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Apple nibbles on Wall St.

Thursday, October 11, 2012 - 01:59

Oct 11 - Summary of business headlines: Apple shares fall after appeals court reverses Apple ruling against Samsung; Sprint confirms in talks with Japan's Softbank, but Softbank may also be eyeing MetroPCS; U.S. jobless claims fall to 4-1/2 year low. Wall Street ends mostly lower. Conway G. Gittens reports.

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The S&P 500 barely snaps a three-day losing streak but the rest of the market is down four-for-four Losses were minimal for the Dow and the Nasdaq, while the gain small for the broader market. Apple is being blamed for holding the market back. A U.S. court of appeals overturned a ruling that was widely in Apple's favor, which will allow Samsung to sell its Galaxy Nexus phone in the U.S. Shares of Apple fell about 2 percent. Sticking with mobile phones, Sprint confirmed it is in talks with Japan's Softbank. The No. 3 U.S. carrier could get Softbank as a majority partner, in a deal that could eventually be worth nearly $13 billion. Why a Sprint deal? Why now? James Moorman of S&P Capital IQ has an answer. SOUNDBITE: JAMES MOORMAN, EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING: "They are third in the U.S. well behind the two major carriers of AT&T and Verizon, so it probably gives them more punch and a little bit more capital to probably compete a little bit better and to build-out their network and to have a network that really rivals the other two carriers." But there's more to this story. First of all, Sprint owns almost half of wireless carrier Clearwire, which could be part of the deal. And according to Japan's Nikkei, Softbank may also be trying to go for smaller U.S. player MetroPCS for an even stronger entry into the U.S. market. Shares of Sprint Nextel rallied 14 percent. Clearwire surged 71 percent but MetroPCS was down 3 percent. And for good measure let's take a look at the two big U.S. mobile service providers: AT&T and Verizon were down for the day. Good news on the economic front; jobless claims took an unexpected sharp drop last week to the lowest level in more than 4-1/2 years. On to Europe now where stocks bounced back from three days of losses. Conway Gittens, Reuters

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Apple nibbles on Wall St.

Thursday, October 11, 2012 - 01:59