Sales of new homes in the U.S. fell by 12.6% in January to a seasonally adjusted 284,000 unit annual rate, the Commerce Department reported this morning.
Economists had expected a 310,000 pace from a previously reported 329,000 pace in December. The Commerce Department revised December's sales down to 325,000, but it was still the best rate since April 2010.
New-home sales are down 18.6% from January 2010.
The supply of new homes on the market rose to 7.9 months in January from 7 months in December. The median sales price for a new home fell 1.9% in January from December to $230,600. Median sales prices are up 5.7%, however, from January 2010.
Sales of existing homes rose 2.7% in January from December, the National Association of Realtors reported on Wednesday.
Thursday, February 24, 2011
Tuesday, February 22, 2011
Stocks Tumble, Oil Surges on Middle East Worries
The Dow Jones Industrial Average tumbled more than 200 points today, as concerns about unrest in Libya and other countries in the Middle East sent buyers to the sidelines. The Dow closed down 178 points, or 1.4%, to 12,212.79. It was the index's biggest point and percentage decline since mid-November.
Libya has been hit by massive protests, a follow-through from demonstrations in Tunisia and Egypt that forced out those countries' long-standing leaders. Protests are also taking place in Bahrain, Iran, Morocco and Yemen.
Libyan leader Moammar Gadhafi, who has been in power for 42 years, said he would remain in the country "until the end" and that he would fight to his “last drop of blood.” More than 200 people have been killed.
The unrest in Libya caused light, sweet crude oil to jump again today. Oil spiked $5.71, or 6.4% to close at $95.40 a barrel. Libya has the most oil reserves in Africa and is a member of the Organization of Petroleum Exporting Countries.
“Oil traders fear that a civil war would perhaps take Libyan oil out of play for years to come,” Phil Flynn, vice president at PGF Best, told MarketWatch.com.
Saudi oil minister Ali al-Naimi tried to calm fears about oil prices. Speaking at a news conference in Riyadh, Al-Naimi said that "OPEC is ready to meet any shortage in supply when it happens,” according to The New York Times. “There is concern and fear, but there is no shortage.”
Libya has been hit by massive protests, a follow-through from demonstrations in Tunisia and Egypt that forced out those countries' long-standing leaders. Protests are also taking place in Bahrain, Iran, Morocco and Yemen.
Libyan leader Moammar Gadhafi, who has been in power for 42 years, said he would remain in the country "until the end" and that he would fight to his “last drop of blood.” More than 200 people have been killed.
The unrest in Libya caused light, sweet crude oil to jump again today. Oil spiked $5.71, or 6.4% to close at $95.40 a barrel. Libya has the most oil reserves in Africa and is a member of the Organization of Petroleum Exporting Countries.
“Oil traders fear that a civil war would perhaps take Libyan oil out of play for years to come,” Phil Flynn, vice president at PGF Best, told MarketWatch.com.
Saudi oil minister Ali al-Naimi tried to calm fears about oil prices. Speaking at a news conference in Riyadh, Al-Naimi said that "OPEC is ready to meet any shortage in supply when it happens,” according to The New York Times. “There is concern and fear, but there is no shortage.”
Monday, February 21, 2011
Oil Spikes on Libyan Unrest
Oil prices surged today as tension in the Middle East grew, particularly in oil-rich Libya.
Light, sweet crude for April delivery rose $5.69, or 6.3%, to $95.40 a barrel, and Brent crude, the benchmark for European countries, topped $105 a barrel, the highest level in more than two years.
"All eyes are on the Middle East and North Africa crisis regarding potential disruptions in oil exports that could drive crude oil prices even higher," Myrto Sokou, an analyst at Sucden Financial, wrote in a research report, according to CNNMoney.com.
Libya is part of the Organization of Petroleum Exporting Countries (OPEC), and the country produces 1.8 million barrels of oil a day. Its oil reserves make up about 3% of the world's supply. The U.S. imports 90,000 barrels of oil a day from Libya.
Anti-government demonstrations have erupted across the Middle East, with the rulers of Egypt and Tunisia being forced out of their positions of power. Protests have spread to Libya, Bahrain and Morocco.
