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

 

Inequality: Top 10% Of Housholds Have Half Of Total Net Worth

The average New Zealand household was worth $289,000 in the year to June 2015, Statistics New Zealand said today. However wealth was not evenly distributed, with the top 10 percent accounting for around half of total wealth. In contrast, the bottom 40 percent held 3 percent of total wealth. More>>

ALSO:

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news