NEW YORK (AP) -- Tiffany & Co. reported Friday that strong growth in the Asia-Pacific and European markets helped first-quarter profits rise 19 percent and said that it doesn't expect an improvement in the U.S. until later this year.

The jewelry retailer also raised its profit outlook for the year, based on a promising start, and said that it will open a smaller-store format in the U.S. as part of its worldwide expansion plans.

Tiffany said profits totaled $64.4 million, or 50 cents per share, in the three-month period ended April 30. That compared with $54.08 million, or 39 cents per share, in the year-ago period.

The company's sales rose 12 percent to $668.15 million from $595.7 million in the year-ago period.

The results beat estimates of analysts polled by Thomson Financial who had expected earnings of 40 cents per share on sales of $649 million.

Shares rose 2.7 percent, or $1.29, to $49.03.

"We are pleased to start the year with sales and earnings growth above our expectations," said Michael J. Kowalski, chairman and CEO, in a statement. He added that the strong gain in worldwide sales, despite only a modest growth in the U.S. due to a challenging economy, reflects "the benefit of globally diversified

DALLAS (AP) -- Dell Inc. said Thursday that its profit and sales grew in its fiscal first quarter, beating Wall Street expectations and signaling that the computer maker's turnaround efforts may be paying off.

For the three months ended May 2, Round Rock, Texas-based Dell Inc. earned $784 million, or 38 cents per share, up from $756 million, or 34 cents per share, in the same period a year earlier.

Dell says its revenue jumped 9 percent to $16.08 billion from $14.72 billion.

On average, analysts surveyed by Thomson Financial expected a profit of 34 cents per share on sales of $15.68 billion.

The company said strong growth of commercial and consumer products and services and lower operating costs as a percentage of sales helped drive the results above the forecasts.

Dell shares rose 12 cents Thursday, closing at $21.81 before the quarterly results were released. In extended trading, the shares jumped $2.02, or 9.3 percent, to $23.83.

Dell is trying to cut costs by $3 billion while also chasing Hewlett-Packard Co. in worldwide shipments of personal computers, a category it once led.

Dell still leads HP in U.S. PC sales, according to technology research firms IDC and Gartner Inc., but that

NEW YORK (AP) -- Bear Stearns shareholders have approved JPMorgan Chase's buyout, ending the saga of the 85-year-old pillar of Wall Street that crumbled under the weight of its own wagers on high-risk mortgages.

The tumult is far from over, however, for JPMorgan Chase & Co. -- which now must mesh Bear Stearns' maverick culture with its own -- and the thousands of workers affected by the takeover.

Bear Stearns officially becomes part of JPMorgan Chase on Friday, after a widely anticipated "yes" vote that won with 84 percent of the vote Thursday morning at Bear Stearns' midtown Manhattan headquarters.

All told, the deal was worth about $2.3 billion. JPMorgan is spending $1.4 billion for the firm itself, and spent an additional $900 million over the past month-and-a-half buying up Bear Stearns stock to guarantee the deal would go through.

Thursday's meeting, led by Bear Stearns' chairman James Cayne and CEO Alan Schwartz, lasted less than 10 minutes, leaving some Bear Stearns' shareholders angered by the speed at which the deal closed.

"They were up there drinking coffee paid with my money ... and we lost our money overnight," said Hannah Horgan, a Bear Stearns shareholder. "I have nothing left, and they were so calm."

Back in January 2007, before mortgage defaults began clobbering banks and draining demand from the

With so much contradictory advice floating around, it is sometimes hard to figure out the best way to save for retirement.

Financial experts say that one often-overlooked resource is the humble Individual Retirement Account, or I.R.A., which has been a part of the personal finance landscape for so long that many of us take it for granted.

More than 90 percent of the money that flows into traditional I.R.A.’s is being rolled over from retirement plans at work, like 401(k)’s. On the other hand, only 14 percent of American households that were eligible to make direct I.R.A. contributions did so in 2006, according to the most recent data from the Investment Company Institute, the mutual fund industry trade group.

The rules for some I.R.A. contributions are so complex that many Americans may not realize they are eligible to make them, said Brian Reid, the chief economist at the Investment Company Institute. Indeed, the I.R.A. rules fill a 108-page brochure on the Web site.

