| Apple second-quarter outlook spooks investors
SAN JOSE, Calif. (AP) - As investors pummeled Apple Inc.'s stock over a disappointing financial outlook, a key question remained about the results: just how badly will the company be hurt by slowing economic activity in the United States and fears of a recession?Wall Street interpreted the Cupertino-based company's guidance for the current quarter, released after the market closed Tuesday, as a sign that weakening consumer spending will hurt Apple in 2008 and that even a hot company like Apple isn't immune from the broader economic pressures weighing on the stock market.Apple executives noted, however, that its forecast for the fiscal second quarter calls for sales growth of 29 percent, which is faster than in previous years, even if it is slower than Wall Street was expecting. The company said that because of booming holiday sales, Apple notched the highest quarterly revenue and earnings in its history."Our business performed very well in the December quarter, and we remain very confident in our products and our strategy," said Apple Chief Financial Officer Peter Oppenheimer.At the open of trading Wednesday, Apple shares tumbled nearly 12 percent, or $18.30, to $137.34.Apple's stock, seen as a refuge from the market's turmoil during the second half of 2007, has declined sharply, wiping out more than $40 billion in shareholder wealth since the end of December, when shares hit their 52-week high of $202.96.Shareholders had hoped Apple's first-quarter results, which cover the last three months of the year, would be a high point in a market otherwise marred by bad news.
Filed under: ClevelandBrowns
The NFL regular season has come to a close and the Cleveland Browns just missed making the playoffs. A few weeks ago it sure looked like they were in good shape as far as the post season was concerned, but I guess it just wasn't meant to be. Still, the Browns did register a victory over the San Francisco 49ers in their final game and there will be high hopes for this team entering the 2008 season. The Brownies finished with a 10-6 record, far exceeding expectations for this team entering 2007. This is the first time this franchise has reached a double digit win total since they re-entered the league in 1999. They provided many thrills for their die hard fans this season and belive me it was long overdue. I grew up in Cleveland and have been a life long Browns fan, so the following opinion might be a bit bias.
State bans Allstate from selling new auto policies
Cranking up the heat, Florida regulators will suspend Allstate's license to sell auto insurance in the state until the company cooperates with an investigation into why its homeowners rates haven't fallen. It's an unprecedented move for the state Office of Insurance Regulation, which is on the warpath because homeowners' premiums are still high despite passage of an insurance overhaul law in January 2007. The office is seeking information concerning how Allstate sets its rates and pays claims, and the company has refused to provide it. ''This is an ongoing and blatant disregard for the laws of the state of Florida. This can't and won't continue,'' Insurance Commissioner Kevin McCarty said Wednesday. The move sends a powerful message to the rest of Florida's insurance industry that rates must come down.
Morgan's equity experts advise investors to buy
Investment bank JP Morgan has lifted its head above the parapet to call the bottom of the current market, advising investors to buy European equities on a six-12 month horizon. Follow the markets in Ben Bland's Market ForcesWhile global stocks have fallen by nearly 20pc from their recent peaks, equity strategists at JP Morgan explained that all their technical models were coming up with "buy" signals. .
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