Stocks to Watch: McDonald’s, Coca-Cola, Verizon

Among the companies with shares expected to actively trade in Tuesday’s session are McDonald's Corp.(MCD), Coca-Cola Co.(KO) and Verizon Communications Inc.(VZ)

McDonald’s promised significant changes after reporting a worse-than-forecast 30% drop in third-quarter earnings and calling its challenges “more formidable than expected.” Shares fell 2% to $89.75 in premarket trading.

Coca-Cola unveiled a broader cost-cutting program and warned that it doesn’t expect to meet previous financial targets as the beverage giant again posted lackluster quarterly soda volume and struggled with currency headwinds. Shares dropped 4.6% to $41.29 premarket.

Verizon Communications said it added 1.52 million of its most lucrative long-term wireless contracts in the third quarter, again driven by a surge in tablet connections. But per-share earnings fell below Wall Street estimates. Shares declined 0.9% to $48.05 premarket.

Kimberly-Clark Corp.(KMB) said Tuesday it plans to cut up to 1,300 jobs as part of a restructuring initiative to reduce costs, while also reporting a 2.9% increase in third-quarter earnings. Shares rose 0.9% to $109 premarket.

Lockheed Martin Corp.(LMT) on Tuesday reported a forecast-beating 1.7% rise in third-quarter profit and raised its 2014 earnings outlook for the third time this year, but said sales and margins will drop sequentially in 2015. Shares lost 2.7% to $170.80 premarket.

United Technologies Corp.(UTX) said its sales rose 4.6% in the latest quarter, driven by higher equipment orders at its Otis elevator and other businesses. Shares gained 2.2% to $103.75 premarket.

Lexmark International Inc.(LXK) said its earnings rose 12%, driven by higher hardware and services revenue, and the company boosted the low end of its outlook for the year. Shares jumped 11% to $44 premarket.

Apple Inc.(AAPL) on Monday said its quarterly profit rose 13% as strong demand for its new larger-screen iPhones helped to overcome sluggish iPad sales. Shares were up 2.6% to $102.38 premarket.

Harley-Davidson Inc.(HOG) posted an expected quarterly decline in motorcycle shipments, while profit and revenue also fell. But earnings topped analysts’ expectations, sending shares up 6.4% to $62.10 premarket.

Reynolds American Inc.(RAI) said cigarette volumes slipped again, but revenue and profit grew thanks in part to higher prices.

Travelers Cos. said its operating profit edged up 1.1% in the third quarter, easily topping expectations, amid an unusually quiet U.S. hurricane season so far this year and strong investment earnings.

AbbVie Inc.(ABBV) and Shire (SHPG) PLC officially agreed Monday to terminate their $54 billion deal, killing the year’s biggest agreed-upon merger.

Illinois Tool Works Inc.(ITW) raised its 2014 profit outlook and reported third-quarter earnings rose 17% as most of its business segments posted revenue growth and margins strengthened.

Omnicom Group Inc.(OMC) posted a stronger-than-expected 24% increase in earnings in the third quarter, helped by revenue growth in all markets.

Regions Financial Corp.(RF) reported an 11% increase in profit for the September quarter, but its revenue declined.

Brinker International Inc.(EAT) said its first-quarter profit increased 12%, helped by higher sales at its Chili’s Grill & Bar and Maggiano’s Little Italy chains.

Illumina Inc.(ILMN) on Monday raised its 2014 guidance as third-quarter results topped analysts’ expectations due to strong demand for the gene-sequencing company’s products.

Staples Inc.(SPLS) said late Monday it is investigating a possible card data breach.

Chipotle Mexican Grill Inc.(CMG) warned its sales growth next year may slow from the robust gains reported in recent periods, even as the burrito chain posted stronger-than-expected earnings and revenue for its third quarter.

Steel Dynamics Inc.(STLD) reported another quarter of sharp growth as demand grew amid a recovery in the automotive, energy and construction markets.

