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.
Tuesday, January 11, 2011
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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