Apple Unveils New Apple TV

Apple Computer, Inc. unveiled its newly redesigned Apple TV this week. The technology giant said that the new TV would be "small in size but big on entertainment" and permits users to rent movies and watch TV shows in commercial free HD. The Apple TV, at the cost of just $99, also has the capability to stream photos and music from a computer to a user's widescreen TV.

Apple said that it designed the new Apple TV to be 80% smaller than the previous generation "which makes it perfect for sitting neatly on a widescreen TV stand or squeezing into a crowded media cabinet." Apple also said that the new TV is energy efficient. It stays cool without a fan and when it's not playing DVDs or TV shows, the company said that it uses less power than a night-light.

The new technology streams movies, TV shows and videos wirelessly to Apple TV. So, Apple said that there is no need to worry about managing storage or syncing since HD movie and TV show rentals play over the Internet to a widescreen TV, while music and photos will stream from any computer. Apple says that using the new device is as easy as "click and play."

Also this week, Apple introduced the new iPod Touch. The new iPod feature's Apple's Retina display, FaceTime video calling, HD video recording, Apple's A4 chip, Game Center and more. Apple said that this is the thinnest and lightest iPod touch ever, featuring up to 40 hours of music playback and seven hours of video playback on a single battery charge.

Apple (AAPL) ended the week down at $258.68.

Burger King Announces Company Sale

The company that owns the Burger King restaurant chain, Burger King Holdings, Inc., announced this week that it will be sold for $4 billion to private equity group 3G Capital. Market analysts were not surprised by the announcement in light of Burger King's declining profits. The company's fourth-quarter profit declined nearly $10 million in the last three months of fiscal year 2009.

Under the terms of the agreement, which has been unanimously approved by the company's board of directors, stockholders will receive $24 in cash per share of Burger King common stock. 3G Capital said that it has obtained financing to purchase all outstanding shares and refinance Burger King's existing indebtedness.

"The Burger King brand is one of the most recognizable and respected brand names in the world, and we are pleased that 3G Capital recognizes the value we have created in revitalizing the brand and enhancing operations over the past seven years," said the Burger King Company's Chairman and Chief Executive Officer John W. Chidsey." Burger King said that it is committed to maintaining a "superior guest experience" as the company transitions ownership.

Under the terms of the agreement, it is anticipated that 3G Capital will make a tender offer for all of the outstanding shares of the company no later than September 17, 2010. Burger King said that the transaction is expected to close in the fourth quarter of this calendar year.

Burger King (BKC) ended the week up at $23.60.

H&R Block Mired in Losses

H&R Block reported a $114.8 million first-quarter net loss this week. The tax preparation company has struggled with a dwindling customer base that is increasingly using do-it-yourself tax products like Turbo Tax. H&R Block reported a comparable quarterly loss one year ago and said that its revenues were down by at least $1 million when compared with the same quarter last year.

H&R Block's struggle to sustain revenues resulted in termination of company jobs this spring. The company said that it faced higher costs this quarter due to payout of benefits to employees terminated in May. Since that time H&R Block has undergone internal restructuring to cut costs and increase company efficiencies.

"Our first quarter results demonstrate the progress we have made in reducing embedded costs, and we believe we can achieve more in this area," said Alan Bennett, President and Chief Executive Officer of H&R Block. "Our balance sheet reflects a strong position that gives us considerable financial flexibility going forward. We are working diligently to reverse the early-season client losses we have experienced in each of the past two years," added Bennett.

The company's hallmark tax preparation service actually experienced increased revenues over the past quarter. Revenues rose 4.2% over the prior year to $91.6 million. While the tax services division faced some added costs due to severance packages for laid off employees, significant savings were achieved for the quarter due to staff reductions and the closing of certain underperforming H&R Block offices.

H&R Block (HRB) ended the week up at $13.30.

The Dow started the week at 10,151 and ended at 10,448. The S&P 500 started the week at 1,065 and ended at 1,105. The NASDAQ started the week at 2,154 and finished at 2,234.

Treasuries Ride on Jobs and Home Sales

Treasuries fell late in the week following the release of the Labor Department's August employment report. The Labor Department reported that the U.S. economy lost 54,000 jobs, while unemployment rose slightly to 9.6% in August. Unemployment was at 9.5% in July.

Treasuries rose earlier in the week following the release of data suggesting that the U.S. economy is seeing some improvement. Jobless claims fell by 6,000 to 472,000 for the week according to the Labor Department. Nevertheless, analysts noted that claims remain at an historic high suggesting that the jobs market is recovering, albeit slowly.

Also impacting the markets this week, the National Association of Realtors (NAR) reported a 5.2% rise in home sales for the month of July. The pending home sales index had been dropping since April after the $8,000 home buyer tax credit expired.

NAR said that home sales are still 19.1% below what they were one year ago. Lawrence Yun, NAR Chief Economist, cautioned that there will be a long recovery process in the real estate market. "Home sales will remain soft in the months ahead, but improved affordability conditions should help with a recovery," Yun said.

The 10-year Treasury note yield began at 2.64% and finished at 2.71%. The 30-year Treasury note yield began at 3.69% and finished at 3.78%.

Mortgage Rates at New Record Low

Freddie Mac reported mortgaged rates reaching a new record low this week. The 30-year fixed-rate mortgage (FRM) averaged 4.32%, down from last week when it averaged 4.36%. Last year at this time, the 30-year FRM averaged 5.08%.

The 15-year FRM this week averaged a record low of 3.83%, down from last week when it averaged 3.86%. One year ago at this time, the 15-year FRM averaged 4.54%.

"The 12-month price growth of core personal expenditures remained at 1.4% in July, which kept overall inflation expectations well at bay," said Amy Crews Cutts, Freddie Mac Deputy Chief Economist. Federal Reserve Chairman Bernanke's recent statement that the Fed expects inflation to remain at low levels for some time, pushed mortgage rates lower for the week.

Crews Cutts said that home prices appear to be strengthening. The S&P Case /Shiller Home Price Index showed a 2.3% rise in home prices between the first and second quarter of this year. Major metropolitan areas are also continuing to experience home price growth.

The money market fund finished this week at 0.73%. The 1-year CD finished at 1.11%.

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