Apple closes above $700; FedEx weighs on stocks
Worries about the global economy and Europe keep stocks in check. FedEx cuts its guidance. Apple reaches $702; Google nearly reaches $719. Crude oil drops; so do retail gas prices. Homebuilders are increasingly optimistic.
Apple (AAPL) shares topped $702 and closed above $700 Tuesday for the first time as iPhone fever grew ahead of the first sales on Friday. Google (GOOG) shares hit a new 52-week high. Homebuilders are the most optimistic they've been in more than six years.
But that wasn't good enough for the stock market, which ended basically flat on the day. Weighing on the market were package shipper FedEx (FDX)'s warning about a slowing global economy and weak stocks in Europe as dismay grew that Spain doesn't want to apply for a bailout. Spain is considering the issue carefully in large part because any assistance would require submitting to severe austerity requirements.
Futures trading suggests stocks will open solidly higher on Wednesday after the Bank of Japan decided to ease monetary policy with up to 80 trillion yen (or $1 trillion) in asset purchases and extend the program until the end of 2013. It is similar to the Federal Reserve's stimulus plan announced last week.
Wednesday brings earnings from General Mills (GIS), office furniture makers Steelcase (SCS) and Herman Miller (MLHR) and Bed Bath & Beyond (BBBY). The latter was off $2.38 to $69.39 after an analyst downgrade. The Commerce Department will report on August building permits and housing starts; the National Association of Realtors will report on existing-home sales.
The Dow Jones industrials ($INDU) closed up 12 points to 13,565. The Standard & Poor's 500 Index ($INX) dropped 2 points to 1,459, and the Nasdaq Composite Index ($COMPX) was off 1 point to 3,178. The Nasdaq-100 Index ($NDX), dominated by Apple, finished up 1 point to 2,857.
Article continues below.There were reports that many overseas investors were less confident about conditions in Europe and Asia and were parking cash in U.S. Treasury securities. The 10-year Treasury yield fell to 1.812% from 1.838% on Monday.
After the close, Microsoft (MSFT), the publisher of MSN Money, raised its dividend 3 cents or 15% to 23 cents a share. It's payable Dec. 13 to shareholders of record on Nov. 15.
Apple shares hit a new intraday high of $702
Apple, of course, is commanding lots of attention as it readies iPhone 5 devices for shipment this week. The company received about 2 million orders for the device on Friday.
Shares hit a record $702.33 before closing at $701.91 on Tuesday, up $2.13, a new closing high. The shares were off slightly after hours.
Google is up about 23% this quarter as earnings are improving and consumer acceptance of mobile devices using its Android operating system grows, especially outside the United States.
Shares hit $718.71, a new 52-week high and the highest level since late 2007. But they fell back slightly to $718.28, up $8.30. Google's all-time high is $741.79, set on Nov. 6, 2007.
|Energy prices -- New York close|
|Tues.||Mon.||Month chg.||YTD chg.|
|Crude oil (-CL)||$95.29||$96.62||-1.22%||-3.58%|
|Heating oil (-HO)||$3.1271||$3.1634||-1.67%||7.31%|
|Natural gas (-NG)||$2.7730||$2.8650||-0.93%||-7.23%|
|(per mil. BTU)|
|Unleaded gasoline (-RB)||$2.8990||$2.9433||-2.48%||9.09%|
|(per gallon; AAA)|
Crude falls for second day
Thanks to the second day in a row of lower oil prices, energy stocks were the market's weakest sector. But gold (-GC) settled higher. A Bank of America Merrill Lynch analyst projected gold could hit $2,400 an ounce.
Crude oil (-CL) in New York settled down $1.33 to $95.29 a barrel. Brent crude was off $1.76 to $112.03 a barrel.
The national average price for regular gasoline fell to $3.859, down from Monday's $3.862, according to AAA's Daily Fuel Gauge Report. It's the fourth straight day of declines.
Gold settled up 60 cents to $1,771.20 an ounce. One reason may have been the research note of Francisco Blanch of Bank of America Merrill Lynch who sees the Federal Reserve's stimulus moves as pushing gold prices up to $2,400 by the end of 2014.
