On Tuesday January 18, 2011, 6:10 pm EST
Apple net income soars 78
pct. in holiday quarter
Apple Inc. said Tuesday
that its net income for the holiday quarter jumped 78 percent as shoppers
snapped up more iPads than analysts predicted.
The results sent shares
climbing in after-hours trading. Earlier, shares slipped more than 2 percent in
regular trading as investors focused on news that CEO Steve Jobs will take
another medical leave of absence. Jobs has survived a rare form of pancreatic
cancer and had a liver transplant in 2009.
Apple sold 7.3 million
iPads during the quarter, about a million more than analysts were expecting.
The iPad, a touch-screen tablet computer with no keyboard, first went on sale
in April and was one of the hottest gifts over the holidays.
Apple sold 16.2 million
iPhones, an 86 percent increase from a year ago. Sales of Mac computers rose 23
percent to 4.13 million laptops and desktops.
Apple sold 19.5 million
iPods, a 7 percent drop from a year earlier. However, people spent more on
average on the devices -- revenue from iPods edged up 1 percent.
Comcast wins government
approval to take over NBC
WASHINGTON (AP) --
Government regulators on Tuesday gave Comcast Corp., the country's largest
cable company, clearance to take over NBC Universal in a deal that is certain
to transform the entertainment industry landscape.
Comcast is buying a 51
percent stake in NBC Universal, home of the NBC television network, from
General Electric Co. for $13.8 billion in cash and assets.
The Justice Department and
five state attorneys general said Tuesday that they have reached a court
settlement allowing the companies to proceed with their combination, subject to
conditions intended to preserve competition among TV providers.
In addition, the
five-member Federal Communications Commission on Tuesday voted 4-1 to approve
the transaction, subject to similar but broader conditions.
Among other things,
regulators are requiring Comcast to make NBC programming available to
competitors such as satellite companies, as well as new Internet video services
that could pose a threat to the company's core cable business.
Citigroup dips into
reserves to post 4Q profit
NEW YORK (AP) -- Citigroup
Inc. was profitable in the fourth quarter, but only after reaching into
reserves that it no longer needed for loan losses. Revenues from trading stocks
and bonds fell sharply.
The New York bank reported
fourth-quarter income of $1.3 billion Tuesday, or 4 cents a share, falling
short of the 7 cents expected by analysts surveyed by FactSet. Citi's stock
fell 6 percent to $4.80 in heavy trading.
The results were an
improvement from the loss of $7.6 billion, or 33 cents a share, reported for
the same quarter of last year. Revenue was $18.4 billion compared to $5.4
billion a year earlier. Last year's revenue took a hit when the company paid
back part of the bailout money it received from the government.
For the year, Citigroup
earned $10.6 billion on revenue of $86.6 billion. It was the first full year of
profits for the bank since 2007, when CEO Vikram Pandit took over the top job.
Citigroup was one of the
largest recipients of bailout funds during the financial crisis of 2008. The
government sold the last of its stake in the bank in December for a profit of
$12 billion.
Homebuilder sentiment index
unchanged in January
LOS ANGELES (AP) -- U.S.
homebuilders remain discouraged over the prospects for improved home sales in
the months ahead, unconvinced as yet that the economy will spur the kind of job
growth needed to coax more buyers into the market.
The National Association of
Home Builders said Tuesday that its monthly reading of builders' sentiment was
unchanged in January at 16, where it's been since November.
While it remains the
highest reading since June, any reading below 50 indicates negative sentiment
about the market. The index hasn't been above that level since April 2006.
Many smaller, private
builders also continue to have a tough time getting construction loans and
other financing, which could significantly slow the onset of a housing
recovery, Crowe noted.
High unemployment, tighter
bank lending standards and uncertainty about home prices have kept many people
from buying homes, despite low mortgage rates and home prices that have fallen
by more than half in some markets since the peak of the housing boom.
Obama orders review of
rules to boost economy
WASHINGTON (AP) --
President Barack Obama, in another move to smooth frayed ties with corporate
America, ordered a far-reaching review of federal regulations Tuesday with the
goal of weeding out rules that hurt job growth and creation. Republicans and
business groups welcomed the step but suggested he do even more.
Business groups have
bitterly complained that new regulations carrying out health care and financial
overhaul, among others, are holding back hiring and economic growth.
