Page 24 - ARUBA TODAY

Thursday 24 augusT 2017 BUSINESS
A24

U.S. stock indexes sag as a two-day rally peters out New-home sales

By STAN CHOE fell in July, yet still
AP Business Writer ahead of last year
NEW YORK (AP) — Stocks By CHRIS S. RUGABER
retreated on Wednesday AP Economics Writer
and gave back some of WASHINGTON (AP) — Sales
their gains from a day ear- of new U.S. homes plum-
lier, when the Standard & meted 9.4 percent in July,
Poor’s 500 index had one the sharpest one-month
of its best days of the year. drop in nearly a year. But
Advertising companies the decline followed strong
and retailers had some of sales in previous months,
the steepest drops on wor- and sales so far this year
ries about their earnings, are outpacing last year’s.
while prices for Treasury The Commerce Depart-
bonds and gold rose mod- ment said Wednesday that
estly as investors sought new-home sales fell to a
safer ground. It’s the lat- seasonally adjusted an-
est move lower for a stock nual rate of 571,000 in July,
market that’s yo-yoed down from 630,000 in June.
since setting a record high Last month’s figure was the
earlier this month. weakest since December.
The Standard & Poor’s 500 Still, sales in the first seven
index fell 8.47 points, or 0.3 months of the year are
percent, to 2,444.04, relin- Trader Gregory Rowe works on the floor of the New York Stock Exchange, Wednesday, Aug. 16, 9.2 percent higher than in
2017.
quishing about a third of Associated Press the same period last year.
its big gain from Tuesday. More buyers are turning to
The loss snapped a two- or 7 percent to $72.66, and that were considered slam quarter, Nixon heard much newly built houses as the
day winning streak that Interpublic Group lost $1.32, dunks early this year. Now, less of such talk. supply of existing homes for
followed a nearly two- or 6.3 percent, to $19.58. the market seems to have The government is com- sale has fallen steadily.
weeklong slump. After all Lowe’s, the home-improve- little to no expectation for ing close to some crucial The housing market overall
its back and forth, the S&P ment retailer, much help coming from deadlines, including one to is mostly healthy, but sales
500 is still within 1.5 percent also dragged down the Washington, said Katie Nix- increase its borrowing au- have stumbled this sum-
of its record. S&P 500 after it reported on, chief investment officer thority in order to avoid a mer as a supply crunch has
The Dow Jones industrial profit and revenue for the at Northern Trust Wealth default on its debt and an- elevated average home
average fell 87.80 points, or latest quarter that were Management. other to prevent a govern- prices nationwide.
0.4 percent, to 21,812.09, weaker than analysts ex- “Actions speak louder than ment shutdown. The rising prices have
and the Nasdaq compos- pected. It gave a profit words, and when we see In a speech late Tuesday, made homes too expen-
ite lost 19.07, or 0.3 per- outlook for the year that fell actual action, you’ll see President Donald Trump sive for some would-be
cent, to 6,278.41. short of Wall Street’s fore- markets sit up and take no- said that “if we have to buyers, even as healthy hir-
The Russell 2000 index of cast, and its stock fell $2.81, tice,” she said. “But so far close down our govern- ing has lowered the unem-
small-cap stocks fell 1.80, or 3.7 percent, to $73.01. A it’s been a rhetorical exer- ment, we’re building that ployment rate to a 16-year
or 0.1 percent, to 1,369.74. report showing that sales of cise.” wall” that he wants on the low of 4.3 percent.
Advertising companies new homes were weaker She said she noticed border between Mexico Builders are ramping up
had the biggest losses in in July than economists ex- CEOs talking a lot about and the United States. the supply of new homes,
the S&P 500 after an in- pected didn’t help. their hopes for tax reform He also said that he thinks providing a crucial outlet.
dustry giant cut its forecast Worries about politics were or infrastructure spend- the U.S. government will But the number of newly
for revenue this year. WPP a big reason for the mar- ing earlier this year, when “end up probably termi- built properties available
warned that its clients are ket’s stumbles in recent companies were reporting nating” the North Ameri- is still below historical lev-
feeling pressure to con- weeks. In Washington, the their results for the January- can Free Trade Agreement els. Even so, the supply of
trol their spending, and its concern is about wheth- through-March quarter. But with Canada and Mexico, new homes for sale ticked
shares plunged 10.9 per- er the government can in conference calls the last though he also said that up 1.5 percent in July from
cent in London. In the U.S., push through tax cuts and few weeks, as CEOs report- he has yet to make up his June to 276,000. That’s 16.5
Omnicom Group fell $5.47, other pro-business policies ed their results for the spring mind.q percent higher than a year
Lowe’s not catching same stride as Home Depot earlier.
That level is considered
enough to last 5.8 months
at the current sales pace
MOORESVILLE, N.C. (AP) billion, or $1.68 per share. A Revenue rose to $19.5 bil- Lowe’s doesn’t appear — near the 6 months that is
— Lowe’s second-quarter year ago the Mooresville, lion from $18.26 billion. It fell to be catching the same typical in a healthy market.
profit got a boost from North Carolina, company short of the $19.52 billion in housing market tail wind of By contrast,
the sales of an Australian earned $1.17 billion, or revenue analysts surveyed rival Home Depot Inc. Last the number of existing
joint venture, but its perfor- $1.31 per share. by Zacks expected. week, it dazzled investors homes for sale plunged
mance was weak by most The current quarter includ- Sales at stores open at least with its strongest quarterly 7.1 percent in June from a
measures in a vibrant hous- ed a $96 million gain relat- a year increased 4.5 per- sales ever and the richest year earlier. The larger sup-
ing market, and its profit ed to the sale of its interest cent, one of the few areas profit in its history. ply of new homes has kept
outlook for the year was in the Australian joint ven- that it did a little better than Lowe’s foresees full-year prices from rising as much
well below the expecta- ture. expected, according to earnings of $4.20 to $4.30 as in the market for exist-
tions of industry analysts. Earnings, adjusted for one- FactSet. Comparable-store per share, with sales ris- ing houses. A typical new
Shares fell 5 percent time gains, were $1.57 per sales are a key gauge of a ing about 5 percent. Ana- home sold for $313,700 in
Wednesday in premarket share. That’s below the retailer’s health because lysts anticipate earnings of July — below the $316,200
trading. $1.62 per share that ana- the remove the volatility of $4.62 per share, according typical price for all of last
For the period ended Aug. lysts polled by Zacks Invest- stores recently opened or to a FactSet poll.q year.q
4, Lowe’s Cos. earned $1.42 ment Research predicted. closed.