Morning Business Memo
The unstoppable march of Apple has stalled. Its share price has lost value five days in a row and is now almost 10 percent below its peak reached earlier this month. Apple’s plunge of more than 4 percent Monday led the Nasdaq lower on a day when other stock averages rose. “The slump has exposed just how large and influential Apple’s stock has become,” according to the Wall Street Journal. That might lead to some mutual fund managers reducing the size of Apple holdings in their portfolios. Apple’s share prices had soared more than 40 percent this year. The company announced last month its first dividend in more than a decade.
Will Apple’s next hot product be the iPad mini? Media reports – and yes, rumors – suggest Apple is planning to release a 7-inch tablet that would sell for about half the price of the iPad 3.
A sigh of relief over Spain after a successful bond auction today. The Spanish government sold more than $4 billion of 12- and 18-month bonds, but at higher rates than last month’s auction. A jump in Spanish bond yields Monday sparked concern that the country might soon need a bailout to avoid a debt default.
A legal fight between Oracle and Google is now playing out in federal court in San Francisco. Attorneys for Oracle are trying to convince a jury that Google’s top executives have long known they stole a key piece of technology to build Android software. The system now powers more than 300 million smartphones and tablet computers. Google’s lawyers will make opening statements today.