Payroll Data Shows a Lag in Wages, Not Just Hiring

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Bits Blog: Target Customer Information Shows Up on the Black Market

Market Shows Small Gains in Short Session

The stock market ended slightly higher on Wednesday in a half-day session ahead of the Fourth of July holiday and Friday’s government report on the job market.

The three main stock indexes seesawed on thin trading volume, with some traders already away before the holiday. The stock market, which is closed on Thursday, will reopen on Friday for a full session.

Mixed economic data on Wednesday failed to give the market a solid direction. Private sector employers stepped up their hiring in June and weekly initial claims for unemployment benefits fell, but the growth rate in the services sector slowed in June and the United States trade deficit widened on a drop in exports.

“The only explanation that there is to the volatility is that the volume’s really light, so any sudden moves in sentiment, whether it’s buy or sell, reflects itself in the volatility because there’s not a lot of liquidity,” said Jason Weisberg, managing director at Seaport Securities.

About 3.37 billion shares exchanged hands on the New York Stock Exchange, the Nasdaq and NYSE MKT. The full trading-day average volume has been about 6.4 billion so far this year.

The Dow Jones industrial average rose 56.14 points or 0.38 percent, to close at 14,988.55. The Standard & Poor’s 500-stock index edged up 1.33 points, to 1,615.41. The Nasdaq composite index added 10.27 points, or 0.30 percent, to 3,443.67.

Large-capitalization technology stocks were among the strongest of the day, helping the Nasdaq. Cisco Systems rose 1.1 percent to $24.59 while Oracle gained 2 percent to $30.70.

Crude oil prices rose 1.64 percent to $101.24 a barrel after hitting a 14-month high above $102 a barrel on a sharp decline in crude stockpiles in the United States and political unrest in Egypt.

Health providers were in focus on Wall Street after the Obama administration said it would not require employers to provide health insurance for their workers until 2015, delaying a crucial provision of the health care law by a year.

Tenet Healthcare fell 4.3 percent to $43.64. Universal Health Services dropped 3.5 percent to $65.82.

In the bond market, interest rates moved higher. The 10-year Treasury note fell 8/32, to 93 15/32, while its yield rose to 2.50 percent, from 2.47 percent late Tuesday.

Report Shows Racial Disparity in Pot Arrests

With new data showing that blacks are far more likely than whites to get arrested for marijuana offenses, the New York Civil Liberties Union is pushing for late-session legislation that would decriminalize possession of small quantities.

ABC to Live-Stream Its Shows via App

This week ABC will quietly revolutionize its app for iPhones and iPads with a button called “live.” Users around New York and Philadelphia will be able to live-stream all the programming from ABC’s local stations there, the first time that any major broadcaster has turned on such a technology.

The functionality will be featured at ABC’s upfront presentation for advertisers on Tuesday. It is, among other things, an attempt to keep up with the rapidly changing expectations of television viewers.

It also reflects the increasing role that subscriber fees play in the broadcasting business: the live stream will be available only to paying subscribers of cable and satellite providers, even though the stations’ signals are available free over the public airwaves.

ABC, a unit of the Walt Disney Company, said the live stream would be available in the other six cities where it owns stations sometime this summer. It is also in talks with the companies that own ABC’s more than 200 affiliates to make the “live” button work in their markets.

ABC finished the first of its affiliate deals, with Hearst Television, on Sunday afternoon; it said the live streams would work in Hearst’s 13 markets, including Boston and Pittsburgh, in the coming months.

The mobile app may prod the other broadcasters to follow ABC, much as they did seven years ago after the network started to stream full episodes of shows the morning after their TV premieres. ABC had originally planned to introduce a live-streaming feature for its apps in 2014, but decided to speed up that process this year.

“We keep a very close eye on consumer demand,” said Anne Sweeney, the president of the Disney-ABC Television Group, which includes the broadcast network. “We watch how people are behaving with their devices, and we really felt that we needed to move faster.”

Internally the project was code-named Project Acela, a reference to the high-speed train between Boston and Washington. A team led by Albert Cheng, Ms. Sweeney’s executive vice president for digital media, was given a deadline of May 14, the date of the ABC upfront. While Apple devices came first, other phones and tablets will be supported in the coming months, Mr. Cheng said. Securing the necessary rights from programming providers was laborious, but ABC will be able to stream all of its stations’ local newscasts, syndicated talk shows like “Katie,” and national series like “Grey’s Anatomy.”

The live-stream functionality comes at a time when ABC and its broadcast rivals are trying to keep the attention of audiences that are increasingly turning to cable channels and Internet streaming services like Netflix.

It gives ABC another talking point about how it is adapting to audience preferences; in this case, viewers will be able to carry “Good Morning America” with them as they move around the house in the morning, or tune into a weekend basketball game while out with friends. The live stream will work anywhere in a local market, the same way an old-fashioned TV antenna would.

During a demonstration of the app in her New York office on Friday, Ms. Sweeney said she was struck by how personalized television becomes when it is live-streamed to a person’s phone.

The app is also an implicit rebuttal to Aereo, the start-up backed by Barry Diller that is being sued by major station owners for streaming their signals to paying subscribers in New York. Ms. Sweeney reiterated her view that Aereo is illegal but said the plans for the app’s live-stream feature predated the service.

The app, to be named Watch ABC, in line with Disney’s existing Watch Disney and Watch ESPN apps, will allow users to watch ABC shows on demand, like the network’s previous app had. In the future, ABC will withhold its most recent TV episodes from the free versions of Hulu and ABC.com, further limiting access to paying subscribers of cable and satellite providers only.

The mobile live stream will not carry the same ads as the television broadcast; instead, it will include the same sorts of digital ads as on ABC.com. This is in part because the Nielsen Company is not able to measure mobile viewing of live television yet.

“What you see here is the same live programming,” Mr. Cheng said as he used the app, “but what we are doing during the commercial break is actually inserting new ads into the stream.”

Over time, live-streaming of ABC stations could cannibalize big-screen viewing of those stations, but ABC could make up the difference through streaming ads. Disney’s chief executive, Robert A. Iger, pointed out this month that an increase in online advertising partly compensated for declines in TV ad revenue in the first quarter of the year.

