Super Tuesday is Terrible Tuesday for Stock Market
The American public is busy trying to figure out what all these polls mean about who is going to be their partys candidate. Meanwhile, Super Tuesday has turned out to be Terrible Tuesday for the stock market. Todays news that service sector shrank sent stocks in the wrong direction.The volatility that pummeled stocks in January returned with the news that the service sector shrank last month for the first time since March 2003. The report from the Institute for Supply Management wiped out the nascent optimism about the economy that had sent stocks surging higher last week.The report drives a nail into the coffin from investors minds that were in a recession, said Todd Salamone, director of trading at Schaeffers Investment Research. That doesnt mean stock prices in the months ahead will be lower. But when you see headline numbers like this, there tends to be a reactionary sell.The ISM said its index of service sector activity, which accounts for about two-thirds of the economy, dropped below 50, a level that indicates contraction. Economists had expected another month of growth.Its possible the service sector, which includes businesses ranging from restaurants to retailers to banks, could bounce back in February as the manufacturing sector did in January after its December contraction. The benefit of the Federal Reserves two big interest rate cuts in the latter part of January could also help spur the service sector back into growth mode later this year.Marketwatchs entry says the data today is pointing toward a recession.Todays awful numbers:Dow down 370.03 2.93% - biggest one-day point drop for Dow since it dropped 387 points on Aug. 9, 2007.Nasdaq lost 73.28 3.08%Standard and Poors 500 lost 44.18 3.20%Permalink | Recent Headlines | WWFeeds.com
Apple Takes a Drubbing
Apple AAPL has been taking a beating on Wall Street today. The stock is down over 10%. The reason isnt the companys holiday performance but the possibility of a weaker future. Forbes is asking if one bad Apple could spoil the bunch - meaning could Apple weakness spill over into other tech stocks. Its hard to see gadgets having as good a year this year as they did last year if we are heading into a recession.To some extent, its a case of one bad Apple AAPL spoiling the bunch. Steve Jobs & Co. is seen as the most innovative, growth-producing group in tech. And if the U.S. consumers economic troubles are starting to rattle mighty Apple, high fliers like Research In Motion RIMM and Google GOOG might not be immune, either.Indeed, Apples holiday performance showed signs that the companys not unstoppable in 2008. In particular, Apples cautious outlook, weakness in U.S. iPod growth and the unpredictability of iPhone sales left Wall Streets pessimists plenty of reason to doubt. And in this jittery market, those pessimists have a lot of power.First, a recap of Apples good news - and there was plenty of it. Apple turned in revenue of $9.6 billion and profit of $1.6 billion for the holiday quarter, blowing past the average analyst estimate. The company shipped a record 2.3 million Intel INTC-based Macs during the period, and actually sold as many iPhones as computers. In the process Apple generated $2.7 billion in cash, bringing its war chest to $18.4 billion.But there was troubling news, too. On the conference call with analysts, Chief Financial Officer Peter Oppenheimer admitted that iPod sales merely met the companys expectations, rather than exceeding them. Part of the reason, he said, was that U.S. iPod sales weakened in December - it took overseas sales to make up the difference. In the U.S., in the gift-buying season, we saw a slightly different curve, he said. That was made up for in our very, very good growth internationally.Apple did have a great holiday quarter but what will happen to Apple in the first three quarters of this year with consumers fighting off a recession and rising prices? Thats the question investors are asking about Apple and many other gadget manufacturers. There are also concerns that if people already have any iPod will they might not be as excited about owning the latest and greatest iPod - especially if things get tight.Permalink | Recent Headlines | WWFeeds.com
IACs Diller wins court battle with Liberty - Reuters
IAC's Diller wins court battle with LibertyReuters - 15 hours agoBy Michele Gershberg NEW YORK Reuters - IAC/InterActiveCorp IACI.O: Quote, Profile, Research chief Barry Diller on Friday won a bitter legal dispute with Liberty Media Corp's John Malone, paving the way for him to proceed with efforts to spin off ...Barry Diller Wins as Court Allows His 5-Way Division of IAC New York TimesBarry Diller Can't Be Ousted From IAC Board by John Malone BloombergCNNMoney.com - Wall Street Journal - Conde Nast Portfolio - FOXBusinessall 247 news articles
