Real Estate Daily News Buzz is designed to give news snippets to readers that our (yet to be award winning) editors thought you could use to start your day. They come from various business perspectives, real estate, government, the Fed, local news, and the stock markets to save you time. Here you will find the headlines and what the news buzz of the day will be.
Thursday, the Dow Jones industrial gained 5.74 points, less than 0.1%, to 17,408.25. The Standard & Poor’s 500 index lost 2.66 points, or 0.1%, to close at 2,083.39. The NASDAQ composite lost 10.83 points, or 0.2%, to 5,033.56.
U.S. crude fell $1.07 to close at $42.23, its lowest close since March 3, 2009. Brent crude, a benchmark for international oils used by many U.S. refineries, fell 44 cents to close at $49.22 in London. Wholesale gasoline fell 5 cents to close at $1.714 a gallon. Heating oil fell 1.8 cents to close at $1.569 a gallon. Natural gas fell 14.4 cents to close at $2.787 per 1,000 cubic feet.
US retail sales rose in July, aided by autos and restaurants “Americans bought more cars, restaurant meals and building supplies in July, a rise in spending that points to steady economic growth anchored by an improving job market. Retail sales climbed 0.6% last month after a flat reading in June, the Commerce Department said Thursday. july’s increase suggests that the combination of solid hiring and cheaper gasoline is contributing to rising consumer confidence and spending after a muted start to 2015. Greater retail sales could help boost overall economic growth because consumer spending accounts for the bulk of U.S. economic activity.” (Finance & Commerce)
Monthly average of US jobless claims falls to 15-year low “More people sought U.S. unemployment aid last week, but the average for the past month fell to the lowest level in 15 years, a sign that few employers are cutting jobs. The Labor Department said Thursday that applications for jobless benefits rose 5,000 to a seasonally adjusted 274,000 last week. Yet the four-week average, a less volatile measure, dropped 1,750 to 266,250, the lowest since April 15, 2000. The figures indicate that six years after the Great Recession forced 8.5 million layoffs, Americans are enjoying solid job security. Economists note that when adjusted for population growth, the current level of applications is likely at all-time lows.” (Dispatch)
US business stockpiles jump in June “U.S. businesses boosted their stockpiles in June by the largest amount in more than two years. Businesses increased their stockpiles by 0.8% in June, the biggest increase since January 2013, the Commerce Department reported Thursday. Economists are hoping that strong gains in employment over the past year will help boost consumer spending in the months ahead, encouraging businesses to keep building their inventories. If consumer demand doesn’t rise, businesses could start cutting back on restocking, which would be a drag on the economy.”(ABC News)
US mortgage debt little changed even as sales, prices rise “Americans are buying more homes and at higher prices, yet new data shows that mortgage debt is little changed. The Federal Reserve Bank of New York said Thursday that outstanding U.S. mortgage debt slipped 0.7% in the April-June quarter to $8.12 trillion. That is up slightly from a year ago and about the same level as three years ago when the housing market bottomed. (Times Union)
Surge in Commercial Real-Estate Prices Stirs Bubble Worries “Investors are pushing commercial real-estate prices to record levels in cities around the world, fueling concerns that the global property market is overheating.” (Wall Street Journal)
BofA Reviewing Real Estate Referral Deals Amid Regulatory Scrutiny “Two weeks ago, it was Wells Fargo. Will Bank of America be the next big lender to end a type of referral arrangement with builders and real estate agents over regulatory scrutiny of such deals?” (Charlotte Observer)
Trader Joe's: Good for Cheap Groceries, Great for Home Values “It’s an old saying in real estate: Want a pricey house? Find a cheap grocery store. You’re right, that’s not a saying at all. But according to a new study from RealtyTrac, released this week, there’s some truth to it.” (Christian Science Monitor)
American Apparel Mulls Bankruptcy Filing Amid Unrest “Things have gone from bad to worse at American Apparel. The embattled retailer, fighting labor unrest and a dwindling cash supply, said Tuesday its net loss swelled to $19.4 million in the second quarter from $16.2 million a year ago amid a 17 percent decline in revenue.” (New York Post)
Survey: California Real Estate Boom Underway “A survey released Wednesday says a real estate boom is underway in California, fueled by rising demand from the business community and a shortage of multi-family housing.” (CBS Los Angeles)
Steve Wynn Has ‘Had Enough’ of the Mayor of Boston "’I've had enough of Mayor Walsh,’ billionaire casino mogul Steve Wynn told the Boston in a recent phone interview.” (Business Insider)
Korean Funds Are Betting on New York City Real Estate, Alternative Investments “State-run Korea Post, which oversees 106 trillion won ($89 billion), wants to diversify from stock and bond investments into other sorts of assets, Mr. Jurng said. He expects the new Manhattan office to improve deal sourcing and global research capabilities to help find such opportunities abroad.” (Trusted Insight)
Market Indicating Fed Won't Raise Rates in September “In the course of just a couple of days, things have gotten a lot more complicated for the Federal Reserve.” (CNBC)
Salesforce Eyes MetLife's Sixth Avenue Office—and a Spot to Hang Its Logo “Business software giant Salesforce may soon have its name on a prominent midtown Manhattan office tower.” (Crain’s New York Business)
Deadly China blast disrupts world’s 10th largest port “Explosions that sent huge fireballs through China’s Tianjin port have disrupted the flow of cars, oil, iron ore and other items through the world’s 10th largest port. The blast sent shipping containers tumbling into one another, leaving them in bent, charred piles. Rows of new cars, lined up on vast lots for distribution across China, were reduced to blackened carcasses. Ships carrying oil and “hazardous products” were barred from the port Thursday, the Tianjin Maritime Safety Administration said on its official microblog. It also said vessels were not allowed to enter the central port zone, which is near the blast site.” (Bloomberg)