Video Reports

Embed this video

Copy Code

Link to this video

Get LinkEmbedLicenseRecommend (-)Print
Bookmark and Share

By Jason Stipp and Jeremy Glaser | 06-14-2012 02:00 PM

Who's Buying It?

The market was a selective shopper this week, latching onto the notion of more stimulus, but hesitating to buy into the Spanish bank bailout and cutbacks at Nokia.

Jason Stipp: I'm Jason Stipp for Morningstar, and welcome to The Friday Five.

A lot of stories were on sale in the market this week, but the question is, are you buying it?

Here to give his take is Morningstar markets editor Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: Jason, glad to be here.

Stipp: So, what do you have for The Friday Five this week?

Glaser: This week we're going to talk about Nokia, Apple, the Federal Reserve, the Spanish bank bailout, and finally Jamie Dimon.

Stipp: This week, Jeremy, Nokia announced some cutbacks. Their business is continuing to struggle. The market didn't seem to be buying that this was actually going to help Nokia in the end. What's your take?

Glaser: I don't think anyone is really buying this right now. Nokia said they are going to lay off about 10,000 workers and have some other cost-saving measures, like shutting some plants down, in an effort to really try to refocus the business and double down on trying to create smartphones that people actually want to buy.

But I don't think that trying to shrink their way to growth is really something that's going to be particularly useful for Nokia. I think that the market is looking for them to come out with some breakthrough products, to come out with products that people are going to actually push aside their iPhones for, push aside their Android devices for, and really be interested [in buying]--whether it be a Windows phone device or some other operating system that Nokia might want to work with.

So, I think that it's a good thing that they are trying to right-size their workforce, that they are trying to get their costs under control, but until they can get revenues looking up again and get excitement around their products again, they're in for a long struggle.

Stipp: It's not a stretch to say that a primary source of Nokia's pain has been Apple and their lead in the smartphone market. They released iOS 6, their new operating system for the iPhone, this week. The big question is, are you buying that this will keep them in the lead?

Read Full Transcript
{0}-{1} of {2} Comments
{0}-{1} of {2} Comment
  • This post has been reported.
  • Comment removed for violation of Terms of Use ({0})
    Please create a username to comment on this article