Sales of new homes in the U.S. fell by 12.6% in January to a seasonally adjusted 284,000 unit annual rate, the Commerce Department reported this morning.
Economists had expected a 310,000 pace from a previously reported 329,000 pace in December. The Commerce Department revised December's sales down to 325,000, but it was still the best rate since April 2010.
New-home sales are down 18.6% from January 2010.
The supply of new homes on the market rose to 7.9 months in January from 7 months in December. The median sales price for a new home fell 1.9% in January from December to $230,600. Median sales prices are up 5.7%, however, from January 2010.
Sales of existing homes rose 2.7% in January from December, the National Association of Realtors reported on Wednesday.
Thursday, February 24, 2011
Tuesday, February 22, 2011
Stocks Tumble, Oil Surges on Middle East Worries
The Dow Jones Industrial Average tumbled more than 200 points today, as concerns about unrest in Libya and other countries in the Middle East sent buyers to the sidelines. The Dow closed down 178 points, or 1.4%, to 12,212.79. It was the index's biggest point and percentage decline since mid-November.
Libya has been hit by massive protests, a follow-through from demonstrations in Tunisia and Egypt that forced out those countries' long-standing leaders. Protests are also taking place in Bahrain, Iran, Morocco and Yemen.
Libyan leader Moammar Gadhafi, who has been in power for 42 years, said he would remain in the country "until the end" and that he would fight to his “last drop of blood.” More than 200 people have been killed.
The unrest in Libya caused light, sweet crude oil to jump again today. Oil spiked $5.71, or 6.4% to close at $95.40 a barrel. Libya has the most oil reserves in Africa and is a member of the Organization of Petroleum Exporting Countries.
“Oil traders fear that a civil war would perhaps take Libyan oil out of play for years to come,” Phil Flynn, vice president at PGF Best, told MarketWatch.com.
Saudi oil minister Ali al-Naimi tried to calm fears about oil prices. Speaking at a news conference in Riyadh, Al-Naimi said that "OPEC is ready to meet any shortage in supply when it happens,” according to The New York Times. “There is concern and fear, but there is no shortage.”
Libya has been hit by massive protests, a follow-through from demonstrations in Tunisia and Egypt that forced out those countries' long-standing leaders. Protests are also taking place in Bahrain, Iran, Morocco and Yemen.
Libyan leader Moammar Gadhafi, who has been in power for 42 years, said he would remain in the country "until the end" and that he would fight to his “last drop of blood.” More than 200 people have been killed.
The unrest in Libya caused light, sweet crude oil to jump again today. Oil spiked $5.71, or 6.4% to close at $95.40 a barrel. Libya has the most oil reserves in Africa and is a member of the Organization of Petroleum Exporting Countries.
“Oil traders fear that a civil war would perhaps take Libyan oil out of play for years to come,” Phil Flynn, vice president at PGF Best, told MarketWatch.com.
Saudi oil minister Ali al-Naimi tried to calm fears about oil prices. Speaking at a news conference in Riyadh, Al-Naimi said that "OPEC is ready to meet any shortage in supply when it happens,” according to The New York Times. “There is concern and fear, but there is no shortage.”
Monday, February 21, 2011
Oil Spikes on Libyan Unrest
Oil prices surged today as tension in the Middle East grew, particularly in oil-rich Libya.
Light, sweet crude for April delivery rose $5.69, or 6.3%, to $95.40 a barrel, and Brent crude, the benchmark for European countries, topped $105 a barrel, the highest level in more than two years.
"All eyes are on the Middle East and North Africa crisis regarding potential disruptions in oil exports that could drive crude oil prices even higher," Myrto Sokou, an analyst at Sucden Financial, wrote in a research report, according to CNNMoney.com.
Libya is part of the Organization of Petroleum Exporting Countries (OPEC), and the country produces 1.8 million barrels of oil a day. Its oil reserves make up about 3% of the world's supply. The U.S. imports 90,000 barrels of oil a day from Libya.
Anti-government demonstrations have erupted across the Middle East, with the rulers of Egypt and Tunisia being forced out of their positions of power. Protests have spread to Libya, Bahrain and Morocco.
The unrest prompted Fitch Ratings to downgrade Libya's credit rating to "BBB" from "BBB+," and the ratings company cautioned that another downgrade could follow. Rival credit ratings company Standard & Poor’s lowered Bahrain's sovereign debt rating by one notch to “A-/A-2.”
Light, sweet crude for April delivery rose $5.69, or 6.3%, to $95.40 a barrel, and Brent crude, the benchmark for European countries, topped $105 a barrel, the highest level in more than two years.
"All eyes are on the Middle East and North Africa crisis regarding potential disruptions in oil exports that could drive crude oil prices even higher," Myrto Sokou, an analyst at Sucden Financial, wrote in a research report, according to CNNMoney.com.
Libya is part of the Organization of Petroleum Exporting Countries (OPEC), and the country produces 1.8 million barrels of oil a day. Its oil reserves make up about 3% of the world's supply. The U.S. imports 90,000 barrels of oil a day from Libya.