The unrest prompted Fitch Ratings to downgrade Libya's credit rating to "BBB" from "BBB+," and the ratings company cautioned that another downgrade could follow. Rival credit ratings company Standard & Poor’s lowered Bahrain's sovereign debt rating by one notch to “A-/A-2.”
Light, sweet crude for April delivery rose $5.69, or 6.3%, to $95.40 a barrel, and Brent crude, the benchmark for European countries, topped $105 a barrel, the highest level in more than two years.
"All eyes are on the Middle East and North Africa crisis regarding potential disruptions in oil exports that could drive crude oil prices even higher," Myrto Sokou, an analyst at Sucden Financial, wrote in a research report, according to CNNMoney.com.
Libya is part of the Organization of Petroleum Exporting Countries (OPEC), and the country produces 1.8 million barrels of oil a day. Its oil reserves make up about 3% of the world's supply. The U.S. imports 90,000 barrels of oil a day from Libya.
Anti-government demonstrations have erupted across the Middle East, with the rulers of Egypt and Tunisia being forced out of their positions of power. Protests have spread to Libya, Bahrain and Morocco.
The unrest prompted Fitch Ratings to downgrade Libya's credit rating to "BBB" from "BBB+," and the ratings company cautioned that another downgrade could follow. Rival credit ratings company Standard & Poor’s lowered Bahrain's sovereign debt rating by one notch to “A-/A-2.”
Thursday, February 17, 2011
Philly Fed Jumps; Consumer Prices Creep Higher
Manufacturing activity in the Philadelphia region was robust in February, according to a report from the Federal Reserve Bank of Philadelphia this morning.
The Philly Fed Index rose to a reading of 35.9, up from a reading of 19.3 in January, and the highest level since January 2004. Economists had expected a reading of 20.8. Readings above zero indicate expansion in the sector.
Consumer prices in the U.S. also rose, according to the Labor Department. The department's Consumer Price Index rose 0.4% in January, amid soaring food and gasoline prices. The core CPI, which excludes volatile food and energy prices, rose 0.2%, the biggest gain since October 2009.
Economists had been looking for a 0.3% increase in the CPI and a 0.1% rise in the core CPI.
On a year-over-year basis, the CPI rose 1.6%, up from a 1.5% year-over-year gain in December. The core rate rose 1% from last January.
The Philly Fed Index rose to a reading of 35.9, up from a reading of 19.3 in January, and the highest level since January 2004. Economists had expected a reading of 20.8. Readings above zero indicate expansion in the sector.
Consumer prices in the U.S. also rose, according to the Labor Department. The department's Consumer Price Index rose 0.4% in January, amid soaring food and gasoline prices. The core CPI, which excludes volatile food and energy prices, rose 0.2%, the biggest gain since October 2009.
Economists had been looking for a 0.3% increase in the CPI and a 0.1% rise in the core CPI.
On a year-over-year basis, the CPI rose 1.6%, up from a 1.5% year-over-year gain in December. The core rate rose 1% from last January.
Tuesday, February 15, 2011
Dell Tops Expectations
Dell (DELL) late Tuesday said profit in its most recent quarter nearly tripled, thanks to a boost in corporate spending on computer hardware and demand for its products.
Dell said it earned $927 million, or 48 cents per share, in the fiscal fourth quarte, up from a profit of $334 million, or 17 cents per share, in the same quarter a year ago. Adjusted earnings were 53 cents per share, topping expectations of 36 cents per share.
Revenue was $15.69 billion, up from $14.9 billion. Analysts had expected $15.75 billion in revenue.
The company said it expects revenue growth of between 5% and 9% in the current fiscal year. Wall Street is looking for 5% growth.
Shares of Dell rose 59 cents, or 4.2%, to $14.50 in regular trading on Tuesday; after-hours, the stock slipped 18 cents, or 1.3%, to $13.91.
Dell said it earned $927 million, or 48 cents per share, in the fiscal fourth quarte, up from a profit of $334 million, or 17 cents per share, in the same quarter a year ago. Adjusted earnings were 53 cents per share, topping expectations of 36 cents per share.
Revenue was $15.69 billion, up from $14.9 billion. Analysts had expected $15.75 billion in revenue.
The company said it expects revenue growth of between 5% and 9% in the current fiscal year. Wall Street is looking for 5% growth.
Shares of Dell rose 59 cents, or 4.2%, to $14.50 in regular trading on Tuesday; after-hours, the stock slipped 18 cents, or 1.3%, to $13.91.
