Did you ever think you would see a week in which:
Well, none of these were expected this week but all occurred nonetheless, although we will give Tiger a bit of a break as he ran into several extremely impressive performances by hot European players.
The trading week was largely driven by the news coming out of Europe, with the post-Fed rally continuing to pause over European uncertainty, some continuing poor global economic data, lowered earnings expectations, and perhaps some pure old-fashioned profit-taking into the end of the 3rd Quarter.
For the week, the SPX was down 1.3%, the Dow -1.0%, and the NASD -2.0%, but all three ended the quarter impressively, up +5.8%, +4.3%, and +6.2% respectively.
So let’s get down to some of the stories and quotes of the week.
“At Apple, we strive to make world-class products that deliver the best experience possible to our customers. With the launch of our new Maps last week, we fell short on this commitment. We are extremely sorry for the frustration this has caused our customers and we are doing everything we can to make Maps better.” –Apple CEO Tim Cook’s online letter to customers. (Apple website)
What is a bit more surprising was Cook’s overt suggestion that Apple users might want to check out the competition:
“While we’re improving Maps, you can try alternatives by downloading map apps from the App Store like Bing, MapQuest and Waze, or use Google or Nokia maps by going to their websites and creating an icon on your home screen to their web app.”
And as CNET points out, Apple’s website has backtracked on prior map superiority claims, taking down from the site the statement, “Designed by Apple from the ground up, Maps give you turn-by-turn spoken directions, interactive 3D views, and the stunning Flyover feature. All of which may just make this app the most beautiful, powerful mapping service ever.”
The WSJ said Friday, Google has not been shy about “pouncing on Apple’s map problems….publishing a blog post explaining how consumers can still use Google Maps on the iPhone through the Web browser and Google Executive Chairman Eric Schmidt saying, ‘In my opinion, it would have been better to retain our maps.’”
But there were just a few other stories besides AAPL (which did lose close to $33 or -4.7% on the week).
“This is a crisis budget designed to get out of this crisis.” –Spanish Deputy Prime Minister Soraya Saez de Santamaria. As Forbes reported, however, “Spain is still in trouble….(but) this will allow Spain to set in motion the bailout of its banks, and then actually figure out, along with the ECB, the IMF, and the EU (the Troika) how to stop the bleeding and stabilize its finances.”
Bloomberg was reporting further developments over the weekend:
“Spain plans to borrow 207.2 billion euros ($266.5 billion) next year, the Budget Ministry said today, as pressure builds for Prime Minister Mariano Rajoy to tap the European rescue fund instead of financial markets.”
The protests in Spain over economic condition, unemployment and austerity measure led to a resurfacing of an older story on “Spain’s elephant-hunting King Juan Carlos”, who lost his honorary Presidency of The World Wildlife Fund’s branch in Spain this summer. (MSNBC/AP). Business Insider was reporting that the protests, although about austerity, also reflect, “the feeling that people have no power over government, that the government favors elites, and that the country is losing sovereignty that drive people mad.”
“The Miracle of Medinah” –NBC Sports, which just recently ended its Ryder Cup coverage, with a shocking and “miraculous” 14 1/2-13 1/2 come from behind last day victory by the European team. Although the U.S. staged a similar shocking comeback victory in 1999, that was on home soil. The European team dedicated the victory to legendary deceased Ryder Cup star Seve Ballesteros. (Although Tiger Woods had some moments of brilliant play in the matches, he was only able to win ½ point all week.)
“We are unlikely to see much benefit to growth or to employment from further asset purchases.” –Charles Plosser, the president of the Philadelphia Fed Bank, in a speech to financial market trade groups in Philadelphia. (MarketWatch). Plosser went on to say, in a pretty harsh slap at the FOMC, “Conveying the idea that such action will have a substantive impact on labor markets and the speed of the recovery risks the Fed’s credibility.”
“I think the overarching thing is it’s the new quarter. What’s it mean? Did we experience any window dressing? It doesn’t feel like it to me,” said Art Hogan of Lazard Capital Partners. “To me, there’s more downside risk than upside risk.” (CNBC). i(We think Hogan was talking more about the short-term than the long-term, but in any case there were plenty of market cheerleaders out in full force, with BofA Merrill Lynch and Citi strategists already out with 2013 calls for the S&P hitting 1600).
“Nothing good happens to Lindsay Lohan after midnight.” –CBS Radio in New York, after conflicting reports of an assault on Ms. Lohan by a guest ” invited” to her hotel. It is being reported that charges have been dropped but various accounts are floating around. CBS added, “Earlier this month, Lohan was arrested near the Dream Hotel in Chelsea for allegedly clipping a pedestrian with her car. She is still on informal probation for stealing a necklace from a jewelry store last year.”
“RIM Stock Soars But Rough Ride Isn’t Over.” –Yahoo Finance, reporting on RIMM’s $235 million loss, “which was smaller than last quarter’s $518 million shortfall” and a modest increase in global subscribers to 80 million (which is not insignificant). The stock finished the week +16%, but according to Yahoo, still has to depend on a “Hail Mary release early next year of handhelds based on the all-new BlackBerry 10 operating system.”
“The Chicago Purchasing Manager’s Index fell to 49.7 — recessionary territory — for the first time since late 2009, signaling that economic conditions continue to worsen in the US.” –Minyanville. Combined with the GDP 2nd Qtr. revision to 1.3% from 1.7%, Durable Goods New Factory Orders -13.2% (vs. -5.0% consensus) and warnings from companies like Caterpillar, it was not the most optimistic of weeks.
CNBC editorialized, “Traders expect October to give the markets a scare, starting with news on the economy and jobs in the week ahead…the thinking is the stock market is ready to pull back, especially after a few choppy sessions and a new batch of data that should continue to show a slow-moving, ‘zombie like’ economy.”
However, with the NFL replacement refs gone there was at least some reason to celebrate.
And with earnings season just around the corner and the Presidential debates starting this Wednesday vening, there will be no shortage of new developments for the market to sink its teeth into.
“Always understated” NJ Governor Chris Christie is at least one person eagerly looking forward to the debates, telling NBC’s Meet the Press today, “Come Thursday morning, the entire narrative of this race is going to change.” (Washington Post).
We can hardly wait.
Be sure to follow David on His New Forbes Blog.
Remember, you are in control your email alerts! You can receive alerts for more than 25 free research report alerts including: The “10.0” Report, The Insiders Report, ETF Leaders Report, and The Focus List.