United Parcel Service Inc.(UPS) plans to increase freight rates by an average of 4.9% a package after the holiday season, in the U.S., Canada and Puerto Rico, the company said Monday.

Texas Instruments Inc.(TXN) projected a fourth-quarter profit that tops Wall Street’s estimates as the chip maker also reported its third-quarter earnings rose 31% thanks to stronger sales and margins.

Zions Bancorp sa(ZION)w improved credit quality and enhanced capital levels in the third quarter, but its profit fell 14% along with debt extinguishment and a net loss on a securities sale.

Central bankers roam the globe making deals

Fire the boss and bring in an outsider. Football teams do it. So do manufacturing companies and tech giants. Now central bankers are the latest class of internationally itinerant technocrats roaming the globe, shaking up the staid world of central banking, carrying bold ideas across borders and shining light in dark corners.

They are modern-day rōnin — roaming samurai warriors without a master — only instead of swords, they've got PhDs in economics, done stints at major international organizations such as the International Monetary Fund, and hold teaching positions at top universities.

And they are powerful, because they make money, actually create it … or not. It's their call. Who are they? Central bankers.

The title may not sound cool, but, boy, do governments in trouble need them. Central banks set basic interest rates, control the money supply, provide credit to commercial banks and are often responsible for monitoring bank health and rescuing them when needed.

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Last year, the Bank of England broke a 319-year-old tradition when it appointed the first non-Brit, Canadian Mark Carney, to head the bank. India recalled one of its own — Raghuram Rajan — after his prominent career as chief economist at the IMF and professor at the University of Chicago. And Stanley Fischer's been nominated to join the U.S. Federal Reserve Board as deputy chair — fresh from eight years running the Central Bank of Israel, preceded by positions at the IMF, the World Bank and MIT.

Why trust an international set to manage one of the most important functions of government — money and banking?

"They are highly trained guys who are experts in their field," says Richard Grossman, author of Unsettled Account, a history of banking since 1800, and an economics professor at Wesleyan University. "They have very specialized skills, and ther! e's not a huge pool to draw from."

What's more, many central banks have a long history of shielding their practices from outside scrutiny, relying on the secrecy that banks maintain as part of their standard operating procedures.

"I worry more about people being too parochial," says Grossman, arguing that bringing in outsiders is critical to shaking things up and modernizing institutions.

As a result, central banking is changing and becoming more open. Only in 2000 did the Fed start releasing statements after each scheduled meeting. Last year the Fed issued an inflation target, 2 percent, for the first time.

Transparency, inflation targeting, forward guidance, independence (from politicians) — these are buzzwords that were debated for years. Change comes hard to powerful institutions that have long operated in a dome of secrecy. But as more nations open their economies, they're forced to dance to the Fed's tune because of the prominence of the dollar. They need not just to understand the Fed — but to anticipate it. And for that, they need expertise and smarts that aren't necessarily home-grown.

"The walls are breaking down all over the world," says Arvind Subramanian, senior fellow at the Peterson Institute for International Economics.

So far the record of rōnin bankers is good, but sooner or later someone might bigfoot the locals and spark a backlash, or just plain fail. Let's look at the four top players:

MARK CARNEY, BRITAIN

The Bank of England helped pioneer the use of outside expertise, but bringing in a foreigner to head the bank broke all precedent. Mark Carney's career took him to Goldman Sachs and the Canadian Finance Ministry, and he headed the Canadian central bank beginning in 2008. He foresaw the leveraged-loan crisis that broke later in the year and cut interest rates in advance, followed by other aggressive steps that shielded Canada's economy from the worst of the crisis. Britain hopes he'll bring his magic touch to the second-oldest c! entral ba! nk in the world (after Sweden's).

RAGHURAM RAJAN, INDIA

Raghuram Rajan raised eyebrows in 2005 when, as chief economist at the International Monetary Fund, he warned about excessively rewarding financial managers who take on high risk, thus creating dangers for the entire financial system. His view — unpopular at the time — was prescient during the 2008 global collapse of financial market. That, plus a prominent academic career, gave him big chops when he took over the Reserve Bank of India last summer. The rupee, under severe pressure, jumped when he arrived, and he's swiftly moved to reform India's antiquated, state-dominated banking system. "His reputation has been a big plus," says Subramanian. "He's done things that others wouldn't dare to."

HARUHIKO KURODA, JAPAN

Haruhiko Kuroda became governor of the Bank of Japan last year after eight years as head of the Manila-based Asian Development Bank. His previous career in Japan's Finance Ministry may make him less of an outsider, but he swept in as a radical reformer, helping to deliver a jolt to Japan's zombie economy and earning widespread international applause. The yen started to tumble as he took office — making Japanese manufacturing exports competitive again — as he began imitating the Fed's "quantitative easing" program on steroids, promising to double Japan's monetary base in two years and lift inflation to 2 percent to reverse 15 years of falling prices. Consumer prices have begun to rise modestly, and urban land prices increased last year for the first time since 2008. But the economy remains sluggish and the country is mired in government debt. Whether the nation can climb out of its hole depends on radical policy changes that Kuroda doesn't control, and if the effort fails, Japan could be even worse off.

STANLEY FISCHER, UNITED STATES

Stanley Fischer's nomination to be Fed Chairman Janet Yellen's deputy might be the least radical of all the appointments, which only underscores the new normality of! roving c! entral bank technocrats. He earned widespread plaudits for his tenure at the Israeli central bank, helping to keep the economy strong throughout the worldwide financial crisis. But he was already a prominent economist and technocrat in the United States, including a stint at Citibank, before heading abroad. Among his star pupils at MIT: former Fed Chair Ben Bernanke and European Central Bank President Mario Draghi.

The planet's shrinking fast if you're a central banker. Will the trend continue? Probably, if the performance of these rōnin bankers keeps pace with their pedigrees. They speak a language that's devilishly hard to decipher, but success speaks for itself.

Ozy.com is a USA TODAY content partner providing general news, commentary and coverage from around the Web. Its content is produced independently of USA TODAY.

Movie Theaters Hate It When Netflix and IMAX Team Up

Netflix (NASDAQ: NFLX  ) , The Weinstein Company, IMAX (NYSE: IMAX  ) , and major movie theaters are locked in a four-way battle regarding a controversial plan to simultaneously release Crouching Tiger, Hidden Dragon: The Green Legend simultaneously on Netflix and IMAX theaters.

The film, which is the sequel to Ang Lee's Oscar-winning 2000 martial arts movie, won't share much in common with its predecessor -- most of the original cast and crew won't return, and it will be shot in English rather than Chinese. The first film was a huge hit, grossing nearly $214 million on a tiny budget of $17 million, so it'll be interesting to see if the sequel can replicate that success when it arrives Aug. 28, 2015.

Crouching Tiger, Hidden Dragon. Source: Sony

Netflix secured the film for a same-day release thanks to its close relationship with The Weinstein Company, with which it holds a pay-TV exclusivity agreement. Netflix's chief content officer, Ted Sarandos, told The New York Times that the proposed release, which will reach over 50 million subscribers and select IMAX theaters simultaneously, could encourage other studios to challenge the traditional 90-day delay which shields theaters from DVD sales, rentals, and digital distribution channels.

Theaters are, naturally, opposed that plan. The two largest theater chains in the U.S. -- Regal Entertainment (NYSE: RGC  ) and Dalian Wanda's AMC Entertainment -- have announced that they won't show the film. IMAX has a contractual right to override theater-chain decisions for certain venues, but it waived that right in the Crouching Tiger negotiations, since it didn't want to force theaters to show the film.

Now that the battle lines have been clearly drawn, can The Weinstein Company, Netflix, and IMAX still redefine same-day releases, or will the theaters crush the oddball sequel and turn it into a straight-to-video release?

