.S. stock futures were bouncing around yesterday's closing levels ahead of a session again likely to be dominated by earnings data from corporate America.

Firms including DirecTV (DTV, Fortune 500) and Molson Coors Brewing (TAP) are set to report their quarterly results in the morning, while Disney (DIS, Fortune 500), Whole Foods (WFM, Fortune 500) and Kraft spin-off Mondelez (MDLZ) are up after the bell.

Fear & Greed Index

U.S. stocks finished higher Monday, with the S&P 500 closing at a new record, 1,617.51.

European markets are edging up in morning trading, while Asian markets ended higher.

The Shanghai Composite increased 0.2% and the Hang Seng added 0.6%. The Nikkei rose 3.6% to close above the 14,000 point barrier as traders returned after a holiday.

First Published: May 7, 2013: 5:13 AM ET

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Unemployment haunts Social Security recipients

Diana Brest is getting smaller Social Security payments because she was unemployed before retiring.

NEW YORK (CNNMoney)

"Those years are vital to their Social Security benefits," said Gary Koenig, director of economic security for AARP's Public Policy Institute. "It's something you'll have to deal with your entire life."

Social Security benefits are based on a person's highest 35 years of earnings, which are then indexed for wage growth. The last years of one's career are when most people earn their highest salaries, so replacing those top-income years with less lucrative ones -- or no income at all -- can prove costly. A person who misses a year of earnings could see his Social Security payments reduced by 3%, or just over $450 annually if he receives the average check of $1,262 a month, according to a calculation AARP ran for CNNMoney.

For Diane Brest, four years of unemployment at the end of her career meant a $68 reduction in her monthly Social Security check.

"That's $68 I could use towards food or medical expenses," said Brest, 62, who lives in Phoenix. "Food has gone up in price. Minimum payments on credit cards have gone up. Health insurance has gone up. It's very depressing."

Brest got hit with a double whammy that's common for those laid off late in life: To get by by, she had to start collecting Social Security several years earlier than she planned. Before being let go from the insurance company where she worked for 14 years, Brest had intended to work until age 66, when she would have been eligible to receive $1,200 a month. Instead, she chose to start collecting at 62 because she needed the money. She thought she would get $968, but because of her unemployment, she's only getting $900 a month.

You can estimate your own future Social Security payment with a calculator on the Social Security Administration's website.

Related: Seniors would see smaller Social Security checks under Obama budget

It's tough for older workers to find new jobs once they are laid off. Some 44% of the 50-somethings who lost their jobs during the Great Recession were still unemployed a year later, said Richard Johnson, director of the Urban Institute's Program on Retirement Policy. Among those laid off at 62, two-thirds were still jobless 12 months later.

If they find work, it's often for lower pay. Those age 62 and older saw their median income decline 29% in re-employment, while those in their 50s worked for 18% less in their new jobs, according to the Urban Institute.

Social Security is a vital source of income for senior citizens, especially those who are lower-income and lower-educated -- the same folks who are more likely to lose their jobs, Johnson said. For 53% of married couples and 74% of single seniors, Social Security represents half or more of their income.

Margaret Ronner, 62, depends on her monthly check to pay for housing, health care and food. But she has to cope with a $39 a month reduction in her benefits because she was unable to land a full-time job after losing her position in 2008 as a licensed practical nurse at a Veteran's Administration hospital. She was only able to find part-time work after that, earning about half of what she had previously.

While she was looking for a full-time work, Ronner didn't consider what her reduced earnings would do to her Social Security check. But now she knows all too well. The Lebanon, Penn., resident isn't able to pay down her credit card debt as quickly as she'd like, nor can she buy as many gifts for her nieces and nephews.

Though she considers herself retired, she's looking for some home-based work, such as making crafts, to bring in more money.

"I need the income," she said.

First Published: May 7, 2013: 6:06 AM ET

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Long waits, locked restrooms loom for national park visitors

Spring break visitors to Arizona's Grand Canyon National Park faced longer lines. It will likely get worse in the summer, when the park can hire fewer seasonal employees because of the forced budget cuts.

WASHINGTON (CNNMoney)

As Americans start planning their summer holidays, vacationers should prepare for long lines, shorter visitors' center hours, locked restrooms and overflowing trash cans, all thanks to federal budget cuts.

Say goodbye to ranger-guided walks through awe inspiring sequoias of the Mariposa Grove at California's Yosemite National Park. They've been canceled this year, at least until September.

North Carolina's Blue Ridge Parkway is closing some 400 campsites.

Hawaii's USS Arizona Memorial, honoring Marines killed at Pearl Harbor, is now starting its last public tour two hours earlier, at 1 p.m.

At the Everglades National Park in Florida, there will be fewer nature programs at the Shark Valley Visitor Center and campgrounds will only be cleaned once a day, instead of twice.

"Visitors will have to plan ahead more than they might normally have to," said John Garder of the National Parks Conservation Association, an advocacy group for the parks. "Call ahead and make sure your campground (and its facilities) is going to be open."

Forced spending cuts are shaving $85 billion from the federal budget. It includes $183 million from the National Parks Service, which runs 401 national parks, memorials, lakeshores, parkways and historic sites. In 2012, 283 million people visited these parks.

The National Parks has furloughed 760 officers of the U.S. Parks Police, that patrol monuments on the National Mall in Washington and federal parks in New York and San Francisco. They're taking 14 days of unpaid time off -- a day out of every two weeks -- from late April through September. The parks have managed to avoid furloughs for other employees.

