Finances

Cupertino, California-based Apple, Inc. released its updated iPad device on Friday. Crowds lined up at stores overnight for a chance to own the newest Apple offering. The third generation iPad, which Apple is not calling the iPad 3, includes a new retina display, faster processing chips, fourth-generation wireless capability, improved camera and a few other minor improvements over the iPad 2. The enthusiasm generated by the release helped send the stock price to a record high of $600 on Thursday.

Apple designed the newest iPad in California, but the source of its components is as diverse as its client base. The device's display screen is made by tablet computer rival, Samsung. The cell phone chips and wireless modem that powers the iPad's Internet connectivity is made by San Diego-based Qualcomm. Semiconductors are sourced from Broadcom. The iPad's A5X processor is also made by Qualcomm but is licensed from Britain-based ARM Holdings. The iPad's flash memory chip is supplied by Toshiba. Finally, Japan-based Elpida supplies Apple with DRAM chips.

In recent years, Apple shares have skyrocketed in value growing from just over $93.00 per share in 2007 to a high of over $600 as of Thursday. The result is Apple taking the title of the world's most valuable company. Apple, Inc. is believed to be worth over $560 billion.

Shares of Apple, Inc. (AAPL) closed the week up at $585.57.

Dole Foods Profit Grows

Westlake Village, California based Dole Foods Company released its quarterly earnings statement late Thursday. Dole earned fourth-quarter net income of $0.05 per share or $4.2 million after posting a fourth-quarter loss of $0.44 per share or $38.2 million during the same period a year earlier. For the year, Dole's net income attributable to shareholders is $38.4 million which compares to a loss of $34.2 million in 2010.

Dole's return to profitability is largely attributed to cost reductions and higher fresh fruit and vegetable sales and prices. "The cost reduction programs set forth in the past two years have helped improve earnings despite increasing inputs costs and the strength of foreign currencies," said Dole's CEO and President, David DeLorenzo. Sales of fresh fruits have increased by 5%, mainly led by an increase in demand and pricing in North America and Asia. Vegetable and berry sales have also increased resulting from higher prices on pre-packaged salads and Dole's acquisition of SunnyRidge Farms.

Yet it has not been all basking in the sun for Dole. Excluding charges related to debt refinancing and other incidental expenses, Dole still posted a loss from continuing operations of $0.02 per share. Still, many analysts anticipated a loss closer to $0.13 per share. Taking the news of Dole's return to profit along with a loss substantially lower than expected, traders opted to buy shares which resulted in an immediate jump in stock prices of 10% in early trading Friday. Dole hopes that its sale of a subsidiary distribution company in Germany will allow it to further reduce debt and refocus on its core business.

Shares of Dole Company (DOLE) ended the week up at $11.13.

A Tale of Two Commodities: Gold and Oil

Gold futures for April delivery have been in decline this week, with futures trading off by more than $7.00 to $1,632 per ounce on Friday morning. Improving domestic economic data has cooled investor's demand for gold which is often considered a hedge against a weak dollar and a declining economy. Reports that the manufacturing sectors in both New York and Philadelphia peaked after many months of gains and news that unemployment claims are the lowest in four years reduces the likelihood of further infusions of cash in to the economy by the Federal Reserve. Gold traders had been hoping for signs that the Fed would engage in another round of "quantitative easing." Such cash infusions reduce the value of the dollar and strengthen gold prices.

A report from the Labor Department released on Friday showed the first drop in consumer sentiment since August of 2011. Incremental increases in food prices along with the $0.20 per gallon increase in the price of gasoline are seen as the two main culprits behind the drop. Consumer sentiment, as measured by a University of Michigan/Thompson Reuters Poll, dipped to 74.3 in March from 75.3 in February. Oil futures had dipped earlier in the week on speculation that both the United States and the United Kingdom would release oil from their strategic reserves. However, prices rebounded after President Obama made it clear that no such release was contemplated. As a result, Brent crude oil for May delivery rose $2.42 to $125.02 a barrel in midday trading Friday. U.S. sourced crude oil for April delivery also increased by $1.16 to $106.27.

The Dow started the week at 12,922 and closed at 13,233. The NASDAQ started the week at 2,988 and finished at 3,055.The S&P 500 started the week at 1,371 and ended at 1,404.

Treasury prices continued their week-long drop on Friday, bringing bonds to their highest yields since July of 2011. Yields on ten year notes reached 2.31% while 30-year notes hit 3.48% in midweek trading. The increase in yields occured after remarks made in the Federal Reserve's policy statement indicating that the Fed is more optimistic about the direction of the U.S. economy and that the vast majority of U.S. banks passed the government's economic stress tests.

Prices, which move inversely to yields, continued their slump after a pair of reports showed that retail spending was up in February while initial unemployment claims dropped to a four-year low. However, bonds recovered on Friday after the Labor Department reported that the consumer price index rose by 0.4% in February, mainly due to back of skyrocketing gasoline prices and increased costs for foodstuffs.

The 10-year Treasury note yield finished the week at 2.30% while the 30-year Treasury note yield finished the week at 3.41%.

Freddie Mac released its weekly Primary Mortgage Market Survey (PMMS) on Thursday. The results show that the average rate for the 30-year mortgage moved higher on positive employment figures in dramatically increasing bond yields. This week, the 15-year Fixed Rate Mortgage (FRM) averaged 3.13%, unchanged from last week's all-time low. The 30-year FRM increased to 3.92% from 3.90% last week.

"An upbeat employment report for February caused U.S. Treasury bond yields to increase over the week and mortgage rates followed," said Frank Nothaft, Freddie Mac's Vice President and Chief Economist. "The economy gained 227,000 jobs, above the market consensus forecast, and revisions added another 61,000 to January and December. Job growth over the last six months was the strongest since 2006. In addition, the Federal Reserve's March 13th policy committee announcement noted that it anticipates the unemployment rate will decline gradually toward levels that it judges to be consistent with its mandate to achieve maximum employment with stable prices and moderate long-term interest rates."

The money market fund finished this week at 0.50%. The 1-year CD finished at 0.70%.