The business of same-day movie releases
The concept of same-day home and theatrical releases is relatively new to the film industry.

In 2011, Comcast's (NASDAQ: CMCSA  ) Universal charged viewers $60 to watch Tower Heist a few weeks after its theatrical release via a fast-tracked VOD, but most customers scoffed at the price. Later that year, Time Warner (NYSE: TWX  ) released same-day VOD versions of Melancholia, Trespass, and Margin Call, at more reasonable prices between $7 to $10. That business model, which was used for lower profile films, remained the status quo over the past three years.

With the crowdfunded Veronica Mars, which hit theaters in March, Warner convinced AMC to agree to the same-day release by renting out its theaters. Warner retained the box office sales, in hopes that it could produce a profit after AMC's rental fees ($5,000 to $20,000 per week) were deducted. Regal and Cinemark (NYSE: CNK  ) , however, do not rent out their theaters for same-day releases.

Veronica Mars. Source: Warner

The big problem with IMAX's involvement in The Green Legend is that it breaks the status quo in two ways.

First, same-day VOD releases weren't IMAX blockbusters. Second, Netflix isn't using the a la carte VOD model for The Green Legend -- it is offering the film to subscribers for free.

To theaters, this is the top of a slippery slope. If distributors can launch a film simultaneously on Netflix and theaters, they might generate more revenue from the former than the latter. Theaters retain 20% to 80% of ticket sales, depending on the week of release, while Netflix pays distributors consistent royalties to stream their content. Moreover, other high-profile distributors could start releasing its big summer hits simultaneously on Netflix, causing theater revenues to plummet as audiences stay home and watch the films on their 4K TVs instead.

Why theaters have the upper hand
Despite those challenges, theaters still have the upper hand when it comes to negotiating with distributors.

Although digital distribution is getting more advanced and TVs are getting much bigger, the global box office for all films still rose 4% year over year in 2013, according to the Motion Picture Association of America. More than two-thirds of the population in the U.S. and Canada (nearly five times larger than Netflix's user base) went to the theaters at least once in 2013, which was consistent with growth from previous years. This means that theaters, not Netflix or VOD, are still the best place to debut a film for widespread distribution.

More importantly, if the theater chains all band together in refusing to show same-day films, they effectively cripple distributors by turning their films into straight-to-video releases.

Looking ahead, things don't look good for The Green Legend if AMC, Regal, Cinemark, and other theater chains maintain a united front.

IMAX was clearly the weak link in Netflix and Weinstein's plans, since it wasn't willing to force theaters to show the film when it could have done so. This was a smart move for IMAX, since it relies on positive relationships with theaters to thrive, but it will also likely prevent big screen blockbusters from hitting Netflix and theaters at the same time in the near future.

Your cable company is scared, but you can get rich
You know cable's going away. But do you know how to profit? There's $2.2 trillion out there to be had. Currently, cable grabs a big piece of it. That won't last. And when cable falters, three companies are poised to benefit. Click here for their names. Hint: They're not Netflix, Google, and Apple.

Yellen: Rising Economic Inequality 'Greatly' Concerning

Michael Dwyer/APFederal Reserve Chair Janet Yellen. BOSTON -- Federal Reserve Chair Janet Yellen on Friday said the growth of economic inequality in the United States wasn't in keeping with American values and she hinted at a range of steps that could address it. With global stock markets rebounding after frenzied selling, Yellen didn't comment on the volatility or on monetary policy. Instead, she ventured into a social critique rare for a U.S. central banker, focusing on the widening gulf between rich and poor.

The extent of and continuing increase in inequality in the United States greatly concern me.

