Why Ralph Lauren Corp Is Ready to Rebound

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Ralph Lauren Corp (NYSE: RL  ) gained 1.5% in early Wednesday trading after Wells Fargo upgraded the designer apparel company from market perform to outperform.

So what: Along with the upgrade, analyst Evren Kopelman raised his valuation range to $186-$197 (from $166-$171), representing as much as 23% worth of upside to yesterday's close. While momentum traders might be turned off by the stock's weakness in recent months, Kopelman thinks that several of Ralph Lauren's growth initiatives are starting to take hold.

Now what: According to Wells, Ralph Lauren's risk/reward trade-off is pretty attractive at this point. "EPS revisions could turn positive on sales momentum as we believe investment spending-related margin pressure for FY2015 is already well laid out by RL and is mostly in consensus estimates and the stock," Kopelman said. "We also see a potential acceleration in share buybacks." Given Ralph Lauren's not-so-cheapish P/E of 20 and exposure to still-sluggish consumer spending, however, I'd wait for a much wider margin of safety before jumping in. 

More reliable ways to build wealth
One of the dirty secrets that few finance professionals will openly admit is the fact that dividend stocks, as a group, handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured that it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks, in particular, are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

Change Agents: Toying with big ideas at Anki

SAN FRANCISCO — This is Boris Sofman's idea of fun: bouncing along in a Hummer as it chases a self-driving SUV named Crusher with wheels the size of an NBA player through the forests of Colorado, marveling at how the driverless machine "reacts to its environment almost like an animal, because it's alive."

Consider Sofman a friendly Dr. Frankenstein. And he's on a mission to change the way the world looks at robots.

The 30-year-old is ringleader of a giddy group of Ph.D.s who work at Anki, whose first product — Drive, a $200 futuristic gaming twist on slot cars — launched a few months back and is currently available through the company's website and in Apple stores. Drive's revolutionary coup was taking away the slots and outfitting each car with a 50-megahertz processor, more power than a late-'80s computer.

The transplant's result? Each monstrously fiendish sports car is imbued with the ability to sense its on-track competitors and plot their own race while factoring in commands from each player's iPhone-based controller.

Anki CEO and co-founder Boris Sofman.(Photo: Martin E. Klimek, USA TODAY)

"Robots can be intimidating, but when you have cars that come to life and sneak up on you and operate on their own because they're really intelligent, no one's intimidated by that," says Sofman, a wide-eyed dreamer of a fast-talking scientist whose ideas seem to barely keep pace with his mouth.

"We saw an opportunity at the intersection of toys, games and mobile devices to do something no one's done, which is program a video game on top of physical characters in the real world, our cars," he says. "Zooming out, this puts us in a position to develop other products with other uses. We're at an inflection point. Hardware c! osts are plummeting; reliability is increasing. These are exciting times."

There's no mistaking Sofman's forward-looking mission. Drive is merely Anki's fun-filled initial foray into consumer robotics; Sofman and his co-founders — Mark Palatucci, 35, and Hanns Tappeiner, 34 — are bent on making their company the dominant intelligent-gizmo brand of the 21st century.

Of course, the mere mention of robots tends to conjure fears, from manufacturing jobs vanishing to self-driving cars glitching with tragic results. Sofman, the son of Russian immigrants to Texas whose father worked as a mathematician for the pioneering telecom company MCI, just smiles.

"Think of the first time people were told to get in an airplane," he says. "There are psychological stepping stones, but we'll get over them."

TALKING TO THINGS WITH OUR PHONES

Some feel confident Sofman and his team will lead us over that psychological hurdle and into peaceful coexistence with autonomous devices.

"Anki has hit on a very innovative idea, which is linking powerful computers people already carry around, the smartphone, with devices that promise to make our lives easier, whether that's a pool cleaner or lawn mower or a gutter scrubber," says Tony Stentz, director of the National Robotics Engineering Center at Carnegie Mellon University, of which Sofman is a graduate.

"The sky's the limit when it comes to talking to our appliances using our phones," he says. "I've been in robotics a long time, and we're finally getting to the point where decreasing (component) costs are allowing people to build something useful."

Sofman and his team's intellectual bona fides are top notch; they're the kind of people who give their workplace conference rooms names like Voronoi and Markov, respectively a diagram that divides space into regions and a mathematical system that undergoes transitions from one state to another. Don't ask.

But Anki's front man has another trait that will be key to growing his company! , says Be! n Horowitz, whose firm Andreessen Horowitz was an early investor.

"Boris is deep down a people person, which is not the norm for a guy with a Ph.D. in robotics," says Horowitz with a laugh. "He also has the ability to stay in the batter's box on a given problem, to really focus. Those two things combine to make him a great wartime CEO."

Talk of Sofman's people skills brings us back to Crusher and those weeks-long camping trips in the Rocky Mountains wilderness he took while doing his graduate work at Carnegie Mellon.

Computer programming can be a solitary affair. But robotics, and in particular autonomous vehicle projects, Sofman's passion, "requires constant collaboration between big teams of people working on sensor systems, electromechanics, planning algorithms and so on. You have to be more social."

Those group efforts ultimately planted the seeds of Anki, a Japanese word meaning "to learn by heart." While working on complex devices with six-figure price tags for everyone from military brass to big agricultural companies, Sofman became convinced that as soon as tech advances brought costs down on sensors and other parts, a new era of consumer-tech robotics would be born.

"Hanns and I spent a year in Silicon Valley working for Neato (a robotic vacuum company), and we were able to put algorithms that we used on these other huge projects onto a $400 consumer device that did deep artificial intelligence," he says. "That gave us a taste of our future."

Toy cars.(Photo: Martin E. Klimek, USA TODAY)

Best US Companies For 2015

STARTING WITH TOYS

Entertainment, and in particular toys, seemed a logical place to start with Anki, w! hich offi! cially launched in 2010 and began hiring in 2011. "The toy world hasn't evolved as much as the video game industry, but it has this powerful connection with the physical world that just doesn't exist with computer games," he says.

If we are in the infancy of consumer robotics, Anki Drive represents the first baby steps. But big strides are coming, says investor Horowitz.

"Science fiction really threw us all off the path by envisioning robots that were humanoid, but it turns out it's a lot easier for them to get around on wheels than two legs," he says. "Anki's cars are more like what we'll be seeing, something that just a few short years ago wasn't feasible at $100,000, let alone $200."

Sofman simply can't wait for the future, so he's busy creating it. "What's coming is inevitable," he says simply. "It will be possible to have so much more intelligent interaction with things we do and use daily. You'll see."

—

ABOUT BORIS SOFMAN, 30

What: Co-founder of consumer-focused robotics company Anki

Where: San Francisco

Best piece of advice you ever got? "(Andreessen Horowitz partner) Ben Horowitz told me that I would often get thoughts and advice on what to do at Anki. ... The key is to always listen, and in the end have the confidence to do what I believe is best."

Describe your dream project: "I'm an eternal fan of autonomous driving, so there's a good chance I'd be working with many of my long-time friends at Google on their autonomous car project."

What are your parents most proud of? "That I finished my (Ph.D.) degree. They'd always say, 'We didn't come all the way from Russia to have you run off and do some company.' So I finished and my co-founder Mark did, too. Hanns is almost finished. ... My mom's been hounding him for three years."

USA TODAY's Change Agents series highlights innovators and entrepreneurs looking to change business and culture with their vision. E-mail Marco della Cava at mdellacava@usatoday.com. Follow him on Twitter! : @marcod! ellacava.

Mid-Afternoon Market Update: Markets Continue Rally as Tesla Guidance Lifts Stock

Toward the end of trading Tuesday, the Dow traded up 0.63 percent to 16,361.14 while the NASDAQ surged 1.66 percent to 4,181.62. The S&P also rose, gaining 1.05 percent to 1,838.09.

Top Headline
J.P. Morgan Chase & Co (NYSE: JPM) reported a 7% drop in its fourth-quarter profit.

J.P. Morgan's quarterly profit declined to $5.3 billion, or $1.30 per share, versus a year-ago profit of $5.7 billion, or $1.39 per share. Its adjusted earnings came in at $1.40 per share.

Its revenue dropped 1% to $24.1 billion, versus $24.4 billion. However, analysts were projecting earnings of $1.32 per share on revenue of $23.81billion. J.P. Morgan's mortgage originations tumbled 54% y/y to $23.3 billion, while investment banking net income slipped 57%.

