Apple\u2019s guidance for the last three months of the year managed to push down shares on Thursday, even though it beat expectations for the last quarter. The technology goliath said revenue in the December quarter will be flat from a year earlier.<\/p>\n
Now, Apple has plenty of its own problems\u2014the sluggish recovery in China, along with tougher competition from Huawei, and worries about whether enough people will upgrade to the new iPhone.<\/p>\n
Its sales of high-margin Mac computers are struggling, though the growth of artificial intelligence and the potential to run AI programs from your desktop may give them a boost at some point.<\/p>\n
But the real question is whether Apple\u2019s dull outlook for the Christmas shopping season holds true for other companies. Retailers\u2019 typically hire extra staff for the holidays and that seems particularly low this year, even if Amazon is bringing in more associates than in 2022 and Target is adding the same number of seasonal employees.<\/p>\n
Investors, for their part, seem to have cheered up. Stocks have advanced for a few days in a row, and it isn\u2019t just the Magnificent Seven (of which Apple is one). The week has brought good news\u2014the Federal Reserve is widely seen as having finished the most aggressive round of interest-rate hikes in decades, and bond yields have fallen back from recent highs.<\/p>\n
The key issue all year has been whether the big gains made by those select few technology stocks that have carried the market this year will continue and fan out to others. If that\u2019s finally happening, the fourth quarter will be fine.<\/p>\n
\u2014Brian Swint<\/em><\/p>\n *** Join MarketWatch investing columnist Beth Pinsker today at noon when she speaks with Meena Seshamani, deputy administrator and director of the Center for Medicare, about open enrollment, and answers all your questions about changes for this year and what lies ahead for the future. Sign up here.<\/em><\/p>\n \n Apple What\u2019s Next:<\/strong> Investors were hoping to find reasons for optimism in Apple\u2019s December quarter. But along with competition from Huawei in China, there are growing concerns about Americans reining in spending\u2014and reports the iPhone 15 faces ongoing component shortages.<\/p>\n \u2014Eric J. Savitz and Liz Moyer<\/em><\/em><\/em><\/p>\n A jury took just a few hours to find one-time crypto magnate Sam Bankman-Fried guilty of criminal fraud, marking the dramatic end to a monthlong trial in Manhattan federal court. He was found guilty on all seven counts after just a few hours of deliberation.<\/p>\n What\u2019s Next:<\/strong> If the convictions are upheld, Bankman-Fried could be handed more than 100 years in prison when sentenced in March. While the guilty verdict closes a chapter on the industry\u2019s biggest fraud, it may only heighten pressure on Washington to ensure it doesn\u2019t happen again.<\/p>\n \u2014Liz Moyer and Joe Light<\/em><\/em><\/p>\n \n Starbucks What\u2019s Next:<\/strong> It will also spend $1 billion on employee-related initiatives such as technology in stores, higher wages, and improved scheduling. By 2025, Starbucks plans to double hourly incomes compared with 2020 through more hours and higher wages.<\/p>\n \u2014Sabrina Escobar<\/em><\/em><\/p>\n Two online travel planning and booking sites reported stronger-than-expected third-quarter results, boosted by resilient consumer spending on summer travel. What\u2019s Next:<\/strong> Expedia said on a conference call after the earnings report came out that fourth-quarter gross bookings growth could be in line with third quarter levels, given the uncertainty of the geopolitical environment and its potential effect on travel.<\/p>\n \u2014Liz Moyer<\/em><\/em><\/p>\n Holiday shoppers are expected to push sales this season to record highs but the growth of sales compared with last year is expected to moderate from the big gains in 2021 and 2022, returning to the average annual pace seen before the Covid-19 pandemic disrupted shopping habits, the National Retail Federation (NRF) said.