"The extent of and continuing increase in inequality in the United States greatly concern me," Yellen told a conference sponsored by the Boston branch of the central bank. "I think it is appropriate to ask whether this trend is compatible with values rooted in our nation's history, among them the high value Americans have traditionally placed on equality of opportunity." The topic of income disparity has been addressed by Fed chairs before. But Yellen in her data-heavy speech went far down a prescriptive road, saying public spending can narrow gaps in education quality and help level the economic playing field. "The United States is one of the few advanced economies in which public education spending is often lower for students in lower-income households than for students in higher-income households," she said. Yellen said relying on property taxes to pay for schools exacerbated inequality because more affluent areas could afford to spend more. Jared Bernstein, a former top economic adviser to Vice President Joe Biden, said Yellen was "expanding the scope of the Fed in really positive ways." "She is clearly trying to connect the micro to the macro," he said. "She wants to know how her work at 40,000 feet is playing out on the ground." Income disparity has risen since the 2007-2009 recession. A Fed study published last month showed that from 2010 to 2013, income growth was concentrated among the richest 3 percent of U.S. families, who accounted for some 30 percent of all income. Nudging Lawmakers Yellen, who has given major speeches on inequality for some two decades and who toured a hard-hit neighborhood of Boston on Thursday, said rebounding house prices have restored much wealth to those at the bottom. But she cited several troubling trends, including the high cost of higher education and a slowdown in business formation that she said could hamper economic mobility. She also analyzed the role large inheritances play in "the fairly limited intergenerational mobility." By some estimates, she said, "income and wealth inequality are near their highest levels in the past hundred years, much higher than the average during that time span and probably higher than for much of American history before then." Josh Bivens, research director for the left-leaning Economic Policy Institute, called Yellen's speech "a pretty deep dive into some pretty specific policy issues," and unusual terrain for a Fed chair. Yellen, who didn't take questions, said she aimed to provide a factual basis for further discussion and she sat in the audience to hear research on race and economic inequality. Among the issues the Fed is debating is whether the country's long-term growth potential has declined, and what might increase it. "It may be," said Bivens, "that even the bread and butter job of Fed chair is made harder by the rise of inequality and they are trying to alert people to that." -.

Medicaid Juices UnitedHealth Group Inc.'s Quarter

UnitedHealth Group (NYSE: UNH  ) today reported that third-quarter sales and earnings grew 7% year over year to $32.8 billion and $1.63 per share, respectively.

Source: UnitedHealth Group

Walking through the numbers
UnitedHealth last year took a more cautious approach to participating in the Affordable Care Act health insurance exchanges than competitor WellPoint (NYSE: WLP  ) As a result, membership in UnitedHealth's employer and individual segment fell by 95,000 to 28.75 million people in the third quarter as ACA enrollment failed to offset employers eliminating insurance coverage for part-time employees. Declining membership led to revenue from individual and employer members falling $620 million from a year ago to $10.6 billion in the quarter.

While individual and employer sales fell, demand for Medicare plans increased. UnitedHealth Medicare Advantage plans served 25,000 more seniors in the third quarter than they did last year, resulting in Medicare and Retirement revenue rising 4% to $11.5 billion. The insurer also reported that enrollment in its supplemental Medicare and Medicare Part D plans grew, with UnitedHealth adding 50,000 more supplemental Medicare members and 5,000 more Part D members during the third quarter alone.

Although Medicare results were solid, UnitedHealth's Medicaid business was its best performer. With 26 states implementing Medicaid expansion under the Affordable Care Act ahead of the third quarter, the number of people served by UnitedHealth's Medicaid plans increased 965,000 from a year ago, resulting in community and state segment sales jumping 34% year over year to $6.1 billion.

UnitedHealth;s international business brought in sales of $1.8 billion in the quarter, up 19% from last year. Meanwhile, higher demand for integrated healthcare solutions, data analytics, and prescription drug services drove up sales at the company's Optum health services unit by 21% year over year, to $12 billion in the third quarter. Optum's operating margin also improved to 7.2%, up from 6.9% a year ago.

Dropping to the bottom line
UnitedHealth continues to digest rising costs associated with administration and fees tied to the Affordable Care Act. Those fees reduced after-tax margin by 80 basis points, resulting in net margin of 4.9% in the quarter, down 20 basis points from 5.1% last year. 