Like most federal agencies, the National Park Service has already weathered a longtime hiring freeze. This year, there are 900 fewer full time staffers, including biologists and clean water specialists, Garder said.

With a mandate to trim 5% of its budget by September, it is hiring 1,000 fewer seasonal employees, like additional park rangers that help out during the busy summer travel season.

Related: Public defender hard at work on furlough week

Other changes are being considered -- summer evening hours may be trimmed at the National Mall in Washington, since there will be fewer park officers to keep it safe at night, Garder said.

During the National Cherry Blossom Festival in April, Parks Director Jonathan Jarvis said he noticed "trash cans overfilled and fewer rangers than was normal," at a House hearing on budget cuts last month.

At Arizona's Grand Canyon National Park, spring break visitors faced longer lines at entrance gates, because the park couldn't deploy extra manpower during a busy period like it usually does. The waits will likely get much worse in the summer, said spokeswoman Maureen Oltrogge.

The Grand Canyon gets 4.5 million visitors a year. The park had to cut 6 seasonal workers and operate with fewer staff members because positions went unfilled, Oltrogge said. Visitor center hours will be cut by two hours each day, and bathrooms may not be cleaned for longer periods of time. Hikers and campers seeking permits should also expect longer wait times, she said.

Related: Lawmaker: Seniors should pay more for national parks

"We hope that visitors are not impacted by those cuts, but you can't cut well over a million dollars from a park this size without feeling and noticing that," Oltrogge said.

One national park was able to forgo some of its spending cuts with community help.

To meet its 5% budget cut, Yellowstone National Park delayed snow plowing at several roads leading into the park by a few weeks. The chambers of commerce in Cody and Jackson, Wyo., raised $170,000 to pay to plow the parts of the roads leading from their towns.

Park advocates praised the move but warn that private fundraising is not a long-term or viable solution at other places. After all, Jackson Hole has the reputation as a playground for the rich and famous, with homes owned by movie stars and billionaires, such as heirs to the Wal-Mart (WMT, Fortune 500) fortune.

"While that's a generous thing for these partners to do, it's not sustainable," said retired park service superintendent Joan Anzelmo, spokeswoman for the Coalition of National Park Service Retirees. "What's going to happen next year? If these cuts continue over the long term, we're in real trouble."

First Published: May 7, 2013: 6:13 AM ET

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Nintendo's big problem

NEW YORK (CNNMoney)

The company sold only 3.45 million of the Wii U video game consoles during the first quarter, badly missing its own target of 4 million. The hand-held 3DS gaming device has also been a disappointment outside of Japan.

Making matters worse, Nintendo's solution to the problem is a head-scratcher: CEO Satoru Iwata last week announced his support for in-game transactions and subscription-based payment models.

As secondary concepts these are fine, but if Nintendo thinks this is what gamers really want from a modern console, it has lost touch with reality.

For decades now, it has been this type of thinking that has plagued Nintendo: The company is cognizant of the latest trends and shifts in gaming, but it chooses to disregard them in the name of simplicity, or family-friendly gaming. Instead, Nintendo frequently opts to develop its own warped, counterintuitive take on the latest trends.

Since the launch of the Gamecube in 2001, Nintendo has shied away from online gaming and entertainment-based features that were popular on rival consoles, such as the Microsoft (MSFT, Fortune 500) Xbox or Sony (SNE) PlayStation. When it did finally offer some of these features, they were often half-baked (see: Nintendo's "Wi-Fi Connection" online gaming service). Others were largely unavailable to the masses (see the Panasonic Q, the Gamecube with the DVD player that only came out in Japan).

Sometimes Nintendo's push to be different has paid off, most notably when it released the paradigm-shifting Wii console. But the negative effects of that tendency have never been so evident as now, with the sluggish sales of its latest console, the Wii U.

With Microsoft and Sony turning the gaming console into full-blown living room computers, Nintendo is being dragged along, kicking and screaming, refusing to fully acknowledge times have changed.

The Wii U was Nintendo's attempt to expand on its innovative gameplay ideas. But the impact hasn't been nearly the same as the Wii. Some new Wii U features, like the touchscreen-equipped controller feel convoluted, and less innovative compared to technologies like Microsoft's Kinect camera. Nintendo games that actually take proper advantage of the motion gaming tech aren't coming from third-party developers, and Nintendo's own titles -- which are excellent more often than not -- aren't coming anytime soon.

Nintendo figurehead Shigeru Miyamoto has told the world to be patient for more games to come out, but this time around, simply pumping out its usual top notch games won't be enough.

Yes, the Wii U has improved upon its online gaming service, and given its console more content and features which integrate with your TV. The company said last week it will focus more on what it can do with digital distribution of Wii U games. That's a good thing -- even if Nintendo is five years behind. But the company still is treating that as an added bonus, and not a pillar of its business strategy.

And considering that Nintendo has long said that it cares more about game play than graphics, it seems strange that it hasn't put more time and effort into building out its WiiWare platform for indie developers looking to put out original titles. WiiWare started out promisingly enough in 2008, as the initial home to titles such as World of Goo and Mega Man 9, but since then it has mostly devolved into a den of cheap and generic mini-games. Since 2012, less than 25 titles have seen release through the platform.

Then there's the elephant in the room that nobody wants to acknowledge: smartphone gaming. Nintendo is adamant that it won't release its games for smartphones, despite the fact that they'd likely be instant top sellers.

