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

 


While you were sleeping: US pending home sales drop

While you were sleeping: US pending home sales drop

July 29 (BusinessDesk) - Wall Street crawled higher after a disappointing report on housing underpinned concern about the industry’s struggle to recover a day before the US Federal Reserve is starting a two-day policy meeting.

The index of pending homes sales unexpectedly dropped, sliding 1.1 percent in June, after climbing 6 percent in May, according to a National Association of Realtors report.

“Activity is notably higher than earlier this year as prices have moderated and inventory levels have improved,” Lawrence Yun, NAR chief economist, said in a statement. “However, supply shortages still exist in parts of the country, wages are flat, and tight credit conditions are deterring a higher number of potential buyers from fully taking advantage of lower interest rates.” 

In late afternoon trading in New York, the Dow Jones Industrial Average gained 0.09 percent, the Standard & Poor’s 500 index increased 0.11 percent, while the Nasdaq Composite Index eked out a 0.03 percent gain. 

Gains in shares of UnitedHealth and Exxon Mobil, up 1.2 percent and 1.1 percent respectively, propelled the Dow higher.

Investors are waiting for the end of the Fed meeting on Wednesday to gauge policy makers’ take on the economy and the timing of an interest rate increase. Also, reports on second-quarter US gross domestic product and on the jobs market are due on Wednesday and Friday respectively.

Then there are second-quarter corporate earnings to digest too.

“It’s another big week of earnings, with the jobs report on Friday,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities, told Bloomberg News. “Sentiment in the short-term term is a little more cautious.”

The US economy probably expanded at a 3.0 percent annual rate in the second quarter, according to a Reuters survey of economists. The world’s largest economy shrank 2.9 percent in the first quarter.

"Pretty much across the board, components will look better," Jim O'Sullivan, chief US economist at High Frequency Economics in Valhalla, New York, told Reuters. “ I do think we can sustain a 3 percent growth number for the next couple of quarters.”

But some are worried the pace of recovery will fall short of expectations.

“We should expect a rebound in the second quarter, but we don’t think the rebound is going to be as strong as the market expects,” Vassili Serebriakov, a New York-based foreign-exchange strategist at BNP Paribas, told Bloomberg News.

In Europe, the Stoxx 600 Index finished the session with a 0.2 percent decline. The UK’s FTSE 100 Index inched 0.05 percent lower, while Germany’s DAX fell 0.5 percent. France’s CAC 40 rose 0.3 percent.

Shares in Lloyds Banking Group closed flat in London after the bank agreed to pay 226 million pounds in penalties for its role in manipulating benchmark interest rates.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Oil: 2014 New Zealand Petroleum Summit

Simon Bridges: Our abundance of energy and minerals resources provides us with unique opportunities to build the New Zealand economy.

Over the past three years the Government has made significant changes to how the sector is regulated. More>>

ALSO:

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news