Transmitting television via live stream requires new deals with traditional distributors, like Comcast, DirecTV and Verizon FiOS, and with the owners of ABC’s affiliates. Gaining Hearst’s backing ahead of Tuesday’s upfront was important to ABC because it lent some local support to the app effort.

David Barrett, the chief executive of Hearst Television, said in a statement on Sunday that his company, recognizing “that consumers want the ability to view our stations’ programming on any device that has a screen,” was eager to work with ABC on the app.

Some station owners may bristle at ABC’s arrangement, however, given the other mobile television efforts that are under way. In some cases, these efforts require a miniature antenna, or a dongle, to be plugged into the phone.

A technology company called Syncbak has a live-streaming app for phones that does not require a dongle, but currently, it can carry only local programming, not syndicated or national programming.

CBS took a minority stake in Syncbak last month, stoking talk that it might use the technology to live-stream the stations it owns.

The Fox network, a unit of the News Corporation, is also known to be working on live-streaming functionality for its stations, though it is not expected to be available soon.

Poll Shows European Union Loses Favor on Continent

The results of an annual survey by the Pew Research Center, a nonpartisan organization based in Washington, show a deepening disillusionment with the union in major member countries.

The results of the survey suggest that more citizens than ever could end up opposing the transfer of more power to European Union institutions that may be vital for transforming the euro into a viable currency over the long term.

“The effort over the past half-century to create a more united Europe is now the principal casualty of the euro crisis,” according to a report that Pew published with the survey results. The title of the report summed it up: “The New Sick Man of Europe: the European Union.”

The poll pointedly noted that, “No European country is becoming more dispirited and disillusioned faster than France.” Last year, 60 percent of the French surveyed said they had a favorable impression of the European Union. This year only 41 percent did, a decline of 19 percentage points that was the biggest annual drop among the countries surveyed.

The results corresponded to some degree to the health of a nation’s economy. Only Greeks and Italians professed less belief in the benefits of economic union than the French, according to Pew. In Germany, 60 percent held a favorable impression of the union.

That could have everything to do with the listless economy in France, which is on the verge of joining much of Southern Europe in recession and has an unemployment rate of 11 percent. The German economy has fared better and has a relatively low unemployment rate of 5.4 percent.

“French and the Germans differ so greatly over the challenges facing their economies that they look as if they live on different continents, not within a single European market,” the authors of the Pew report wrote. As a result, the “French look less like Germans and a lot more like the Spanish, the Italians and the Greeks.”

The gloomy view is understandable given the economic crisis in Europe.

“The limits of the European Union institutional architecture are perceived more directly by the citizens now,” said Enzo Moavero Milanesi, Italy’s minister for European affairs, in an interview. “They have always been known, but citizens expected a more rapid and efficient response to the crisis and ended up complaining about the lengthy procedures, the many meetings, the difficult discussions.

“But it’s a paradox,” said Mr. Milanesi. “The E.U. has made great steps toward further integration and a strengthened monetary union. We even started discussing forms of possible political union, but people are still disappointed.”

One of the smallest declines in sentiment — two percentage points, to 43 percent — was in Britain. But the economic union has never been popular there.

“We should try and renegotiate our relationship with the European Union,” said William Drake, co-founder of the investment advisory firm Lord North Street in London, expressing an opinion shared by many in his country. He added that many regulations were “not being properly discussed and debated by our own democratically elected Parliament. It sort of feels like we don’t rule our own country anymore.”

The polls were conducted during March in Germany, Britain, France, Italy, Spain, Greece, Poland and the Czech Republic, by telephone or in person, with between 700 and 1,100 adults in each country. Each poll has a margin of sampling error of either three or four percentage points.

In France, where voters eight years ago rejected a constitutional treaty meant to streamline decision-making in the European Union and lay out a blueprint for its future, 77 percent of Pew survey respondents said this year that European economic integration had made things worse for their country. That was an increase of 14 percentage points from the previous poll.

Reporting was contributed by Nicola Clark and David Jolly from Paris, Jack Ewing from Frankfurt, Julia Werdigier from London, Gaia Piangiani from Rome, Elisabetta Povoledo from Milan and Raphael Minder from Madrid.

NBC Adds 3 More Shows, Including an Updated ‘Ironside’

The busy rounds of television shows coming and going continued on Friday as NBC added new series to a growing list for fall, while others found themselves facing a last roundup.

NBC announced three more new shows to add to the five released on Thursday. These include a new comedy from Bill Lawrence (“Scrubs”), who will be especially busy in the fall because Fox has already ordered a comedy from him. His NBC show is called “Undateable.” It stars Chris D’Elia (the best thing in “Whitney”) as a hip guy who suddenly has to teach the unsophisticated friends of his roommate the ways of women.

NBC is also bringing back a blast from its distant past with the return of “Ironside,” the old Raymond Burr series, with Blair Underwood now the tough cop running a special unit and proving he really has no handicap.

The third new NBC show is a spinoff of the somewhat successful new drama “Chicago Fire.” This one, “Chicago P.D.,” takes the creator Dick Wolf back to his crime-oriented turf with stories about the many units of the city’s department, like street cops or the intelligence unit.

On the other hand, NBC announced that its comedy “Go On,” which stars Matthew Perry, had been canceled. And one of NBCUniversal’s cable units, USA Network, announced on Friday that its hit drama “Burn Notice” would end after its latest season, which begins on June 6.

However, the NBC comedy “Community,” long thought to be headed for cancellation, is now in negotiations to continue, after posting a much improved rating on Thursday night.

Hospital Billing Varies Wildly, U.S. Data Shows

In Saint Augustine, Fla., one hospital typically billed nearly $40,000 to remove a gallbladder using minimally invasive surgery, while one in Orange Park, Fla., charged $91,000.

In one hospital in Dallas, the average bill for treating simple pneumonia was $14,610, while another there charged over $38,000.

Data being released for the first time by the government on Wednesday shows that hospitals charge Medicare wildly differing amounts — sometimes 10 to 20 times what Medicare typically reimburses — for the same procedure, raising questions about how hospitals determine prices and why they differ so widely.

The data for 3,300 hospitals, released by the federal Centers for Medicare and Medicaid Services, shows wide variations not only regionally but among hospitals in the same area or city.

Government officials said that some of the variation might reflect the fact that some patients were sicker or required longer hospitalization.