Equities Trading UP
Shares of Tesla (NASDAQ: TSLA) were on the rise Tuesday afternoon, gaining 15.47 percent to $161.10 after the company issued some positive fourth quarter guidance at the Detroit Autoshow, leading to an upgrade from Baird.

VeriFone Systems (NYSE: PAY) shot up 5.00 percent to $28.77 after JP Morgan upgraded the stock from Neutral to Overweight.

Google (NASDAQ: GOOG) was also up, gaining 2.41 percent to $1,150.97 after the company announced its plans to acquire Nest Labs for $3.2 billion. Analysts at Wells Fargo upgraded Google from Market Perform to Outperform.

Equities Trading DOWN
Shares of GameStop (NYSE: GME) were down 20.62 percent to $36.17 after the company cut its profit outlook for the holiday quarter.

Intercept Pharmaceuticals (NASDAQ: ICPT) was also down, falling 26.36 percent to $268.60 after a Wall Street Journal article Friday reported that the NIH had said patient's of the company's drug had more bad cholesterol than when they had started treatment.

Stratasys (NASDAQ: SSYS) was down, falling 8.83 percent to $118.51 after the company issued downbeat FY14 earnings outlook.

Commodities
In commodity news, oil traded up 0.75 percent to $92.49, while gold traded down 0.70 percent to $1,242.40.

Silver traded down 1.05 percent Tuesday to $20.17, while copper fell 0.42 percent to $3.33.

Eurozone
European shares were mostly higher today. The Spanish Ibex Index rose 0.06 percent, while Italy's FTSE MIB Index gained 0.17 percent. Meanwhile, the German DAX climbed 0.23 percent and the French CAC 40 rose 0.26 percent while U.K. shares gained 0.16 percent.

Economics
The NFIB Small Business Optimism Index rose to 93.90 in December, versus a prior reading of 92.50. However, economists were expecting a reading of 93.10.

The ICSC-Goldman Sachs store sales index dropped 1% in the week ended Saturday versus the earlier week.

U.S. retail sales increased 0.2% in December, versus economists' estimates for a 0.1% gain.

The import price index came in unchanged in December, while the export index climbed 0.4% in the month.

The Johnson Redbook Retail Sales Index declined 0.3% in the first week of January versus December.

U.S. business inventories rose 0.40% in November, versus economists' expectations for a 0.30% gain.

Posted-In: Earnings News Guidance Eurozone Commodities Forex Global Econ #s Economics Intraday Update Markets Movers Tech

(c) 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  Most Popular Earnings Expectations For The Week Of January 13: Big Banks, GE, Intel And More ETFs Poised For Apple Rally (AAPL, IYW, XLK, QQQ, GOOG, MSFT) China Gold Stone Mining Reports Cash Tender Bid for Allied Nevada Shares, Tendering Holders Will Be Paid $7.50/Share in Cash UPDATE: JMP Securities Reiterates Coverage on ARIAD Pharmaceuticals, Sees Market Share Regain UPDATE: Stifel Downgrades Cree on Recent Performance Coming Soon: 3D Printing For Everyone Related Articles (GOOG + GME) Google's Deal to Purchase Nest Labs Sends a Surge Through the Home Automation Industry Market Wrap For January 14: Markets Rebound On Earnings Season Kickoff Analysts React To Google's Acquisition Of Nest Labs Mid-Afternoon Market Update: Markets Continue Rally as Tesla Guidance Lifts Stock Mid-Day Market Update: Stratasys Drops On Downbeat Profit Outlook; Google Shares Surge FBN Securities Initiates Coverage on Internet Industry Around the Web, We're Loving... Lightspeed Trading Presents: Thunder and Tubleweeds: Trading Techniques for the New Market Enviroment Pope Francis Rips 'Trickle-Down' Economics Come See How the Pro's Trade in this Exclusive Webinar Wynn, MGM, Other Casino Giants Vying For U.S. Turf What Should You Know About AMZN? View the discussion thread. Partner Network

Dollar rises as investors wait for FOMC minutes

NEW YORK (MarketWatch) — The dollar rose against most rivals on Tuesday as investors awaited the next day's release of minutes from the Federal Reserve's December meeting.

Click to Play November trade deficit less than expected

Sital Patel takes a look at the markets, including three stocks to watch today. Photo: Getty Images.

The European Central Bank and the Bank of England will release monetary-policy decisions on Thursday and investors are also watching for December's jobs report on Friday.

The events later in the week left the foreign-exchange market without much news to digest on Tuesday, said Adam Cole, global head of foreign-exchange strategy at RBC Capital Markets in London. "We're seeing the majors kind of thrashing around without an awful amount of conviction or direction," he said.

The ICE dollar index (DXY) , a gauge of the U.S. unit against a trade-weighted basket of six other currencies, rose to 80.864 from 80.664 late Monday. That's the highest level since Dec. 2's 80.925, according to FactSet data.

The WSJ Dollar Index (XX:BUXX) , an alternate measure of the greenback's strength, gained to 74.13 from 73.97.

Eric Rosengren, president of the Boston Federal Reserve, said Tuesday the central bank should reduce its bond purchases very gradually, adding later that a $10 billion reduction per meeting would fit that approach. Separately, San Francisco Fed President John Williams said the central bank's bond purchases could be ended this year.

The Fed in December decided to begin reducing monetary stimulus, announcing it would cut bond purchases to $75 billion in January. The Fed's bond purchases have been understood to weigh on the dollar. Rosengren was the only member of the Fed's policy-setting committee to vote against cutting bond purchases last month

The U.S. trade deficit fell nearly 13% in November to $34.3 billion from a revised $39.3 billion in October, according to Commerce Department data released Tuesday.

BK Asset Management managing director Kathy Lien said the Fed minutes have the potential to be a bigger market-moving event than Friday's U.S. jobs report. "If the [Fed] minutes show that there was an overwhelming amount of support for tapering before the end of 2013, their enthusiasm will revive the rally in the dollar and drive [the dollar's rate against the yen] back above ¥105," she said in a note.

"However, if there was significant reluctance, and policy makers expressed hesitancy about staying on a predetermined track with bond purchases, then the dollar could come under additional pressure," said Lien.

The dollar (USDJPY)  rose to ¥104.56 from ¥104.17 late Monday.

The euro (EURUSD)  inched down to $1.3613 from $1.3631 late Monday.

The annual rate of inflation across the euro zone fell further below the European Central Bank's target in December, which may trigger fears that too little inflation, rather than too much, will pose a threat to the region's recovery. It also puts some pressure on European Central Bank President Mario Draghi and his colleagues to act further to tackle deflation, said analysts.

TRADING STRATEGIES: January
Terrence Horan/MarketWatch
• Fourteen stocks for 2014
• Buying the 2014 recovery • See full Trading Strategies report /conga/story/2014/01/trading-strategies.html 292531

"If inflation keeps edging lower, the likelihood of another cut to the refi rate or even negative deposit rates seem to be more pronounced than before," said Ishaq Siddiqi, market strategist at ETX Capital. "The Fed may be bowing out of the stimulus game, but the ECB is in for a tough grind to repair the euro zone and prevent an economic crisis from taking hold again."

German jobless claims in December unexpectedly fell 15,000 from November on a seasonally-adjusted basis, while the jobless rate remained unchanged at 6.9%, which is near a record low.

Data released Monday from Markit indicated strengthening in Spain and helped raise a gauge of the euro zone's services sector and the broader private sector in December, although ongoing weakness in French business activity curbed the advance.

The Australian dollar (AUDUSD) moved lower to 89.25 U.S. cents from 89.65 U.S. cents. Earlier Tuesday, data showed Australia's trade deficit narrowed on a seasonally adjusted basis in November.

The British pound (GBPUSD) was little changed at $1.6396 from $1.6400 late in the previous session.

Other must-read MarketWatch stories:

Yellen confirmed as Fed chairwoman

Should a bank CEO be chairman? Why some say no

Apple, Amazon stock rating cut for "moral reasons"

2 Simple Math Formulas You Need to Become a Successful Landlord

Source: Life Mental Health.

Rental property can be the ultimate income investment, bestowing all sorts of nifty benefits, such as monthly income, tax advantages, and a profit over the original purchase price on well-maintained properties. Over a span of several years, this can turn into a pretty sweet deal -- all for a 30% down payment, and a certain amount of sweat equity.

Before you can get to all the hard work and rewards, however, you will need to do some serious number crunching. Not only must you determine whether the property is an affordable and profitable venture, but you'll also have to make certain that you will be able to afford future expenditures related to maintenance and upkeep. To be successful in real estate investing, making friends with math is an absolute requirement.