Anti-government demonstrations have erupted across the Middle East, with the rulers of Egypt and Tunisia being forced out of their positions of power. Protests have spread to Libya, Bahrain and Morocco.
The unrest prompted Fitch Ratings to downgrade Libya's credit rating to "BBB" from "BBB+," and the ratings company cautioned that another downgrade could follow. Rival credit ratings company Standard & Poor’s lowered Bahrain's sovereign debt rating by one notch to “A-/A-2.”
Thursday, February 17, 2011
Philly Fed Jumps; Consumer Prices Creep Higher
Manufacturing activity in the Philadelphia region was robust in February, according to a report from the Federal Reserve Bank of Philadelphia this morning.
The Philly Fed Index rose to a reading of 35.9, up from a reading of 19.3 in January, and the highest level since January 2004. Economists had expected a reading of 20.8. Readings above zero indicate expansion in the sector.
Consumer prices in the U.S. also rose, according to the Labor Department. The department's Consumer Price Index rose 0.4% in January, amid soaring food and gasoline prices. The core CPI, which excludes volatile food and energy prices, rose 0.2%, the biggest gain since October 2009.
Economists had been looking for a 0.3% increase in the CPI and a 0.1% rise in the core CPI.
On a year-over-year basis, the CPI rose 1.6%, up from a 1.5% year-over-year gain in December. The core rate rose 1% from last January.
The Philly Fed Index rose to a reading of 35.9, up from a reading of 19.3 in January, and the highest level since January 2004. Economists had expected a reading of 20.8. Readings above zero indicate expansion in the sector.
Consumer prices in the U.S. also rose, according to the Labor Department. The department's Consumer Price Index rose 0.4% in January, amid soaring food and gasoline prices. The core CPI, which excludes volatile food and energy prices, rose 0.2%, the biggest gain since October 2009.
Economists had been looking for a 0.3% increase in the CPI and a 0.1% rise in the core CPI.
On a year-over-year basis, the CPI rose 1.6%, up from a 1.5% year-over-year gain in December. The core rate rose 1% from last January.
Tuesday, February 15, 2011
Dell Tops Expectations
Dell (DELL) late Tuesday said profit in its most recent quarter nearly tripled, thanks to a boost in corporate spending on computer hardware and demand for its products.
Dell said it earned $927 million, or 48 cents per share, in the fiscal fourth quarte, up from a profit of $334 million, or 17 cents per share, in the same quarter a year ago. Adjusted earnings were 53 cents per share, topping expectations of 36 cents per share.
Revenue was $15.69 billion, up from $14.9 billion. Analysts had expected $15.75 billion in revenue.
The company said it expects revenue growth of between 5% and 9% in the current fiscal year. Wall Street is looking for 5% growth.
Shares of Dell rose 59 cents, or 4.2%, to $14.50 in regular trading on Tuesday; after-hours, the stock slipped 18 cents, or 1.3%, to $13.91.
Dell said it earned $927 million, or 48 cents per share, in the fiscal fourth quarte, up from a profit of $334 million, or 17 cents per share, in the same quarter a year ago. Adjusted earnings were 53 cents per share, topping expectations of 36 cents per share.
Revenue was $15.69 billion, up from $14.9 billion. Analysts had expected $15.75 billion in revenue.
The company said it expects revenue growth of between 5% and 9% in the current fiscal year. Wall Street is looking for 5% growth.
Shares of Dell rose 59 cents, or 4.2%, to $14.50 in regular trading on Tuesday; after-hours, the stock slipped 18 cents, or 1.3%, to $13.91.
Wednesday, February 9, 2011
Bernanke Tries to Calm Inflation Fears
Federal Reserve Chairman Ben Bernanke addressed the House Budget Committee this morning and tried to ease their concerns about the possibility of accelerating inflation.
In his first hearing before the new Republican majority in the House, Bernanke said that "markets don't expect inflation."
Bernanke's comments did little to ease House Budget Committee Chairman Paul Ryan's (R-Wis.) concerns about the potential for a spike in inflation. Ryan expressed worry that the Fed might not notice a rise in inflation until it was too late, pointing to today's edition of The Wall Street Journal and a story entitled “Inflation Worries Spread.”
Bernanke responded by stating that "inflation is taking place in emerging markets because that’s where the growth is, that’s where the demand is and that’s where, in some cases, the economy is overheating." He also said that "overall inflation is still quite low and longer-term inflation expectations have remained stable.”
The Fed chief also talked about unemployment and the overall economy, offering a mixed take about growth. "Although the growth rate of economic activity appears likely to pick up this year, the unemployment rate probably will remain elevated for some time,” Bernanke said.
"Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established,” he added.
In his first hearing before the new Republican majority in the House, Bernanke said that "markets don't expect inflation."
Bernanke's comments did little to ease House Budget Committee Chairman Paul Ryan's (R-Wis.) concerns about the potential for a spike in inflation. Ryan expressed worry that the Fed might not notice a rise in inflation until it was too late, pointing to today's edition of The Wall Street Journal and a story entitled “Inflation Worries Spread.”