Nonetheless, the data is likely to intensify a long debate over the methods that hospitals use to determine their charges.

Medicare does not actually pay the amount a hospital charges but instead uses a system of standardized payments to reimburse hospitals for treating specific conditions. Private insurers do not pay the full charge either, but negotiate payments with hospitals for specific treatments. Since many patients are covered by Medicare or have private insurance, they are not directly affected by what hospitals charge.

Experts say it is likely that the people who can afford it least — those with little or no insurance — are getting hit with extremely high hospitals bills that may bear little connection to the cost of treatment.

“If you’re uninsured, they’re going to ask you to pay,” said Gerard Anderson, the director of the Johns Hopkins Center for Hospital Finance and Management.

The debate over medical costs is growing louder, spurred partly by President Obama’s overhaul of the health insurance system.

Hospitals, in particular, have come under scrutiny for charges that are widely viewed as difficult to comprehend, even for experts. “Our goal is to make this information more transparent,” Jonathan Blum, the director of the agency’s Center for Medicare, said in an interview.

The data covers bills submitted from virtually every hospital in the country in 2011 for the 100 most common treatments and procedures performed in hospitals, like hip replacements, heart operations and gallbladder removal.

The hospitals were not given the data before its release by Medicare officials.

Some hospitals contacted Tuesday said that the higher bills they sent to Medicare reflected the fact that they were either teaching hospitals or they had treated sicker patients.

For example, billing records showed that Keck Hospital of the University of Southern California charged, on average, $123,885, for a major artificial joint replacement, six times the average amount that Medicare reimbursed for the procedure and a rate significantly higher than the average for other Los Angeles area hospitals.

“Academic medical centers have a higher cost structure, and higher acuity patients who suffer from many health complications,” the hospital said.

The hospital added that it wrote off any difference between what it charged and what Medicare paid, rather than seeking to collect it from patients. Centinela Hospital Medical Center, also in Los Angeles and owned by Prime Healthcare Services, charged $220,881 for the same procedure.

A spokesman said the hospital served a sicker and older patient base.

The data showing the range of hospital bills does not explain why one hospital charges significantly more for a procedure than another one. And Medicare does pay slightly higher treatment rates to certain hospitals — like teaching facilities or hospitals in areas with high labor costs.

Mr. Blum, the Medicare official, said he would have anticipated variations of two- to threefold at the most in the difference between what hospitals charge.

However, hospitals submitted bills to Medicare that were, on average, about three to five times what the agency typically pays to treat a condition, an analysis of the data by The New York Times indicates. And variations between what hospitals charge may be even greater.

Mr. Blum said he could not explain the reasons for that large difference.

An official at the American Hospital Association, a trade group, said there was a cat-and-mouse game between hospitals and insurers that affects what hospitals charge.

This article has been revised to reflect the following correction:

Correction: May 9, 2013

An article on Wednesday about hospitals’ widely varying billings for the same procedures misstated part of the name of the federal agency that released the billing data. It is the Centers for Medicare and Medicaid Services (not the Center).

USA Network to Explore Sitcoms and Reality Shows

For most of the past decade the USA Network has lived by the mantra “blue skies,” which has translated into programming a string of upbeat hourlong drama hits, like “Burn Notice” and “Royal Pains.”

That strategy has paid off, with USA ranking as the most-watched entertainment network on cable for eight straight years. So why is the network going to make a new pitch to advertisers on May 16 that emphasizes areas previously little explored by USA, like situation comedy and reality shows?

The most obvious reason: USA paid a hefty price — $1 million to $1.5 million an episode — three years ago to acquire reruns of the hugely popular ABC comedy “Modern Family.” Those episodes become available this fall, so a shift toward some comedy-based nights was inevitable.

But the network’s top program executives also acknowledge that in order to grow, and to maintain the top position in a competitive cable environment, it is time to branch out into new programming directions.

At its advertiser presentation next week, USA is expected to announce that it has ordered its first two original sitcoms, as well as several new reality shows, and a new drama that breaks with the USA tradition by taking a bit of a walk on the dark side.

“One of the dances any network does, and we’re doing one now, is the balance between breadth and depth,” said Jeff Wachtel, the co-president of USA. “We are a very broad general entertainment network in a world that is increasingly about the depth of the commitment.”

He added, “We have a reservoir of good will. Now that’s great, but it’s also a trap. Because if anybody imputes a formula to you, you really are in danger of being formulaic. We’ve got to challenge the audience.”

Other cable networks have been doing that with great success: A&E has the reality hit “Duck Dynasty;” History collected big audiences for “The Bible;” FX has forged a reputation for dark dramas like “Justified;” and AMC has the biggest drama in all of television with “The Walking Dead.”

“There are a lot of networks infringing on USA’s territory,” said Derek Baine, a media analyst with SNL Kagan. “Changing the program lineup can be done. You just have to tread carefully because it can be jarring for the audience.”

USA’s numbers are unquestionably potent. Under Bonnie Hammer, who now is the chairwoman of the cable entertainment group for NBCUniversal, USA has been a profit machine. In 2012, the network exceeded $1 billion in profit for the first time, and it projects the number to be higher in 2013.

USA still has the top overall audience among cable entertainment networks with an average of 2.92 million viewers, ahead of the 2.43 million for the History Channel. USA is down slightly, 2 percent, this season.

It has remained No. 1, though narrowly, over TBS in one of the two audience groups that dominates sales to advertisers — viewers ages 25 to 54. But it trails TBS this season so far in the most important audience category, viewers ages 18 to 49.

That might not be bad news for USA, however, and not only because TBS gets a springtime bounce from college and pro basketball. The big winner for TBS is its package of repeats of the hit CBS sitcom “The Big Bang Theory,” which runs as often as 16 to 20 times a week on TBS.

Chris McCumber, the network’s other co-president, said USA would most likely use “Modern Family” much as TBS has used “Big Bang” — all over its schedule, sometimes filling a whole night of prime time.

“We want to be careful not to overuse it,” Mr. McCumber said. “But we think it will raise all boats in prime time.”

There is some question about whether “Modern Family” can perform as “Big Bang” has. It is a filmed comedy without a laugh track, and those tend to repeat less well than taped shows with audience laughter.