And while investors often fund a 401(k) at work before contributing to an I.R.A., particularly if employers offer matching contributions, many people don’t have a 401(k) or other workplace option. Alicia H. Munnell, director of the Center for Retirement Research at Boston College, said that 57 percent of “prime working-age Americans,” defined as 25 to 64 years old, had no retirement plan at work. Contributing to

The top five risks you face in retirement, and tips on how to handle them

They say risk is opportunity, but that's true only if one knows what the risks are and how they might be managed.

To that end, the Society of Actuaries has boiled down its list of 15-plus retirement risks to a manageable list of five, along with what it calls "actuarial approaches" to manage those risks.

1. Inflation

There's no doubt about it: Inflation is a big risk for would-be retirees and current retirees. From 1980 to 2007, the annual inflation in the U.S. for all goods and services ranged from 1.1% to 8.9%, but averaged 3.5%, according to SOA. That means an item that cost $1 in 1980 would cost $2.82 in 2007.

But for retirees, the rate of inflation can be even worse - especially for expenditures that represent a big and growing portion of their budget.

Take health care expenses, which tend to rise much more rapidly than general inflation. The cost of medical care has risen nearly four-fold in the 26 years since December 1982, according to the Bureau of Labor Statistics' little-known Consumer Price Index-Experimental (CPI-E) that tracks the rate of inflation for Americans 62 and older. The CPI-E was first introduced in 1982.

Health care that cost $100 in 1983 cost $387 in April 2008, according to the CPI-E. That might not be so

The US dollar weakened significantly this past week as rising oil prices revealed the vulnerabilities of the US economy. Companies are beginning to struggle and have been forced to come up with more creative ways to deal with the energy crisis. With crude oil prices hitting $135 a barrel and gasoline in many states topping $4 a gallon, US companies are making cuts across the board. Ford Motors Co for example plans on reducing production while American Airlines will be lowering capacity by 15 percent and adding bag charges. According to the futures market, some traders even expect gas prices to hit $7 to $8 a gallon. However the US is not alone in having to deal with the oil crisis which is one of the major reasons why the dollar has weakened. Over the past few weeks, the market had been slowly pricing in a pause from the Federal Reserve. At the same time, there was a growing consensus that other central banks may need to begin or continue to cut interest rates. The surge in oil prices and hawkish comments from the European Central Bank, the Bank of England and the Reserve Bank of Australia dramatically altered the outlook for these central banks. With strict inflation targets, traders came to realize that interest rates for these 3 countries will remain unchanged for the foreseeable future and as a result, currency rates adjusted for these expectations. In the coming week, the vulnerabilities of the US economy may become even more apparent. The US markets are closed for Memorial Day on Monday, but we still have a busy week ahead of us with consumer confidence, new home sales, durable goods, first quarter GDP, personal income, personal spending and Chicago PMI due for release. We expect most of these numbers to be dollar

BY the time Frederick A. O. Schwarz Jr. retired from Cravath, Swain & Moore in 2002, he was financially set. He was already an author, he already had a distinguished track record in public service and philanthropy and, of course, he was the great-grandson of a toy magnate.

So when Fritz Schwarz — the name he greatly prefers — joined the nonprofit Brennan Center for Justice at New York University Law School, he seriously considered volunteering his services. He decided against it, and negotiated a salary, albeit one below what a starting lawyer makes.

He never got a raise, and last year, when the Brennan Center ran into a budget crunch, he gave up his pay. But in principle, if no longer in principal, he thinks the salary made sense. “An organization and a person are simply more committed to each other when the person is paid,” he said.

Clearly, Mr. Schwarz has bought into the concept of paid volunteerism. The phrase may sound oxymoronic, but an ever-growing number of retirees and nonprofit executives say it is an apt description of the way modern retirees view nonprofit work. And while no one has gathered statistics on the tendency, experts say there is a good chance that the automatic link between doing good and working for nothing has been permanently severed.

“People used to say, ‘Here I am, what do you need done?’ ” said Deborah Russell, director of work-force issues for AARP. “Today’s retirees say, ‘Here’s what I do well, how can you use it, and what will you

Day 4 of the Warren Buffett European offensive, and expectations of an imminent bid have been managed down. Mr Buffett says he is not stalking targets, he wants companies that meet his criteria to call him. He even gave out his phone number on a number of occasions during the Lausanne press conference.

