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 for the day will be.
Thursday, the Dow Jones industrial average gained 65.06 points, or 0.4%, to 17,763.24. The S&P 500 index rose 7.27 points, or 0.4%, to 2,066.96. The NASDAQ composite added 6.71 points, or 0.1%, to 4,886.94.
Benchmark U.S. crude fell 95 cents to close at $49.14 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $2.15 to close at $54.95 in London. Wholesale gasoline fell 7 cents to close at $1.761 a gallon. Heating oil fell 6.4 cents to close at $1.683 a gallon. Natural gas rose 10.8 cents to close at $2.713 per 1,000 cubic feet.
AVERAGE US RATE ON 30-YEAR MORTGAGE BARELY MOVES AT 3.7% (WASHINGTON AP) — Average long-term U.S. mortgage rates barely moved this week, remaining close to historically low levels as the spring home-buying season gets underway. Mortgage giant Freddie Mac said Thursday the national average for a 30-year fixed-rate mortgage ticked up to 3.70% from 3.69% last week. The average rate for a 15-year mortgage, popular with homeowners who refinance, edged up to 2.98% from 2.97% last week.
US APPLICANTS FOR UNEMPLOYMENT FALL TO 268,000 - (WASHINGTON AP) — The number of people seeking U.S. unemployment benefits dropped significantly last week, a sign of a strong job market despite evidence of tepid economic growth in the opening months of 2015. Weekly applications for jobless aid fell 20,000 to a seasonally adjusted 268,000, the Labor Department said Thursday. That put jobless claims near a 15-year low of 267,000 filings in late January. The decrease shows that a slowdown in manufacturing and construction has failed to spook employers, who may be anticipating a strong spring rebound after a bleak winter.
US FACTORY ORDERS ROSE IN FEBRUARY FOR FIRT TIME SINCE JULY (WASHINGTON AP) — Orders to U.S. factories rose in February, breaking a six-month losing streak. Factory orders rose 0.2% in February, which was the first increase since July, the Commerce Department reported Thursday. The climb was a welcome development for manufacturers struggling with disappointing economic growth in major trading partners like China, Europe and Japan. A stronger U.S. dollar also makes U.S. goods more expensive overseas. However, the news for February was tempered by a revision in the January figure: orders fell 0.7%, worse than the 0.2% drop the government originally reported.
US TRADE GAP NARROWS AS EXPORTS FALL BUT IMPORTS DROP MORE (WASHINGTON AP) — The U.S. trade deficit plunged in February as exports fell but imports dropped even more. The narrower gap could give a slight if temporary boost to U.S. economic growth, which has flagged in recent months. The Commerce Department said Thursday that the deficit — the amount by which the value of U.S. imports exceeds the value of exports — plummeted 16.9% to $35.4 billion from $42.7 billion in January.
WILL PETSMART’s HQ REMAIN IN ARIZONA? (PHOENIX) PetSmart Inc. announced a shake-up to its management team Tuesday. The Phoenix-based company, which went private after being bought out by BC Partners earlier this month, added five new executives, many of which worked with the company's new president and CEO Michael Massey at Collective Brands, the parent company of Payless ShoeSource and promoted another employee to an executive position. According to economic development specialists, the company is a prime target for headquarter raiders -- or, at least, leaves management in a position to entertain competing location offers and use those as local leverage to get a “retention” incentive. Changing ownership is the first bond breaking. As a public company, PetSmart’s ownership was spread across the country -- individuals and investment funds. In March, the company was taken private and is now controlled by private equity firms that are more focused on strategically positioning the retailer and building a return on their $8.7 billion investment. There are fewer people involved in making a decision to stay or relocate. Read full story here.