Media Giants Chase Online Ads With Original Shows

Digital and traditional media companies, including newspapers and magazines, have for years been building a video presence on the Internet. But until now the offerings have largely been low-budget, single-camera affairs featuring talking heads.

Last week, however, major media companies like Condé Nast, The Wall Street Journal and Univision presented ambitious slates of original programming to advertisers for the first time.

Companies that were already producing Web content, like Yahoo and Hulu, also announced greatly expanded offerings.

As a result, viewers are being bombarded with an array of new Internet programs — 11 from Yahoo, 14 from AOL and a whopping 30 from Condé Nast, including one that will let viewers watch a Vogue editor, Hamish Bowles, as he shops around the world.

Hulu’s four new original offerings include one called “Behind the Mask,” a show it describes as a “comedic docu-series,” which looks at the world of sports mascots.

These companies are moving rapidly because they believe viewers are now so accustomed to watching programs on devices like mobile phones and tablets that the lines between traditional television and Internet video will blur.

But the companies are also acting out of desperation because many of them can command higher prices for video ads than traditional online banner ads, which are increasingly being undermined by fast-paced algorithmic buying technologies.

Advertisers are also shifting dollars from traditional display advertising to sites like Facebook that can deliver huge audiences. Media companies were wooing ad executives in New York last week during an advertising event called Digital Content NewFronts that is trying to imitate the success of the network television upfronts, which are being held later this month. At lavish open-bar parties, companies not previously known for programming tried to convince advertisers to sponsor shows, or better still, whole channels.

Yet even with the amount of so-called premium content booming, it is not clear ad dollars are following. According to data from the research company eMarketer, spending on digital video — while growing — is expected to reach only $4.14 billion in 2013, a far cry from the $66.35 billion expected to flow into the television market.

Many advertisers say they worry that with so much new content being thrown at the market on so many different platforms, audiences for individual shows will become even more fragmented and microscopic than they already are.

“I don’t care how good your attention span is,” Rino Scanzoni, chief investment officer of Group M, said of the crush of new offerings, “I think it becomes all a blur.” Group M is one of the world’s biggest media-buying and planning agencies.

Ben Winkler, chief digital officer of the advertising agency OMD, which represents brands including Pepsi and Nissan, called it “cable to the nth degree.”

“We are talking narrow, narrow television, niche television if you will,” he said. “If you are reaching just 100 people, is it worth our time and energy?”

AOL is one of the companies making a big bet on “premium video,” or video it hopes will generate greater ad revenue because of higher production values. Tim Armstrong, the company’s chief executive, said in an interview: “Consumers are adopting video very quickly: big investment in devices and networks, big investments by the most talented creative people to get involved in this medium; and big investment in measurement. So I think this industry is about to explode.”

Many online sites are citing the success of “House of Cards,” the Netflix series that drew critical praise this winter, as proof that the moment for video content has arrived. But “House of Cards,” with top-flight talent and sophisticated production values, was hugely expensive. And Netflix relies on subscriptions, not advertising.

For now, most digital companies are looking to produce programming that, while more expansive than one-camera fare, is still cheaper than TV.

Bill Carter contributed reporting.

DealBook: JPMorgan Shows Strength in Quarter

Larry Downing/ReutersJamie Dimon, the chief of JPMorgan Chase, at a Senate panel last year.

JPMorgan Chase, the nation’s largest bank, reported a 33 percent rise in first-quarter earnings on Friday, bolstered by gains in the investment banking business and a surge in mortgage lending.

“All our businesses had strong performance, and our client franchises did exceptionally well,” Jamie Dimon, the bank’s chief executive, said in a statement.

As the economy recovers slowly, demand for loans remained stagnant. JPMorgan said total loans at the bank fell 1 percent. Yet gains from investment banking allowed JPMorgan to record 12 consecutive quarters of profit.

Within the investment banking unit, assets grew by 8 percent to $19.3 trillion for the first quarter. Fees rose 4 percent, to $1.4 billion.

The net earnings of $6.5 billion, or $1.59 a share, exceeded Wall Street analysts’ expectations of $5.41 billion, or $1.40 a share. Revenue was $25.8 billion, compared with $26.8 billion in the same period a year earlier.

The report kicked off the bank earnings season. As the nation’s largest bank by assets, JPMorgan is often looked at as a bellwether.

A bright spot for JPMorgan’s earnings was mortgage lending, fueled in part by federal programs that have helped damp interest rates. Those low rates have prompted homeowners to refinance. In total, the mortgage banking group posted a profit of $673 million for the first quarter, down 31 percent from a year earlier.

Mortgage originations rose 37 percent in the quarter, to $52.7 billion. Still, application volumes were down, 1 percent from a year earlier, settling in at $60.5 billion. Appetite for loans was dampened, the bank said, by an uptick in interest rates earlier this year.

“We are seeing positive signs that the economy is healthy and getting stronger,” Mr. Dimon said. “Housing prices continued to improve, and new home purchases are also starting to come back.

The bank’s credit card business also improved, with sales volume rising to $94.7 billion, an increase of 9 percent from the same quarter a year earlier, but down 7 percent from last quarter. Auto lending also grew by 12 percent from a year earlier to $6.5 billion.

The results point to some of the larger challenges facing the nation’s biggest banks. As low interest rates continue to undercut profits, banks like JPMorgan are under pressure to cut expenses.

JPMorgan said on Friday that its total head count continued to fall, reaching 255,898. Non-interest expenses plummeted by 16 percent to $15.42 billion from a year earlier.

The bank has pinned some of its hopes for future profitability on its asset management business, as profits from riskier businesses like trading get undercut by a spate of new regulation. The asset management business reported net income of $487 million for the quarter, up 26 percent from a year earlier.

JPMorgan continued to gain business in private banking, accumulating $2.2 trillion in assets under management, up 8 percent from a year earlier.

Some of the strength in earnings, however, were helped by JPMorgan’s decision to reduce reserves for mortgages and credit-card loans. By moving money from the reserves, which cushion the bank against potential loses, the bank got a net 18 cent gain a share.

Addressing questions on Friday about whether the earnings are deceptively strong, Mr. Dimon said in a conference call that even after the reserve reductions, “we had really good numbers everywhere.”