<\/p>\n Target,<\/span> What\u2019s Next:<\/strong> NRF said to meet demand during the holidays, it expects retailers will hire between 345,000 and 450,000 seasonal workers, in line with the 391,000 they hired last year. <\/p>\n \u2014Sabrina Escobar and Liz Moyer<\/em><\/p>\n <\/p>\n Do you remember this week\u2019s news? Take our quiz below to test your knowledge. Tell us how you did in an email to thebarronsdaily@barrons.com.<\/em><\/p>\n 1. Even before earnings were announced, Apple held an event earlier this week to unveil which of the following?<\/p>\n a. Updated AirPods Max headphones, now available in glow-in-the-dark colors<\/p>\n b. A light-up AirTag<\/p>\n c. An upgraded Watch with biodegradable wrist band<\/p>\n d. A third-generation chip for MacBook Pro laptops<\/p>\n 2. a. Roku<\/p>\n b. Vimeo<\/p>\n c. Hulu<\/p>\n d. 3. A Missouri jury found the National Association of Realtors and large residential brokerages colluded to keep home sales commissions artificially inflated. NAR vowed to fight the verdict on appeal. How much in damages did the jury award the homesellers in the class action lawsuit?<\/p>\n a. $1 billion<\/p>\n b. $1.8 billion<\/p>\n c. $2 billion<\/p>\n d. $2.8 billion<\/p>\n 4. The National Retail Federation sees holiday sales reaching a new record this year, though growth is expected to moderate from gains in 2021 and 2022. Holiday shoppers are expected to do which of the following?<\/p>\n a. Look for sales and promotions, which shoppers say are more important to them this year<\/p>\n b. Cut back on buying for themselves<\/p>\n c. Put fewer people on this year\u2019s gift-giving list<\/p>\n d. All of the above<\/p>\n 5. Two major amusement-park operators have agreed to merge in a $2 billion transaction that will give the combined company more scale to compete with giants in the industry. Which park operators are merging?<\/p>\n a. Six Flags and c. Hershey Park and Cedar Fair<\/p>\n d. None of the above<\/p>\n Answers: 1(d); 2(c); 3(b); 4(d); 5(a)<\/p>\n<\/h4>\n
***<\/h4>\n
Sales Fall for Fourth-Straight Quarter on China Weakness<\/h2>\n
\n notched a fourth consecutive quarter of declining sales compared with the same period last year including a decline in China, which is undergoing an economic slowdown and where Apple faces increased domestic competition and government scrutiny. <\/p>\n\n
***<\/h4>\n
Sam Bankman-Fried Guilty of Criminal Fraud, Jury Finds<\/h2>\n
\n
***<\/h4>\n
Starbucks Unveils Strategic Plan Under New CEO<\/h2>\n
\n CEO Laxman Narasimhan unveiled the coffee retailer\u2019s \u201cTriple-Shot Reinvention Strategy\u201d at an investor event in New York, eight months after he took the helm from former CEO Howard Schultz. He described it as relying on the foundation of the plan Schultz laid out in September 2022.<\/p>\n\n
***<\/h4>\n
Online Travel Sites Beat Expectations on Summer Travel Surge<\/h2>\n
\n Booking Holdings
\n and
\n Expedia Group
\n both reported gains in gross bookings and booked room nights, two key measurements of health for travel stocks.<\/p>\n\n
\n Airbnb
\n reported better-than-expected third quarter results, with revenue rising 17.8%<\/strong> in the third quarter, and nights and experiences booked rising 14% from the prior year.<\/p>\n<\/li>\n<\/ul>\n***<\/h4>\n
Retail Group Expects Holiday Shopping Growth to Moderate<\/h2>\n
\n
\n Amazon,<\/span><\/p>\n
\n and
\n Walmart
\n all had promotions last month.<\/p>\n<\/li>\n***<\/h4>\n
\n Walt Disney
\n is set to buy the 33% of this streaming platform it doesn\u2019t already own from
\n Comcast
\n after the two come to an agreement on its value. Disney will pay at least $8.61 billion for which of the following:<\/p>\n
\n Fubo\n <\/p>\n
\n Cedar Fair
\n
b. SeaWorld and Six Flags<\/p>\n