It's understandable that Nintendo wouldn't want to release some of its newer games on a competing mobile platform, for fear of cannibalization, but looking at the success that companies like Square Enix have had reissuing its Final Fantasy titles on the iPhone, what real harm is there in offering games like Super Mario Brothers? Nobody is going to buy a Nintendo 3DS just to download that from the eStore.

Since the days of the Nintendo 64, it's always been pretty easy to see when, where and why Nintendo was going to stumble as a company. And more often than not, it was because of their own stubborn thinking. The buildup of their past oversights has added up and left them lagging far behind their peers in present times.

You have to wonder how many free-thinking aces Nintendo has left up its sleeve in order to save itself once again.

First Published: May 7, 2013: 12:20 AM ET

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Pentagon says China using cyberattacks

A Chinese soldier stands guard in Beijing.

HONG KONG (CNNMoney)

The frank assessment, made in an annual report to U.S. lawmakers on Chinese military capabilities, is the harshest and most detailed set of accusations made thus far by the Obama administration.

"In 2012, numerous computer systems around the world, including those owned by the U.S. government, continued to be targeted for intrusions, some of which appear to be attributable directly to the Chinese government and military," the report said.

The Pentagon said China is carrying out the attacks in an effort to extract information from "diplomatic, economic and defense industrial base sectors that support U.S. national defense programs." The intellectual property and data is likely being used to bolster China's own defense and hi-tech industries, the report said.

The information haul is not limited to the military and related contractors. The Pentagon says China is seeking similar information from the private sector, often through more legitimate avenues.

"China continues to leverage foreign investments, commercial joint ventures, academic exchanges, the experience of repatriated Chinese students and researchers, and state sponsored industrial and technical espionage to increase the level of technologies and expertise available to support military research, development, and acquisition," the report said.

Related story: Wake up, America! China is attacking

The Chinese government has dismissed hacking charges in the past, insisting that China is the victim of many cyberattacks, most originating in the United States. China has not yet issued a specific response to the Pentagon report.

China is not the only country believed to be involved in cyberattacks. The existence of several other state-sponsored cyberweapons has also been reported in recent years, with names like Stuxnet, Duqu and Flame. The U.S. government is widely believed to have played a role in developing some of those viruses, with an eye toward containing Iran.

Related story: Cybersecurity lobbying doubled in 2012

Yet China has drawn intense scrutiny in recent months after its military was linked by an American cybersecurity firm to one of the world's most prolific groups of computer hackers.

Virginia-based Mandiant said in February it had observed the group of hackers -- called the "comment crew" -- systematically steal hundreds of terabytes of data from at least 141 organizations across 20 industries worldwide since 2006.

Mandiant claims the activity can be traced to four networks near Shanghai -- with some operations taking place in a location that is also the headquarters of Unit 61398, a secret division of China's military.

The Mandiant report confirmed in dramatic and public fashion what many analysts had long suspected -- that China was engaging in cyberattacks on a significant scale -- and drew a response from President Obama.

"We have seen a steady ramping up of cybersecurity threats," Obama said. "We've made it very clear to China and some other state actors that, you know, we expect them to follow international norms and abide by international rules."

First Published: May 7, 2013: 3:55 AM ET

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Asian automakers trouncing Detroit in key U.S. market: Hispanics

For automakers, the challenge is creating culturally relevant ads that remain true to the brand's core message, whether in Spanish or in English.

NEW YORK (CNNMoney)

But, for now, this market is dominated by the Japanese.

Toyota (TM) holds the top spot with almost 18% of the Hispanic car market. Honda and Nissan rank second and third, according to data from the auto market research firm Polk. Meanwhile, the domestics are getting trounced. The top-ranked domestic brand, General Motors' (GM, Fortune 500) Chevrolet, ranks fourth with about half the market share of Toyota.

Toyota credits a long history of marketing directly to Hispanic consumers for its success.

"I think the Hispanic consumer has been a longtime loyal consumer because we have been a longtime loyal listener," said Toyota Spokesman Luis Rosero. Toyota has long marketed to Hispanic Americans in both English and Spanish and has, for over 20 years, made a point of donating money to non-profit groups that work with Hispanics and African Americans, Rosero said.

The problem for Chevy, according to Rich Martinek who heads advertising for Chevrolet, has been less its ads than its cars.

Small cars, in particular, do well among Hispanic consumers. Asian automakers like Toyota, Honda and Nissan, have long been known for making good, inexpensive small cars. In fact, the two top-selling cars among Hispanics are the Toyota Corolla and Honda Civic, according to Polk.

Up until recently, Chevrolet dealers had been selling cars that just couldn't compete, like Cobalts and Aveos, Martinek's said.

Those cars have now been replaced by the Chevrolet Cruze and Sonic. "These are really strong, competitive products," Martinek said of Chevy's new models.

Unlike the previous options, they have earned recommendations from Consumer Reports, which is generally regarded as the most influential magazine among car shoppers.

On another hopeful note, Hispanics actually like Chevrolet more than most Americans, Said Martinek. While about 29% of Americans overall think of Chevrolet cars as "excellent," more than 39% of Hispanics do, according to Chevrolet's own market research.

Still, Chevrolet's market share among Hispanics has not made much headway in recent years, according to Polk data.

Chevrolet says it's working hard to attract more Hispanic buyers.

But targeting a specific demographic can be a tightrope walk. While automakers strive to create culturally appropriate ads in English and Spanish for the Hispanic market, they have to make sure the ads still carry a consistent brand promise. Car buyers shouldn't see Chevrolet as standing for one thing in Spanish and another in English.