UnitedHealth did see improvement in member medical costs, which helped offset some of the company's ACA headwinds. The company's medical care ratio, or the amount of premium dollars spent on member healthcare, totaled 79.7% in the third quarter, down from 81.6% in the second quarter and 80.6% from last year.

Rising membership revenue continues to provide significant cash flow: UnitedHealth expects its full-year operating cash flow will hit $8 billion in 2014.

UnitedHealth is returning that cash to investors through both dividends and share buybacks. During the third quarter, UnitedHealth's dividend payout to shareholders grew by 29% year over year to $1 billion. UnitedHealth has also bought back $3 billion in shares through the first three quarters as part of its plan to repurchase 100 million shares, or 10% of all of its shares outstanding. Despite that spending, the company's cash and short-term investments remain at roughly $9.2 billion, essentially unchanged in the past year.

Looking forward
In its third-quarter results, UnitedHealth maintained its guidance for sales of $130 billion for this year, but increased its earnings per share forecast to between $5.60 and $5.65 for 2014, up from its second-quarter guidance for EPS of $5.50 to $5.60.

UnitedHealth plans to participate in far more states during the ACA's second enrollment period, which begins in mid-November and ends in the middle of February. That suggests exchange membership next year might stabilize the company's individual and employer enrollment. UnitedHealth membership trends will also be supported by Medicaid enrollment as additional states adopt expansion of the program, as well as from ongoing Medicare plan demand tied to the aging of America.

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Extreme Fear in stock market

NEW YORK (CNNMoney) Columbus Day was anything but a holiday for investors.

U.S. stocks got creamed again. The Dow slid another 223 points.

CNNMoney's Fear & Greed Index is a good indicator of market momentum. Today it hit zero. That's a huge red flag and showcases extreme fear in the stock market.

The only other time the index ever touched that low point is in August 2011 -- shortly after Standard & Poor's downgraded the U.S. debt.

Volatility -- or what some are calling "market whiplash" -- is clearly back in the market. The VIX, an index that measures volatility and is one of the factors that goes into the Fear & Greed Index -- spiked again today. It's up a whopping 60% in the past week alone.

For most investors, what really matters is the bottom line. A month ago, the S&P 500 was up around 8% for the year. After a wave of sell-offs, including on Monday, the S&P 500 is only up 1.4%.

It's worse for the Dow, which is now down 1.5% for the year.

What's driving the latest market slide? Many thought today would be light trading and little action because of the holiday.

Ebola was the most obvious fear factor and the worst bout of selling came in the final hour of the market.

The airlines were hit hard -- Delta (DAL) dropped over 6% and Southwest (LUV)fell 5.5% -- on worries that vacationers and businesses will curtail travel until the virus is contained.

  How to tell when investors are scared

On the flip side, Lakeland Industries (LAKE), a maker of hazmat suits -- soared nearly 50%.

But the tension is the market seems deeper than just Ebola or even ISIS. There's ongoing worry about how unhealthy Europe's economy is. There was little data out Monday, but more members of the Federal Reserve are starting to voice concern about what's going on around the globe.

The market also crossed an important barrier. The S&P! 500 dipped below its 200-day moving average. That's akin to an A student suddenly scoring a B or C grade on an assignment.

"The 200-day has not been breached since 11/08/12," said Randy Frederick, Managing Director of Trading and Derivatives at the Schwab Center for Financial Research.

The S&P 500 ended the day at 1,875.

Tech stocks get hit: Energy and tech stocks also got shaved. Oil continues to trade around $85, a low point not seen for over two years. While cheap gas could help consumers, it translates to lower profits for shareholders of energy companies. Halliburton (HAL) and Chesapeake Energy (CHK) were among the worst performers in the S&P 500 Monday.

Smaller tech companies were the first to slip in the sell-off that started in September. Now larger companies are joining the plunge. Today Twitter (TWTR, Tech30) shed 3.8%, Yahoo (YHOO, Tech30) fell 3.1%, and Netflix (NFLX, Tech30) was off 3%.