JPMorgan also disclosed on Friday that it had changed a crucial measure that had helped obscure the risk of a series of complex wagers on credit derivatives. Those bets, made by the bank’s chief investment office, ultimately led to more than $6 billion in losses, claimed the jobs of top bank executives and forced Mr. Dimon to account for the losses before Congress.

The measure, called value at risk, or VAR, is used to estimate the losses associated with trading positions. JPMorgan said in a supplemental filing Friday that it had altered the value at risk metric for the corporate and investment bank to “achieve consistency with like products.”

As the traders in London assembled increasingly complex bets that ultimately led to the trading losses, JPMorgan changed how it measured risk in January 2012. That tweak allowed the traders in the chief investment office, to continue building the large wagers, according to Congressional investigators.

JPMorgan has changed its VAR model at least four times since January 2012. Explaining one such change, Mr. Dimon told the Senate Banking Committee in June that the bank had decided the model wasn’t effectively gauging risk and changed it in May. But that change alone meant that risk on the trades was underestimated by at least half.

Still, another quarter of robust earnings give the bank another chance to move beyond that multibillion-dollar trading loss.

Since announcing the trading loss last May, JPMorgan and its influential chairman, Mr. Dimon, have struggled to reassure skittish investors and defray a series of federal investigations related to the bungled wagers on complex-credit derivatives. Mr. Dimon has testified before Congress, vastly reshuffled its executive ranks and fortified risk controls. In January, JPMorgan’s board slashed Mr. Dimon’s compensation by 50 percent to $11.5 million.

More recently, Senator Carl Levin, Democrat of Michigan, grilled current and former senior executives at the bank about lax oversight policies and gulfs in risk management. The Congressional hearing, which lasted for nearly four hours, renewed pressure on Mr. Dimon and the bank. At times, senior executives floundered as they tried to combat lawmakers’ accusations that the officials misled investors and regulators about the soured bet. The hearing came just a day after a scathing 300-page report into the losses.

Mr. Dimon has struck a more contrite tone, seemingly chastened by the continued fallout from the trading losses. In his annual letter to shareholders, released on Wednesday, Mr. Dimon repeatedly apologized for the losses. He described the losses as the “the stupidest and most embarrassing situation I have ever been a part of,” vowing to continue to bolster risk controls and rout out problems.

Rather than taking a combative tone toward regulations that rein in Wall Street, Mr. Dimon expressed regret for how the trading losses “let our regulators down.”

In his letter, Mr. Dimon also warned shareholders that the bank would continue to face regulatory challenges in the “coming months.” JPMorgan, Mr. Dimon said, will deploy resources to improve firmwide controls on risk and compliance. “We are reprioritizing our major projects and initiatives,” he said.

The earnings on Friday come just a month before JPMorgan’s annual shareholder meeting, where the results of a crucial vote will be announced. Shareholders will decide whether to strip Mr. Dimon of his chairman title, a role he has held since 2006. Ahead of the nonbinding vote, JPMorgan has been working behind the scenes to make their case to shareholders that Mr. Dimon should keep the dual roles.

Executive Pay Shows Modest 2012 Gain, but Oh Those Perks

Dodd-Frank rules? Securities and Exchange Commission lawyers? Leave them behind. And let yourself sink into the buttery leather seat of your corporate jet as it soars through the clouds.

That’s what Steve Wynn did. As chief executive of Wynn Resorts, he sat back and enjoyed more than a million dollars’ worth of personal travel last year on his company’s private jet.

It gets better: in December, the company took delivery of the first G650 jet to roll off Gulfstream’s assembly line. A $65 million wonder, the plane can whisk Mr. Wynn from Las Vegas, where Wynn Resorts has its headquarters, to New York, where he owns a $70 million penthouse overlooking Central Park, and it should make 2013 another busy year aloft for him. (Wynn Resorts declined to comment.)

Indeed, while Mr. Wynn may have been a very frequent flier in 2012 among chief executives listed in an annual survey of executive pay conducted for The New York Times by Equilar, an executive compensation data firm, he has plenty of company in the shareholder-unfriendly skies.

As C.E.O. of Hertz, Mark Frissora pushes rental cars, but he racked up nearly a half-million dollars’ worth of personal travel on the corporate jet last year.

Marsh & McLennan, the risk management company, doesn’t own its own plane — it prefers holding a fractional share of a jet — but that didn’t stop its chief, Brian Duperreault, from running up $441,875 in private plane travel on the company tab before he retired at year-end.

These highfliers help explain why pay for perks like jet travel and other supplemental benefits including pension contributions and life insurance policies jumped last year, even as overall compensation rose only modestly.

For the 100 highest-paid C.E.O.’s among American companies with revenue of more than $5 billion, the typical 2012 perks package was worth $320,635, up 18.7 percent from 2011, according to an analysis by Equilar for The Times. By contrast, median total pay among the 100 C.E.O.’s rose just 2.8 percent, to more than $14 million.

The data are preliminary — public companies have 120 days after their fiscal year-end to disclose the pay of top executives in their proxies. Many corporations whose fiscal year ended in December won’t file before the end of April.

Still, the data reveal the contours of executive pay packages. Besides the jump in perks, overall cash compensation also made a comeback, rising 19.7 percent, to $5.7 million. Cash bonuses jumped 25 percent.

THE highest-paid C.E.O., Lawrence J. Ellison of Oracle, perennially ranks among the best-paid executives, but other leaders in 2012 didn’t come from sectors where you might expect to find them, like technology or Wall Street.

Instead, companies with familiar brand names were among the most generous, with Robert A. Iger of Disney, Mark G. Parker of Nike, Howard Schultz of Starbucks and Kenneth I. Chenault of American Express all in the top 10, each with more than $25 million in total compensation.

The second-highest-paid chief executive on the list, Richard M. Bracken of the hospital chain HCA, received more than half his pay in the form of special compensation worth nearly $22 million, but it was nearly all from from dividends rather than traditional perks like the company plane.

Shareholders, too, enjoyed solid gains in 2012, with the typical company’s stock returning 17 percent.

And at a few companies where profits dropped, C.E.O. pay declined as well. At Ford, where earnings per share fell 7 percent, the pay of the chief executive, Alan R. Mulally, sank 29 percent. James P. Gorman, the chief of Morgan Stanley, saw his compensation fall 20 percent as both revenue and profits at the company tumbled in 2012.