Without further ado, here are two simple math formulas that will tell you very quickly whether that rental property you covet is a wise or foolhardy investment.

Income must equal outgo (at minimum)
Once you decide upon a likely candidate for purchase, you'll need some important pieces of information: the market rents for the unit or units, your probable monthly mortgage payment, and everything else. The last category includes expenses such as property taxes, water and sewer, and property and other insurance. If you will be including utilities in the rent, you'll need to know those costs, too.

For example, let's say you've found a two-family property in good condition that you feel you could afford with a monthly mortgage of $1,000. With market rents of $1,000 per month each side, your annual cost calculations will look like this:

Mortgage payment	$12,000
Property Taxes	5,000
Insurance	1,000
Water and sewer	500
Total	$18,500

Hot Low Price Stocks To Invest In Right Now

With annual rents coming in at $24,000 yearly, the affordability quotient is pretty high, and that extra $5,500 yearly income probably looks really swell. Before you begin shopping for a big-screen TV, though, there's one more math formula you'll need to apply to your prospective investment.

Reserve for replacement formula
Components wear out in rental units, just like in any home. Replacing a roof or heating system can be expensive, so you'll want to make sure you have some money set aside to cover these expenses, as well as durable items like refrigerators and carpeting, if the need arises.

This formula is fairly straightforward, as well -- merely take the "Replacement Cost New" of a certain appliance and divide by the life expectancy.

1 (100%) / Life Expectancy = % of RCN = annual reserve for replacement

Fannie Mae has an excellent landlord guide that lists the lifespan of various components for easy reference. Here's the formula, using the example of a mid-priced electric range at Home Depot:

$549/17 = $32 annual reserve 

As you can see, adding up all the items with a finite lifespan and figuring out the cumulative annual reserve for replacement will eat into your yearly net profit. In addition, it is very unlikely that all components will be brand-new when you purchase your property, so the lifespan of each item will have to be adjusted according to its age -- which will correspondingly increase the annual reserve.

Of course, there will be other expenses, both expected and unplanned, that the average rental property investor will encounter, and it is always a good idea to make sure you keep money aside at the time of purchase for things like renovation costs and tenant search expenses. However, these two simple math formulas -- used correctly and consistently -- will place you firmly on the path to real estate investing success.

Another investment that pays great dividends
One of the dirty secrets few finance professionals will openly admit is the fact that dividend stocks as a group handily outperform their non-dividend paying brethren. The reasons for this are too numerous to list here, but you can rest assured it's true. However, knowing this is only half the battle. The other half is identifying which dividend stocks in particular are the best. With this in mind, our top analysts put together a free list of nine high-yielding stocks that should be in every income investor's portfolio. To learn the identity of these stocks instantly and for free, all you have to do is click here now.

NASAA’s Fleming Named SEC’s First Investor Advocate

Rick Fleming, deputy general counsel for the North American Securities Administrators Association, was named Wednesday as the Securities and Exchange Commission’s new investor advocate.

Fleming, who will assume his new role on Feb. 24, becomes the first person to lead the SEC’s Office of the Investor Advocate, which was created by Dodd-Frank and requires that the Investor Advocate report to the chairwoman.

While Dodd-Frank required appointment of an investor advocate, an SEC spokesman declined to comment on the length of time it took the agency to appoint one, stating that "the functions" of an investor advocate over the past three years "have been carried out in the interim by our Office of Investor Education and Advocacy."

Fleming will also serve as a member of the SEC’s Investor Advisory Committee.

“I am very pleased that Rick will be joining the commission as its inaugural director of our Office of the Investor Advocate,” said Mary Jo White, SEC chairwoman, in a statement. “Rick brings a depth of experience advocating for the interests of investors, a keen understanding of the markets, and a true passion for investor protection.”

Andrea Seidt, NASAA president and Ohio securities commissioner, added in a separate statement that the advocate office “will serve a critical role in ensuring that the SEC focuses on the needs of ordinary investors."  For nearly two decades, she said, "Rick has fought directly on the front lines for investors at the state and national level. Through his work with the Office of the Kansas Securities Commissioner and more recently at NASAA, Rick has demonstrated an unparalleled passion for investor advocacy and commitment to investor protection.”

As mandated by Section 915 of Dodd-Frank, the investor advocate helps retail investors resolve significant problems with the SEC or with self-regulatory organizations; identifies areas in which investors would benefit from changes in the SEC regulations or the rules of SROs; analyzes the potential impact on investors of proposed SEC and SRO rules and regulations; and to the extent practicable, propose changes in the regulations or orders of the commission and to congress any legislative, administrative or personnel changes that may be appropriate to mitigate problems and to promote the interests of investors.

Top 10 Blue Chip Stocks To Watch Right Now

Prior to joining NASAA in 2011, Fleming was general counsel for the Office of the Kansas Securities Commissioner. A native of Kansas, Fleming graduated summa cum laude from Washburn University with a bachelor’s degree in finance and economics, and is a graduate of Wake Forest School of Law in Winston-Salem, N.C.

---

Check out More Advisor Exams? Not Under This SEC Budget, Advocates Say on ThinkAdvisor.

Top 10 Penny Companies To Own For 2015

Last week, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) ended up 0.09% at 15,559 points after hitting an all-time high Tuesday. The S&P 500 (SNPINDEX: ^GSPC  ) trailed Mr. Jones early in the week but managed to retake some of its gains for an overall 0.23% dip.

^DJI data by YCharts.

Sticky earnings
The last Dow stock to announce earnings last week was 3M (NYSE: MMM  ) , which reported on Thursday. The company missed on the top line but made up for it with slightly better-than-expected net income. 3M's $7.75 billion in revenue came in $20 million below estimates, but EPS added an extra penny to analyst predictions. Expectations aside, sales are up a seasonally adjusted 2.9%, while EPS rose 3%.

Top 10 Penny Companies To Own For 2015: Cash America International Inc.(CSH)

Cash America International, Inc. provides specialty financial services to individuals primarily in the United States and Mexico. The company operates in three segments: Pawn Lending, Cash Advance, and Check Cashing. The Pawn Lending segment offers pawn loans through its pawn lending locations, which operate under the names Cash America Pawn and SuperPawn in the United States, and Prenda Facil in Mexico. This segment also sells previously-owned merchandise acquired from customers who do not redeem their pawned goods, as well as sells items purchased from third-parties or customers. The Cash Advance segment offers unsecured cash advances in selected lending locations that are operated under the names Cash America Payday Advance and Cashland in the United States; and short-term cash advances over the Internet under the names CashNetUSA in the United States, QuickQuid in the United Kingdom, and DollarsDirect in the Canada and Australia. This segment also involves in arranging loans for customers with independent third-party lenders through a credit services organization program; providing marketing and loan processing services for a third-party bank issued line of credit on certain stored-value debit cards that the bank issues; and purchasing a participation interest in certain line of credit receivables originated by the bank. The Check Cashing segment provides check cashing and other financial services, such as stored-value cards, money orders, and money transfers. This segment operates its check cashing locations under the Mr.Payroll name. As of December 31, 2009, it operated 676 pawn lending locations, including 667 company-owned units and 9 unconsolidated franchised units; 246 cash advance locations; and 120 unconsolidated franchised and 6 consolidated company-owned check cashing locations. The company was founded in 1984 and is headquartered in Fort Worth, Texas.

Advisors' Opinion:

• [By Monica Gerson]

  Cash America International (NYSE: CSH) is expected to report its Q3 earnings at $0.81 per share on revenue of $443.67 million.

  Mead Johnson Nutrition Company (NYSE: MJN) is estimated to report its Q3 earnings at $0.80 per share on revenue of $998.82 million.

• [By Ben Levisohn]

  Upgrades had a big impact on stocks today. Wendy’s (WEN), for instance, gained 4.5% to $8.62 after being upgraded to Buy at Argus, while Cash America (CSH) advanced 3.7% to $44.32 after being upgraded to Market Outperform from Market Perform at JMP Securities. Walgreen (WAG) proved the big winner in the S&P 500 after�Goldman Sachs called the stock a Conviction Buy.

• [By John Udovich]

  Despite�a slow global economy and continued high unemployment in many countries, small cap payday or pawn stocks Cash Store Financial Services Inc (NYSE: CSFS), DFC Global Corp (NASDAQ: DLLR) and Cash America International, Inc (NYSE: CSH) have not exactly been performing well since the start of the year. In fact, these three stocks are the worst performers in the payday or pawn loan sector, down 38.5%, down 14.4% and up 4.6%, respectively, since the start of the year.