What's next? No one has a crystal ball on the market. Some are calling this a buying opportunity as the market dips.

"thank all for selling i am a strong buyer here Bullish," wrote bbar on StockTwits, a social media platform for traders.

Others see a rough end to the year.

"If market doesn't catch a bid from earnings, I wager we have our first negative year since 2009," commented PharoahNC on StockTwits.

Despite being down sharply in recent days, The S&P 500 isn't even in a true "correction" yet. It's down just shy of 7% from its highs. A correction would constitute a 10% drop.

A number of prominent companies will report earnings Tuesday including JPMorgan (JPM), Citigroup (C) and Wells Fargo (WFC) in the morning and Intel (INTC, Tech30) after the bell. Their results will likely set the tone for trading.

3 Reasons United Continental Holdings Inc.'s Stock Could Fall

It's hard to make a case against United Continental Holdings (NYSE: UAL  ) , but in the interest of a more balanced view to go with my previous bullish article, I'm going to give it the old college try. Aside from the historical enormous volatility across the entire airline industry in terms of both fundamentals and stock prices, United Airlines may have a few warts unique to itself that you should keep an eye on. Here are three concerns.

Source:  United Airlines.

Concern 1: Ebola is no laughing matter
As Fools, we strive to educate, amuse, and enrich, but the subject of the deadly Ebola virus is no joke. There has been already at least one scare involving a passenger who flew two connecting United flights. He exhibited signs of the disease and was ultimately cleared, thank goodness, while the company rushed to contact "several hundred" passengers who were on the same flights.

But the incident reminds us how sensitive the public is to flying risks, and one of those risks is contracting disease. Often when something happens to a particular airline, even through no fault of its own, it ends up with a paranoid public and a negative image that ultimately hurts sales and profits. With United Airlines being the second biggest airline, there is a very real risk of further incidents and possible lasting damage to its reputation if further similar incidents occur.

The CDC says there could be as many as 1.4 million people affected worldwide by January with the Ebola virus. If so, that alone could keep many scared people out of the air and crowded spaces. That would affect the entire international airline industry, since people never know who sat on their seats before them and where those previous passengers were last. If nothing else, it may seem safer to stick with a regional airline.

Concern 2: Speaking of regional airlines ...
United Airlines is slowly getting out of the regional airline business. While the company is confident this is a wise strategic move aimed at greater long-term profits, there can be no certainty that will prove to be the case.

According to its most recent conference call, at the beginning of this year United Airlines had 8% of its overall capacity consisting of 50-seat and smaller aircraft. It is now targeting a reduction to 5% by the end of next year, with the hopes that the sacrifice of these revenues and profits will be made up for by easier overall logistics and ultimately lower costs for the rest of its planes sharing the same hubs.

Regional airlines such as Southwest Airlines (NYSE: LUV  ) , Allegiant Airlines (NASDAQ: ALGT  ) , JetBlue Airways (NASDAQ: JBLU  ) , and Hawaiian Airlines must be salivating. These four in particular have been rapidly growing sales and profits, and seeing United Airlines getting off their turf can only help them.

Is there perhaps a trend brewing involving travelers who prefer the smaller regional planes, perhaps for the ease of getting on and off and a better flight experience, at least among the public company players? Maybe United Airlines is making a mistake as it loses regional customers who may have later opted for trips on its bigger planes.

Concern 3: You might want to hedge your bets, since United isn't
All the talk in the world about fuel reduction, cost savings, and operational efficiency is great, but it might not have enough of an effect on United Airlines' ultimate cost: aircraft fuel. According to the company's SEC filings, aircraft fuel is the company's single largest expense. Luckily for United Airlines, oil and fuel prices have been in a tailspin lately, which makes things easier. For now.

