Personal data including text messages, contact lists and photos can be extracted from iPhones through previously unpublicized techniques by Apple Inc employees, the company acknowledged this week. The same techniques to circumvent backup encryption could be used by law enforcement or others with access to the "trusted" computers to which the devices have been connected, according to the security expert who prompted Apple's admission. In a conference presentation this week, researcher Jonathan Zdziarski showed how the services take a surprising amount of data for what Apple now says are diagnostic services meant to help engineers. As word spread about Zdziarski’s initial presentation at the Hackers on Planet Earth conference, some cited it as evidence of Apple collaboration with the National Security Agency.
Even if data next week shows a mediocre rebound in U.S. economic growth, that might be enough to keep the stock market aloft at record highs and the Federal Reserve steadfast in its winding down of stimulus through bond purchases. Growth had shrunk 2.9 percent in the first quarter due to a harsh winter and spending cuts tied to the federal Affordable Care Act. Indeed, Friday's disappointing report on durable goods orders in June spurred JPMorgan and Goldman Sachs to shave their second-quarter outlook by 0.1 percentage point to 2.6 percent and 3.0 percent growth, respectively.
In its quarterly report filed on Thursday, Facebook said the regulator in May "notified us that it had terminated its inquiry and that no enforcement action had been recommended by the SEC." Facebook shares began trading on May 18, 2012, but soon fell below their $38 per share offering price and had lost more than half their value by the middle of August, angering investors. Investors also complained they were not told just prior to the IPO that analysts at Facebook's investment banks were cutting their forecasts after learning of the company's internal projections for advertising revenue. The end of the SEC probe does not affect shareholder litigation against Facebook, Chief Executive Mark Zuckerberg and many banks over the Menlo Park, California-based company's IPO.