Top 10 Penny Companies To Own For 2015: LifePoint Hospitals Inc.(LPNT)

LifePoint Hospitals Inc., through its subsidiaries, operates general acute care hospitals in non-urban communities in the United States. The company?s hospitals provide a range of medical and surgical services comprising general surgery, internal medicine, obstetrics, emergency room care, radiology, oncology, diagnostic care, coronary care, rehabilitation services, and pediatric services, as well as specialized services, such as open-heart surgery, skilled nursing, psychiatric care, and neuro-surgery. Its hospitals also offer outpatient services, including one-day surgery, laboratory, x-ray, respiratory therapy, imaging, sports medicine, and lithotripsy. As of December 31, 2009, LifePoint Hospitals owned or leased 47 hospitals with a total of 5,552 licensed beds in 17 states. The company was founded in 1997 and is headquartered in Brentwood, Tennessee. Lifepoint Hospitals Inc. (NasdaqNM:LPNT) operates independently of HCA Inc. as of May 11, 1999.

Advisors' Opinion:

• [By Keith Speights]

  The fun wasn't just limited to the big three hospital operators. Lifepoint Hospitals (NASDAQ: LPNT  ) stock jumped 5% on the CMS news, reflecting a $109 million market cap expansion. Likewise, Vanguard Health Systems (NYSE: VHS  ) shares climbed 5%, bumping its market cap up by�$55 million.

Hot Quality Stocks To Buy Right Now: Rick's Cabaret International Inc.(RICK)

Rick?s Cabaret International, Inc., through its subsidiaries, owns and operates upscale adult nightclubs serving primarily businessmen and professionals in the United States. The company?s nightclubs offer live adult entertainment, restaurant, and bar operations. It owns and operates, or licenses adult nightclubs in Houston, Austin, San Antonio, Dallas, and Fort Worth, Texas; Charlotte, North Carolina; Minneapolis, Minnesota; New York, New York; Miami Gardens, Florida; and Philadelphia, Pennsylvania, and Las Vegas, Nevada. The company operates its adult nightclubs under the Rick's Cabaret, Club Onyx, XTC Cabaret, Tootsie?s Cabaret, Cabaret North, Jaguars, and Cabaret East names. It also owns and operates various adult entertainment Internet Web sites, including CouplesTouch.com, a personals site for those in the swinging lifestyle; NaughtyBids.com, an online adult auction site that contains consumer-initiated auctions for items, such as adult videos, apparel, photo sets, a dult paraphernalia, and other erotica; and xxxPassword.com that features adult content. In addition, the company offers trade magazine serving the adult nightclubs industry, as well as owns 2 industry trade shows, 2 other industry trade publications, and approximately 25 industry Websites. As of January 4, 2011, it owned and operated 22 adult nightclubs. The company was founded in 1982 and is based in Houston, Texas.

Advisors' Opinion:

• [By Lauren Pollock]

  Shares of Rick's Cabaret International Inc.(RICK) jumped after the adult nightclub owner reported improving fiscal fourth-quarter results and projected better profitability in the new fiscal year. The stock jumped 14% to $12.23 premarket.

Top 10 Penny Companies To Own For 2015: China Grentech Corporation Limited(GRRF)

China GrenTech Corporation Limited, together with its subsidiaries, engages in the manufacture and sale of wireless coverage products and services in the People?s Republic of China. The company offers a range of wireless coverage products that include repeaters, trunk amplifiers, and base station amplifiers that support various 2G protocols, including GSM and CDMA, and 3G protocols comprising TD-SCDMA, WCDMA, and CDMA2000. It provides its wireless coverage products in indoor coverage areas, such as high-rise buildings, underground areas, and elevators; and outdoor coverage areas comprising highways, railways, subways, and tunnels. China GrenTech also offers design, installation of wireless coverage products, and project warranty services. In addition, it engages in the development, manufacture, and supply of RF parts and components that include transistors and diodes; and filters, duplexers, multi-frequency splitters, combiners and couplers, and antennae. The company was f ormerly known as Powercom Holdings Limited. China GrenTech Corporation Limited was founded in 1999 and is based in Shenzhen, the People?s Republic of China.

Top 10 Penny Companies To Own For 2015: Black Diamond Inc.(BDE)

Black Diamond, Inc., together with its subsidiaries, develops, manufactures, and distributes outdoor recreation equipment and active lifestyle products in the United States and internationally. It provides climbing products, including belay/rappel devices, bouldering products, carabiners and quickdraws, chalk, chalk bags, climbing packs, crampons, crash pads, dogbones and runners, harnesses, ice axes and piolets, ice and rock protection devices, and various other climbing accessories; and skiing products comprising backpacks, winter packs for skiing and snowboarding, bindings, boots, poles, skis, skins, snow gloves, snow packs, and snow safety devices. The company also offers mountaineering line products, such as backpacks for alpine expeditions, backcountry excursions, overnight trips, and day hikes; and bivy sacks, rain sacks, gaiters, gloves, headlamps, lights, tents, trekking poles, and other hiking and mountaineering accessories. In addition, it provides hydration pac ks for trail running and cycling; travel and lifestyle products, which include duffle bags, messenger bags, and small bags and pouches carry electronics and other accessories; and various apparel and accessory products. The company sells its products to mountain climbers, winter outdoor enthusiasts, backpackers and campers, cyclists, top endurance trail runners, and outdoor-inspired consumers under the Black Diamond and Gregory brands through sporting goods and outdoor recreation stores, retail stores, and consumer catalogs, as well as through blackdiamondequipment.com. Black Diamond, Inc. is headquartered in Salt Lake City, Utah.

Top 10 Penny Companies To Own For 2015: Innovaro Inc(INV)

Innovaro, Inc. provides a comprehensive portfolio of end-to-end innovation solutions primarily in the United States and the United Kingdom. It helps clients develop compelling strategies to drive and catalyze growth, source externally developed technologies, create added value from their intellectual property, and gain foresight into marketplace and technology developments that affect their business. The company operates in two segments, Strategic Services and Technology Services. The Strategic Services segment offers strategic innovation consulting; business model and product development consulting; identify and develop new segments and markets; and create and act on game-changing strategies. The Technology Services segment provides futures scenario development and planning; custom and syndicated research; online information services; IP consulting; IP and market landscape analysis; technology search; In- and out-licensing; online marketplaces; and partner search and prof iling services. Its clients include consumer goods, consumer packaged goods, retail, medical, telecommunications, chemicals, media, financial services, energy, utilities, and government agencies. The company was formerly known as UTEK Corporation and changed its name to Innovaro, Inc. in July 2010. Innovaro, Inc. is based in Tampa, Florida.

Top 10 Penny Companies To Own For 2015: Brocade Communications Systems Inc.(BRCD)

Brocade Communications Systems, Inc. supplies networking equipment comprising end-to-end Internet protocol based Ethernet and storage area networking solutions. Its Data Storage segment provides infrastructure products and solutions, including directors, switches, routers, fabric-based software applications, distance/extension products, management applications, and utilities to centralize data management; and host bus adapters, converged network adapters, mezzanine cards, and switch modules for bladed servers. The company?s Ethernet Products segment offers Open Systems Interconnection Reference Model (OSI) Layer 2-3 switches and routers, which enable the use of bandwidth-intensive network business applications and digital entertainment on local area networks and wide area networks; and OSI Layer 4?7 switches that allow enterprises and service providers to build network infrastructures to direct the flow of traffic, and file area network products and associated management s olutions. The company?s Global Services segment provides break/fix maintenance, extended warranty, installation, consulting, network management, and related software maintenance and support services; consulting and support services that assist customers in designing, implementing, deploying, and managing networking solutions; and post-contract customer support and extended warranties. It serves various businesses and organizations, which include global enterprises and service providers, such as telecommunication firms, cable operators, and mobile carriers. The company has a strategic partnership with LG-Ericsson. It offers its products and services to end-user customers directly, and through various distribution partners comprising original equipment manufacturers, distributors, systems integrators, and value-added resellers in the United States, western Europe, Japan, and the greater Asia Pacific region. The company was founded in 1995 and is headquartered in San Jose, Cali fornia.

Advisors' Opinion:

• [By Selena Maranjian]

  The biggest new holdings are McGraw-Hill Financial�and industrial machinery specialist Gardner Denver. Other new holdings of interest include Kodiak Oil & Gas (NYSE: KOG  ) and Brocade Communications Systems (NASDAQ: BRCD  ) . Kodiak recently bought 42,000 acres in the productive Bakken region, upping its assets there by 27%, and adding thousands of new barrels of oil to its production levels. Bulls love Kodiak's rapid growth and see more room to grow. Bears worry that it might be too focused on the Bakken and not sufficiently diversified.