The problem and concern is, what happens with fuel prices suddenly rise again? As of June 30, only 21% of its anticipated fuel requirements are hedged for the remainder of this year, 19% for next year, and less than 1% in 2016. As Fools, we tend to be long-term investors, and United Airlines isn't very well prepared in the near, medium, or long term for potential oil price shocks.

Perhaps even more concerning on that topic is the company's $2 billion in annual cost savings plan by 2017, which includes $1 billion in fuel savings. If United Airlines starts to fall shy of its stated goals, the temptation to reduce hedging and take a gamble may be even stronger as the market probably won't react too favorably to missed targets.

On that note, how can the company really give reliable guidance when it can't possibly know where fuel prices will be in the future, or if it isn't fully prepared to hedge against the worst? The vast majority of its go-forward fuel costs is wide-open exposed.

Foolish final thoughts
Overall, I'm a fan of United Continental Holdings stock, as I like what I perceive as a favorable risk-reward ratio, but there are very real risks and concerns that don't necessarily point to blue skies ahead. The airline business is already tough, and if just one thing goes wrong, sales or earnings could get pulverized.

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Chili's cancels autism fundraiser over vaccine…

Chili's Grill and Bar canceled a national fundraising drive to support the National Autism Association, a not-for-profit group that links vaccinations to autism in some cases.

The Chili's fundraiser would have donated 10% of a table's check Monday to NAA, upon the guest's request, at more than 1,200 participating restaurants.

In an e-mailed statement, Chili's said it would find another way to support families affected by autism.

"While we remain committed to supporting the children and families affected by autism, we are canceling Monday's Give Back Event based on the feedback we heard from our guests," according to a Chili's Facebook page.

While we remain dedicated to giving back, we are canceling the 4/7 Give Back Event based on feedback from our guests. http://t.co/TpBQO8Hr04

— Chili's Grill %26 Bar (@Chilis) April 6, 2014

On its website, the National Autism Association states, "Vaccinations can trigger or exacerbate autism in some, if not many, children, especially those who are genetically predisposed to immune, autoimmune or inflammatory conditions."

However, NAA is not an anti-vaccination organization, said Wendy Fournier, president of the association, in an interview with USA TODAY Network.

MORE: Anti-vaccine movement giving diseases second life

"We're not saying vaccines are the cause of autism," Fournier said. "All we're saying on the vaccine issue is, like any other medical decision you make for your family, it should be made with all the information available."

The Centers for Disease Control and Prevention rejects the claim that vaccinations cause autism.

Chili's says it does not take a position on vaccinations.

"The intent of this fundraiser was not to express a view on this matter, but rather to support the families affected by autism," according to Chili's statement.

On Chili's Facebook page and on Twitter, commenters decried Chili's for choosing NAA for the fundraiser.

"Your giving money to an organiza! tion that encourages people not to vaccinate based on pseudo science is wrong & can lead to children's needless suffering and possibly even dying," one person wrote on Chili's Facebook page.

"Autism foundations need help, but find a responsible one that is committed to REAL science and really helping people. I won't be there on the 7th," another wrote.

Vaccines are an imperative. Don't eat at @Chilis this Monday. http://t.co/xuru1PWZQZ

— GeekDad Ken (@KenDenmead) April 6, 2014

Would you like some preventable infections with your salsa? @Chilis funds anti-vax fringe group. 

CC @IDDocHymeshttp://t.co/5FiP7r0Z23

— Tim Lahey (@TimLaheyMD) April 6, 2014

Fournier said she was "really disappointed" about the decision to cancel the fundraiser based on feedback from "a small group of people." She said families would not be getting direct, immediate assistance to help deal with loved ones with autism.

"It scares the hell out of me something like this could happen and could prevent families from getting help they need," Fournier said.

In response to the news of Chili's cancellation of the fundraiser, NAA wrote on its Facebook page, in part: "Though NAA has changed our mission and efforts in recent years to focus on autism safety ... controversial views about vaccines remained on our website. ... We respect their decision and ask everyone to please speak words of love and kindness."

Follow @JolieLeeDC on Twitter.