GRAND CANYON UNIVERISTY TAKE ISSUE WITH RECENT REPORT (Phoenix) A recent report regarding the affordability and value of Arizona and U.S. universities is drawing a cold reception from Grand Canyon University. The Phoenix-based for-profit college was listed this week in a study looking at the value of education provided by every college and university in the state. The data were compiled by SmartAsset.com, a financial website. The metrics of the study were based on amount of grants and scholarships students received, average starting salary, cost of tuition, living costs and retention rates. Representatives of SmartAsset said the data were culled from the 2013 National Center for Educational Statistics, the 2014 Payscale and the 2013 College Insight report as well as data from each college. Those numbers put GCU last in Arizona and No. 800 nationwide. GCU officials took issue with the values of scholarships and grants received by its students. Although GCU costs about $6,000 a year more than Arizona State University or the University of Arizona, its internal scholarships help lower the cost to compare with the state schools, officials said. GCU also questioned the retention rate statistics, which showed GCU as retaining only 59 percent of its incoming freshmen. Officials said that number did not include transfer students. The college has been on a fast-growth past since it became a publicly traded company. It has grown to more than 15,000 students and is putting in hundreds of millions of dollars in infrastructure to its campus. For complete response from GCU officials: CLICK HERE
EXXON CEO TALKS ARTCI OIL DRILLING, RISKS, LESSONS – (WASHINGTON AP) — The Arctic is the next great frontier for oil and gas — and one of the most environmentally fragile places on earth. An Energy Department advisory council study adopted last week said the U.S. should start exploring for oil and gas in the Arctic soon in order to feed future demand, and that the industry is ready to safely exploit the Arctic’s huge reserves, despite recent mishaps.
AIRBNB OFFERS CUBA LODGINGS IN MAJOR US BUSINESS EXPANSION (HAVANA AP) — The popular online home-rental service Airbnb is allowing American travellers to book lodging in Cuba starting Thursday in the most significant U.S. business expansion on the island since the declaration of detente between the two countries late last year. For a half-century, the U.S. trade embargo had blocked such businesses from entering the Cuban market. In January, however, the Obama administration loosened a series of restrictions on U.S. business in an attempt to encourage the growth of the island’s small private sector.
STOCK SPLIT COULD COST GOOGEL OVER $500 MILLION (SAN FRANCISCO AP) — An unorthodox stock split designed to ensure Google CEO Larry Page and fellow co-founder Sergey Brin retain control of the Internet’s most profitable company could cost Google more than half a billion dollars. Page, 42, and Brin, 41, have maintained control over Google since they started the company in a rented Silicon Valley garage in 1998. Their ideas and leadership have spawned one of the world’s best known and most powerful companies with a market value of $368 billion and a payroll of about 54,000 employees.
NEW SCORNG SYSTEMS AIMS TO HELP PEOPLE WITH POOR CREDIT (NEW YORK AP) — People struggling with a bad credit score, or lack of one, could benefit from a program rolling out in the next few months aimed at making it easier to get a Visa or MasterCard. The company behind the widely-used FICO credit score announced Thursday a pilot program to help millions of Americans get easier access to credit, based on their record of paying utility bills, instead of their history of loan repayments.
MEDICAL EXPENSES: FINDING YOUR WAY WITH A PATIENT NAVIGATOR - A medical emergency leaves you with tens of thousands of dollars in unpaid hospital bills. Your health insurance company rejects coverage for an important medical test. An unexpected diagnosis requires you to find three new medical specialists. In today’s health care system, consumers are increasingly on their own when these complex — and often costly — medical problems arise. Primary care doctors once helped patients manage such situations, but many physicians now have 15 minutes or less for each appointment. It’s in this high-pressure environment that a new industry of patient advocates — sometimes called patient navigators — has emerged, offering to help guide patients through knotty health situations.
