Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: Housing, jobs data boost stocks

While you were sleeping: Housing, jobs data boost stocks

Jan 18 (BusinessDesk) – Equities on both sides of the Atlantic rose as buoyant data on the US housing and labour markets as well as better-than-expected earnings from eBay bolstered hopes the economy is in better shape than feared.

Initial claims for state unemployment benefits last week dropped 37,000 to a seasonally adjusted 335,000, the lowest level since January 2008, according to the Labor Department.

Housing starts increased 12.1 percent in December to their highest level since June 2008, according to the Commerce Department.

“The economy is entering the year maybe not with a running start, but certainly a head start,” Jack Ablin, who helps oversee about US$66 billion as chief investment officer of BMO Private Bank in Chicago, told Bloomberg News. “It helps build a nice story for 2013.”

In afternoon trading in New York, the Dow Jones Industrial Average gained 0.69 percent, while the Standard & Poor's 500 Index rose 0.64 percent to 1,482.06, and the Nasdaq Composite Index advanced 0.62 percent. Earlier, the S&P 500 touched a five-year high of 1,482.38.

So far corporate results are beating the modest expectations for the fourth quarter. Of the 52 companies in the S&P 500 to have reported results since January 8, 71 percent beat analysts’ earnings estimates, according to data compiled by Bloomberg.

Shares of eBay climbed, last up 3.1 percent, after fourth-quarter sales surpassed expectations, underpinning optimism about the company's outlook.

"The legacy marketplaces business -- it’s kind of carried into mobile,” Bill Smead, who helps oversee 340,378 EBay shares as chief investment officer of Seattle-based Smead Capital Management, told Bloomberg. “You get involved with bidding or selling something on EBay, and it’s nice to carry around the device where you’re doing that with you."

However, the latest bank earnings disappointed. Shares of Citigroup and Bank of America fell, last down 3 percent and 3.9 percent respectively, after reporting results that failed to please investors.

Shares of Boeing took another beating, last down 0.5 percent, amid increasing concern about problems with its 787s that prompted a worldwide grounding of the company's newest commercial airliner.

"While it is entirely possible that the current battery issue is resolved in short order, it is also equally possible that the 787s current certification could be called into question," BB&T Capital Markets analyst Carter Leake wrote Thursday, cutting his rating on the stock to "underweight," according to Reuters.

Meanwhile, Republicans may be open to a "short-term debt limit extension," Reuters reported, a move that would eliminate - for now - one key risk to further market advances.

In Europe, the Stoxx 600 Index ended the day with a gain of 0.5 percent from the previous close. The FTSE 100 advanced 0.5 percent, Germany’s DAX rose 0.6 percent, and France's CAC 40 climbed 1 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news