He's a man who knows how to charm a room and the European press seem to have overlooked a lack of detail and fallen for him. Such was the frenzy of the press pack waiting to welcome him in Madrid that a drinks waiter who brought his customary coca-cola into the briefing room minutes before the man himself arrived, was set upon by photographers. They soon realized the startled waiter was not Mr Buffett and he was free to pass.

The Spanish press welcomed him with a list of companies that they thought he should take a look at. (Buffett seemed more excited about his meeting with the Spanish King!), whilst the Italians focused on his view of the currency markets. He's no dollar bull, that's for sure.

And that seems to be part of the reason that he is here. He admits that he should have been shopping in Europe earlier, but not just because currencies have moved against him in recent years. He says he likes

Fresh retirees and those nearing retirement may well be keeping one eye on the stock market and the other turned toward the heavens, wondering why they're being tested like Job. The turmoil in the markets certainly causes suffering for all investors, but none more so than those who have started or are about to start tapping their portfolios for a lifetime of income.

A downturn just as you're about to reverse gears can seriously chew up your nest egg. If your $1 million portfolio suddenly plummets to $800,000, your carefully planned 4% annual withdrawal of $40,000 is squeezed to just $32,000. There goes that long-awaited trip to Rome.

Ask anyone who retired as the dot-com bubble burst: It's very difficult to regain your losses if you begin to draw on investments as the roller coaster takes a downward plunge. If you're about to reach for the antacids, hold off. For soon-to-be and recent retirees, there are some strategies you can employ that will make the roller-coaster ride a little less heart-stopping.

Our first piece of advice: Don't panic. Take a hard look at your asset allocation, cash flow and spending. But don't abandon the stock market -- selling off at a low point -- and move into cash or bonds, which are not exactly going gangbusters either.

"You don't want to be out of the market, and you don't want to time the market," says Philip Lee, a certified financial planner with Back Bay Financial Group, in Boston. Lee recalls one client who moved entirely into cash during the market swoon of 2001-02. "He missed participating in the market upswing of

Being "upside down" is usually a negative term when applied to financial matters, but multimillionaire Robert Shemin believes that sort of thinking is ... well ... upside down.

Shemin, author of "How Come That Idiot's Rich and I'm Not?" feels there are two positions when it comes to wealth: right side up and broke, or upside down and rich. Shemin prefers upside down. The best way to build and maintain wealth, maintains Shemin -- once considered the "least likely to succeed"-- is by breaking the rules you think and hear about when building wealth.

Following are eight rules worth breaking -- in upside-down order -- and what Shemin and other financial gurus have to say about them.

Diverging from the traditional mind-set may put you on the right course to riches.

8. Before investing, learn enough so that you're not going to make any mistakes
The problem here: Fear causes inaction, Shemin says. "Everything in life has a risk and a cost for doing it, and a risk and a cost for not doing it. Rich idiots focus on the risk of not doing something." In his experience, most people don't get started on stock market or real estate investing, or in estate planning, because they're so scared of making mistakes, they're overwhelmed.

"Of course you should expect to make mistakes when you start investing (or any time)," agrees Ramit Sethi. "But if you start with small amounts, any mistakes won't hurt you too bad. Plus, any mistakes can

SAN FRANCISCO (AP) -- Clothing retailer Gap Inc. boosted its first-quarter profit by 40 percent despite a persistent sales slump that seems likely to deepen this summer as consumers scrimp on fashion to help offset rising gasoline and food bills.

The San Francisco-based merchant said Thursday that it earned 249 million, or 34 cents per share, during the three months ended May 3. That compared with net income of $178 million, or 22 cents per share, at the same time last year.

Revenue for the period fell 5 percent to $3.38 billion.

The earnings beat the average estimate of 30 cents per share among analysts polled by Thomson Financial. The revenue missed analysts' target of $3.42 billion.

"We are pleased with our first-quarter performance in what undoubtedly was one of the most difficult retailing environments in recent memory," Gap Chairman Glenn Murphy said in a conference call with analysts.

Gap shares gained 22 cents to finish Thursday's regular session at $18.29, then added another 36 cents in after-hours trading.

In a telling sign of Gap's misery, sales at stores open for at least a year dropped 11 percent -- the company's worst erosion yet during a downturn that has lasted nearly four years.

Gap's so-called same-store sales have now declined in 15 consecutive quarters, by far the retailer's worst

Tempted to pull money from your 401(k)? Consider these other strategies first

Times are tough for boomers and their parents, some of whom are taking drastic steps to deal with the economic downturn, according to a new survey from AARP.

