Apple Faces Issues with New 3G iPhone

Apple Inc.'s 3G iPhone has been one of the most demanded items of the summer, selling over one million devices since it was released a month ago. The increase in sales for Apple has not come without an issue or two. Consumers have complained about a variety of service problems and technical glitches. Analysts believe these issues could buy time for Apples competitors to close the gap of advanced technology.

Poor support for the phones has been the major issue that Apple is facing with its new device. Consumers are calling in to complain about too many dropped calls which led to Apple shutting down their message boards earlier this week due to an overwhelming call volume. A chipset made for the device seems to be the issue and Apple plans to provide its users with a software update that can be downloaded on the phone.

Shares of Apple have been trading up during the past week and the stock has increased nearly 1% this month. Apple, Inc. (AAPL) closed this week at $175.70.

Airlines Fly High as Oil Prices Fall

Airline stocks showed an overall increase during late week trading, soaring into the positive territory as oil prices fell below $113 a barrel. The Amex Airline Index increased nearly 5% to 26.88 points. The benchmark index has more than doubled from its all-time low on July 15 as oil prices have fallen 23% from the record of about $147 a barrel. Jet fuel represents the single largest expense for most airlines, and its higher price has pushed carriers to reduce their consumption, either voluntarily or through bankruptcy.

During this week, the sharpest increase of shares was noticed by United Airlines whose shares increased by 10%. Delta Airlines and Northwest Airlines were both up more than 9% as well. Amex Airline Index (XAL) closed this week at $26.76. United Airlines (UAUA) closed this week at $14.14. Delta Airlines (DAL) closed this week at $9.41. Northwest Airlines (NWA) closed this week at $11.34.

Solar Panel Maker Unveils New Plans

SunPower, Inc., shares increased 18% this week after an announcement was made that they will embark in a giant 800-megawatt photovoltaic electricity project with Pacific Gas and Electric (PCG). This facility will be the first of its kind in the U.S. The Solar power market will seem less susceptible to concerns about oversupply during a slowing economy.

The new project is built around the idea to rival full-scale coal and nuclear generating plants with photovoltaic panels. These panels are commonly seen on rooftops or emergency phones on the highway. PCG has also signed agreements to work on a project that will generate enough power for 239,000 California homes each year. SunPower's goal is to have 50%-60% in cost reductions by 2012. Shares of SunPower jumped 17% to $91.72 during late trading hours this week. SunPower, Inc. (SPWR) closed this week at $92.52. Pacific Gas and Electric (PCG) closed this week at $39.50.

The Dow started the week at 11,734 and closed at 11,659. The NASDAQ began the week at 2,414 and finished at 2,452. The S&P 500 started at 1,296 and ended at 1,298.

Commodities Slide Causing a Rise in Bonds

Treasury bonds rose late this week sending yields lower and driving commodity prices to slide. Lower commodity prices eased worries about inflation and boosted expectations that the Federal Reserve will not increase interest rates this year. Yields on the 10-year and 30-year notes both fell four basis points, or 1%.

Oil, gold and other commodity prices posted steep declines Friday, coming under heavy selling pressure as the U.S. dollar rallied to multi-month highs against other major currencies.

The 10-year Treasury note began the week at 3.95% and finished at 3.85%. The 30-year Treasury bond began at 4.56% and finished at 4.47%.

Housing Market Results in Flat Long-Term Rates

This week's Primary Mortgage Market Survey from Freddie Mac showed the 30-year fixed-rate mortgage (FRM) averaged 6.52% for the week ending August 14, 2008, steady for the last two weeks when it also averaged 6.52%. Last year at this time, the 30-year FRM averaged 6.62%. The 15-year FRM this week averaged 6.07%, down from last week when it averaged 6.10%. A year ago at this time, the 15-year FRM averaged 6.30%.

Frank Nothaft, Freddie Mac Vice President and Chief Economist had this to say about the mortgage rates, "Mortgage rates held relatively steady for the second week in a row amid offsetting economic data releases. For instance, consumer credit grew by $14 billion in June, more than twice the market consensus, but retail sales were weaker in July. News was mixed for the housing market as well. Pending existing home sales unexpectedly rose in June, signaling a possible increase in home sales in July and August, according to the National Association of Realtors. Offsetting that information was the news that commercial banks tightened lending standards even more for prime, nontraditional and sub-prime mortgages in July according to the Federal Reserve, an action that may dampen further home sales activity going forward."

The 30-year loan rate started at 6.46% and finished at 6.44%. The 15-year loan began at 5.99% and finished at 5.96%. The money market fund began at 2.44% and finished at 2.48%. The $10,000 money market fund started at 2.64% and finished at 2.71%. The 1-year CD started at 3.61% and finished at 3.63%.