Crude's decline was enough to push energy shares lower. Exxon Mobil (XOM) fell 26 cents to $91.65. Chevron (CVX) dropped 17 cents to $116.97. Baker Hughes (BHI) fell $1.20 to $48.90.
Silver (-SI) was up 35.1 cents to $34.718 an ounce. Copper (-HG) slipped a half-cent cents to $3.787 a pound.
FedEx struggles with weak global economy
But the global economy is still weak, and that's FedEx's problem. In a way, it's everyone's problem because FedEx is widely watched as an early indicator of global economic trends.
Shares were off $2.73 to $86.55 and are off more than 4.5% this quarter.
Customers are saving money by using regular FedEx services as opposed to premium options. Some customers were shipping goods on ships to save money.
The company beat Street estimates on fiscal-first-quarter earnings, reporting $459 million or $1.45 a share. It had projected $1.43 a share. Revenue was up 2.6% to $10.79 billion; analysts had expected $10.7 billion.
"Exports and trade have gone down at a faster rate than global trade has," said Chief Executive Fred Smith on a post-earnings call.
He said new product launches from Apple and Microsoft (MSFT) wouldn't be enough to counter broader weakness in manufacturing, especially as more shipments are carried by cheaper ocean options. He said, though, FedEx is gaining market share in air cargo. (Microsoft publishes MSN Money.)
Two weeks ago, FedEx cut its earnings expectations for the quarter, citing a sharp slowdown in global manufacturing activity. The company has been cutting costs, and it reiterated that it will detail it efforts during an Oct. 10 investor meeting.
Rival United Parcel Service (UPS) was off 72 cents to $73.51.
Homebuilders are more optimistic
The National Association of Home Builders/Wells Fargo Housing Market Index hit 40, the highest level since June 2006 and the fifth straight monthly gain.
It was also better than expected. That said, the report, released Tuesday, does not mean all is well for builders. For actual overall optimism, the index must top 50.
Nonetheless, it is far cry from 2009 when the index fell into single digits. Moreover, the index suggests conditions will be better in six months.
There was some skepticism about the report. Homebuilding shares, among the best-performing sectors this year, were lower Tuesday. PulteGroup (PHM) was off 37 cents to $15.76. Toll Bros. (TOL) fell 54 cents to $35.19. MDC Holdings (MDC) was off 55 cents to $37.70.
Fourteen of the 30 Dow stocks were higher, led by Kraft Foods (KFT) and Caterpillar (CAT).
Alcoa and American Express (AXP) were the laggards.
Meanwhile, 175 S&P 500 stocks were higher, led by F5 Networks (FFIV) and Apollo Group (APOL). Advanced Micro Devices (AMD) and oil-and-gas-producer WPX Energy (WPX) were the laggards. AMD fell after CFO Thomas Seifert resigned after three years on the job.
And 39 Nasdaq-100 stocks were higher, led by F5 Networks and Apollo Group. Bed Bath & Beyond and Green Mountain Coffee Roasters (GMCR) were the laggards.
|Short hits from the markets -- New York close|
|Tues.||Mon.||Month chg.||YTD chg.|
|13-week Treasury bill||0.1000%||0.100%||11.11%||900.00%|
|5-year Treasury note||0.699%||0.717%||17.28%||-15.78%|
|10-year Treasury note||1.812%||1.838%||16.01%||-3.15%|
|30-year Treasury bond||3.032%||3.032%||12.97%||4.95%|
|U.S. Dollar Index||79.346||79.115||-2.30%||-1.46%|
|(in U.S. $)|
|U.S. $ in pounds||£0.615||£0.615||-2.24%||-4.40%|
|Euro in dollars||$1.30||$1.31||3.56%||0.68%|
|(in U.S. $)|
|U.S. $ in euros||€ 0.767||€ 0.762||-3.44%||-0.67%|
|U.S. $ in yen||78.85||78.73||0.45%||2.27%|
|U.S. $ in Chinese||6.31||6.31||-0.77%||-0.17%|
|(in U.S. $)|
|(in Canadian $)|
|(per troy ounce)|
|(per troy ounce)|
|Crude oil (-CL)||$95.29||$96.62||-1.22%||-3.58%|
hehe oh you pathetic libs, you think Romney's comment onthe 47% hurts him? hahahah!!! since when does the TRUTH hurt? well it hurts you pathetic liberals of course, your entire base is lie after lie, people are living the lies of obama and his illegal regime and Romney's saying EXACTLY the TRUTH, the parasites that demand gov't entitle them to EVERYTHING while they sit on their collective ever widening azzes and watch the maury povich show to let him do dna tests on the 40 or so guys that some sleezy skank slept around with to find out which deadbeat is the real father, you wanna see the obama base? chk out Ch11 at 9am here in NY and you'll see the obama voter at their best, which means their lowest trashiest best that is, now tell me again how osama is ahead hahahaha!!!
