Apple reported record sales this week for the iPhone 4. The company sold over 1.7 million of the new phones in just three days after its June 24th launch. The new iPhone 4 features FaceTime for video calling and Apple's new Retina display, which it says is the highest resolution display ever built into a phone.
There were long lines outside Apple stores across the country when the phone became available. "This is the most successful product launch in Apple's history," said Steve Jobs, Apple's CEO. "Even so, we apologize to those customers who were turned away because we did not have enough supply."
The iPhone 4 also features a 5 megapixel camera with LED flash, HD 720p video recording, Apple's A4 processor and up to 40% longer talk time. Apple says that the iPhone 4 has an all new design of glass and stainless steel that makes it the thinnest smartphone in the world.
Apple issued a statement this week regarding reported iPhone 4 reception problems. The company said that the problems are due to the way the phone shows signal strength. The device reportedly shows more signal strength then it has. Apple said that it will provide a software update in a few weeks to remedy the inaccurate reception signal.
Shares of Apple Inc. (AAPL) ended the week down at $246.90.
GM Releases Details on Volt
General Motors (GM) provided new details this week on the Chevrolet Volt, the company's soon-to-be released electric car. The Volt is a battery-powered car that will go up to 40 miles on an electric charge. The company says that the new technology will help reduce harmful carbon emissions and gas usage.
In a live video webcast, Chevrolet Volt Marketing Director Tony DiSalle confirmed plans to produce 10,000 Volts by the end of 2011 and an additional 30,000 Volts during 2012. DiSalle also confirmed that the first Volts available for retail sales will be sold in California, Washington, D.C., Austin, Texas and New York City later this year.
The company said that additional markets will be added as production volume increases. Chevrolet anticipates that Volts will be available in all 50 states 12 to 18 months after the initial launch.
Before receiving Volts for retail sales, dealers will be required to install 240-volt charging stations at their dealership. Chevrolet expects to have nationwide service coverage available through Chevrolet Authorized Volt Service Dealers during the 12 to 18 month national rollout of the new vehicle.
The Motors Liquidation Co (MTLQQ), formerly known as GM, ended the week down at $0.41.
Blockbuster Down on Market Delisting
Shares of Blockbuster, Inc. fell this week after the DVD and online movie rental company said that the New York Stock Exchange (NYSE) would begin delisting the company's common stock. Blockbuster stock plummeted in the last year as the company reported continued losses. In its most recent annual report, Blockbuster indicated the possibility of bankruptcy, sending its stock shares even lower.
Blockbuster said that it was notified in November of 2009 that its Class A common stock did not satisfy the NYSE's continued listing standard that requires the average closing price of a listed security to be no less than $1.00 per share over a consecutive 30-trading-day period. Under the NYSE's rules, the company had until the date of its annual meeting to cure this deficiency.
Blockbuster proposed a stock split to remedy the problem. At the meeting held last week, Blockbuster shareholders present overwhelmingly approved combining the company's Class A common stock and Class B common stock into a single stock. Shareholders also approved the option for a reverse stock split as part of the company's compliance plan with the NYSE.
Due to a low vote turnout, the reverse stock split proposal was not approved by the requisite number of votes needed. Approval required the affirmative vote by the majority of outstanding Class A and Class B shares voting as a single class. Subsequent to this vote, the NYSE informed the company of its intention to begin the process to delist both Blockbuster's Class A and Class B common stock.
Blockbuster Inc. (BBI) ended the week down at $0.18.
The Dow started the week at 10,144 and ended at 9,686. The S&P 500 started the week at 1,077 and ended at 1,023. The NASDAQ started the week at 2,223 and finished at 2,092.
Treasuries fell this week in response to a series of reports concerning U.S. employment, consumer confidence and manufacturing activity. The Federal government was pleased to report a decline in the nation's unemployment. The Department of Labor reported that the unemployment rate fell to 9.5% in June from 9.7% in May.
Nevertheless, the Labor Department also reported that the economy lost 125,000 jobs in June. When asked how unemployment could decline at the same time that the economy lost jobs, some economists explain that persons who were looking for jobs likely gave up their job searches. Since individuals who are not seeking employment are excluded from the unemployment figure, the unemployment rate declined despite the loss in jobs.
Earlier this week, the Conference Board reported an unexpected decline in consumer confidence. The Consumer Confidence Index dropped to 52.9 in June from 62.7 in May. This was the lowest level since March, when the index was at 52.3.
Manufacturing activity also fell unexpectedly this week sending stocks down. The Institute for Supply Management's barometer of U.S. manufacturing activity fell to its lowest level since December. Economists say manufacturers are pulling back with lower demand for goods from consumers still rattled by an uncertain economy.
The 10-year Treasury note yield began at 3.11% and ended at 2.98%. The 30-year Treasury note yield began at 4.07% and finished at 3.94%.
Freddie Mac reported all mortgage rates hitting record lows again in this week's primary mortgage market survey. The 30-year fixed-rate mortgage (FRM) averaged 4.58%, down from last week when it averaged 4.69%. Last year at this time, the 30-year FRM averaged 5.32%.
The 15-year FRM this week averaged 4.04%, down from last week when it averaged 4.13%. One year ago at this time, the 15-year FRM averaged 4.77%.
"Interest rates on fixed-rate mortgages and the 5-year hybrid ARM fell once again to all-time record lows this week in a period where the economy struggles to gain momentum and inflation remains very low," said Frank Nothaft, Freddie Mac Vice President and Chief Economist. Nothaft said that home prices are improving due in part to the homebuyer tax credit and economic data reports.
Inflation is growing at the slowest pace in over 44 years according to the Bureau of Labor Statistics. The core consumer price index (CPI) remained at 0.9% in April and May. However, the Bureau of Economic Analysis reported first-quarter GDP figures were revised down by a half percentage point over the past two months to 2.7%, suggesting that the economy is growing at a slower pace than anticipated.
The money market fund finished this week at 0.78%. The 1-year CD finished at 1.14%.