J.C. Penney did not make this year’s list because it filed its proxy after the March 29 cutoff, but its board definitely sent a message to Ron Johnson, the former Apple executive who took over in late 2011 and has so far failed to turn around this troubled retailer. It cut his total compensation by almost 97 percent, to $1.9 million, and didn’t give him and several other top execs any bonus payments.  

DealBook: Filing Shows Twisting Path to Three-Way Race for Dell

Joe Raedle/Getty ImagesA Dell computer for sale at an Electric Avenue store in Miami.

Though the race for Dell Inc. has narrowed to three contestants, many more arose over a month ago.

Advisers to Dell directors spoke to 71 potential bidders during a 45-day period aimed at finding alternatives to a $24.4 billion offer by Michael S. Dell and the investment firm Silver Lake, according to a securities filing by the company on Friday.

The long-awaited proxy filing includes a lengthy history of the merger, detailing in 26 pages the negotiations that led to the Dell transaction. In particular, it shines a light on the 45-day “go shop” period, which ended last week with preliminary bids by the Blackstone Group and the billionaire Carl C. Icahn.

Dell is expected to point to the efforts recounted in the filing as proof that its board fought hard to find the best possible outcome for shareholders, as several investors continue to argue that the existing $13.65-a-share bid by Mr. Dell and Silver Lake is too low.

According to the filing, bankers at Evercore Partners reached out to strategic and financial buyers starting soon after the deal with Mr. Dell was signed on Feb. 5. Several suitors were rejected because they were interested in only a piece of Dell’s businesses.

On Feb. 6, Blackstone contacted Evercore, saying it wanted to participate in the go-shop process. The private equity giant had already expressed interest the previous month in potentially bidding for Dell.

A month later, Blackstone and potential partners met with Mr. Dell to further discuss a bid.

Other private equity shops emerged as well. The filing refers to a “Sponsor B” that held discussions with Dell directors late last year and was willing to take another look despite declining to bid the first time. People briefed on the matter identified that firm as TPG Capital.

Ultimately, TPG decided again not to participate in any bids.

A corporate bidder, identified as “Strategic Party A,” contacted Evercore on Feb. 8 to say it was interested in information about Dell’s financial services arm. That company — which people briefed on the matter said was General Electric’s GE Capital — later expressed interest in working with whatever group Blackstone convened to make a bid.

At least three other strategic buyers sought access to Dell’s books. Most were denied because they appeared interested only in bidding for part of the company.

Mr. Icahn first contacted Evercore on Feb. 26 about signing a confidentiality agreement. More than a week later, the billionaire wrote to the special committee, disclosing that he owned a “substantial” stake in Dell and warning that he would fight the proposed takeover by Mr. Dell.

By the go-shop deadline of March 22, Evercore bankers had received three expressions of interest. One was from GE Capital, which proposed to buy Dell Financial Services only if combined with any takeover bid, including Mr. Dell’s.

Blackstone also submitted an offer, now known to be over $14.25 a share, that would leave an unspecified portion of Dell public to let investors continue to own a piece of the company if they so wished. The firm disclosed that it was working with Francisco Partners and Insight Venture Partners.

In a twist, however, Blackstone demanded that the Dell special committee reimburse the costs of assembling that rival bid, up to $25 million. That request was granted on Monday.

Mr. Icahn offered to buy about 58.1 percent of the company for about $15.6 billion, or $15 a share. His proposal envisioned several major shareholders, including Southeastern Asset Management and T. Rowe Price, contributing their stakes as well.

Privately, some Dell advisers considered Mr. Icahn’s proposal simply a placeholder to keep negotiating with the special committee, according to people briefed on the matter. He has said he is reviewing Blackstone’s offer as well, leaving the door open to joining that consortium.

Disruptions: Disruptions: Google Flu Trends Shows Problems of Big Data Without Context

Erik S. Lesser/European Pressphoto Agency Google’s Flu Predictor overestimated how many people had the flu this flu season.

Several years ago, Google, aware of how many of us were sneezing and coughing, created a fancy equation on its Web site to figure out just how many people had influenza. The math works like this: people’s location + flu-related search queries on Google + some really smart algorithms = the number of people with the flu in the United States.

So how did the algorithms fare this wretched winter? According to Google Flu Trends, at the flu season’s peak in mid-January, nearly 11 percent of the United States population had influenza.

Yikes! Take vitamins. Don’t leave the house. Wash your hands. Wash them again!

But wait. According to an article in the science journal Nature, Google’s disease-hunting algorithms were wrong: their results were double the actual estimates by the Centers for Disease Control and Prevention, which put the coughing and sniffling peak at 6 percent of the population.

Kelly Mason, a public affairs spokeswoman for Google, said the company’s Flu Trends site was meant to be only one source in addition to the C.D.C. and other flu surveillance methods. “We review and potentially update our model each season,” she said.

Scientists have a theory about what went wrong, as well.

“Several researchers suggest that the problems may be due to widespread media coverage of this year’s severe U.S. flu season,” Declan Butler wrote in Nature. Then add social media, which helped news of the flu spread quicker than the virus itself.

In other words, Google’s algorithm was looking only at the numbers, not at the context of the search results.

In today’s digitally connected world, data is everywhere: in our phones, search queries, friendships, dating profiles, cars, food, reading habits. Almost everything we touch is part of a larger data set. But the people and companies that interpret the data may fail to apply background and outside conditions to the numbers they capture.

“Data inherently has all of the foibles of being human,” said Mark Hansen, director of the David and Helen Gurley Brown Institute for Media Innovation at Columbia University. “Data is not a magic force in society; it’s an extension of us.”

Society has encountered similar situations for centuries. In the 1600s, Dr. Hansen said, an early census was recorded in England as the Great Plague of London killed tens of thousands of Britons. To calculate the spread of the disease, officials started recording every christening and death in the city. And although this helped quantify the mortality rate, it also created other problems. There was now an astounding collection of statistical information for scientists to review and understand, but it took time to develop systems that could accurately assess the information.

Now, as we enter a world of big data, we have to learn how to apply context to these numbers.

Dr. Hansen said the problem of data without context could be summed up in a quote from the playwright Eugène Ionesco: “Of course, not everything is unsayable in words, only the living truth.”