Bernanke responded by stating that "inflation is taking place in emerging markets because that’s where the growth is, that’s where the demand is and that’s where, in some cases, the economy is overheating." He also said that "overall inflation is still quite low and longer-term inflation expectations have remained stable.”
The Fed chief also talked about unemployment and the overall economy, offering a mixed take about growth. "Although the growth rate of economic activity appears likely to pick up this year, the unemployment rate probably will remain elevated for some time,” Bernanke said.
"Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established,” he added.
Wednesday, February 2, 2011
The Daily Launches as iPad-only App
News Corp. (NWS) introduced The Daily newspaper today, one that is available only on Apple (AAPL) iPad tablets.
"New times demand new journalism,” News Corp. CEO Rupert Murdoch said. "The iPad demands that we completely re-imagine our craft. I'm convinced that in the tablet era there's room for a fresh and robust new voice."
The Daily targets consumers who do not read traditional newspapers, but it will charge for content, a novel idea in a struggling industry. Many newspapers have been losing money and shutting up shop, faced with shrinking advertising sales and free content online. Revenue at U.S. newspapers slumped 29% in 2009, the fourth annual decline, according to the Newspaper Association of America, the last year that data was available.
Subscribers would get the first two weeks for free, and then "The Daily" app will cost 99 cents per week or $39.99 per year. The Daily is the first publication available through iTunes as a subscription.
"No paper. No multi-million dollar presses. No trucks," Murdoch said. "We're passing on these savings to the reader, which is why we can offer The Daily for just 14 cents a day." Murdoch said
Initially, The Daily will be exclusive to the iPad, but it will be available on other tablets later in the year.
"New times demand new journalism,” News Corp. CEO Rupert Murdoch said. "The iPad demands that we completely re-imagine our craft. I'm convinced that in the tablet era there's room for a fresh and robust new voice."
The Daily targets consumers who do not read traditional newspapers, but it will charge for content, a novel idea in a struggling industry. Many newspapers have been losing money and shutting up shop, faced with shrinking advertising sales and free content online. Revenue at U.S. newspapers slumped 29% in 2009, the fourth annual decline, according to the Newspaper Association of America, the last year that data was available.
Subscribers would get the first two weeks for free, and then "The Daily" app will cost 99 cents per week or $39.99 per year. The Daily is the first publication available through iTunes as a subscription.
"No paper. No multi-million dollar presses. No trucks," Murdoch said. "We're passing on these savings to the reader, which is why we can offer The Daily for just 14 cents a day." Murdoch said
Initially, The Daily will be exclusive to the iPad, but it will be available on other tablets later in the year.
Tuesday, February 1, 2011
Dow Jones Industrial Average Tops 12,000
It's been two and a-half years since investors saw the Dow Jones Industrial Average close above 12,000.
Today, the blue chip index gained 148.23 points, or 1.3%, to close at 12,040.16, the highest level since June 19, 2008. Pfizer (PFE) helped boost the index, thanks to better-than-expected fourth-quarter results.
Strong results from UPS (UPS) and improvement in U.S. manufacturing also helped lift optimism about the global economy. The Institute for Supply Management's index for manufacturing activity rose to a reading of 60.8 in January, from 58.5 in December. Readings above 50 indicate expansion in the sector. It was the highest reading since May 2004, and the 18th straight month of expansion.
Chinese Internet search giant Baidu.com (BIDU) jumped in today's trading as well, after the company late Monday said that its fourth-quarter profit more than doubled.
The Nasdaq Composite Index jumped 51.11, or 1.9%, to close at 2751.19, its best level since August 28, 2008, and the Standard & Poor's 500 index added 21.47, or 1.7%, to 1307.59, the highest close since June 25, 2008.
Today, the blue chip index gained 148.23 points, or 1.3%, to close at 12,040.16, the highest level since June 19, 2008. Pfizer (PFE) helped boost the index, thanks to better-than-expected fourth-quarter results.
Strong results from UPS (UPS) and improvement in U.S. manufacturing also helped lift optimism about the global economy. The Institute for Supply Management's index for manufacturing activity rose to a reading of 60.8 in January, from 58.5 in December. Readings above 50 indicate expansion in the sector. It was the highest reading since May 2004, and the 18th straight month of expansion.
Chinese Internet search giant Baidu.com (BIDU) jumped in today's trading as well, after the company late Monday said that its fourth-quarter profit more than doubled.
The Nasdaq Composite Index jumped 51.11, or 1.9%, to close at 2751.19, its best level since August 28, 2008, and the Standard & Poor's 500 index added 21.47, or 1.7%, to 1307.59, the highest close since June 25, 2008.
Thursday, January 27, 2011
S&P Cuts Japan's Debt Rating
Credit rating company Standard & Poor's lowered its debt rating on Japan to "AA-" from "AA" this morning, citing the country's high debt load.