Gallery - 6 greenest cars made in America

"Your brand is your brand," said Chiqui Cartagena, vice president of corporate marketing for the Spanish language TV network Univision and author of the book Latino Boom II.

Still, the brand should be culturally relevant, she said. The Hispanic market is different in ways that go beyond language, said Cartagena. Passions and emotional touch points are different and marketing has to reflect that.

Hispanics view the car shopping process differently, said Cartagena. First of all, it's viewed as something enjoyable, not as a dreaded but unavoidable descent into a world of contentiousness and deceit.

Second, it's not seen as an experience to be enjoyed by one person alone, she said.

"These auto buying experiences are more of a family experience," agreed Marc Bland, head of diversity and inclusion at Polk.

When it comes time for the new car to be delivered to the customer, often a whole family, including multiple generations, will be on hand at the dealership to see the keys getting handed over, he said.

Martinek is confident that Chevrolet will do better in the Hispanic market.

For one thing, the Chevrolet Silverado pickup, already the brand's top-selling product with Latinos, is about soon to be released in an all-new redesigned version.

"Between the small cars and the Silverado," he said, "we definitely have to grow."

Toyota isn't about to loosen its grip, though, said Rosero. This market has become too important to Toyota.

"It's had a measurable impact," he said, "and there's a bigger one down the road."

First Published: May 7, 2013: 4:06 AM ET

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Stocks: Will momentum stick?

The S&P 500 and Dow Jones Industrial Average finished at record highs on Friday after U.S. job data surprised to the upside.

NEW YORK (CNNMoney)

Markets charged forward based on some better-than-expected jobs data, showing the U.S. economy added 165,000 jobs in April.

But trading could be quiet Monday, with few major corporate or economic reports scheduled for release.

U.S. stock futures found some support Monday morning, though markets look relatively subdued ahead of the opening bell.

First-quarter earnings season continues with results due in the morning from firms including Tyson Foods (TSN, Fortune 500) and private equity firm Apollo Global Management (APO).

Fear & Greed Index

After the bell on Friday, Warren Buffett's Berkshire Hathaway (BRKB) reported first-quarter earnings that blew past expectations, sending shares up in after-hours trading.

European markets are flat in morning trading, while Asian markets closed higher on the upbeat U.S. employment report. The Shanghai Composite added 1.2% and the Hang Seng increased 1.0%.

Exchanges in London and Tokyo were closed for holidays.

First Published: May 6, 2013: 5:10 AM ET

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Madoff lawyers collect $700 million in fees

The law firm of Irving Picard, right, has reeled in hundreds of millions of dollars cleaning up the mess of Ponzi convict Bernard Madoff, left.

NEW YORK (CNNMoney)

That's less than half of the $1.6 billion legal tab associated with the Lehman Brothers' bankruptcy - the largest legal bill in history. But it's a considerable sum that's still growing as efforts to make Madoff investors whole drag on. To date, court-appointed trustee Irving Picard has collected $9.3 billion in cash and assets and repaid $5.4 billion of that to victims.

The bulk of the fees associated with the case, $384 million, have been paid to Picard's law firm, BakerHostetler. Another $292 million has been divided among dozens of other law firms, and $25 million went to "general administrative" costs. Funding these payouts is the Securities Investor Protection Corporation, which collects dues from Wall Street firms that are used to restore lost assets to investors burned by bankruptcy or fraud.

The trustee files a bill every few months that must be approved by a federal bankruptcy court judge. Ten have been submitted so far and all have been approved. The latest tab, which covers a five-month billing period and comes to nearly $50 million, was filed on Monday. The total comes to 135,00 hours of legal services, which works out to about $364 per hour. Picard alone makes $890 per hour. He billed for 728 hours of work and earned a total of $648,000.

He and his colleagues spent about $8 million on various business expenses as they searched for the lost funds. That includes $400,000 for out-of-town travel, $67,000 in copying costs, $161,000 for online research, $1,206 on business meals, and $12.60 on faxes.

Related: Madoff destroyed thousands, including his son

Most of the money Picard's lawyers has collected came through settlements with former investors who withdrew more from Madoff's firm than they deposited. Even though many of these investors claim to have known nothing of the Ponzi scheme, the trustee is suing them for benefiting from it.

Forensic accountant Sam Goldfarb, of Goldfarb LLC, said that much of the fees were probably paid to accountants like himself, who can earn between $150 an hour and $700 an hour untangling a mess like the Madoff scam. Forensic accounting is the means by which the trustee determines which of the investors are net winners from investing in Madoff's firm.

"In order to take out more than you put in, you're really only taking that money from other victims, because Madoff didn't make any money," said Goldfarb. "You're the beneficiary of other victims' losses. You're the beneficiary of the fraud."

Settlements have played a huge role in reclaiming the stolen money, as the trustee goes after individuals and companies that may have profited from the scheme. The largest settlement occurred in 2011, when the widow of Jeffry Picower, believed to be the biggest beneficiary of Madoff's schemes apart from the Madoffs, surrendered a whopping $5 billion from his estate.

In the pursuit of ill-gotten gains, the trustee has also sued various companies for allegedly profiting from the Ponzi scheme, but with mixed success. The trustee settled with Tremont Group Holdings, one of the largest groups of feeder funds in the Madoff case, for more than $1 billion in 2011. But suits totaling more than $20 billion against UBS (UBS) and JPMorgan (JPM, Fortune 500) which are also accused of profiting from the scam, were tossed out by a federal judge in 2011.

