Shares retreat…More shutdown talks Friday…Apple bombshell
SINGAPORE (AP) – European and Asian indexes slipped on Thursday after Apple, the world’s largest technology company, downgraded its sales projections citing lackluster Chinese demand. The Japanese yen, seen as a relatively safe asset, surged as traders awaited developments on the U.S. government shutdown and Brexit. Futures point to a lower opening on Wall Street. Benchmark U.S. crude oil fell below $46 per barrel. The dollar fell against the yen and the euro.
WASHINGTON (AP) – No one budged at President Donald Trump’s closed-door meeting with congressional leaders, so the partial government shutdown persisted over his demand for billions of dollars to build a wall along the U.S. border with Mexico. They’ll all try again Friday. In public, Trump renewed his dire warnings of rapists and others at the border. But when pressed in private Wednesday by Democrats asking why he wouldn’t end the shutdown, he responded at one point, “I would look foolish if I did that.”
SAN FRANCISCO (AP) – Apple acknowledged that demand for iPhones is waning, confirming investor fears that the company’s most profitable product has lost some of its luster. The reckoning came in a letter from Apple CEO Tim Cook to the company’s shareholders released after the stock market closed Wednesday. Cook said Apple’s revenue for the October-December quarter – including the crucial holiday shopping season – will fall well below the company’s earlier projections and those of analysts, whose estimates sway the stock market.
DETROIT (AP) – Tesla made about 9,300 more vehicles than it delivered last year, raising concerns among industry analysts that inventory is growing as demand for the company’s electric cars may be starting to wane. If demand falls, they say, the company will enter a new phase of its business. Like other automakers, Tesla will have to either cut production or reduce prices to raise sales. A drop in demand could also curtail the company’s earnings and jeopardize CEO Elon Musk’s promise to post sustained quarterly profits.
NEW YORK (AP) – After 104 years, Lord & Taylor’s flagship store on Fifth Avenue has locked its doors forever. The venerable department store famed for its animated holiday windows closed down Wednesday afternoon, ending a blowout sale that left whole floors empty. By the end, clothes that once sold for as much as $100 were going for $5.99, and $600 designer shoes for $99. The demise of the Fifth Avenue store reflects a shifting economy in which brick-and-mortar retail has taken a hit from online sales.