S&P said that it expects Japan's fiscal deficits to remain high for the next few years and that the country's government lacks a “coherent strategy” to address its growing debt. S&P said that Japan is still dealing with "persistent deflation" and a "fast-aging population."
S&P said its outlook on the country is stable.
It was the first downgrade of Japanese government debt since 2002.
Other countries have also faced downgrades over the past year, including Greece, Spain and Portugal, and S&P and Moody's, another credit rating company, have cautioned that the United States could lose its "AAA" rating because if its increasing deficit.
S&P said that it expects Japan's fiscal deficits to remain high for the next few years and that the country's government lacks a “coherent strategy” to address its growing debt. S&P said that Japan is still dealing with "persistent deflation" and a "fast-aging population."
S&P said its outlook on the country is stable.
It was the first downgrade of Japanese government debt since 2002.
Other countries have also faced downgrades over the past year, including Greece, Spain and Portugal, and S&P and Moody's, another credit rating company, have cautioned that the United States could lose its "AAA" rating because if its increasing deficit.
Tuesday, January 25, 2011
Yahoo Posts Drop in Sales
Yahoo (YHOO) late Tuesday offered a mixed picture for the company's most recent quarter, reporting better-than-expected earnings but a decline in revenue.
Yahoo said fourth-quarter net income was $312 million, or 24 cents per share, up from $153 million or 11 cents per share, in the same period a year earlier. The results included restructuring charges of 2 cents per share. Analysts had expected earnings of 23 cents per share.
Net sales fell 4% to $1.21 billion, but they, too, beat expectations of $1.19 billion. The decline is partly attributable to the company's search partnership with Microsoft (MSFT).
The company said it expects revenue for the current quarter to come in between $1.02 billion and $1.08 billion; Wall Street is looking for sales of $1.13 billion.
Earlier Tuesday, Yahoo announced plans to cut 1% of its work force, or 100 to 150 employees. The company eliminated 4% of its employees in December.
Yahoo said fourth-quarter net income was $312 million, or 24 cents per share, up from $153 million or 11 cents per share, in the same period a year earlier. The results included restructuring charges of 2 cents per share. Analysts had expected earnings of 23 cents per share.
Net sales fell 4% to $1.21 billion, but they, too, beat expectations of $1.19 billion. The decline is partly attributable to the company's search partnership with Microsoft (MSFT).
The company said it expects revenue for the current quarter to come in between $1.02 billion and $1.08 billion; Wall Street is looking for sales of $1.13 billion.
Earlier Tuesday, Yahoo announced plans to cut 1% of its work force, or 100 to 150 employees. The company eliminated 4% of its employees in December.
Wednesday, January 19, 2011
EBay Tops Expectations, Gives Rosy Forecast
Online auction Web site eBay (EBAY) reported better-than-expected quarterly earnings late Wednesday. The company said it earned $559 million, or 42 cents per share, in the fourth quarter. Excluding one-time items, earnings were 52 cents per share, compared with 44 cents per share in the same period a year earlier.
Sales rose more than 5% to $2.5 billion.
Wall Street analysts were looking for earnings of 47 cents and sales of $2.49 billion.
EBay said it expects to earn 44 cents to 46 cents per share in the current quarter, excluding items, in line with analysts' consensus estimate of 45 cents per share. The company also forecast sales between $2.4 billion and $2.5 billion; analysts are looking for $2.42 billion in revenue.
The company also projected better-than-expected earnings and revenue for 2011. Earnings will be between $1.90 per share and $1.95 per share, excluding items, eBay said, with sales as high as $10.6 billion. The Street has eBay earning $1.86 per share on $10.2 billion in revenue.
Revenue at eBay's PayPal division jumped 22% to $971 million in the most recent quarter. EBay benefited from a strong holiday shopping season -- earlier this month, research company comScore said that retail e-commerce spending for the November to December 2010 holiday season was a record $32.6 billion, a 12% jump from 2009.
Sales rose more than 5% to $2.5 billion.
Wall Street analysts were looking for earnings of 47 cents and sales of $2.49 billion.
EBay said it expects to earn 44 cents to 46 cents per share in the current quarter, excluding items, in line with analysts' consensus estimate of 45 cents per share. The company also forecast sales between $2.4 billion and $2.5 billion; analysts are looking for $2.42 billion in revenue.
The company also projected better-than-expected earnings and revenue for 2011. Earnings will be between $1.90 per share and $1.95 per share, excluding items, eBay said, with sales as high as $10.6 billion. The Street has eBay earning $1.86 per share on $10.2 billion in revenue.
Revenue at eBay's PayPal division jumped 22% to $971 million in the most recent quarter. EBay benefited from a strong holiday shopping season -- earlier this month, research company comScore said that retail e-commerce spending for the November to December 2010 holiday season was a record $32.6 billion, a 12% jump from 2009.
Tuesday, January 18, 2011
Apple's Profit Hits a Record
Just a day after Apple (AAPL) CEO Steve Jobs announced plans to take another medical leave, the company assuaged investors' concerns with stellar fiscal first-quarter results late Tuesday.