Top 10 Penny Companies To Own For 2015: Anthera Pharmaceuticals Inc.(ANTH)

Anthera Pharmaceuticals, Inc., a development stage biopharmaceutical company, focuses on developing and commercializing therapeutics to treat diseases associated with inflammation, including cardiovascular and autoimmune diseases. Its primary product candidates include varespladib methyl (A-002), which has completed its Phase 2 clinical studies for the treatment of acute coronary syndrome; varespladib sodium (A-001) that is in a Phase 2 clinical study for the prevention of acute chest syndrome associated with sickle cell disease; and A-623, which has completed Phase 1 clinical studies for the treatment of B-cell mediated autoimmune diseases. The company has license agreements with Eli Lilly and Company, and Shionogi & Co., Ltd. to develop and commercialize secretory phospholipase A2 or sPLA2 inhibitors for the treatment of cardiovascular disease and other diseases; and Amgen Inc., to develop and commercialize A-623. Anthera Pharmaceuticals, Inc. was founded in 2004 and is headquartered in Hayward, California.

Top 10 Penny Companies To Own For 2015: Alpha and Omega Semiconductor Limited(AOSL)

Alpha and Omega Semiconductor Limited engages in the design, development, and supply of a range of power semiconductors worldwide. The company offers power discrete product line comprising trench MOSFETs, electrostatic discharge, protected MOSFETs, and SRFETs; and power ICs. Its products are used in notebooks, netbooks, flat panel displays, mobile phone battery packs, set-top boxes, portable media players, and power supplies. The company sells its products to distributors. Alpha and Omega Semiconductor Limited is based in Hamilton, Bermuda.

Good News About Our Ageing Population

A week doesn't go by without hearing about the problems which will be created by the world's rapidly ageing population. Much of the focus is on how fewer people will mean lower future economic growth. The likes of Harry Dent have popularised the idea but it's also been given intellectual heft by thousands of demographic consultants.

There's no doubt that the world is getting older. Many will be surprised to learn that even Asia has serious issues on this front. For instance, fertility rates in South Korea, Hong Kong and Singapore are below those of European countries such as Italy and Germany, which are most commonly associated with demographic problems.

The post today though will look at the silver linings associated with ageing demographics. Older populations don't necessarily equate to lower economic growth. Boosting productivity is the key to offsetting declining working-age populations. Without it, there will indeed be much lower growth but we're hopeful that the seriousness of the issue will prompt real solutions to address productivity.

Also, having fewer people in future may end up being the best thing that could have happened to us. There's considerable evidence that we're now living in a resource-constrained world. One where we may soon face a food crisis as agricultural inventories dip to decade lows thanks to lower crop yields and increased demand from Asia. Fewer people should mean reduced resource consumption and may actually save us from not having enough food to feed the planet.

For investors, ageing demographics and resource constraints do mean the odds favour slower economic growth in the decades ahead. Yet these issues will also create some tremendous investment opportunities in areas such as biotechnology, robotics, agriculture, and renewable energy.

Yes, we're rapidly ageing

I'm not going to detail how the world is rapidly ageing as it's been done ad nauseam. Suffice to say that many don't quite comprehend how quickly the process is taking place.

For instance, many government agencies predict peak world population of around 8 billion by 2050. What's more interesting is that much of the population growth will occur in Africa. Ex-Africa, the world's population could peak around 6.5 billion as early as 2040. Below is the optimistic case as outlined by the U.N..

Let's put that into context. I'm 38 years of age. Within my lifetime, I'm likely to witness a declining global population. Moreover, I may be reaching retirement age when the world population, ex-Africa, starts to fall. Unless, of course, our governments lift the retirement age to 80, which can't be ruled out!

The key driver to slowing population growth is declining fertility rates. And the causes of these falling rates include advances in birth control and improved education of women.

The numbers on fertility rates are staggering. It's no surprise that many developed countries now have fertility rates well below so-called replacement rates, with Europe featuring prominently.

What's less known is that Asia faces a similar predicament to the West. China's birth rate has declined from 6 in the 1960s to 1.5 today. South Korea, Singapore and Hong Kong all have birth rates among the lowest in the developed world. Even below the likes of Italy!

Africa and parts of the Middle East are the primary areas where fertility rates are well above replacement rates. Greater populations are the last thing that many of these areas need though.

Ageing doesn't equal lower growth

There's a widespread assumption that an ageing demographic profile invariably leads to lower economic growth. Japan is often held up as proof of this.

The assumption has several flaws:

Historical experience suggests that you can have strong, above-trend economic growth in places where populations are ageing. Venice in the 11th century and the Dutch Republic in the 14th century are prime examples. Modern-day experience also pokes some holes in the theory. If population alone led to stronger economic growth, then Africa today should be shooting the lights out. Only it isn't. The underlying flaw is that population growth is only one-half of the GDP equation. GDP growth equals population growth plus productivity growth. You can have zero population growth and still be growing GDP via productivity enhancements.

Of course, ageing demographics make it more likely that a country will have slower economic growth. To explain this further, let's look at a concrete example in China.

South China Morning Post columnist, Tom Holland, had a good article on this over the past week.  He explained the maths behind why China GDP growth should soon slow sharply to 6% or below.

He first used an an analogy to explain GDP growth:

"If you run a sausage factory, there are three ways that you can increase the output of sausages. You can employ more staff to make them. You can invest in new sausage-making-machinery.

Or you can use the staff and machines that you already have more efficiently."

The first two factors are easy to measure but the third isn't, and it's referred to by economists as Total Factor Productivity, or TFP.

China has some big issues. Its working-age population peaked in 2012. That means it has less people to make the proverbial sausages.

It also has had a big drop-off in TFP in recent years. The country's GDP growth has been held up by greater investment in physical capital. Or investment in new sausage-making machines, using Mr Holland's analogy.

The problem is that the working-age population is set to decline further. And China wants to reduce investment in favour of consumption as the government has recognised that it's been too reliant on the former. Consequently, investment could easily decline by one-third in future.

It means China will need a big lift in TFP for GDP growth to be maintained at current levels. That seems improbable.

People forecasting 5% GDP growth in China in the near future are often referred to as extreme bears. But the maths suggest that it's a pretty realistic scenario.

In sum, an ageing population doesn't directly correlate to slowing economic growth. But it makes it more likely.

Add resource constraints and there's an issue 

In my view, the other key issue in coming decades which receives much less attention is that of an increasingly resource-constrained world. It's the combination of this and ageing demographics which makes for increased odds for a slower growth world.

Two weeks ago, I did a post reviewing a book called Life After Growth, discussing resources constraints. It received more comments than any other piece that I've ever done. There were lots of strong opinions, vested interests and plenty of believers in technology overcoming any future obstacles.

I won't repeat the previous post but simply point out that there's considerable evidence of resources being much harder to find and more costly. And in some cases, we're just running out.

In the case of oil for example, U.S. production from conventional sources peaked in the early 1980s. Since then, growth of unconventional sources has resulted in very modest growth in total oil production. Unconventional oil primarily means offshore drilling, which is much more costly. Not surprisingly, higher oil costs have resulted in elevated oil prices.

Yes, there's all kinds of work into producing more oil via unconventional means. Tar sands and share oil are examples. The problem is that both of these are tremendously expensive and energy inefficient. In 20 years time, both may well be considered the Kodaks of the energy world (technology bypassed by better quality, low cost means).

The likes of solar and wind power do offer some hope, though both are still too costly to compete with hydrocarbons, but that should change over the next few decades.

Regarding constrained resources, I'd also point to metal ore grades, which are rapidly declining in most cases. Take gold and copper as examples.

Declining grades mean they're much harder to find and much more costly to bring to production.

Lastly, let's look at agriculture, where perhaps the most acute shortages are present. The common assumption is that we have a lot of land available for agriculture. That's true. But the issue is that the amount of prime agricultural land is declining.

That's resulting in reduced crop yield growth. Thus, crop yield growth has dropped from 3.5% per annum in the late 1960s to 1.25% now. The latter figure is still ok, of course. The issue is that it's closing in on global population growth of 1%. Further falls in crops yields do not bode well!

You may ask what these resource constraints have to do with future economic growth. Well, as explained in my book review, cheap energy has been the principal driver for economic growth since 1750. If the era of cheap energy is over, then growth may be impacted too.

