Apple Inc. (AAPL) fell in late trading yesterday after profit missed analysts’ predictions for the first time in at least six years, evidence that customers delayed iPhone purchases before the release of the latest model.
Profit was $6.62 billion, or $7.05 a share in the fiscal fourth quarter, compared with $4.31 billion, or $4.64 a share, a year earlier, Cupertino, California-based Apple said yesterday in a statement. That missed analysts’ predicted profit of $7.31 a share, the first disappointment from Apple in at least 26 quarters.
Apple sold 17.07 million iPhones, less than the 20 million projected by analysts surveyed by Bloomberg, as consumers held out for the iPhone 4S, released after the close of the period that ended Sept. 24. The shortfall underscores the growing importance to Apple for the iPhone, which was introduced in 2007 and accounted for 39 percent of revenue last quarter.
Another wild day in Euroland …
Early today, the Guardian reported: France and Germany ready to agree €2tn euro rescue fund
But later in the day, right before the close, Dow Jones reported: EU Source: No EFSF Deal Til Friday, EUR2 Trillion Number ‘Simplistic’
European officials are still debating the size of the bailout fund for the euro zone and reports that an agreement has been reached to leverage it to EUR2 trillion are “totally wrong,” an official familiar with the negotiations said.
There are discussions concern insuring debt so the EFSF would take the first losses. If the first 20% was insured, the €440 billion EFSF could insure close to €2tn in debt – except it isn’t that simple. First, the EFSF only has about €300 that can be deployed, and second, the amount of insurance will vary by country. So the €2tn was “simplistic”…
…And from the Financial Times: French warning to euro summit
President Nicolas Sarkozy said that “an unprecedented financial crisis will lead us to take important, very important decisions in the coming days”.
Raising the sense of urgency, the French president added: “Allowing the destruction of the euro is to take the risk of the destruction of Europe. Those who destroy Europe and the euro will bear responsiblity for resurgence of conflict and division on our continent.”
excerpt with permission
The clock is ticking and the rumors are flying.
- 7:00 a.m. ET: Weekly MBA mortgage applications are due.
- 8:30 a.m.: We get the CPI for September. Economists think consumer prices rose 0.3% after gaining 0.4% in August, keeping inflation worries at a simmer.
- 8:30 a.m.: We get September housing starts. Economists think these rose to a 590,000-unit annual pace, from 571,000 in August. Both are very low numbers — but we don’t need that many more houses anyway.
- 2:00 p.m.: The Fed releases its Beige Book of economic anecdotes, for your sleepy-time reading.
- Boston Fed President Eric Rosengren speaks.
Before the bell we hear from:
- The Travelers
- United Tech
- US Bancorp
- Northern Trust
- M&T Bank
- Freeport McMoRan
- Apollo Group
- Abbott Labs
- Bank of New York Mellon
- Morgan Stanley
- St. Jude Medical
Later we get results from:
- PNC Financial Services
After the close we get results from:
- Wynn Resorts
- Edwards Lifesciences
- American Express
- Western Digital