What Will Apple’s iPod Battery Problems Cost The Company?

Stocks are lower on disappointing economic data.
Nonfarm payrolls
in May rose 78,000, far less than the 185K expected. It is the smallest gain
since August 2003 and fueled speculation that the Fed may be close to ending its
rate hikes. There were no revisions for April.
Unemployment was 5.1%, slightly lower than consensus. Earnings rose 0.2%.
The dollar fell, treasuries are higher. The 10-year note is at the lowest level
since March 2004.

The ISM Index for May came in at 58.5, less than expected.

It’s been a relatively flat week for the indices, For the third straight week,
the Nasdaq has outperformed the Dow and S&P.

L-3
(
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(
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($23.10/share).

Schlumberger
(
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Apple
(
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PowerRating) is lower as the iPod battery settlement could cost
$100 million; also rumors are that the company is overstocked on iPods. The
company is giving $50 vouchers and extended service warranties to customers of
older defective units. There is also an overheating problem with Powerbook
batteries and some speculation that iPod demand may be slowing.

Italian Welfare Minister Roberto Maroni said the country should consider
dropping the euro. He said
the euro
“has proved inadequate in the face of the economic slowdown, the loss of
competitiveness and the job crisis,” and blamed

ECB President Trichet.

Fed Governor Gramlich said he didn’t know what was happening with
long-term rates.

It’s been a busy week for NYSE seat sales, with 6, all going for
around $2.3 million.

Strong sectors are:  Gold
(
$HUI.X |
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PowerRating) +1.98%    
Healthcare Providers
(
$HMO.X |
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PowerRating) +0.79%   Oil Services
(
$OSX.X |
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PowerRating) +0.49%    

Weak sectors are:    Biotech
(
$BTK.X |
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PowerRating)
-1.93%  Airlines
(
$XAL.X |
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PowerRating) -1.77%   Computer
Hardware
(
$HWI.X |
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PowerRating) -1.67%  

UBS and JP Morgan raised estimates on Intel
(
INTC |
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PowerRating).

Applied Materials
(
AMAT |
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PowerRating) said they see approval for a factory in
China.

Cognos
(
COGN |
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PowerRating) warned for Q1.

Take Two Interactive
(
TTWO |
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PowerRating) beat by 0.01.

WalMart
(
WMT |
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PowerRating) hosts a shareholder meeting today.

Merrill Lynch cut estimates on JP Morgan
(
JPM |
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PowerRating).

bebe
(
BEBE |
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PowerRating) raised its dividend and announced a 3:2 split.

LTX Corp.
(
LTXX |
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PowerRating) missed by a penny and guided higher.

CIBC upped Wynn’s
(
WYNN |
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PowerRating) to an outperform and raised its price
target to $71.

Deutsche cut Abercrombie & Fitch to a ‘hold.’