Related: Breakdown of a Madoff legal bill

In 2012, a federal judge also threw out Picard's $20 billion suit against Italian bank UniCredit S.p.A (UNCFF). and Austrian banker Sonja Kohn. Both were accused of recruiting well-heeled European victims for Madoff's scheme. The judge rejected Picard's accusation that Kohn and UniCredit participated in organized crime.

Additionally, the trustee sued Mets owners Fred Wilpon and Saul Katz, who were also Madoff investors, seeking $1 billion. But Picard settled with Wilpon and Katz last year for just $67 million.

The trustee also sued the owners of the Mets, Fred Wilpon and Saul Katz, who were also Madoff investors, seeking $1 billion fromBut Picard settled with Wilpon and Katz last year for just $67 million.

Madoff's scheme came crashing down with his arrest on Dec. 11, 2008. He pleaded guilty three months later and was sentenced to 150 years. He is currently languishing in a federal prison in Butner, N.C.

His brother Peter recently began a 10-year sentence for helping to cover up the scheme.

First Published: May 6, 2013: 5:24 AM ET

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Bangladesh vows reform amid allegations of 'modern slavery'

Workers protest in Bangladesh after a factory collapse killed at least 657.

HONG KONG (CNNMoney)

The measures, detailed in a statement issued by the United Nations' International Labour Organization, include the recruitment of 200 additional building inspectors within six months, a review of current garment producers and a promise to fix all problematic factories.

The agreement between the U.N. organization and Bangladesh officials comes amid growing international concern about working conditions in Bangladesh.

It calls for a legislative reform package that will be submitted when the country's parliament convenes in June. The legislation would ensure the right of workers to engage in collective bargaining and to secure union representation.

Yet implementation remains a question. Bangladesh is politically volatile, and analysts say substantial work is needed to change a culture of lax regulation and cozy relations between factory owners and the government.

Almost two weeks have now passed since a garment factory collapsed outside the capital city of Dhaka, sparking protests on the streets of Bangladesh and at the doors of western retailers that sell merchandise produced in the country.

A total of 657 bodies had been pulled from the collapsed building as of Monday. An unknown number of workers remain buried under the rubble, and family members of the missing remain camped near the building site.

The tragedy follows two factory fires in November that killed more than 100 workers.

Bangladesh's economy is almost wholly dependent on the garment industry, with around 4,500 factories in operation.

Companies have been drawn to the country as they seek to push production prices lower and boost profits while meeting global demand for cheap clothes. But cutting costs often goes hand-in-hand with low wages and unsafe working conditions.

Related: Shoppers face tough choices over Bangladesh

The average worker in the garment industry in Bangladesh makes between 10 and 30 cents an hour, and many of the factories do not have windows, fire escapes or emergency exists, according to labor rights activists. At the same time, supporters say the garment industry has driven economic growth and provided acceptable jobs for women living in a conservative society.

Last week, the EU warned that Bangladesh must make its factories safer or risk the loss of privileged access to the country's biggest market. EU Trade Commissioner Karel De Gucht increased pressure over the weekend, describing labor conditions in the country as "modern slavery."

"We see now that in practice these workers are -- we can't say underpaid -- almost not paid, and above all, they have to work in completely unacceptable health and safety conditions," De Gucht said during an interview with Belgian media.

Bangladesh currently enjoys duty and quota-free access to EU markets through a program called the Generalized System of Preferences, which allows 48 of the poorest nations unlimited exports of anything but arms.

"The Bangladeshi government has to change things. And I've been very clear -- they need to get down to it in a clear and prompt time frame," De Gucht said. "Otherwise, I'm prepared to start an investigation."

It's the first time the EU has threatened to take action against Bangladesh within the context of the GSP trade program. As a last resort, the EU could suspend Bangladesh's privileged access to its markets, a measure taken in the past against Myanmar and Sri Lanka over human rights issues.

Some retailers appear to be reevaluating their use of labor in the country.

The Walt Disney Company (DIS, Fortune 500) stopped production in Bangladesh of branded merchandise in March in order to bolster safety standards in its supply chain.

Disney also plans to halt production in four other countries -- Ecuador, Venezuela, Belarus and Pakistan -- by April 2014.

"What's happening in Bangladesh, for me, is completely unacceptable in human terms," De Gucht said. "If the result is that the price of t-shirts and jeans goes up a bit, well, that'll be what happens."

-- CNN's Jethro Mullen contributed reporting.

First Published: May 6, 2013: 6:00 AM ET

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Stock market momentum continues

Click the chart for more stock market data.

NEW YORK (CNNMoney)

Small investors, who missed the stock market rally of the past few years, are being drawn in by the record highs and returning in droves. The new money could stoke more stock buying and send indexes higher again.

This week, investors will have to digest economic reports on the U.S. consumer and manufacturing.

The consumer credit report due out on Tuesday will give investors a sense of how keen Americans are to reach into their pocket books.

Last week's jobs report gave an indication that consumers are feeling fine. Retail and food services experienced some of the strongest job growth in April's jobs report, adding 29,000 and 38,000 positions respectively.

Experts say this shows that households are more willing and able to go out and spend, which drives job growth.

Related: CNNMoney's Fear & Greed Index

The manufacturing sector will also be in play, with a report on wholesale inventories on tap for Thursday.

