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

 


While you were sleeping: Housing market momentum

While you were sleeping: Housing market momentum

Feb 27 (BusinessDesk) – Wall Street rose after a report showed an unexpected rise in US new home purchases in January, easing concern that the industry’s recovery was stalling.

New homes sales soared 9.6 percent to a seasonally adjusted annual rate of 468,000 units in January, according to Commerce Department data. That marks the highest level since July 2008. So much for the impact of harsh winter weather.

In further good news, December's sales were revised higher to a 427,000-unit pace, up from the previously reported 414,000.

In afternoon trading in New York, the Dow Jones Industrial Average added 0.33 percent, the Standard & Poor’s 500 Index gained 0.37 percent, while the Nasdaq Composite Index rose 0.65 percent. The US dollar gained 0.6 percent against the euro, while strengthening 0.3 percent against the yen.

Gains in shares of Home Depot, last up 1.7 percent, and those of Caterpillar, last up 1.4 percent, led the Dow higher.

Shares of Lowe’s jumped, last up 6 percent, after the company reported better-than-expected quarterly earnings and announced a stock buyback.

“Some of the recent housing and jobs data has softened a little bit, but we still think the consumer is going to be there and 2014 is going to be a great year,” Lowe’s CEO Robert Niblock told Bloomberg News in an interview. “It made more sense to come out slightly more cautious with our guidance and then deliver numbers above.”

Investors await Federal Reserve Chair Janet Yellen’s rescheduled testimony before the Senate Banking Committee on Thursday to gauge US policy makers’ take on the recent US economic data. Earlier this month, Yellen’s semi-annual testimony to the House showed optimism about the outlook for the US recovery.

Shares of Target climbed, with its shares 6.7 percent higher, after the company provided an earnings outlook that exceeded expectations. The company is recovering from a security breach late last year.

“During the first half of the fourth quarter, our guest-focused holiday merchandising and marketing plans drove better-than-expected sales. However, results softened meaningfully following our December announcement of a data breach,” Gregg Steinhafel, Target’s CEO, said in a statement.

“As we plan for the new fiscal year, we will continue to work tirelessly to win back the confidence of our guests and deliver irresistible merchandise and offers, and we are encouraged that sales trends have improved in recent weeks.”

US Treasuries gained as the sale of US$35 billion in five-year bonds drew solid demand. The sale’s bid-to-cover ratio was 2.98, the highest since September 2012, while the notes yielded 1.53 percent, the lowest since November, according to Bloomberg News.

In Europe, the Stoxx 600 Index finished the session with a 0.2 percent decline from the previous close. Germany’s DAX and France’s CAC 40 both dropped 0.4 percent, while the UK’s FTSE 100 fell 0.5 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Prices Up, Volume Down: March NZ House Sales Drop 10% As Loan Curbs Bite

New Zealand house sales dropped 10 percent in March from a year earlier as the Reserve Bank’s restrictions on low-equity mortgages continue to weigh on sales of cheaper property. More>>

ALSO:

Scoop Business: Chorus To Appeal Copper Pricing Judgment

Chorus will appeal a High Court ruling upholding the Commerce Commission’s determination setting the regulated prices on the telecommunications network operator’s copper lines. More>>

ALSO:

Earlier:

Cars: Precautionary Recalls Announced For Toyota Vehicles

Toyota advises that a number of its New Zealand vehicles are affected by a series of precautionary global recalls. Toyota New Zealand General Manager Customer Services Spencer Morris stressed that the recalls are precautionary. More>>

ALSO:

'Gardening Club': Air Freight Cartel Nets Almost $12 Million In Penalties

The High Court in Auckland has today ordered Swiss company Kuehne + Nagel International AG to pay a penalty of $3.1 million plus costs for breaches of the Commerce Act. Kuehne + Nagel’s penalty brings the total penalties ordered in this case to $11.95 million ... More>>

ALSO:

Crown Accounts: Revenue Below Projections

Core Crown tax revenue has increased by $1.9 billion (or 5.0%) compared to the same time last year. However this was $1.1 billion less than expected and is reflected across most tax types, continuing the pattern of recent months. More>>

ALSO:

Efficiency: Businesses And Households To Save From New Energy Plans

Minister of Energy and Resources Simon Bridges today announced three energy efficiency initiatives to improve business productivity, save money and reduce carbon emissions. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news