Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Apple turns sour

While you were sleeping: Apple turns sour

Jan 15 (BusinessDesk) – Wall Street fell amid concern that stock market darling Apple is facing headwinds, fanning concern that other companies might struggle with demand for their products and services too.

Shares of Apple sank on reports that it's slowing down production of its iPhone 5, increasing worries the appeal of some of its products is waning. The stock was last down 3.3 percent at US$503.35, compared with a record high of US$705 reached in September.

Apple slashed its original target to order 65 million iPhone 5 displays this quarter by about half, Nikkei reported, citing an unidentified senior executive at a component maker it didn’t name.

“Apple is the story for the market,” James Paulsen, the chief investment strategist at Minneapolis-based Wells Capital Management, told Bloomberg News. “It brings fear that if Apple’s doing something, the other companies and industries would be doing the same. That makes it even more important for investors to watch corporate guidance or CEO’s expectations.”

Fourth-quarter earnings expectations are extremely modest. Overall earnings are expected to increase by 1.9 percent in this reporting period, according to Thomson Reuters data.

In afternoon trading in New York, the Standard & Poor's 500 Index fell 0.26 percent while the Nasdaq Composite Index dropped 0.44 percent. The Dow Jones Industrial Average gained 0.05 percent.

Meanwhile, President Barack Obama today warned Congress that a refusal to lift the US debt ceiling would hurt the economy and could send markets "haywire".

"It would be a self-inflicted wound on the economy," Obama said at a news conference.

Federal Reserve Chairman Ben Bernanke is set to speak later today at the University of Michigan.

In Europe, the Stoxx 600 Index finished the session with a 0.4 percent drop from the previous close. The UK’s FTSE 100 also declined, closing 0.2 percent lower. However, France’s CAC 40 eked out a gain of just under 0.1 percent, and Germany’s DAX rose 0.2 percent.

While investors and European Union leaders alike agree that the sovereign debt crisis has abated, there are still plenty of signs of struggle ahead. Industrial production in the euro zone unexpectedly fell in November, sliding 0.3 percent from October, according to the European Union’s statistics office.

Investors are gearing up for further government debt auctions this week.

Spain said it will auction bonds maturing in 2015, 2018 and 2041 on January 17, while Italy said it will sell a new 15-year benchmark security for the first time in two years, according to Bloomberg.

Shares of TNT Express sank 41 percent after United Parcel Service decided to drop its plans to take over the company after EU officials told it that the deal would be blocked.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news