Finances

Technology giant, Apple Inc. (AAPL) reported its second quarter earnings last week. The California-based technology company, maker of Mac computers, iPads and iPhones, reported impressive results.

For the quarter, Apple posted revenue of $39.2 billion, a 63% increase over its revenue from the same period last year. In the second quarter of 2011, Apple's revenue totaled $24.7 billion.

Apple reported net profit of $11.6 billion, or $12.30 on an earnings per share basis. Apple nearly doubled its profit compared to the same period last year in which the compact reported net income of $6.0 billion or $6.40 per share.

"We're thrilled with sales of over 35 million iPhones and almost 12 million iPads in the March quarter," said Tim Cook, Apple's Chief Executive Officer. "The new iPad is off to a great start, and across the year you're going to see a lot more of the kind of innovation that only Apple can deliver."

"Our record March quarter results drove $14 billion in cash flow from operations," said Peter Oppenheimer, Apple's Chief Financial Officer. "Looking ahead to the third fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $8.68."

Apple Inc. (AAPL) closed the week at $603.10.

Harley Davidson's Earnings Report "Revs" Investors' Engines

Milwaukee, Wisconsin-based motorcycle maker company Harley Davidson Inc. (HOG) reported its latest earnings this past week. The company reported strong gains in the first quarter of 2012.

Harley Davidson saw its retail motorcycle sales increase 20.3% worldwide during the quarter. The company reported even more impressive results in the United States where sales grew 25.5%. The company sold 59,677 motorcycles during the period, which included 39,762 units in the U.S.

The company earned a total of $1.43 billion in revenue for the quarter. Harley posted $995.9 million in revenue from motorcycle sales, an increase of 19.5% from the same period last year. The company also generated $199.1 million in revenue from parts and accessory sales, an increase of 21.1%.

Based on these impressive sales results, the company posted income of $172 million. On an earnings per share basis Harley posted income of $0.74 per share.

"We continue to be encouraged by the strong trend at retail and in earnings over the past several quarters. Our first quarter performance reflects the outstanding appeal of our products, the ongoing results of our transformation strategy, the efforts of our dealers and employees, and improving macro-economic conditions in the U.S.," said Keith Wandell, Chairman, President and Chief Executive Officer of Harley-Davidson, Inc. "While we are obviously pleased by our strong start to the year, we are more focused than ever on the ongoing implementation of our business strategy and tapping the many opportunities we see globally."

For the week, shares of Harley Davidson, Inc. (HOG) closed at $53.14 per share.

Investor's Relieved by Bayer's Earnings Report

German drug maker, Bayer AG (BAYN.DE), released its latest earnings report this past week. For the first quarter of the year, the company reported impressive results.

Bayer's sales increased 6.8% to a quarterly record of €10.06 billion. In the first quarter of last year, the company's sales were €9.4 billion.

Bayer also saw its net income increase in comparison to the same period last year. The company reported net income of €1.05 billion, an increase of 52.5% over the €684 million in the comparable period last year.

"All of the [Bayer's corporate subgroups] contributed to the encouraging increase in sales, particularly CropScience, which experienced a strong start to the season," Management Board Chairman Dr. Marijn Dekkers explained on Thursday. "In view of the good start to 2012, we are increasingly confident for the rest of the year."

In separate media reports, it has been suggested Bayer will agree to pay $110 million to settle nearly 500 lawsuits over claims the company's Yasmin birth control pills had caused blood clots.

Shares of Bayer AG closed the week at €55.02.

The Dow started the week at 13,029 and closed at 13,228. The NASDAQ started the week at 3,000 and finished at 3,069. The S&P 500 started the week at 1,379 and ended at 1,403.

Following higher than expected jobless claims, 10-year Treasuries moved to their lowest level in two months. Investors have speculated that the Federal Reserve is pulling back on its monetary stimulus efforts.

The Federal Reserve has pledged to keep borrowing rates low through 2014 and Fed Chairman Ben Bernanke said yesterday he is prepared to do more if needed. The yield on 7-year notes hit a record low in a recent sale of $29 billion in debt.

Concerns over the Euro-zone's sovereign debt also has investors concerned. Standard and Poor's lowered Spain's credit rating recently.

Ira Jersey, with Credit Suisse Group AG stated, "There's continued angst about Europe." His company is one of the 21 dealers required to bid at the auctions. Jersey also stated, "If you do wind up getting more of a global slowdown, that's going to impact the U.S. You have to imagine the Fed might help things by doing one of the few easing policies that they can do."

The 10-year Treasury note yield finished the week at 1.94% while the 30-year Treasury note yield finished the week at 3.12%.

In the latest edition of its Primary Mortgage Market Survey (PMMS) released last week, Freddie Mac reported that fixed rate mortgage (FRM) rates held steady. The FRM remains near record lows.

The average rate for the 30-year FRM came in at 3.88%, down slightly from last week's average of 3.90%. At this time last year, the 30-year mortgage averaged 4.78%.

The 15-year FRM saw similarly low rates. On average, the 15-year mortgage came in at 3.12%, down from 3.13% the week prior. Last year, the 15-year FRM averaged 3.97%.

"Fixed mortgage rates held near record lows this week as the markets waited for the Federal Reserve's (Fed) April 25th monetary policy announcement following two days of deliberations," stated Frank Nothaft, Freddie Mac's vice president and chief economist. "The Fed stated that it expects economic growth to remain moderate and then pick up gradually. In addition, it noted that labor market conditions have improved in recent months and it anticipates the unemployment rate will decline gradually."

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