On the corporate front, several companies will report financial results this week, including Toyota (TM), News Corp. (NWS), Macy's (M, Fortune 500), Nissan (NSANF) and BAE Systems.

Stocks rallied last week, sending the Dow Jones Industrial Average briefly above 15,000 for the first time on Friday. For the week, the Dow rose 1.8%; the S&P 500 gained 2% and the Nasdaq added 3%.

April was a strong month, with the S&P 500 advancing for the sixth consecutive month.

First Published: May 5, 2013: 12:24 PM ET

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Senate to vote on proposed Internet sales tax law

NEW YORK (CNNMoney)

The legislation would allow the 45 states (and the District of Columbia) that currently charge sales taxes to require large online retailers to collect tax on purchases made by their residents. The law would only apply to online sellers that have sales of at least $1 million in states where they don't have physical operations, like a store or a warehouse.

The bill has a good chance of becoming law. It already received broad support in the Senate during earlier procedural votes, and now must pass Senate muster a final time. After that, however, it will need to be approved by the Republican-controlled House. Proponents argue that the proposal would not create a new tax, but rather enforce the collection of taxes already charged at brick-and-mortar retailers. Some House Republicans may view that as a tax increase.

If the bill is enacted, academic studies estimate that more than $12 billion in additional sales taxes will be collected from online purchases each year.

Related: What an Internet sales tax would cost you

Under current law, online sellers are only required to collect tax in states where they have a physical presence. Otherwise, consumers who shop online and don't pay a sales tax at the time of purchase are supposed to pay the tax to their home state. But estimates are that only about 1% of buyers comply with those widely unenforced laws.

"We think this will help level the playing field," said Stephen Schatz, a spokesman for the National Retail Federation, one of the bill's largest supporters.

Close to 30% of online shoppers surveyed by advisory firm AlixPartners recently said they would shop more at brick-and-mortar retailers if the tax became reality. Nearly half, though, said that an Internet sales tax would have no effect on their online shopping habits, according to the survey of about 2,500 consumers.

Related: Internet Sales Tax: What you need to know

After years of opposition, Internet giant Amazon.com (AMZN, Fortune 500) is also supporting the bill, in part because the company is already collecting sales tax in nine of the states where it has warehouses.

Many other online retailers remain opposed to the legislation, saying that the sales tax would hurt business and create an administrative nightmare because they would have to determine tax rates for different states and localities at checkout. Anti-tax group, Americans for Tax Reform, has also come out strongly against the legislation, which it says "can only be viewed as a tax increase."

Meanwhile, eBay (EBAY, Fortune 500), which has loudly opposed the tax, is lobbying for a broader exemption for small businesses.

"The solution is simple," CEO John Donahoe said in a letter to eBay users. "If Congress passes online sales tax legislation, we believe small businesses with less than 50 employees or less than $10 million in annual out-of-state sales should be exempt from the burden of collecting sales taxes nationwide."

First Published: May 5, 2013: 3:55 PM ET

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Best states for retirement aren't what you may think

Not exactly retiree hot spots, chillier states, including North and South Dakota, made Bankrate's list of the top 10 states for retirement.

NEW YORK (CNNMoney)

Instead, Tennessee and Louisiana topped Bankrate's list of the 10 most retiree-friendly states, which equally weighted cost of living, taxes, access to healthcare, crime rates and climate.

Some chillier spots, including Nebraska and North and South Dakota also made the list. They may not be dream retirement destinations, but these states are actually ideal for retirees because of their lower taxes and cost of living and lack of crime, according to Bankrate, a financial information website.

"If you can bear [South Dakota's] temperatures, it's a pretty good place to live on a fixed income," said Chris Kahn, an analyst at Bankrate.

Florida, meanwhile, is notably absent from the top 10. While it boasts warm weather and reasonable state and local tax rates, a relatively high cost of living and crime rate sunk the "Sunshine State" to nineteenth place, Kahn said.

Related: 25 best places to retire

These 10 states, however, offer a better balance between affordability and quality of life in retirement, according to Bankrate.

1. Tennessee: Not only does it have a Florida-like climate, but Tennessee also boasts the second lowest cost of living in the country. Combined with a low tax burden and great access to medical care, Tennessee is ideal for retirees living on fixed incomes, Kahn said. The only downside: the state has one of the country's highest crime rates.

One of the state's oldest towns, Sevierville, Tenn., provides close access to a national park where retirees can picnic, hike and fish, and it's an easy drive to Knoxville.

2. Louisiana: Another balmy locale, the state has an average temperature of 66.7 degrees -- behind only Hawaii and Florida for warmest average climate. Louisiana residents also enjoy low taxes, above-average access to medical care and a relatively cheap cost of living. Like Tennessee, though, it suffers from a crime rate that is among the nation's highest.

3. South Dakota: It may not be a retirement hot spot, but Bankrate says it should be. The state has the country's lowest crime rate, and an estimated state and local tax burden of just 7.6% -- lower than every state but Alaska. The downside: with an average temperature of 46 degrees over the past 30 years, it's pretty darn cold there.

For small town lovers, Aberdeen, S.D. holds a renowned film festival and has a historic downtown that plays host to farmers markets, haunted walking tours and holiday parades.

4. Kentucky: The Bluegrass State is one of many Appalachian states to dominate Bankrate's top 10. While it may not have Florida's sunny beaches, it does boast an extremely low cost of living, warmer-than-average temperatures and a below-average crime rate.

