Page 24 - ARUBA TODAY

Friday 17 February 2017 BUSINESS
A24

US home building Take a breath: Stocks slow after a record-setting run
falls as developers

STAN CHOE The day’s largest loss within Medical-waste company Treasury yields pulled back,
slow apartments AP Business Writer the S&P 500 came from Tri- Stericycle jumped to the giving back some of their
NEW YORK (AP) — The pAdvisor, which fell $5.78, biggest gain in the S&P 500 increase from prior days.
C. S. RUGABER Standard & Poor’s 500 in- or 11 percent, to $46.92 after its earnings and rev- The 10-year Treasury yield
AP Economics Writer dex dipped Thursday to after reporting weaker rev- enue for the latest quarter fell to 2.45 percent from
WASHINGTON (AP) — U.S. break a seven-day winning enue and earnings for its topped analysts’ estimates. 2.50 percent late Wednes-
builders broke ground on streak, its longest in three latest quarter than analysts The stock rose $5.96, or 7.7 day. The two-year Treasury
fewer homes last month, and a half years, though
led by a drop in apartment it remains a nudge away
construction. from its record high.
The number of new housing It was part of a pause for
starts declined 2.6 percent stock markets around the
in January to a season- world, which have been on
ally adjusted annual rate a torrid run thanks to an im-
of 1.25 million, the Com- proving economy, stronger
merce Department said corporate earnings and
Thursday . The drop came hopes for more business-
after a much larger gain friendly policies from Wash-
the previous month. Single ington. The dollar’s value
family housing starts rose also dipped against rival
1.9 percent, while apart- currencies, and Treasury
yields fell as bond prices
ment building dropped 7.9 rose. The S&P 500 fell 2.03
percent. points, or 0.1 percent, to
Even with the decline, new 2,347.22. The Dow Jones
home construction has in- industrial average rose 7.91
creased 10.5 percent in points, less than 0.1 per-
the past year. That gain has cent, to set another record
been fueled by rising de- at 20,619.77. The Nasdaq
mand for homes as more composite dipped 4.54
Americans are looking to points, or 0.1 percent, to
buy. Most economists saw 5,814.90. Four stocks fell for
Thursday’s report as a sign every three that rose on the Women walk past an electronic stock indicator of a securities firm in Tokyo. The Standard & Poor’s
500 index dipped Thursday to break a seven-day winning streak, its longest in three and a half
that higher mortgage rates New York Stock Exchange. years, though it remains a nudge away from its record high.
aren’t yet dragging down Analysts said it wasn’t sur- (AP Photo/Shizuo Kambayashi)
the housing market. prising to see stocks take a
Many potential buyers break following their long forecast. percent, to $83.35. yield fell to 1.21 percent
are frustrated by a lack of run higher. Avon Products, a direct Cisco Systems gained 78 from 1.25 percent, and the
available properties. The “The market has reacted seller of cosmetics, also cents, or 2.4 percent, to 30-year yield fell to 3.05
supply of existing homes quite strongly to the Trump plunged after reporting $33.60, and data-storage percent from 3.08 percent.
fell in December to its low- reflation trade, deregula- weaker-than-expected re- company NetApp climbed Yields fell even as more en-
est level since 1999. That tion and lower-tax com- sults. The company said the $1.63, or 4.2 percent, to couraging reports on the
has pushed up prices as ments over the last couple number of sales represen- $40.56 after likewise report- economy arrived. Home-
buyers have had to bid weeks,” said Nate Thooft, tatives, who are famous for ing larger-than-expected builders broke ground on
against each other. senior portfolio manager selling its products door to profits. slightly more projects last
Home builders have re- at Manulife Asset Manage- door, slipped from a year Handbag maker Kate month than economists
sponded by ramping up ment. “And on top of that earlier. The stock dropped Spade climbed after the expected, though activ-
we’ve had a pretty darn $1.09, or 18.6 percent, to company said it is consid-
ity was down from the
construction, but the in- good earnings season. It $4.77. ering options that could prior month. A measure of
creases haven’t been fast just needs a little bit of a Most companies, though, include a sale. Its stock, manufacturing in the Phila-
enough to relieve supply breather today.” have been reporting stron- which traded around delphia region suggested
shortages. He said he still sees stocks ger results for the last three three-year lows in Decem- that growth is improving,
In a positive sign, building as better investments than months of 2016 than Wall ber, jumped $2.89, or 14.7 and that figure also beat
permits, a gauge of future bonds. Street forecast. percent, to $22.56. forecasts.q
construction, rose 4.6 per-
cent last month, led by a Applications for unemployment benefits edge up 5,000
big gain in apartment per-
mits. Single-family permits MARTIN CRUTSINGER came after claims had for layoffs. The low level The jobless rate rose in Jan-
fell. AP Economics Writer dropped to 234,000 the for claim applications sug- uary largely because more
“The big uptick in permits WASHINGTON (AP) — The previous week, the second gests that employers re- people entered the labor
should be good news for number of Americans filing lowest reading in the past main confident enough in market to look for work.
inventory-constrained for unemployment benefits year. the economy to be focus- Federal Reserve Chair Ja-
homebuyers, as permits rose slightly last week but The less-volatile four-week ing on hiring new workers net Yellen delivered the
eventually become starts, still remained at a level in- average edged up a slight and retaining the employ- Fed’s semiannual econom-
which in turn become new dicating a healthy job mar- 500 applications to 245,250. ees they have. ic report to Congress this
homes for sale,” Ralph ket. That marks 102 consecu- Employers added 227,000 week. She indicated Fed
McLaughlin, chief econo- Claims for unemployment tive weeks in which claims jobs in January as the un- officials believe the central
mist for real estate data benefits rose by 5,000 last applications have been employment rate ticked up bank is close to achiev-
provider Trulia. “As a result, week to a seasonally ad- below the key threshold of slightly to 4.8 percent, still in ing its goals of maximum
we shouldn’t be surprised justed 239,000, the Labor 300,000, the longest stretch line with the level that the employment and inflation
to see a strong uptick in Department reported since 1970. Federal Reserve views as rising at a modest annual
starts in mid-2017.”q Thursday. The increase Jobless claims are a proxy indicating full employment. rate of 2 percent.q