Apple earned a record $6 billion, or $6.43 per share, in its most recent quarter ending Dec. 25, up from $3.38 billion, or $3.67 per share, in the same period a year earlier. Reveue surged 70% to $26.74 billion.
Wall Street was looking for earnings of $5.42 per share on revenue of $24.4 billion.
Apple also said that it sold a record 16.2 million iPhones in the quarter, along with 4.1 million Macintosh computers, 7.3 million iPads and 19.5 million iPods.
The company said it expects earnings of $4.90 per share for the current quarter on $22 billion in revenue. Analysts are looking for $4.47 per share on $20.9 billion in sales.
Chief Operating Officer Tim Cook will run the company while Jobs is on leave.
Apple earned a record $6 billion, or $6.43 per share, in its most recent quarter ending Dec. 25, up from $3.38 billion, or $3.67 per share, in the same period a year earlier. Reveue surged 70% to $26.74 billion.
Wall Street was looking for earnings of $5.42 per share on revenue of $24.4 billion.
Apple also said that it sold a record 16.2 million iPhones in the quarter, along with 4.1 million Macintosh computers, 7.3 million iPads and 19.5 million iPods.
The company said it expects earnings of $4.90 per share for the current quarter on $22 billion in revenue. Analysts are looking for $4.47 per share on $20.9 billion in sales.
Chief Operating Officer Tim Cook will run the company while Jobs is on leave.
Thursday, January 13, 2011
Intel's Earnings Surge
Intel (INTC) late Thursday reported a 48% jump in fourth-quarter earnings, thanks to strong demand for server processors.
The chip giant said net income was to $3.39 billion, or 59 cents per share, up from $2.28 billion, or 40 cents per share, in the same period a year earlier. Analysts had expected 53 cents per share.
Sales rose 8.4% to $11.5 billion, topping expectations of $11.37 billion.
"2010 was the best year in Intel's history. We believe that 2011 will be even better," Paul Otellini, Intel president and CEO, said in a written statement.
Intel forecast gross margins of 64% for the current quarter, which would be down slightly from the 67.5% Intel reported for the fourth quarter. Gross margins are the percentage of sales remaining after deducting production costs. The company also forecast revenue of between $11.1 billion and $11.9 billion in the current quarter. Analysts are looking for $10.74 billion in revenue.
Shares of Intel rose 70 cents, or 3.3%, to $21.99 in trading Thursday.
The chip giant said net income was to $3.39 billion, or 59 cents per share, up from $2.28 billion, or 40 cents per share, in the same period a year earlier. Analysts had expected 53 cents per share.
Sales rose 8.4% to $11.5 billion, topping expectations of $11.37 billion.
"2010 was the best year in Intel's history. We believe that 2011 will be even better," Paul Otellini, Intel president and CEO, said in a written statement.
Intel forecast gross margins of 64% for the current quarter, which would be down slightly from the 67.5% Intel reported for the fourth quarter. Gross margins are the percentage of sales remaining after deducting production costs. The company also forecast revenue of between $11.1 billion and $11.9 billion in the current quarter. Analysts are looking for $10.74 billion in revenue.
Shares of Intel rose 70 cents, or 3.3%, to $21.99 in trading Thursday.
Wednesday, January 12, 2011
Fed: Labor Market Slowly Starting to Heal
The Federal Reserve offered a muted hint of optimism about the economy today.
The central bank's Beige Book report, a survey of regional economic conditions, noted improved manufacturing and retail conditions across the country. "Economic activity continued to expand moderately from November through December,'' the central bank said in a statement.
There was little worry about inflation, however. "Most District reports cited comments by both retailers and manufacturers that costs were rising, but indicated that competitive pressures had led to only modest pass-through into final prices," the Fed said.
The Fed's Beige Book also had some modestly upbeat comments about the job market, but they were tempered by continued concern about the housing market. "Labor markets appeared to be firming somewhat in most Districts, as some modest hiring beyond replacement was said to have occurred,” the central bank said in its report, but housing was "weak and sluggish" in many regions.
The Beige Book is released two weeks ahead of the next Federal Open Market Committee meeting, which is scheduled for January 25-26.
The central bank's Beige Book report, a survey of regional economic conditions, noted improved manufacturing and retail conditions across the country. "Economic activity continued to expand moderately from November through December,'' the central bank said in a statement.
There was little worry about inflation, however. "Most District reports cited comments by both retailers and manufacturers that costs were rising, but indicated that competitive pressures had led to only modest pass-through into final prices," the Fed said.
The Fed's Beige Book also had some modestly upbeat comments about the job market, but they were tempered by continued concern about the housing market. "Labor markets appeared to be firming somewhat in most Districts, as some modest hiring beyond replacement was said to have occurred,” the central bank said in its report, but housing was "weak and sluggish" in many regions.
The Beige Book is released two weeks ahead of the next Federal Open Market Committee meeting, which is scheduled for January 25-26.