BUFFETT SAYS US ECONOMY CONTINUES STEADY IMPROVEMENTS (OMAHA, Neb. AP) — Investor Warren Buffett says the economy continues to grow steadily, but too many people continue to miss out on the American dream.Buffett told CNN Thursday that he doesn’t see any real sign of weakness in the economy. Buffett looks at reports from the more than 80 businesses his Berkshire Hathaway conglomerate owns for insight. But Buffett reiterated his concerns about income inequality in this country while the super-rich continue to thrive. He said that America should be able to do more to help people who are struggling do better.
LABOR ISSUES PRESSURE McDONALD’S DESPITE PAY BUMP (NEW YORK AP) — A pay bump for workers at some McDonald’s restaurants isn’t likely to ease the pressures the chain is facing over labor issues. McDonald’s said Wednesday it would raise wages for workers at its company-owned U.S. restaurants, which represent only about 10% of more than 14,300 locations. It also said it would offer paid time off for some workers. The move marks the first time McDonald’s has set a national policy on wages, according to the company, and comes after it has been a primary target for ongoing demonstrations for pay of $15 and a union. Other companies, including Wal-Mart Stores Inc., have also announced pay hikes in an improving economy and at a time when worker issues are getting widespread attention.
OPEN HOUSE SCHEDULED AS BROADWAY CORRIDOR EXPANSION PLANNING MOVES FORWARD (TUCSON) - After 35 public meetings that began in June 2012, the Broadway Citizens Task Force (CTF) voted last week to recommend a 6-Lane Including Transit alignment on Broadway, from Euclid Avenue to Country Club Road. That recommendation goes to the Mayor and Tucson City Council for adoption next month. The recommended alignment is a hybrid between a design submitted by community member Gene Caywood and the “Starting Small” approach provided by the Broadway project team. Both designs are available at the link below. The alignment prioritizes preservation of historic buildings and adds lanes for vehicles and bicycles, and sidewalks for pedestrians. The CTF also supports enhancing transit service on the corridor, dedicating lanes to transit should the Mayor and Council choose to do so. The recommendation will be presented at an evening open house on April 23 at Sabbar Shrine Hall, 450 S. Tucson Blvd. (time to be announced). The $71.3 million project is one of 35 major regional corridor projects that are part of the 2006 voter-approved, $2.1 billion Regional Transportation Authority (RTA) Plan. The project is funded by the City of Tucson, Pima County, and the RTA. Read the news release: https://1.usa.gov/1GJB2Lg
Broadway Boulevard Project designs and information: https://1.usa.gov/1o5QHNH
ALBUQUERQUE JOURNAL SPOTLIGHTS TUCSON'S MENTAL HEALTH TREATMENT (TUCSON) - Earlier this year, the Greater Albuquerque Chamber of Commerce organized a visit to Tucson by a group of business, health, judicial, political, and law enforcement leaders to study Tucson's innovative approach to dealing with mental illness and police response to it. The Albuquerque Journal highlights Tucson's Mental Health Investigative Support Team, a specially-trained unit that responds to police calls involving people with mental health issues. "The Tucson Police Department is known for successfully and nonviolently defusing crises brought on by mental illness. Tucson and Pima County have what appears to be one of the better mental health treatment systems in the nation," the newspaper reported. The Journal concluded that, unlike Tucson, Albuquerque does not have a coordinated system to deal with mental health patients. The newspaper will publish two more stories about Tucson's mental programs. From the Albuquerque Journal: https://bit.ly/1CNxVAn
CITY SOLICITING PUBLIC COMMENTS ON THREE PLANNING DOCUMENTS (TUCSON) - The City of Tucson is asking for public comments on the draft update to the City of Tucson/Pima County Five-Year Consolidated Plan, the draft update to the Analysis of Impediments to Fair Housing Plan (AI), and the City’s Annual Action Plan for Fiscal Year 2016 (July 1, 2015 - June 30, 2016). Tucson's Housing and Community Development Department is accepting public comments for a 30-day period, ending April 23 at 5 p.m.Read the news release: https://1.usa.gov/1GgVfaM
Read the draft plans: https://1.usa.gov/1MADCrU