And, no, technology is highly unlikely to save the day. Via the comments to my aforementioned book review, I was amazed by the number of people who had faith in technology to fix our energy issues and ultimately boost economic output. There's little doubt that we live in an age of technological optimism.

But here are a few things that should trouble these optimists:

Over the past two decades in the U.S., economic growth has slowed markedly from previous decades despite technological progress. Sorry but Apple and Twitter don't move the dial on economic productivity, with the latter reducing productivity if my experience is anything to go by. Technological improvements weren't able to stop conventional oil production from peaking. Despite trillions of dollars in spending. Technology wasn't able to prevent mining ore grades from deteriorating. And technology wasn't able to stop crop yields from sharply declining.

The faith in technology to solve problems from ageing demographics and resources constraints seems to be contrary to much of recent experience. That doesn't mean it can't happen but I wouldn't bet on it.

The upside of ageing

Right, the outlook appears fairly gloomy thus far. Where's the bright side in all of this, you may ask? In my view, there are a couple of key silver linings to a world rapidly getting older:

Can H&R Block Survive Against Intuit and Liberty Tax Service?

H&R Block (NYSE: HRB  ) will release its quarterly report on Tuesday, and as you'd expect outside of tax season, the tax-preparation company will almost certainly post a sizable loss. But the bigger question investors want answered is whether H&R Block can meet the long-term threat of Intuit (NASDAQ: INTU  ) and its TurboTax software on one end, as well as the live tax-preparation competition of JTH Holdings' (NASDAQ: TAX  ) and its Liberty Tax Service chain.

H&R Block has a long history of providing tax-preparation services, and it has recognized the need to go beyond live preparation to offer tax software of its own. Yet TurboTax remains the most popular tax software in the market by a wide margin, forcing H&R Block to try to use its bricks-and-mortar offices as weapons in its competitive fight. Yet now, JTH Holdings has entered the field, with its ownership of Liberty Tax Service and the leadership of John Hewitt, co-founder of Jackson Hewitt. Let's take an early look at what's been happening with H&R Block over the past quarter and what we're likely to see in its report.

Stats on H&R Block

Analyst EPS Estimate	($0.37)
Year-Ago EPS	($0.37)
Revenue Estimate	$137.85 million
Change From Year-Ago Revenue	0.4%
Earnings Beats in Past 4 Quarters	1

Source: Yahoo! Finance.

Can H&R Block earnings improve in the future?
Analysts have gotten slightly more optimistic about H&R Block earnings in the long-run, keeping October-quarter estimates steady but boosting full-year fiscal 2015 projections by $0.02 per share. The stock has climbed back toward the high end of its range for the year, rising 9% since early September.

Just as with this quarter's results, H&R Block's results for the July quarter were similarly weighed down by the fact that most of the company's earnings come in the key April quarter. A loss of $0.40 per share was worse than investors had expected to see, though, raising concerns about controlling costs during the tax off-season.

Another concern comes from H&R Block's efforts to sell off its banking-services division. The company had hoped to sell its banking division to Republic Bancorp in order to get out from under tighter regulation of banking-services companies. Yet Republic decided not to comply with one of the required conditions under the deal, forcing H&R Block to seek out other counterparties in an effort to cut costs and leave itself able to compete more nimbly against Intuit, Liberty, and others.

The wild card that H&R Block, Intuit, and Liberty all face at this point is the uncertainty surrounding the coming tax season in 2014. Last year, both Intuit and H&R Block were surprised by a relative lack of growth in return preparation, with Intuit saying that it saw a much smaller shift toward software from manual preparation than it had expected. Smaller competitors took away market share from Intuit, and H&R Block said that IRS returns fell about 1%, defying its own expectations of modest growth.

In the H&R Block earnings report, focus less on the actual backward-looking earnings and more on comments about the coming tax season. With the high-season for H&R Block earnings looming ever closer, the company needs to demonstrate that it has what it takes to keep Intuit and JTH Holdings at bay as it seeks to offer customers a way to deal with increasingly complex tax return needs.

Should tax preparers help people sign up for Obamacare?
One interesting speculation involves whether H&R Block and tax preparers should get involved in helping people sign up for Obamacare. Yet as complex as the Affordable Care Act might seem, it doesn't have to confuse you. In only minutes, you can learn the critical facts you need to know in a special free report called "Everything You Need to Know About Obamacare." But don't hesitate, because it's not often that we release a free guide containing this much information and money-making advice. Please click here to access your free copy.

Click here to add H&R Block to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.

Stephen Colbert to Ford CEO: Mustang’s tops for…

Mustangs, government bailout, Detroit bankruptcy and anti-union sentiment were squeezed into a tongue-in-cheek interview with Ford CEO Alan Mulally who was a guest Thursday night on the Colbert Report.

Mulally was in New York and appeared live on the show with irreverent comedy talk show host Stephen Colbert.

"I love that new guest smell," Colbert said at the top of the show in announcing his upcoming guest, promoting a segment with the caption "Mustang Sally."

Mulally was in New York to unveil the all-new 2015 Mustang that will go on sale next fall. An exuberant Colbert described Mulally as "an icon of American capitalism."

The CEO played straight man to Colbert's quips about the power of a Mustang to attract the opposite sex and his labeling of General Motors and Chrysler as Bolsheviks for taking government assistance in 2009 when they filed for bankruptcy.

Hot Quality Stocks To Buy Right Now

Mulally's attempts to take the high road included an explanation that the best way to help now-bankrupt Detroit is by hiring people and bringing work back to America.

Colbert's solution: pulling out the gold fillings of pensioners.

Mulally is not the first Detroit auto exec to trade barbs with Colbert. In April, 2012, former General Motors Vice Chairman Bob Lutz appeared to promote his book Icons and Idiots. The interview ended in an impromptu push-up contest.

What Matters in the Week Ahead for Global Markets

By Michael J. Casey, Alen Mattich and Michael Arnold

Here are the most important macroeconomic data and policy news events expected in the forthcoming week:

MONDAY

CHINA: Markets, government offices closed for the Lunar New Year celebrations.

BRAZIL: 7 a.m. EST. (10 a.m., Sao Paulo) Markit Economics January manufacturing PMI. [Prev. 50.5.]

This not a closely watched indicator, but like anywhere else in the world the Markit PMI for Brazil has the potential to evolve into a useful measure of business activity. And with so much focus on the market turmoil suffered by the "Fragile Five" emerging markets, of which Brazil is an unwitting member, any fresh insight into the state of this giant South American nation's economy is welcome. The last result showed a very meager rate of expansion (above 50). Did it improve in January? (MC)

U.S.: 9 a.m. EST. Treasury Sec Lew speaks on the debt ceiling at Bipartisan Policy Center, a U.S. think tank.

If this was October 2013, a month of government shutdown and extreme partisanship, this would be a hotly awaited event. But although the reprieve that Congress gave the U.S. government over its debt limit is due to expire on Friday, this time the tension isn't there. Why? Because it seems clear the political costs of going to the mat with the government aren't worth it. Why else would the House have passed a budget deal earlier this year? The consensus is the debt ceiling will rapidly, if quietly increased. But, of course, anything can happen? (MC)

U.S.: 9 a.m. EST. Janet Yellen sworn in as new Federal Reserve Chair.

The end of an era for outgoing Chairman Ben Bernanke, who had one of the most challenging tenures for any Fed chief ever. But it’s also an historic new era, with the first female leader of the Fed to take the helm. Will policy change? Who knows? Most Fed officials say Ms. Yellen is very much cut from the same cloth as Mr. Bernanke. What's clear that she has an enormous job to do: most likely, Ms. Yellen will be responsible for eventually unwinding the massive accommodative monetary position that the Bernanke Fed built up. (MC)

U.S.: 9 a.m. EST. Markit Economics final January U.S. Manufacturing PMI. [Preliminary index was at 56.6 vs. 55.7 in

The preliminary result for this up and coming indicator suggested that the first month of the year enjoyed a further acceleration in business activity. The final number – as well as the Institute of Supply Management's competing number, out an hour later – will affirm whether this is an entrenched trend or not. (MC)

U.S.: 10 a.m. Institute for Supply Management January ISM manufacturing report on business. [Manufacturing PMI expected 56 vs. revised 56.5 in December.]

Economists keep expecting the ISM's measure of manufacturing activity to moderate, but it continues to maintain solid growth. (MC)

U.S.: 10 a.m. December construction spending [Expected+0.2% vs. +1% in November.]