Tuesday, January 11, 2011
Apple's iPhone Officially Coming to Verizon
Finally, Verizon Wireless (VZ) subscribers are going to get the iPhone.
Verizon Wireless today said Apple's (AAPL) iPhone 4 will be available on its network beginning Feb. 10, ending AT&T's (T) exclusive hold on the device since June 2007. Existing Verizon customers will be able to to pre-order the phone starting on Feb. The Verizon iPhone will sell with a two-year contract at $199 for a 16 GB device and $299 for the 32 GB version, similar prices to AT&T's offers.
There were two downfalls to today's announcement: Verizon did not include any information about the cost of data plans, and existing AT&T customers who might want to switch to Verizon face early termination fees of up to $325.
The Verizon iPhone will run on its CDMA network, which means users won't be able to use the phone and surf the Internet at the same time. International users might find trouble with the Verizon iPhone, as well -- it will work on far fewer countries than the AT&T iPhone. Verizon is rolling out a new 4G LTE network, but Apple Chief Operating Officer Tim Cook said at a news conference today that designing the iPhone for Verizon's new network would mean design compromises that could delay its introduction. “Verizon customers told us they want the iPhone now," he said.
Either way, the iPhone should be a boon for both Verizon Wireless and Apple -- giving Apple access to Verizon's 93 million customers. Analysts expect Verizon Wireless to sell at least 9 million iPhones in 2011, whereas AT&T is expected to sell 6 million.
Verizon Wireless is a joint venture between Verizon Communications and Vodafone.
Verizon Wireless today said Apple's (AAPL) iPhone 4 will be available on its network beginning Feb. 10, ending AT&T's (T) exclusive hold on the device since June 2007. Existing Verizon customers will be able to to pre-order the phone starting on Feb. The Verizon iPhone will sell with a two-year contract at $199 for a 16 GB device and $299 for the 32 GB version, similar prices to AT&T's offers.
There were two downfalls to today's announcement: Verizon did not include any information about the cost of data plans, and existing AT&T customers who might want to switch to Verizon face early termination fees of up to $325.
The Verizon iPhone will run on its CDMA network, which means users won't be able to use the phone and surf the Internet at the same time. International users might find trouble with the Verizon iPhone, as well -- it will work on far fewer countries than the AT&T iPhone. Verizon is rolling out a new 4G LTE network, but Apple Chief Operating Officer Tim Cook said at a news conference today that designing the iPhone for Verizon's new network would mean design compromises that could delay its introduction. “Verizon customers told us they want the iPhone now," he said.
Either way, the iPhone should be a boon for both Verizon Wireless and Apple -- giving Apple access to Verizon's 93 million customers. Analysts expect Verizon Wireless to sell at least 9 million iPhones in 2011, whereas AT&T is expected to sell 6 million.
Verizon Wireless is a joint venture between Verizon Communications and Vodafone.
Monday, January 10, 2011
Alcoa Kicks Off Earnings Season
Aluminum giant Alcoa (AA) reported better-than-expected fourth-quarter earnings after today's closing bell.
The company reported net income of $258 million, or 24 cents a share, a turnaround from the loss of $277 million, or 28 cents per share, in the same quarter a year earlier. Excluding items, earnings were 21 cents per share, 2 cents ahead of expectations.
Sales rose 4% to $5.7 billion from the same period a year earlier, essentially in line with analysts' estimates.
Alcoa benefited from higher aluminum prices, which rose 11% in 2010 and 5% in the fourth quarter. The company expects prices to continue to rise.
"In 2011, we see aluminum growing another 12% on top of last year's 13% improvement. We are well positioned to outpace the recovery in the markets we serve and grow shareholder value," CEO Klaus Kleinfeld said in a statement.
Shares of Alcoa were down 28 cents, or 1.7%, to $16.21 in after-hours trading.
The company reported net income of $258 million, or 24 cents a share, a turnaround from the loss of $277 million, or 28 cents per share, in the same quarter a year earlier. Excluding items, earnings were 21 cents per share, 2 cents ahead of expectations.
Sales rose 4% to $5.7 billion from the same period a year earlier, essentially in line with analysts' estimates.
Alcoa benefited from higher aluminum prices, which rose 11% in 2010 and 5% in the fourth quarter. The company expects prices to continue to rise.
"In 2011, we see aluminum growing another 12% on top of last year's 13% improvement. We are well positioned to outpace the recovery in the markets we serve and grow shareholder value," CEO Klaus Kleinfeld said in a statement.
Shares of Alcoa were down 28 cents, or 1.7%, to $16.21 in after-hours trading.
Friday, January 7, 2011
Jobless Rate Falls -- Because of a Shrinking Workforce
Today's jobs report from the Labor Department offered a mixed picture about the economy. The nation's economy added 103,000 jobs in December, fewer than the gain of 150,000 that economists had expected, but the unemployment rate fell to 9.4% from 9.8% last month, the lowest level since May 2009.
