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Terrorism Fears, FOMC and Apple, Inc. (AAPL) to Have Wall Street’s Attention This Week

The early success of the Apple Inc. (AAPL) iPhone 7, Samsung’s troubles and the chance of an interest rate increase hang over Wall Street this week. But all have the potential to be overshadowed by the threat of terrorism after a series of explosions shook New York and New Jersey this weekend.

Wall Street has proven to be resilient — its bull run has lasted seven years, after all, despite uncertainty from Brexit, the rise of the Islamic State and domestic terror in Florida, California and elsewhere.

But short-term dips in the stock market are likely when uncertainty rears its head, and the U.S. financial market will likely be affected should more explosives be found similar to those in New York’s Chelsea neighborhood on Saturday, and those found late Sunday in Elizabeth, New Jersey — and particularly should any incidents occur in New York’s financial district itself.

[See: 7 Pharma Stocks and the Prognosis for Profits.]

The COBE Volatility Index, known as the fear index, is a good indicator of Wall Street’s jitters — the higher the index, the more volatile the markets. Interestingly, the iPath S&P 500 FIX Short Term Futures ETN (ticker: VXX), which tracks the VIX, was down 4 percent in premarket trading Monday, indicating some short-term confidence in the market.

That confidence likely comes from expectations that the Federal Reserve will again delay plans for a modest interest rate hike.

FOMC: Will it or won’t it? While everyone should have an eye on this week’s Federal Open Market Committee meeting just in case … well, the market doesn’t expect much out of this one.

The CME FedWatch Tool — a great tool that leverages Fed Fund futures prices to determine the market’s expectations of a rate change — is showing an 88 percent chance that the Fed will keep the rate pat at 0.5 percent when the meeting adjourns on Wednesday.

Why the pessimism?

Some market participants expected a rate hike at the September meeting if U.S. economic data provided a perfect storm of sorts. However, a few releases such as weak August payrolls, as well as a hesitancy to move interest rates ahead of the November presidential election, have many convinced that a hike won’t come until at least December, if not 2017.

But a few arguments are there. Job growth in June and July was healthy, and inflation picked up significantly in August — signs the Fed supposedly is watching before raising rates.

It’s certainly enough reason to pay attention to any post-FOMC remarks.

iPhone Sales. One of the biggest stories this week will be the figurative clutching of straws in Wall Street’s quest to determine what Apple’s iPhone 7 sales look like.

Because Apple isn’t saying anything.

Earlier this month, the company announced that for the first time in the iPhone era, it would not release first-week sales of its spanking-new iPhone. This move was met by wide, healthy skepticism — after all, Apple is coming off two consecutive quarters of declining iPhone sales after reporting year-over-year improvements in every prior quarter.

But Apple has at least controlled the narrative, providing a different reason: Namely, that early iPhone sales will be determined not by demand, but by supply.

“As we have expanded our distribution through carriers and resellers to hundreds of thousands of locations around the world, we are now at a point where we know before taking the first customer pre-order that we will sell out of iPhone 7,” Apple spokeswoman Kristin Huguet told Reuters.

It’s an easy argument to buy if you consider that iPhone 7’s Friday launch included 28 countries, which dwarfs last year’s first-day count of 12.

But Cowen and Co.’s Timothy Arcuri also believes Apple is managing its supply chain more tightly to avoid what happened in 2015. “Overall, the data validates Apple’s desire to maintain some supply constraints until demand becomes a little more certain, in an effort to avoid the supply glut and associated cuts in the supply chain for iPhone 6S starting last November,” he says in a research note.

So where will this hotly desired information come from?

“Since Apple has already indicated it won’t release launch weekend numbers, we won’t know official iPhone 7 sales until the company’s October earnings report,” says InvestorPlace technology specialist Brad Moon. “However, stats released by carriers and analysts tracking online retail sales are pointing to an iPhone 7 launch weekend that should handily beat expectations and could well set a new record.”

[See: 10 Ways You Can Throw Retail Stocks in Your Cart.]

T-Mobile US (TMUS) and Sprint Corp. (S) gave Apple shares a jolt when they announced data showing iPhone 7 and 7 Plus pre-orders were roughly four times those of both the iPhone 6 and 6s. AT&T (T) and Verizon Communications (VZ) also weighed in, with AT&T saying sales were up, though Verizon’s Marni Walden, executive vice president and president of product innovation and new business, called their early results “business as usual.”

Apple doesn’t release earnings until late October. Until then, Wall Street might have to make do with a smattering of telco and analyst chirping.

Galaxy Note 7 fallout: While Apple is drawing onlookers with iPhone honey, Samsung is doling out straight vinegar.

Samsung has made all the wrong headlines amid reports that a handful of its Galaxy Note 7 smartphones have been catching fire and even exploded. The company first issued a voluntary recall of 2.5 million handsets on Sept. 2. Then last Thursday, the U.S. Consumer Safety Agency announced its own formal recall.

Samsung says “Note7 replacement devices will be available in the United States at most retail locations no later than Sept. 21, 2016.” But this situation will be far from fixed come Wednesday.

The electronics giant’s shares have lost about 4 percent of their value since the recall, though it could get worse when the final damage is tallied. Already, Samsung is selling shares in several companies, including its entire stake in Seagate Technology (STX), to raise cash to pay for the recall’s costs.

Wells Fargo is under the microscope. Lastly, Wells Fargo & Co. (WFC) CEO John Stumpf is expected to testify in front of Congress sometime this week amid allegations of widespread fraud, and he could be the next casualty in the continued fallout.

Specifically, California and federal regulators say Wells Fargo opened some 2 million unauthorized customer accounts, such as credit cards and checking accounts, and some 5,300 were fired over the practice in the past five years. WFC was fined $185 million, and the company lost more than $15 billion in market capitalization as shares slumped more than 6 percent since the ruling came down. Plus, Wells Fargo took a shot to its relatively squeaky-clean image.

[See: The 9 Best Investors of All Time.]

Stumpf — who aptly navigated Wells Fargo through the financial crisis and whose bank boasts the best return among the Big Four since his hiring in June 2007 — is expected to face the Senate Banking Committee this week.

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Terrorism Fears, FOMC and Apple, Inc. (AAPL) to Have Wall Street’s Attention This Week originally appeared on usnews.com

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

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