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

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news