The drop in the jobless rate sounds like good news, but the decline was mostly because so many discouraged job seekers dropped out of the workforce. The labor force lost 260,000 adults last month, sending the overall participation rate in the labor force to a 26-year low of 64.3%.
More than 14.5 million people were out of work in December, 44.3% of whom were out of work for 27 weeks or more.
"The big decline in the jobless rate . . . was due to a third consecutive decrease in the labor force, again not a sign that people are seeing their job prospects increase," Steven Ricchiuto, chief economist at Mizuho Securities, told The Wall Street Journal.
The underemployment rate, which includes discouraged workers and people working part-time who would rather have full-time jobs, fell to 16.7% last month from 17% in November.
The unemployment rate has topped 9% since May 2009, the longest stretch since World War II. The employment rate hit a 28-year high of 10.1% in October 2009; it had been below 5% before the recession began.
The Labor Department revised job gains for October and November. October was revised to a gain of 210,000 jobs from an originally reported 172,000, and November added 71,000, up from 39,000.
About 1.1 million jobs were created for all of 2010, the most since 2006. The jobless rate averaged 9.6% last year, the highest since 1983 and up from 9.3% in 2009.
The drop in the jobless rate sounds like good news, but the decline was mostly because so many discouraged job seekers dropped out of the workforce. The labor force lost 260,000 adults last month, sending the overall participation rate in the labor force to a 26-year low of 64.3%.
More than 14.5 million people were out of work in December, 44.3% of whom were out of work for 27 weeks or more.
"The big decline in the jobless rate . . . was due to a third consecutive decrease in the labor force, again not a sign that people are seeing their job prospects increase," Steven Ricchiuto, chief economist at Mizuho Securities, told The Wall Street Journal.
The underemployment rate, which includes discouraged workers and people working part-time who would rather have full-time jobs, fell to 16.7% last month from 17% in November.
The unemployment rate has topped 9% since May 2009, the longest stretch since World War II. The employment rate hit a 28-year high of 10.1% in October 2009; it had been below 5% before the recession began.
The Labor Department revised job gains for October and November. October was revised to a gain of 210,000 jobs from an originally reported 172,000, and November added 71,000, up from 39,000.
About 1.1 million jobs were created for all of 2010, the most since 2006. The jobless rate averaged 9.6% last year, the highest since 1983 and up from 9.3% in 2009.
Thursday, January 6, 2011
Jobless Claims Rise Ahead of Government Jobs Report
Initial jobless claims rose by 18,000 to a seasonally adjusted 409,000 last week, the Labor Department said today, just a day before the its December jobs report will be released.
Economists had expected claims to have risen to 400,000. The most recent data are likely more volatile than normal because of the Christmas and New Year's holidays, however.
Jobless claims peaked at 651,000 in March 2009 and have been treading between 400,000 and 500,000 since, with the exception of the week before last, when they fell below 400,000.
There was some better news in the four-week average, which smooths out weekly volatility: Those claims fell by 3,500 to 410,750, the lowest level since July 2008.
Economists and job seekers alike will be paying close attention to Friday's nonfarm payrolls report. The economy is expected to have added 170,000 jobs in December, up from a gain of 39,000 in November. The unemployment rate is expected to hold steady at 9.8%.
Economists had expected claims to have risen to 400,000. The most recent data are likely more volatile than normal because of the Christmas and New Year's holidays, however.
Jobless claims peaked at 651,000 in March 2009 and have been treading between 400,000 and 500,000 since, with the exception of the week before last, when they fell below 400,000.
There was some better news in the four-week average, which smooths out weekly volatility: Those claims fell by 3,500 to 410,750, the lowest level since July 2008.
Economists and job seekers alike will be paying close attention to Friday's nonfarm payrolls report. The economy is expected to have added 170,000 jobs in December, up from a gain of 39,000 in November. The unemployment rate is expected to hold steady at 9.8%.
Wednesday, January 5, 2011
World Food Prices Hit Record
World food prices soared to an all-time high in December, according to the United Nations, topping 2008 levels that sparked riots in more than 30 countries.
The UN's Food and Agriculture Organization's index of 55 food commodities rose for a sixth month in a row in December to 214.7, up from 206 in November. Price spikes in sugar, cereals and oils drove the jump.
The FAO's food-price index's previous record was 213.5 in June 2008. The FAO started tracking data in 1990.
FAO Senior Economist Abdolreza Abbassian does not think the price increases will cause riots now. “In 2008 we had rapid increases in petroleum prices, fertilizer prices and other inputs,” Abbassian told Bloomberg News. “So far, those increases have been rather constrained."
But Abbassian was cautious: "It doesn’t really reduce the fear about what could be in store in the coming weeks or months.”
The UN's Food and Agriculture Organization's index of 55 food commodities rose for a sixth month in a row in December to 214.7, up from 206 in November. Price spikes in sugar, cereals and oils drove the jump.
The FAO's food-price index's previous record was 213.5 in June 2008. The FAO started tracking data in 1990.
