Stock Market Today: Apple Goes to China and Tiffany Books a Huge Loss

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

Expect a strong start to the stock market today, as the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is set to rise by 56 points at the opening bell. Stocks look set to end 2013 near all-time highs, sitting on an overall 24% gain with just a few trading days left in the year. Meanwhile, news is breaking this morning on several stocks that could see heavy trading in the session, including Apple (NASDAQ: AAPL  ) , Tiffany (NYSE: TIF  ) , and Darden Restaurants (NYSE: DRI  ) .

Apple shares are up after the company finally inked a deal to offer its phones to China Mobile's nearly 800 million customers. The Mac maker announced over the weekend that it will begin selling the iPhone 5S and 5C models on China Mobile's massive 4G network on Jan. 17. In the statement, CEO Tim Cook hinted at aggressive plans to deliver millions of devices into the market in 2014, saying that Apple hopes to ring in the Chinese New Year by "getting an iPhone into the hands of every China Mobile customer who wants one." To make big inroads in that market, however, Apple will have to go through Samsung, which dominates the country with a 21% share. Apple's stock is up 3.3% in premarket trading.

Tiffany lost an expensive court battle over the weekend that will cost the company more than $450 million. After an arbitration panel found that it was at fault over a failed deal with the Swatch Group, Tiffany will have to take a roughly $300 million after-tax charge to its fourth-quarter results. The total penalty weighs in at more than the retailer's entire net earnings last year. Tiffany expects to fund the payment with a mixture of cash and debt that will reduce full-year earnings by roughly $2.30 a share, but should have no real impact on its business going forward. The stock is down 3% in premarket trading.

Finally, Darden Restaurants has another activist investor on its hands. Starboard Value recently bought a 5.6% stake in the struggling restaurant operator, according The Wall Street Journal. The fund plans to push for a bigger breakup of the company than just the spinoff or sale of the Red Lobster business that Darden announced last week. Instead, Starboard reportedly wants Darden to reorganize by first splitting its real estate holdings into an investment trust before regrouping its restaurant portfolio into high-growth and low-growth divisions. The stock is up 2.3% in premarket trading.

Profit from this smartphone revolution
Want to get in on the smartphone phenomenon? Truth be told, one company sits at the crossroads of smartphone technology as we know it. It's not your typical household name, either. In fact, you've probably never even heard of it! But it stands to reap massive profits NO MATTER WHO ultimately wins the smartphone war. To find out what it is, click here to access the "One Stock You Must Buy Before the iPhone-Android War Escalates Any Further..."


 
 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2774461, ~/Articles/ArticleHandler.aspx, 8/20/2014 1:49:09 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement