Dow opened lower & continued to head south all day. It finished down 213 (closing at the lows), decliners over advancers 6-1 & NAZ sank 53 (even mighty Apple declined). The Financial Index fell 4 to the 201s & is off 14 from its 2012 highs reached a month ago. The MLP index plunged 7+ to the 381s (30 below irs recent record highs) & a new low for 2012. The REIT index was down a very big 5 to the 243s & junk bond funds were a little lower. Treasury 10-year yields fell below 2% for the first time in almost a month on speculation the European sovereign-debt crisis is worsening as yields on Spanish & Italian bonds rose. Oil fell in sympathy with stock but gold climbed to a one-week high as it is being viewed as a safe haven investment in troubled times..
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Yahoo
The market cap for Apple, the world's most valuable company, today hit $600B. Only one other company has been worth $600B, Microsoft (MSFT & a Dow stock). At its highest level, at the end of 1999, its valuation was $619B but currently it's valued at $260B. General Electric (GE & another Dow stock) came just short of reaching a $600B in Aug 2000. Today AAPL hit $644, up 1.2%, giving it a worth of $600B. Then sellers took the stock lower. AAPL stock is up 59% YTD as Investors have been considering it undervalued. The rally has also been aided by the report of another blow-out holiday qtr & the announcement the company will start buying treasury stock & paying a dividend. The stock has pretty much doubled but today finished down almost $8 to the $628s.
Apple market value hits $600B AP
Brian Dunn
Photo: Yahoo
Not all tech news is good. Brian Dunn, Best Buy CEO, resigned from the largest consumer electronics retailer. BBY said that it was a mutual decision & that there were no disagreements with Dunn (i.e. he got a handsome severance package) but the company said it was time for new leadership. Mike Mikan will serve as interim CEO while the company searches for a permanent replacement. The news comes as the pioneer of the big-box consumer electronics retailing format struggles to regain its footing. Best Buy lost $1.2B in the last qtr & revenue at stores opened at least a year dropped 1.7% for the year after falling 1.8% in the prior year. The company has been hit hard by a number of factors. Once its bread-and-butter, sales of TVS, digital cameras & video game consoles have weakened. Meanwhile, sales of lower margin items like tablet computers, smartphones & e-readers have increased. At the same time, it's finding that more people are using its stores as showrooms to browse for products & then going online to buy at a lower price. The stock sank $1.33 (6%) & has a dismal chart reflecting its declining fortunes.
Best Buy’s Dunn Resigns as CEO; Mikan to Serve in Interim
Even though crude has been pulling back in price, the average price for gas at the pump remains above $3.92.
Source: AAA
Markets are having one their toughest times in over 6 months, Dow fell 350 this week to levels not seen since late Jan. The S&P 500 is at 1358, just last week it went of 1400 which was viewed as a favorable sign. Alcoa (AA), a Dow stock, Q1 earnings of 10¢ were just reported & beat the 4¢ estimate. The stock fell 28¢ during regular hours, but has regained that loss in after hours trading. That report will be followed by others from big banks in the next few days & the markets will watch them closely. Meanwhile, it looks like the bulls have lost control of the markets.
JPMorgan Chase Capital XVI (AMJ)
Click below for the latest market update:
Treasury yields:
U.S. 3-month | 0.086% | |
U.S. 2-year | 0.290% | |
U.S. 10-year | 1.989% |
| CLK12.NYM | ...Crude Oil May 12 | ...101.35 | ... 1.11 | (1.1%) |
The market cap for Apple, the world's most valuable company, today hit $600B. Only one other company has been worth $600B, Microsoft (MSFT & a Dow stock). At its highest level, at the end of 1999, its valuation was $619B but currently it's valued at $260B. General Electric (GE & another Dow stock) came just short of reaching a $600B in Aug 2000. Today AAPL hit $644, up 1.2%, giving it a worth of $600B. Then sellers took the stock lower. AAPL stock is up 59% YTD as Investors have been considering it undervalued. The rally has also been aided by the report of another blow-out holiday qtr & the announcement the company will start buying treasury stock & paying a dividend. The stock has pretty much doubled but today finished down almost $8 to the $628s.
Apple market value hits $600B AP
Apple Inc. (AAPL)
Photo: Yahoo
Not all tech news is good. Brian Dunn, Best Buy CEO, resigned from the largest consumer electronics retailer. BBY said that it was a mutual decision & that there were no disagreements with Dunn (i.e. he got a handsome severance package) but the company said it was time for new leadership. Mike Mikan will serve as interim CEO while the company searches for a permanent replacement. The news comes as the pioneer of the big-box consumer electronics retailing format struggles to regain its footing. Best Buy lost $1.2B in the last qtr & revenue at stores opened at least a year dropped 1.7% for the year after falling 1.8% in the prior year. The company has been hit hard by a number of factors. Once its bread-and-butter, sales of TVS, digital cameras & video game consoles have weakened. Meanwhile, sales of lower margin items like tablet computers, smartphones & e-readers have increased. At the same time, it's finding that more people are using its stores as showrooms to browse for products & then going online to buy at a lower price. The stock sank $1.33 (6%) & has a dismal chart reflecting its declining fortunes.
Best Buy’s Dunn Resigns as CEO; Mikan to Serve in Interim
Best Buy Co., Inc. (BBY)
Even though crude has been pulling back in price, the average price for gas at the pump remains above $3.92.
| Regular | Mid | Premium | Diesel | 85 | **E85 MPG/BTU adjusted price | |
| Current Avg. | $3.922 | $4.057 | $4.189 | $4.163 | $3.350 | $4.408 |
| Yesterday Avg. | $3.927 | $4.064 | $4.193 | $4.165 | $3.340 | $4.396 |
| Week Ago Avg. | $3.923 | $4.063 | $4.194 | $4.162 | $3.326 | $4.377 |
| Month Ago Avg. | $3.792 | $3.937 | $4.069 | $4.104 | $3.230 | $4.250 |
| Year Ago Avg. | $3.770 | $3.908 | $4.034 | $4.076 | $3.163 | $4.162 |
Source: AAA
Markets are having one their toughest times in over 6 months, Dow fell 350 this week to levels not seen since late Jan. The S&P 500 is at 1358, just last week it went of 1400 which was viewed as a favorable sign. Alcoa (AA), a Dow stock, Q1 earnings of 10¢ were just reported & beat the 4¢ estimate. The stock fell 28¢ during regular hours, but has regained that loss in after hours trading. That report will be followed by others from big banks in the next few days & the markets will watch them closely. Meanwhile, it looks like the bulls have lost control of the markets.
Dow Industrials
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