The idea is that the holiday season, mixed with an especially cold snap of ugly weather forced construction activity to slow in December from the rapid pace it saw in November. (MC)

BRAZIL: 12 p.m. EST (3 p.m. in Sao Paulo). January trade balance. [Previous deficit $2.65 billion.]

It's important that Brazil's trade balance starts to turn more favorable. That would signal that the weakness in the Brazilian real has reached a point that it is restoring Brazilian competitiveness and helping it transition into recovery. (MC)

U.S.: 4 p.m. EST. January industry auto sales. [Expected annualized sales 15.7 million vs. 15.4 million in December.]

Car sales ended 2013 on a very strong note, and that's good news for the broader U.S. economy. Did the consumer enthusiasm for new cars continue into the New Year. (MC)

SOUTH KOREA: 6 p.m. EST (8 a.m. Tuesday, Seoul). January consumer price index. [Previous CPI +1.1% on-year; core CPI previously +1.9% on-year].

South Korea’s benign inflation has allowed the Bank of Korea to stay on hold for an extended period while the economic recovery gains some traction. CPI for all of 2013 rose just 1.3%, far below the Bank of Korea’s target range of 2.5%-3.5%. Nothing suggests the BOK will exhibit any greater urgency to raise rates in coming months with price pressures essentially absent. (MA)

AUSTRALIA: 10:30 p.m. EST (2:30 p.m. Tuesday, Sydney). Reserve Bank of Australia cash rate decision [Previously held at 2.5%]

With the non-mining parts of Australia’s economy showing little life, speculation had been growing that the Reserve Bank of Australia would have to cut interest rates again from their current low of 2.5% — something the bank was reluctant to do with the housing market showing signs of an emerging bubble. However, recent strong data suggest that the RBA’s previous eight cuts since November 2011 are beginning to revive the broader economy, meaning the bank is likely to stay on hold now. (MA)

PHILIPPINES: 8 p.m. EST (9 a.m. Tuesday, Manila). January CPI [Previous +4.1% on-year] and core CPI [Previous +3.2% on-year]

The Philippines is one country in emerging Asia where inflation is beginning to become an issue after the consumer price index rose to a two-year high in December. Still, it remains squarely within the central bank's target range and December's rise was largely due to disruptions caused by Typhoon Haiyan, which means the central bank will incline toward patience unless the January print is off the charts. Fourth-quarter GDP data, out last week, suggested that growth has come off a bit from the torrid pace earlier in the year but remains among the fastest in Asia, and will likely be boosted by reconstruction efforts this year. January's CPI print is worth watching closely, but likely won't be enough to force the Bangko Sentral ng Pilipinas into a rate increase. (MA)

TUESDAY

EURO ZONE: 5 a.m. EST (11 a.m. Brussels). December producer price index. [Forecast up 0.2% on the month and down 0.9% on the year vs. -0.1% and -1.2%, respectively, in November]

Input inflation is still worryingly low, but at least the December numbers should show that the downward pressure it’s exerting on consumer prices is startling to relent. Overall, though, the euro zone continues to face deflationary risks. (AM)

U.K.: 4:30 a.m. EST (9:30 a.m. London). January construction purchasing managers’ index [Expected 61.8 vs. 62.1 in December]

Construction is likely to be growing at great guns as the U.K.’s property boom gathers pace. (AM)

U.S.: 8:30 a.m. Federal Reserve Bank of Richmond President Jeffrey Lacker speech at Shenandoah University

Mr. Lacker is considered a hawk. Not a voter on the Fed's Open Market Committee this year. (MC)

U.S.: 9:45 a.m. ISM-New York January ISM-NY Report on Business. [Previously 63.8.]

A very strong result for this third-tier indicator last month. It would not be a surprise if there is a correction lower this time. (MC)

U.S.: 12:30 p.m. Federal Reserve Bank of Chicago President Charles Evans speech at the Detroit Economic Club

Mr. Evans is not a voting member, but as a kind of de facto mouthpiece for the dominant dovish wing of the Fed, his views provide a useful gauge for the Fed's thinking. Are the FOMC members really as sanguine about the emerging market crisis as is suggested in the last statement, with its glaring omission of any reference to the problems in Turkey, Russia, and other developing countries. (MC)

INDONESIA: 11 p.m. EST (11 a.m. Wednesday, Jakarta). Fourth-quarter GDP [Previous +5.6% on-year]

Growth had been slowing in Indonesia from the torrid pace of the past few years even before the central bank raised interest rates by a cumulative 175 basis points following last summer’s taper-related selloff in the rupiah, when it sought to compress imports and choke off inflation. That tightening will likely show up in the form of a further slowdown in the fourth quarter numbers. (MA)

WEDNESDAY

EUROPE: 3:45 a.m. EST -5 a.m EST (9:45 a.m.-11 am, Brussels). Manufacturing purchasing manager indexes for January.

–ITALY [Forecast 48.5 vs. 47.9 in December]
–FRANCE [Forecast 48.5 unchanged on preliminary estimate vs. 47.8 in December]
–GERMANY [Forecast 53.6 unchanged on preliminary estimate vs. 53.5 in December]
–EURO ZONE [Forecast 51.9 unchanged on preliminary estimate vs. 51.0 in December]
–U.K. [Forecast 59.0 vs. 58.8 in December]

The final services PMIs are unlikely to surprise, merely confirming that domestic demand is growing but remains subdued in the single-currency region. The U.K., on the other hand, remains a bastion of consumption. (AM)

EURO ZONE: 5 a.m. EST (11 a.m. Brussels). December retail sales [Expected down 0.5% on the month vs. up 1.4% in November]

Top 10 Prefered Companies To Watch In Right Now

A surprisingly weak retail sales number from Germany last week suggests downside risks for the overall euro zone data release. This will be something for the European Central Bank to chew over at its meeting on Thursday. (AM)

POLAND: N/A Polish central bank meeting [Expected benchmark interest rate to be unchanged at 2.5%]

The Polish central bank is expected to stick with its all-time low interest rate of 2.5% even though the zloty has come under market pressure alongside a general emerging markets rout. But with the economy remaining strong and the zloty’s declines likely to put upward pressure on inflation, hikes are likely to be on the cards in coming months. (AM)

U.S.: 8:15 a.m. Automatic Data Processing January national employment report. [Private payrolls forecast +193,000 vs. +238,000 in December.]

Last month's ADP number threw economists for a loop. It was so strong that it led some to predict a strong result in the official estimate of U.S. payrolls from the Bureau of Labor Statistics. In the end, it seemed like a head fake. Did the ADP numbers or those of the BLS better capture the underlying state of the labor market? Another month of data will help gauge that. (MC)

U.S.: 10 a.m. Institute for Supply Management January non-manufacturing report on business. [Composite index expected 53.5 vs. 53.]

The services sector appears to be in decent shape, although the ISM figures don't capture quite the same breadth of expansion as its manufacturing index. (MC)

U.S.: 12:30 p.m. EST. Federal Reserve Bank of Philadelphia President Charles Plosser speech at annual economic seminar in Rochester, NY.

Mr. Plosser is back on the voting roster. He is a noted inflation hawk. He will almost surely talk of the need to push through the tapering process in a speedy fashion. (MC)

U.S.: 12:40 p.m. EST. Atlanta Fed President Dennis Lockhart speaks in Birmingham, Ala.