I experienced this firsthand in the spring of 2010, when I was an adjunct professor at New York University teaching graduate students in the Interactive Telecommunications Program.

I created a class called “Telling Stories With Data, Sensors and Humans,” with the goal of determining whether sensors and data could become reporters and collect information. Students built little electronic contraptions with $30 computers called Arduinos, and attached several sensors, including ones that could detect light, noise and movement.

We wondered if we could use these sensors to determine whether students used the elevators more than the stairs, and whether that changed throughout the day. (Esoteric, sure, but a perfect example of a computer sitting there taking notes, rather than a human.)

We set up the sensors in some elevators and stairwells at N.Y.U. and waited. To our delighted surprise, the data we collected told a story, and it seemed that our experiment had worked.

As I left campus that evening, one of the N.Y.U. security guards who had seen students setting up the computers in the elevators asked how our experiment had gone. I explained that we had found that students seemed to use the elevators in the morning, perhaps because they were tired from staying up late, and switch to the stairs at night, when they became energized.

“Oh, no, they don’t,” the security guard told me, laughing as he assured me that lazy college students used the elevators whenever possible. “One of the elevators broke down a few evenings last week, so they had no choice but to use the stairs.”

E-mail: bilton@nytimes.com

Media Decoder Blog: Murdoch Publishing Wing Shows Loss of $2.1 Billion

Potential investors got a glimpse of the financial challenges that Rupert Murdoch’s soon-to-be spun-off publishing company could face. In a regulatory filing, News Corporation said its publishing businesses lost $2.1 billion in the fiscal year that ended June 30.

The disclosure was filed to the Securities and Exchange Commission on Friday, as the media conglomerate prepares to split its publishing assets from its more lucrative entertainment segments. The new, stand-alone company will retain the name News Corporation and include newspapers like The Wall Street Journal, The New York Post and The Times of London; the HarperCollins book publisher; and a handful of fast-growing Australian pay-television assets.

The entertainment company, which will be called the Fox Group, will include 20th Century Fox studios, Fox Broadcasting and cable channels like Fox News and FX. That company has annual revenue of more than $23 billion.

The losses in the publishing business came largely from $2.8 billion in impairment and restructuring charges, mostly related to the closure of the tabloid News of the World in Britain, which was shut in July 2011 after revelations of widespread phone-hacking. Revenue at the publishing business fell to $8.65 billion in fiscal year 2012, from $9.1 billion a year earlier.

The S.E.C. Form 10 filing moves the company closer toward the split and gives shareholders a better idea of what the stand-alone publishing company, called the “New News Corporation” in the report, will look like financially when the spinoff is completed in mid-2013.

The company warned investors that “newspaper and advertising circulation revenues have been declining, reflecting general trends in the newspaper industry.” In addition to industrywide headwinds, the company said illegal activity at its British newspapers “could damage the New News Corporation’s reputation and might impair its ability to conduct its business.”

As additional civil lawsuits related to phone hacking are filed in Britain, News Corporation said it “is not able to predict the ultimate outcome or cost associated with these investigations.”

The fallout from the phone-hacking scandal, and an investor base that increasingly expressed disapproval of the newspaper business, prompted Mr. Murdoch to announce the split of his $60 billion media conglomerate in June.

“The filing of the Form 10 is another important step forward in the evolution of our company and in the establishment of two independent global leaders in Fox Group and the new News Corporation,” said Mr. Murdoch, who serves as chairman and chief executive of the combined News Corporation.

Earlier this month Mr. Murdoch said Robert Thomson, a confidant and the former managing editor at The Wall Street Journal, would serve as chief executive of the new News Corporation. Mr. Murdoch will continue to serve as chairman of both companies and chief executive of the Fox Group.

In his new role Mr. Thomson, 51, will have a base salary of $2 million with a performance-based $2 million bonus, according to the filing.

In addition to hundreds of newspapers on several continents, the publishing company will also include Australia’s RealEstate.com.au; Fox Sports in Australia; 50 percent of Foxtel, the No. 1 pay-TV provider in Australia; and 44 percent of Sky Network Television in New Zealand. Analysts expect those businesses to drive profits and support some of the weaker newspapers.

Fox Sports had revenue of $3.6 billion and Foxtel of $2.5 billion in 2012. Those results were not included in the publishing company’s 2012 earnings, but will contribute to the new company’s bottom line.

H.P.’s Misstep Shows Risk in the Push for Big Ideas

The ill-fated marriage of the companies is a lesson for H.P. and other older technology giants as they throw billions at supposedly game-changing acquisitions, trying to gain a foothold in the future.

In that future, smartphones and tablets, connected to cloud-computing data centers, are the essential tools of work and play. Companies rent software over the air, rather than buying it with expensive maintenance contracts.

And vast streams of data are continually analyzed to find new patterns and make predictions about consumer behavior and product design. Autonomy, for instance, makes software that can analyze marketing patterns and advise a company on matters like where it should increase marketing resources.

These forces threaten older businesses, like H.P.’s traditional personal computer and data storage products. Other companies, like Oracle, Microsoft and Cisco, also face pressure. They are all trying to buy the future — and have the cash to do it.

In July, Microsoft decided to pay $1.2 billion for Yammer, which makes a Facebook-like social media product for the office. Oracle recently paid over $3.4 billion for two small cloud computing companies that provide software for human resources and sales management. Last Sunday, the computer networking giant Cisco agreed to pay $1.2 billion in cash for Meraki, a company that manages the free wireless service at Starbucks and other businesses.

There are lots more such deals, from these companies as well as I.B.M., SAP and others.

The pace of change is so fast that Google, so recently seen as an upstart and a giant killer, in 2011 paid $12.5 billion for Motorola Mobility to supercharge its Android smartphone business, which competes with Apple. Earlier this year, Facebook spent $750 million on Instagram so it wouldn’t miss the next thing in social media.

But identifying the next big thing can be difficult, said Jeffrey Sonnenfeld, a professor of management at Yale University. Likely as not, he said, deals like the one for Autonomy have “maybe a 40 percent success, 60 percent failure rate.”

He added, “The odds are against you succeeding, but the odds are also worth taking.”