In Louisville, retirees can stay active by walking or biking on the Louisville Loop, a pedestrian path set to eventually cover more than 100 miles. The smaller town of Danville, Ky. meanwhile, is ideal for horse lovers.

5. Mississippi: Beyond its warm weather, Mississippi also provides cheap living costs and a lower tax burden. But retirees may want to choose where they live carefully: the state has a high crime rate and subpar access to medical care. It has only 178 doctors per every 100,000 residents -- almost 100 less than the national average.

6. Virginia: This coastal state came in above average for most factors that Bankrate analyzed, including climate, access to healthcare and cost of living. Its crime rate is one of the lowest in the country, with only 2,446 property and violent crimes per 100,000 people.

An affordable college town, Lynchburg, Va. offers the beauty of the foothills of the Blue Ridge Mountains, as well as historic Civil War sites.

7. West Virginia: Another Appalachian state, West Virginia is boosted onto the list by low crime, a cheaper cost of living and above-average access to medical care. Still, it has a colder climate than some of the other states.

Quiz: Where's your dream retirement?

8. Alabama: Warm temperatures, low state and local taxes and a relatively low cost of living all pushed Alabama into the top 10. Yet it suffers from below-average access to medical care and a relatively high crime rate, with 4,026 crimes per 100,000 people -- almost double that of Virginia.

Home to the University of Alabama, Huntsville, Ala. offers botanical gardens and nature preserves and 19th century architecture. Near the Georgia border, Fort Payne, Ala. is a quintessential small town with activities that include an annual fiddling convention and a stop at the "world's largest yard sale."

9. Nebraska: Beyond its cornfields, Nebraska offers excellent access to hospital care, a below-average crime rate and living costs among the country's cheapest. But with a lower than average temperature, it's another state for retirees who don't mind the cold.

10. North Dakota: Like neighboring South Dakota, this state is not for retirees looking for warm weather. But it does have the second lowest crime rate in the nation, a mild estimated tax burden of 8.9% and 5 hospital beds available for every 1,000 residents.

Money 101: Planning for retirement

To compile the list, Bankrate analysts ranked climate using average temperatures over 30 years (1981-2010) and valued cost of living with statistics from the Council for Community and Economic Research. Taxes were ranked using the Tax Foundation's analysis of state and local tax burdens. Access to healthcare was based on hospital beds per 1,000 residents and doctors per 100,000 residents from the Kaiser Family Foundation and U.S. Census Bureau, while crime rates were ranked using violent and property crimes per 100,000 people from the 2011 FBI Uniform Crime Report.

First Published: May 6, 2013: 12:18 AM ET

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How construction can lose jobs in middle of home building rebound

Cuts in government spending on construction projects led to the drop in April's construction employment.

NEW YORK (CNNMoney)

The sector lost about 6,000 jobs overall, according to the Labor Department's jobs report. This was largely due to a decline in hiring for non-residential buildings or public works projects like roads or sewer plants. Combined, these two areas lost 19,700 jobs.

Meanwhile, home builders and their subcontractors added 13,300 workers, even more than in March.

A big part of the sector's pullback is due to a drop in government-funded construction projects, a trend that has been going on for about two years.

Federal construction spending is down 28% since peaking in August 2011, when stimulus spending was still going strong, according to Ken Simonson, chief economist of the Associated General Contractors of America, an industry trade group. Local governments, particularly school districts, have also been pulling back on construction spending after building a rush of new ones during the housing boom.

"You don't need to open a new school every month if people aren't coming," he said.

Related: April jobs report - Hiring picks up

Additionally, many builders are having a hard time finding skilled construction workers.

David Crowe, chief economist with the National Association of Home Builders, said residential construction hiring likely would have been even higher in April if not for the shortage of skilled workers in some markets. He said a survey of his trade group's members found about half couldn't find workers with the necessary skills.

Simonson and other experts say the cutback in federal spending -- known as the sequester -- that went into effect March 1 hasn't halted work on any construction projects already underway. But they said federal agencies knew the sequester was looming and did scale back new construction contracts earlier this year.

Record low mortgage rates, a rebound in home prices and strong new home sales prompted the fastest pace of home building in nearly five years in March, according to a separate government report.

First Published: May 3, 2013: 12:54 PM ET

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My First Rifle: The business of selling guns for kids

Chipmunk, a subsidiary of Keystone, sells guns designed for children, along with its sibling subsidiary, Crickett.

NEW YORK (CNNMoney)

The gun used in the recent shooting in Kentucky was a Crickett .22-caliber rifle, marketed with the slogan "My First Rifle," from Keystone Sporting Arms in Milton, Pa. The single-shot rifle uses the smallest caliber available and is sold by major retailers, including Wal-Mart (WMT, Fortune 500), Cabela's (CAB) and Gander Mountain.

The Crickett website was down Friday due to "difficulties," according to John Renzulli, an attorney representing Keystone . But the site for Chipmunk, another Keystone brand, exhibited "quality firearms for America's youth" on its site, including .22-caliber rifles and pistols, with photos of children shooting them. The site includes a "kids corner" section.

Renzulli insisted that the company is not marketing firearms to children.

"No one's marketing to children," he said. "They're marketing to parents who would buy guns for children."

On its website, Wal-Mart markets the Crickett as a "youth rifle," while Gander Mountain's site describes it as a "great beginner's gun."

"All are lightweight and easy for youngsters to carry at the range and in the woods," reads the Crickett description on Cabela's site, which describes it as "a fun firearm to get your young shooter started with."