The FAO's Cereals Price Index rose to 237.6 in December, the highest level since August 2008 and up from 223.3 in November. The organization's Sugar Price Index jumped 398.4 from 373.4 in November -- also a record high. The Oils Price Index rose to 263.0 from 243.3 in November, the highest level since July 2008.
FAO Senior Economist Abdolreza Abbassian does not think the price increases will cause riots now. “In 2008 we had rapid increases in petroleum prices, fertilizer prices and other inputs,” Abbassian told Bloomberg News. “So far, those increases have been rather constrained."
But Abbassian was cautious: "It doesn’t really reduce the fear about what could be in store in the coming weeks or months.”
Tuesday, January 4, 2011
2010: A Good Year for New York City
Recession or no recession, tourists came to the Big Apple in droves last year.
A record 48.7 million visitors visited New York City in 2010, up 6.8% from 2009, the city's tourism office said today in a statement. A record 9.7 million of those visitors were from outside of the United States, and the 39 million who came from within the country was also a record. Together, they spent $31 billion in the city in 2010.
“The strength of our tourism industry is one of the reasons New York City was less impacted by the national recession than other cities, and it continues to be one of the reasons we’re growing faster than other cities today," Mayor Bloomberg said at a news conference at the Brooklyn Botanic Garden.
"We’re constantly looking for ways to strengthen and diversify our economy, and growing our tourism industry is an important part of that work," Bloomberg said.
Attendance at New York City’s 1,200 nonprofit cultural organizations rose 5% last year, and Broadway attendance this season was up 3.8% from last year, topping 7.55 million.
The jump in tourism is helping New York City stay on pace to meet its goal of attracting 50 million annual visitors by 2012, a goal the Bloomberg Administration set in 2007, before the recession.
A record 48.7 million visitors visited New York City in 2010, up 6.8% from 2009, the city's tourism office said today in a statement. A record 9.7 million of those visitors were from outside of the United States, and the 39 million who came from within the country was also a record. Together, they spent $31 billion in the city in 2010.
“The strength of our tourism industry is one of the reasons New York City was less impacted by the national recession than other cities, and it continues to be one of the reasons we’re growing faster than other cities today," Mayor Bloomberg said at a news conference at the Brooklyn Botanic Garden.
"We’re constantly looking for ways to strengthen and diversify our economy, and growing our tourism industry is an important part of that work," Bloomberg said.
Attendance at New York City’s 1,200 nonprofit cultural organizations rose 5% last year, and Broadway attendance this season was up 3.8% from last year, topping 7.55 million.
The jump in tourism is helping New York City stay on pace to meet its goal of attracting 50 million annual visitors by 2012, a goal the Bloomberg Administration set in 2007, before the recession.
Monday, January 3, 2011
Bulls Drive First Session of 2011
Stocks soared today, the first trading day of 2011.
The Dow Jones Industrial Average climbed 93 points, or 0.8%, to close at 11,671, the index's best close since August 2008. The Nasdaq Composite Index rose 39 points, or 1.5%, to 2,692, and the Standard & Poor's 500 Index gained 14 points, or 1.1%, to close at 1272.
Financials helped lead the rally, thanks to Bank of America (BAC), which said it agreed to a mortgage settlement with Fannie Mae and Freddie Mac. The bank jumped 85 cents, or 6.4%, to $14.19.
Also adding to momentum was a report that showed continued expansion in the manufacturing sector. The Institute for Supply Management's manufacturing index rose to 57 in December, up slightly from a reading of 56.6 in November. It was the 17th straight month of expansion in the sector. Readings above 50 indicate expansion.
A good start to January typically means a good year for stocks, according to the Stock Trader's Almanac. In fact, if the S&P 500 rises the first five days of January, that means annual gains nearly 90% of the time.
"All of the forecasts come out of Wall Street, and those expectations for the year give January a nice indicative effect of what the year will look like," Jeffery Hirsch, the editor of the Stock Trader's Almanac told The Associated Press.
The Dow Jones Industrial Average climbed 93 points, or 0.8%, to close at 11,671, the index's best close since August 2008. The Nasdaq Composite Index rose 39 points, or 1.5%, to 2,692, and the Standard & Poor's 500 Index gained 14 points, or 1.1%, to close at 1272.
Financials helped lead the rally, thanks to Bank of America (BAC), which said it agreed to a mortgage settlement with Fannie Mae and Freddie Mac. The bank jumped 85 cents, or 6.4%, to $14.19.
Also adding to momentum was a report that showed continued expansion in the manufacturing sector. The Institute for Supply Management's manufacturing index rose to 57 in December, up slightly from a reading of 56.6 in November. It was the 17th straight month of expansion in the sector. Readings above 50 indicate expansion.
A good start to January typically means a good year for stocks, according to the Stock Trader's Almanac. In fact, if the S&P 500 rises the first five days of January, that means annual gains nearly 90% of the time.
"All of the forecasts come out of Wall Street, and those expectations for the year give January a nice indicative effect of what the year will look like," Jeffery Hirsch, the editor of the Stock Trader's Almanac told The Associated Press.
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