The real hazard, he said, is in the way companies describe these acquisitions as “natural, inevitable victories.” They should be seen, he said, as “an investment, like in research and development.”

The pace of acquisitions hardly matches the level seen during the late ’90s Internet bubble, when Cisco paid $9.6 billion for three networking companies that former officials said yielded almost no benefit. In 2002, AOL Time Warner wrote down $54 billion in good will related to its troubled merger. Several telecommunications equipment makers and service providers also had multibillion-dollar write-downs.

But there are also notable successes.

EMC, a maker of data storage equipment, paid $625 million in 2003 for VMWare, which makes some of the critical technology in cloud computing. Today, after taking some of the company public, EMC’s stake is worth about $30 billion. VMWare recently took a gamble of its own, buying a next-generation networking company, Nicira, that had virtually no revenue, for $1.26 billion.

Microsoft, which also paid $8.5 billion for Skype in 2011, said Yammer was being integrated into SharePoint, Microsoft’s successful collaboration software, and will be included in its premium version of Office communications and productivity software at no cost. It did not say whether, or how, Yammer would be profitable on its own, however.

The real issue with Autonomy may be less its questionable sales than its core technology, said Leslie Owens, who follows data analysis software at Forrester Research.

“H.P. thought it was an entirely new platform, but Autonomy’s clients said it wasn’t as good as Google’s corporate search product,” she said.

Autonomy, which was founded 16 years ago, “was based on using powerful algorithms,” she said, but the software was not attuned “to new kinds of search signals, like what your friends are doing, what people like you are doing, what other data you might draw off on.” Over time those new methods attracted customers.

In a demonstration of the Autonomy product last month, H.P. appeared to have addressed some of those issues, but others remained. An application to help figure out what to pay for Web ads initially failed to work, then delivered results that appeared similar to those of several other search products.

“We remain 100 percent committed to Autonomy and its industry-leading technology,” H.P. said in a statement. “The company’s products are cutting-edge and provide many customers with unique solutions.”

In an interview Tuesday, Meg Whitman, the chief executive of H.P., indicated that the company also had strong hopes for its security software, most of which it got from other acquisitions.

H.P. has accused Autonomy of improperly accounting for much of its sales in the years before H.P. bought the company last year. It took a $5 billion noncash charge related to the purchase price.

Ms. Whitman gave Autonomy tepid support.

“It’s very disappointing,” she said of the write-down. “We’ve integrated the technology into a couple of places; we will integrate it into more.”

Eli Lilly Drug Shows Promise in Treating Mild Alzheimer’s

Taken separately, the studies on the drug, Eli Lilly & Company’s solanezumab, missed their main goals of significantly slowing the mind-robbing disease or improving activities of daily living. But pooled results found 34 percent less mental decline in mild Alzheimer’s patients compared to those on a placebo treatment for 18 months.

Doctors called the results encouraging, although probably not good enough to win Food and Drug Administration approval of the drug without another study to confirm there is a benefit. Investors were more optimistic, driving Lilly’s stock up $2.55, or 5.3 percent, to $50.78 on Monday and more than 19 percent since August, when the company described the results in general terms.

Detailed results of the combined studies were disclosed on Monday at an American Neurological Association conference in Boston.

“It’s certainly not the home run we all wanted, but we’re very encouraged by these results,” said Maria C. Carrillo, senior director of medical and scientific relations for the Alzheimer’s Association, which had no role in the research.

Solanezumab aims to bind to and help clear the sticky deposits that clog patients’ brains. The two studies each had about 1,000 patients, about two-thirds with mild disease and one-third with moderately severe Alzheimer’s, in 16 countries. Their average age was 75.

The main measures were two tests — one reflecting language, memory and thinking and the other, ability to perform daily activities like eating and grooming. The combined results on the patients with mild disease showed a nearly two-point difference in the roughly 90-point score on thinking abilities. Previous studies suggest that a change of three to four on the score is needed to show a clinical benefit, like an improvement in how well patients can take care of themselves.

“It’s a small difference,” Dr. Rachelle S. Doody of Baylor College of Medicine said of the drug’s effect. Still, “you slow the decline” with the drug, she said.

Bits Blog: RIM Shows Off New BlackBerry Phones, but Gives No Release Date

Eric Risberg/Associated Press Thorsten Heins, the president and chief executive of RIM, did not offer a specific date for the coming line of BlackBerry 10 phones.

OTTAWA — Research in Motion said on Tuesday that its coming line of BlackBerry 10 phones would include the company’s popular BlackBerry Messenger service, a feature still absent on its tablet computers.

But during his presentation to software developers in San Jose, Calf., Thorsten Heins, the president and chief executive of RIM, still did not offer a specific date for what he called “our most important launch ever.” Mr. Heins said, however, that the new phones, which have been delayed twice, will be on sale at some point early next year.

At the meeting, the company displayed the second version of a prototype BlackBerry 10 phone. Outwardly, it appeared little different from a prototype given to developers in May. But the software on the phone demonstrated on Thursday looked much more refined and advanced. In addition to BlackBerry Messenger, it included apps for Facebook, LinkedIn, Twitter and Foursquare, which were integrated with the phone’s calendar, datebook and e-mail apps.

RIM also showed how corporations and governments would be able to segregate their data and app from users’ personal selections and information.

The software linking all the features, Mr. Heins said, will allow users to perform a variety of tasks from a single screen without switching applications.

Although creating new phones and a new operating system has clearly been a struggle for the company, Mr. Heins made no effort to temper expectations.

“We are convinced that the BlackBerry 10 platform will shape the next 10 years as profoundly and significantly as BlackBerry shaped the last 10 years,” he said. Recent demonstrations of the prototype to people at telephone companies and elsewhere, he said, have made “believers out of those who had previously written BlackBerry off.”

Still, the success of the new phones remains to be seen. On Thursday, Mr. Heins will have to face a much less cheery group, RIM’s investors, when he announces the company’s second-quarter results. A Bloomberg survey of 35 analysts found that they expected the company to report that earnings fell 41 percent from the same period last year.

Leading up to Tuesday, some analysts speculated that the total number of BlackBerry users had not grown or had even declined during the quarter, which would have been a first for the company. But Mr. Heins said RIM had counted 80 million BlackBerry users during the quarter, up from 78 million the last time the company reported.