Wednesday, February 9, 2011
Bernanke Tries to Calm Inflation Fears
Federal Reserve Chairman Ben Bernanke addressed the House Budget Committee this morning and tried to ease their concerns about the possibility of accelerating inflation.
In his first hearing before the new Republican majority in the House, Bernanke said that "markets don't expect inflation."
Bernanke's comments did little to ease House Budget Committee Chairman Paul Ryan's (R-Wis.) concerns about the potential for a spike in inflation. Ryan expressed worry that the Fed might not notice a rise in inflation until it was too late, pointing to today's edition of The Wall Street Journal and a story entitled “Inflation Worries Spread.”
Bernanke responded by stating that "inflation is taking place in emerging markets because that’s where the growth is, that’s where the demand is and that’s where, in some cases, the economy is overheating." He also said that "overall inflation is still quite low and longer-term inflation expectations have remained stable.”
The Fed chief also talked about unemployment and the overall economy, offering a mixed take about growth. "Although the growth rate of economic activity appears likely to pick up this year, the unemployment rate probably will remain elevated for some time,” Bernanke said.
"Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established,” he added.
In his first hearing before the new Republican majority in the House, Bernanke said that "markets don't expect inflation."
Bernanke's comments did little to ease House Budget Committee Chairman Paul Ryan's (R-Wis.) concerns about the potential for a spike in inflation. Ryan expressed worry that the Fed might not notice a rise in inflation until it was too late, pointing to today's edition of The Wall Street Journal and a story entitled “Inflation Worries Spread.”
Bernanke responded by stating that "inflation is taking place in emerging markets because that’s where the growth is, that’s where the demand is and that’s where, in some cases, the economy is overheating." He also said that "overall inflation is still quite low and longer-term inflation expectations have remained stable.”
The Fed chief also talked about unemployment and the overall economy, offering a mixed take about growth. "Although the growth rate of economic activity appears likely to pick up this year, the unemployment rate probably will remain elevated for some time,” Bernanke said.
"Until we see a sustained period of stronger job creation, we cannot consider the recovery to be truly established,” he added.
Wednesday, February 2, 2011
The Daily Launches as iPad-only App
News Corp. (NWS) introduced The Daily newspaper today, one that is available only on Apple (AAPL) iPad tablets.
"New times demand new journalism,” News Corp. CEO Rupert Murdoch said. "The iPad demands that we completely re-imagine our craft. I'm convinced that in the tablet era there's room for a fresh and robust new voice."
The Daily targets consumers who do not read traditional newspapers, but it will charge for content, a novel idea in a struggling industry. Many newspapers have been losing money and shutting up shop, faced with shrinking advertising sales and free content online. Revenue at U.S. newspapers slumped 29% in 2009, the fourth annual decline, according to the Newspaper Association of America, the last year that data was available.
Subscribers would get the first two weeks for free, and then "The Daily" app will cost 99 cents per week or $39.99 per year. The Daily is the first publication available through iTunes as a subscription.
"No paper. No multi-million dollar presses. No trucks," Murdoch said. "We're passing on these savings to the reader, which is why we can offer The Daily for just 14 cents a day." Murdoch said
Initially, The Daily will be exclusive to the iPad, but it will be available on other tablets later in the year.
"New times demand new journalism,” News Corp. CEO Rupert Murdoch said. "The iPad demands that we completely re-imagine our craft. I'm convinced that in the tablet era there's room for a fresh and robust new voice."
The Daily targets consumers who do not read traditional newspapers, but it will charge for content, a novel idea in a struggling industry. Many newspapers have been losing money and shutting up shop, faced with shrinking advertising sales and free content online. Revenue at U.S. newspapers slumped 29% in 2009, the fourth annual decline, according to the Newspaper Association of America, the last year that data was available.
Subscribers would get the first two weeks for free, and then "The Daily" app will cost 99 cents per week or $39.99 per year. The Daily is the first publication available through iTunes as a subscription.
"No paper. No multi-million dollar presses. No trucks," Murdoch said. "We're passing on these savings to the reader, which is why we can offer The Daily for just 14 cents a day." Murdoch said
Initially, The Daily will be exclusive to the iPad, but it will be available on other tablets later in the year.
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