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

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news