Money Minute: Backlash Hurts Target Sales; Apple Scores Big China Deal


Target reportedly suffers a consumer backlash and Apple makes a breakthrough in China.

Shoppers may have punished Target (TGT) after the retailer revealed last week that 40 million people had personal information compromised in a data security breach. Analysts estimate the number of transactions at Target stores over this key weekend fell compared to a year ago. Many customers are angry it took Target several weeks to inform the public of the hacking incident.

Reuters reports that other retailers also struggled this weekend.

Rita Qian, AFP/Getty Images
After weeks of rumors, Apple (AAPL) says China Mobile will start taking pre-orders for the iPhone this week, and start selling the devices Jan. 17. That opens the door for Apple to expand its presence in China and reach China Mobile's 700 million customers.

A Dutch arbitration panel has ruled the luxury retailer Tiffany (TIF) must pay $450 million in damages to Swatch. The Swiss watchmaker had accused Tiffany of breach of contract. As a result of the ruling, Tiffany will take a big fourth-quarter charge.

Here on Wall Street, the Dow Jones industrial average (^DJI) and the Standard & Poor's 500 index (^GPSC) start the week at all-time highs, after the major averages rallied last week.

Friday's record for the Dow was its 47th this year, but this one was different from all of the others. This is the first inflation-adjusted record for the Dow since January of 2000.

The Chrysler IPO plan is on hold. Fiat Chairman Sergio Marchionne has reportedly restarted talks with a trust run the by the United Auto Workers about buying the 41 percent stake it holds in Chrysler. Fiat doesn't want the union to sell its shares in a public offering. That would make it more difficult for the Italian automaker to take total control of Chrysler.

Lastly, Michaels Stores, the national chain of arts and craft stores, also had planned to go public -- but the company has withdrawn its IPO filing. Michaels is owned by a pair of large investment firms.

-Produced by Drew Trachtenberg.

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