Romny/Ryan + obama/biden = Reagan/carter redux x10
meanwhile the mideast burns as obama blames some obtuse douchbag's video that NOBODY SAW!!!
People, get a clue! The FEDERAL GOVERNMENT, AND ALL GOVERNMENT EMPLOYEES FOR THAT MATTER are the ones that are on PERPETUAL WELFARE!
They are nothing but one huge collection agency and they do absolutely nothing for the average American citizen............NOTHING!
"Many people do take unfair advantage of programs like social security disability and food stamps as has been discussed here today."
Do consider that there are Americans who 'should' be collecting from the Government, but because of personal conviction, pride, among other reasons, DO NOT collect a cent. I know several, and applaud their self sufficiency. Those so honorable amongst us do receive assistance, but it is from their friends and neighbors, and it's not considered charity, but one American helping another American in times of need.
BREAKING NEWS!! BREAKING NEWS!!! BREAKING NEWS!!! BREAKINGNEWS!!!
well I must admit Pres Romney got it wrong when he said 47% of voters are "victims" and "entitled" to EVERYTHING from the gov't, yep he was wrong
IT'S 49%!!!! PRES ROMENY UNDERESTIMATED THE PARASTIC VERMIN AND LEECHES DRAGGING THIS GREAT NATION DOWN!! THANX OF COURSE TO BARACK OSAMA HUSSEIN OBAMA!!! HE'S THE ONE THAT WANTS 55% OF THE PEOPLE IN THIS NATION MIRED IN THE MEDIOCRITY OF POVERTY AND UNAMBITION AT LEAST!! AND ACCOMPLISHING NOTHING AS HUMAN BEINGS!! you know a better way to "control" the people and enslaving them to the gov't, to be the "same" to have the same "NOTHING" so everyone is EQUAL, fckn scumbag commie obama is outta here in Nov libs, end of game!!
oops!! what's this?? what's this!!!! Iran deploying a soviet nuclear sub??? hmmmm what's a muslim president to do?? why go on that douchbag david letterman show of course!!!! who's constantly wiping the brown of his ugly face from having it compacted soooooooooo tightly against obama's azz for 3.6yrs now!! hmmm wonder what else in on osama's itinerary, oh yes, that skank beyonces' fundraiser and that fckrag the pimp with a limp show, meanwhile the mideast is burning, what would a muslim pres do now?? why play golf, naturally, what else!!
oh yea, gas prices up again, no!!! didn't see that coming, the private sector is doing well u know!
a DISGRACE,AN EMBARRASSMENT
$78,000 YEAR , they TURNED down a 12% RAISE over 4 YEARS.
3/4 salary at "retirement" in 20 years.
THI IS WHY WE ARE GOING DOWN THE TUBES.
Corrupt unions , corrupt politicians who accept kickbacks (hello Dear leader) and teachers who can barely put a sentence together, teaching even dumber kids !
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[BRIEFING.COM] Stocks entered the weekend on a mixed note as the S&P 500 shed 0.1% while the Dow ended with a gain of 0.1%.
The major averages began the day on a lower note as nine of ten sectors saw losses of more than 0.5%.
The consumer staples sector was the lone exception as the group spent the entire day in positive territory thanks to the relative strength of Dow component Procter & Gamble (PG 81.89, +3.19). The second-largest staple stock advanced ... More
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