Wal-Mart did not immediately comment on whether their policy on sales of guns for children would change. Gander Mountain said it would not comment on potential policy changes, but added that it has launched a responsibility campaign aimed at keeping firearms away from "the underaged, untrained and unauthorized." Cabela's did not return a request for comment.

Related: Remington jobs rule the Rust Belt

Lawrence Keane, vice president and spokesman for the National Shooting Sports Foundation, the firearms industry group, described the youth firearm market as a relatively small slice of the gun industry, though large enough to have plenty of participants.

"A number of manufacturers make youth models of firearms for parents to purchase to introduce their children to adult-supervised target shooting," said Keane. "Millions of families all across America participate in the shooting sports as a family recreational activity. Children cannot purchase firearms from licensed dealers, of course."

Keane said safety has improved in recent years, saying data show that accidental fatalities involving firearms and children younger than 14 dropped by more than half over two decades to about 600 in 2009, the most recent year for available data.

Related: Gun and ammo sales fuel jobs boom

Brian Rafn, gun industry analyst and director of research at Morgan Dempsey Capital Management, described the youth gun segment as a small enough portion of the $4 billion industry to call it a "ghost market." He added that most states won't issue a hunting license to children younger than 10.

"I don't know of any state, and I've been hunting for 30 years, that would allow an armed five-year-old out in the woods during hunting season," he said. "In Wisconsin where I go hunting, if you were found out in the woods with a five-year-old with a gun, the game warden would have you in cuffs."

First Published: May 3, 2013: 2:44 PM ET

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Buffett's Berkshire blows past estimates

NEW YORK (CNNMoney)

Buffett's Berkshire Hathaway (BRKA, Fortune 500) handily beat analyst estimates with its first-quarter earnings on Friday, booking strong gains in its investments and insurance business.

Excluding certain investment gains, Berkshire reported earnings of $3.8 billion, or $2,302 per Class A share, blowing past the prediction of $1,995.50 per share from analysts surveyed by Thomson Reuters.

Including investment gains, Berkshire's earnings hit $4.89 billion, rising more than 50% versus a year prior.

Berkshire is a broad-based investment conglomerate whose holdings include everything from Geico insurance to Burlington Northern Santa Fe railroad to Dairy Queen. It also has stakes in a variety of other large firms.

Earlier this year, Berkshire was part of a consortium along with private equity firm 3G Capital that purchased ketchup maker H.J. Heinz Co for $28 billion.

Berkshire earned $901 million in the first quarter from its insurance underwriting business, up from just $54 million in the first quarter of 2012. The company said its gains came from the lack of significant catastrophe losses in the first three months of the year.

Related: Buffett is worried about Fed policy

On the investment side, Berkshire has substantial holdings in derivatives that serve as bets on the value of global stock indexes like the S&P 500. Berkshire's position improves when these index values rally.

Berkshire earned more than $1.1 billion from investment and derivative gains in the first quarter, up from $580 million a year ago.

With stakes in several large banks and homebuilders, Berkshire also has significant exposure to the housing market, which appears in the midst of a solid recovery. Earlier this week, the S&P Case-Shiller index of home prices showed a 9.3% rise over the past 12 months, the biggest gain since near the height of the housing bubble.

The aging Buffett has not publicly revealed a succession plan, but says he has informed Berkshire's board about his preferred candidates. He underwent radiation treatment last year for prostate cancer, though he said the illness was "not remotely life-threatening."

Investors will descend on Buffett's hometown of Omaha this weekend for Berkshire's annual meeting, where he and business partner Charlie Munger typically hold forth on their business and the state of the U.S. economy.

You don't have to be in Nebraska to get real-time updates on Buffett's thinking, however; the 82-year-old joined Twitter this week.

First Published: May 3, 2013: 6:00 PM ET

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How construction can lose jobs in middle of home building rebound

Cuts in government spending on construction projects led to the drop in April's construction employment.

NEW YORK (CNNMoney)

The sector lost about 6,000 jobs overall, according to the Labor Department's jobs report. This was largely due to a decline in hiring for non-residential buildings or public works projects like roads or sewer plants. Combined, these two areas lost 19,700 jobs.

Meanwhile, home builders and their subcontractors added 13,300 workers, even more than in March.

A big part of the sector's pullback is due to a drop in government-funded construction projects, a trend that has been going on for about two years.

Federal construction spending is down 28% since peaking in August 2011, when stimulus spending was still going strong, according to Ken Simonson, chief economist of the Associated General Contractors of America, an industry trade group. Local governments, particularly school districts, have also been pulling back on construction spending after building a rush of new ones during the housing boom.

"You don't need to open a new school every month if people aren't coming," he said.

Related: April jobs report - Hiring picks up

Additionally, many builders are having a hard time finding skilled construction workers.

David Crowe, chief economist with the National Association of Home Builders, said residential construction hiring likely would have been even higher in April if not for the shortage of skilled workers in some markets. He said a survey of his trade group's members found about half couldn't find workers with the necessary skills.

Simonson and other experts say the cutback in federal spending -- known as the sequester -- that went into effect March 1 hasn't halted work on any construction projects already underway. But they said federal agencies knew the sequester was looming and did scale back new construction contracts earlier this year.

Record low mortgage rates, a rebound in home prices and strong new home sales prompted the fastest pace of home building in nearly five years in March, according to a separate government report.

First Published: May 3, 2013: 12:54 PM ET

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