One in four middle-aged (45+) and older workers say they postponed plans to retire due to economic conditions. Almost 25% of people aged 45-to-64 surveyed said they are prematurely taking money out of their 401(k) and other investments. And young boomers are reportedly postponing paying bills and even cutting back on medications.

Before taking such drastic measures, consider these strategies to weather the current storm:

Bring Lunch

Workers should examine their entire financial situation and look for areas first where they can trim expenses, said Christine Fahlund, vice president and senior financial planner at T. Rowe Price Group Inc. "Many of these will be regular, daily or weekly purchases that look small but add up to a significant amount over time," she said. For instance, buying a $5 to $10 lunch every day could add up to $100 to $200 per

NEW YORK (AP) -- Runaway oil prices blew past $130 a barrel for the first time Wednesday and kept going, while gasoline prices persisted in their own relentless climb, rising above $3.80 a gallon. Supply worries, rising demand and a slumping dollar are conspiring to make filling up the car -- and paying for just about everything else -- a growing burden for Americans.

With gas and oil prices setting new records on a daily basis, many analysts are beginning to wonder whether anything can stop prices from rising. There are technical signals in the futures market, including price differences between near-term and longer-term contracts, that crude may soon fall. But with demand for oil growing in the developing world, and little end in sight to supply problems in producing countries such as Nigeria, few analysts are willing to call an end to crude's rally.

Oil's Wednesday rally was fed in part by a report from the Energy Department's Energy Information Administration, which said crude inventories fell by more than 5 million barrels last week. Analysts had expected a modest increase.

Light, sweet crude for July delivery rose $4.19 to settle at $133.17 a barrel on the New York Mercantile Exchange, but prices rose as high as $134.42, up $5.44, in after-hours electronic trading. It was crude's largest one-day price advance since March 26.

Investors seized on the inventory report to boost prices Wednesday, but traders interested in pushing prices higher are increasingly picking and choosing which news they wish to pay attention to, analysts

SAN FRANCISCO (AP) -- Hewlett-Packard Co. cashed in on rising international demand again in its second quarter, but that performance may not be enough to ease worries about the company's exposure to the ailing U.S. economy as it prepares to digest the second largest acquisition in its 69-year history.

The results released Tuesday came as no surprise because HP provided a snapshot of its latest quarterly numbers and outlook last week when the Palo Alto-based company jolted investors with the news about its plans to buy technology services provider Electronic Data Systems Corp. for $13.2 billion.

The deal has raised concerns that Plano, Texas-based EDS will compound the headaches that HP may be facing if U.S. demand for its personal computers, printers and other products and services remains flat or slumps as consumer struggle to cover high gasoline and food costs while businesses also clamp down on spending.

Among other challenges, HP will likely have to make substantial layoffs from a combined work force of 210,000 employees while trying to blend two different corporate cultures after the EDS deal closes late this year.

HP is counting on EDS to boost the demand for its services and computers among major companies and government agencies while improving its competitive position against IBM Corp., the leading seller of technology services.

Echoing remarks from a week ago, Hurd assured reporters Tuesday that the acquisition will pay off.

NEW YORK (AP) -- Just in time for the start of the summer driving season: Oil near $130 a barrel and gas getting closer to an average of $4 a gallon.

Crude prices spiked to yet another trading high Tuesday as supply concerns mounted. At filling stations across the country, the national average price for a gallon of regular gasoline touched $3.80 for the first time, having followed oil's spectacular rise.

The June contract for light, sweet crude traded as high as $129.60 on the New York Mercantile Exchange before settling at $129.07, up $2.02 from Monday's record high. The expiration of that contract, which ended with the close of Tuesday's trading, created additional volatility as traders scrambled to lock in positions.

It was the 10th time in the last 12 sessions crude prices have hit trading or closing records, if not both.

The July contract, meanwhile, hit its own new high, trading up to $129.29. It will become what traders call the front-month contract on Wednesday.

"I keep making projections, and they keep turning out to be too low," said Darin Newsom, senior analyst at market analysis provider DTN. "We're already pushing up against $130. If we clear that, there's no reason to believe crude oil can't get to $140."

Oil's march to new highs coincided with the Labor Department's report of an bigger-than-expected rise last