Mr. Lockhart is not a voting member. But he is a respected moderate. His analysis is always of the economic situation and of the Fed's monetary policy options is usually insightful. (MC)

AUSTRALIA: 7:30 p.m. EST (11:30 a.m. Thursday, Sydney). December retail sales [Previous +0.7% on-month]

Policy makers have been desperately hoping for signs of life in non-mining sectors of the economy, and strong November retail sales gave hope that the economy is finally exiting its doldrums. Another month of strong sales would help solidify the idea that the recovery is broadening and that the Reserve Bank of Australia can avoid cutting interest rates any further from the current lows. (MA)

THURSDAY

PHILIPPINES: 3 a.m. EST (4 p.m., Manila). Bangko Sentral ng Pilipinas rates decision [Previously held at 3.5%]

The Philippine economy has been the strongest in Asia behind China’s, yet inflation has remained well within the central bank’s comfort zone — even with the recent spike post-Typhoon Haiyan. That means the central bank will likely keep rates on hold for another month while reconstruction efforts get underway in earnest. (MA)

GERMANY: 6 a.m. EST (12 p.m. Berlin). December industrial orders [Expected up 0.3% on the month vs. up 2.1% in November]

German industry is likely to have taken a breather after a blowout November, but the overall trend remains positive coming into the new year. (AM)

U.K.: 7 a.m. EST (12 p.m. London). Bank of England policy meeting [Expected unchanged base rate at 0.5%, unchanged stock of bond purchases at £375 billion]

That the BOE won’t touch rates or its stock of bond purchases is a foregone conclusion. The message from its policy makers has been loud and clear that rates don’t need to rise as long as there remains a large output gap and inflation is under control. But investors will be looking for clues about a shift in guidance on when policy might start to shift given that the unemployment rate is nearly at the BOE’s 7% threshold at which it starts to consider tightening. (AM)

CZECH REPUBLIC: 6 a.m. EST (12 p.m. Prague). Czech central bank policy meeting [Expected key interest rate unchanged at 0.05%]

The Czech central bank is expected to stick to its near-zero interest rate and its targeted currency rate against the euro at CZK27 as it tries to boost its flagging economy. But emerging markets currency weakness could yet cause it to rethink its policy if the crown comes under further pressure. (AM)

EURO ZONE: 7:45 a.m. EST (1:45 p.m. Frankfurt). European Central Bank policy meeting [Expected main refinancing rate unchanged at 0.25%]

Inflation at less than half of its 2% target and unemployment at 12% suggest the ECB needs to do more. Some economists suggest it will look at trimming its policy rate, though there’s not much further it can go toward zero. Others suggest it will launch a program like the Bank of England’s Funding for Lending Scheme to get credit flowing back into struggling economies. The emerging markets currency crisis is also bound to be a topic of discussion for the policymakers as it spreads to Eastern Europe. (AM)

CANADA: 8:30 a.m. December. International merchandise trade. [In November, exports unchanged, imports +0.1%, trade deficit C$940 million.]

Now that its resources sector is no longer creaming the windfall from high commodity prices, Canada's non-commodity exporters are struggling to fill the void. Even with a weaker Canadian dollar and strengthening demand in the country's most important market to the south have not done much good. The widening trade deficit captures that. (MC)

U.S.: 8:30 a.m
–December U.S. Trade balance. [Expected deficit $35.3 billion vs. deficit $34.25 billion.]

In recent months, the U.S. trade deficit has defied expectations and continued to shrink – partly because of the shale energy revolution, which is reducing U.S. reliance on overseas oil, but also because of the "re-shoring" trend where manufacturers have shifted back to the U.S. and are now exporting from there. Higher heating oil demand as the cold winter set may push those numbers back higher again for this and subsequent months. But the overall trend is one of the U.S. lower its dependence on foreign production. (MC)

– Unemployment insurance weekly claims report. [Initial weekly jobless claims expected 338,000 vs. 348,000 week earlier.]

Unseasonably cold weather across large parts of the country may have led to a downturn in construction work and an increase in applications for unemployment benefits last week. But the general trend remains one of a relatively jobless claim picture. (MC)

– 4Q productivity and cost. [Non-farm productivity expected +3%, same increase as in 3Q; unit Labor costs +0.8% vs. +1.4%.

U.S. productivity growth appears to have accelerated along with growth itself in the second half of the year, but it is still well short of the gains it typically showed before the crisis. (MC)

WORLD: 9:30 a.m. EST. International Monetary Fund regular press briefing

The only time people pay attention to this weekly press briefing is when there's a crisis underway. With emerging markets in the midst of some serious selling, maybe it's worth listening to what the IMF technocrats have to say this time. (MC)

U.S.: 10 a.m. EST. Federal Reserve Governor Daniel Tarullo testifies to U.S. Senate committee hearing

Mr. Tarullo tends to focus on regulatory issues and his take on matters such as the Volcker Rule, systemic risks in the shadow banking sector and other problems relating to the too-big-to-fail banks is always valuable. But he doesn't hold that much sway in monetary policy per se. (MC)

AUSTRALIA: 7:30 p.m. EST (11:30 a.m. Friday, Sydney). Reserve Bank of Australia quarterly statement on monetary policy.

The RBA offers its analysis of the economy in the wake of the interest-rate decision earlier in the week. Look for details of how quickly the central bank sees non-mining sectors of the economy picking up the slack as the long resources boom wanes, which will give clues to whether the RBA is able to remain on hold indefinitely. (MA)

FRIDAY

BRAZIL: 6 a.m. EST. (9 a.m., Sao Paulo). Brazilian Institute of Geography and Statistic January consumer price index. [Previously +0.92% on month, +5.91% on-year.]

Although inflation is within the central bank's target band – through which it targets a 4.5% rate with a 2-percentage-point buffer on either side – it continues to hold near the top end of that. That tendency has kept the central bank in a vigilant state, hiking rates repeatedly, despite a sluggish local economy. If Brazil is to prevent the real from getting further sucked into the swirling crisis around the "Fragile Five" emerging markets (of which it is an unwitting member), it must make sure that inflation is totally contained. (MC)

U.S.: 8:30 a.m. EST. January labor report. [Non-farm payrolls expected +183,000 vs. +74,000 in December; Unemployment rate expected 6.6% vs. 6.7% in December.]

Was last month's deeply disappointing drop an anomaly? If so, there should be a big correction in the January numbers. There would also perhaps be a revision to the December figures. (MC)

CANADA: 8:30 a.m. January labor force survey. [Previous net jobs -45,900; jobless rate 7.2%.]

Canada's labor data are especially volatile. But in general they've been painting a somewhat gloomy picture, that's consistent with other economic indicators there. (MC)

U.S.: Time N/A. Suspension of U.S. federal debt limit expires.

It's remarkable how little attention this looming deadline has received so far – certainly compared with all the angst that arose in the leadup to the last deadline in October, when markets had to contend with the actual possibility that the U.S. government might have to default on its debt. The lack of attention this time stems from the fact that Republicans in the House have already crossed the aisle to support a budget for the next fiscal year. To vote not to increase the debt limit would be to deny funding to a budget they supported. There's a sense that the Obama Administration's Republican opponents mostly believe they have more to lose politically than to gain in launching another round of brinkmanship. (MC)

The Six Best States to Flip a House

In 2013, investors bought more than 156,000 homes, only to fix them up and quickly resell them for an average profit of $58,081. Home flipping became increasingly popular as the housing market began to recover. However, While the number of U.S. home flips increased in 2013 compared to 2012, home flips as a proportion of all home sales declined from 7.1% of sales in the fourth quarter of 2012 to just 3.8% of sales in the fourth quarter of 2013.

Daren Blomquist, vice president at home data site RealtyTrac, explained, "We saw this surge in flipping that corresponded with the market bouncing off the bottom. And now that home prices are beginning to moderate, flippers are beginning to pull back on their activity. I think another thing causing flippers to pull back is there's not as much inventory available, particularly distressed inventory at a discounted price."

Where homes are available, however, substantial profits can still be made. In six states, home flippers made an average profit of considerably more than $80,000 in 2013. In Massachusetts, the gross profit on a flipped home was more than $100,000. 24/7 Wall St. examined the six states where home flipping was most lucrative in 2013.

Buying homes to flip when market prices are relatively high may mean more overhead, but the fact remains that the states and metro areas with the largest average profits on home flips were the more expensive housing markets. All of the six most profitable states to flip a home in 2013 had among the highest average purchase prices that year. For example, California homes intended to be fixed up and resold for a profit cost an average of $284,650, nearly $100,000 more than similar houses across the U.S. Of course, they were then resold for an average price of $381,221. "High prices result in higher profits," confirmed Blomquist. "These states are basically the highest-priced markets in the country."

Top Energy Stocks For 2015

Two of the markets on this list, New York and New Jersey, may be lucrative and popular because a large number of properties became available to flip when the region was struck by superstorm Sandy in October, 2012. Notably, the second-most lucrative housing market to flip last year was Ocean City, New Jersey, where several hundred homes were flipped for an average profit of more than $158,000. "I would suspect Sandy had some impact."

Blomquist added. "We saw a big increase in foreclosure activity in these areas, and some of that is related to properties homeowners were walking away from. Those homes are prime candidates for flippers. They probably have some damage that other buyers would shy away from, but a flipper would be willing to take on."

24/7 Wall St. examined the six states with an average gross home flip profit of at least $80,000 in 2013, based on data from RealtyTrac. RealtyTrac also provided average flip price, average gross profit, and the proportion of all home sales that were flips for 2011 and 2012, and Q4 2013 for States and U.S. Metro areas. We also reviewed RealtyTrac's foreclosure rates for 2013.

These are the six best states to flip a house.