Despite Obama's directive,
there was no indication that the White House will pull back from the biggest
regulatory fights ahead: the Environmental Protection Agency's plans to
regulate greenhouse gases and rules carrying out Obama's health care overhaul.
The move was the latest
outreach by the president to repair relations with the business community
following last November's midterm congressional elections, in which Republicans
gained control of the House and increased their numbers in the Senate. Some of
Obama's critics have accused him of overstepping his federal power via rules
and regulations and of being anti-business.
Credit card problems ebb as
2010 comes to close
NEW YORK (AP) -- The
nation's top credit card issuers on Tuesday said the number of accounts that
slipped into default fell to their lowest points of 2010 in December, and signs
point to continued improvement in coming months.
Five of the six biggest
card issuers posted their lowest rates for charge-offs, or accounts written off
as uncollectible.
While the rates of balances
companies wrote off remains high by historical standards, they fell
consistently throughout the year.
Importantly, rates for
payments late by 30 days or more also reached lows. That figure, also known as
the delinquency rate, is considered an indicator for what's to come, which
means charge-offs can be expected to keep falling through the first few months
2011.
German investor confidence
rises sharply
BERLIN (AP) -- German investor
confidence has risen sharply amid hopes that global growth will remain healthy,
while investment and private spending in Europe's biggest economy gain
momentum, a survey showed Tuesday.
The ZEW institute's
confidence index was up to 15.4 points for January from 4.3 in December.
It was the third
consecutive rise in the index, a yardstick of financial experts' outlook for
the economy over the next six months. While it remains short of its historical
average of 26.8 points, the index has recovered from a trough of minus 7.2 in
October.
ZEW said the upturn in
investors' outlook may be due to the fact investment is gaining momentum in
Germany and beyond -- shown by healthy data on industrial orders.
Investors to take hit when
gov't dismantles banks
WASHINGTON (AP) -- Federal
regulators will require creditors and shareholders of big failing financial
firms to accept some losses when the federal government steps in.
The Federal Deposit
Insurance Corp. approved the rule Tuesday, which was required under the financial
regulatory law enacted last summer.
Under the law, Congress
gave the FDIC the authority to wind down troubled firms and sell off their
assets to protect the broader financial system. But it left some details for
the FDIC to sort out.
The rule allows the FDIC to
make payments to some short-term creditors of the firms, such as for enabling
the firms to continue operating and pay employees
China lowers holdings of US
debt in November
WASHINGTON (AP) -- China,
the biggest buyer of U.S. Treasury securities, reduced its holdings in November
after four months of gains.
China's holdings of
Treasury debt dropped 1.2 percent to $895.6 billion, the Treasury Department
said Tuesday. The report comes just before a state visit to the U.S. by Chinese
President Hu Jintao.
Overall, foreign holdings
of Treasury securities rose 0.9 percent to $4.35 trillion. That indicates that
other nations still have an appetite for Treasury debt even as the U.S.
government is running $1 trillion-plus annual budget deficits.
Of the total foreign
holdings, $2.82 trillion or about two-thirds, is held by foreign governments
and central banks.
Foreign demand for U.S.
Treasury debt has been critical in helping to keep interest rates low. If the
United States had to finance all of its debt domestically, it would drive up
U.S. interest rates not only for the federal government but also for American
companies and consumers.
That would slow U.S. growth
at a time when the Federal Reserve is trying to keep interest rates low to help
boost the economy.
By The Associated Press
The Dow Jones industrial
average rose 50.55 points, or 0.4 percent, to close at 11,837.93.
The Standard & Poor's
500 index edged up 1.78, or 0.1 percent, to close at 1,295.02. The Nasdaq rose
10.55, or 0.4 percent, to 2,765.85.
Benchmark crude for
February delivery was little changed on the New York Mercantile Exchange, down
16 cents to settle at $91.38 a barrel.
In other Nymex trading in
February contracts, heating oil added 0.07 cent to settle at $2.6459 a gallon,
and gasoline lost 1.54 cents to settle at $2.4792 a gallon. Natural gas March
futures fell 5.5 cents to settle at $4.425 per 1,000 cubic feet.
In London, Brent crude rose
37 cents to settle at $97.80 a barrel on the ICE Futures exchange.