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.
On Thursday, the Dow Jones industrial average lost 3.66 points, or 0.02%, to 16,801.05. The Standard & Poor’s 500 index rose 0.01 of a point to 1,946.17. The NASDAQ composite rose 8.11 points, or 0.2%, to 4,430.19.
Benchmark U.S. crude rose 28 cents to close at $91.01 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, fell 74 cents to close at $93.42 on the ICE Futures exchange in London. Wholesale gasoline fell 4.1 cents to close at $2.409 a gallon. Heating oil fell 1.8 cent to close at $2.638 a gallon. Natural gas fell 9.1 cents to close at $3.932 per 1,000 cubic feet.
SEARS TO SELL CANADA STAKE, INCREASE CASH HOLDINGS
HOFFMAN ESTATES, IL—Sears Holdings Corp. said Thursday that its board has approved the sale of up to 40 million shares of Sears Canada Inc., a move that could generate as much as $380 million. With an eye toward shoring up its cash holdings ahead of the holiday selling season, the financially beleaguered retailer is reducing its share of its Canadian operation to a minority stake of about 12 million shares. It expects at least $168 million in US proceeds by mid- to late October, with the balance coming in the following month.
APPLICATIONS FOR US JOBLESS BENEFITS DROP TO 287 K
WASHINGTON (AP) — The number of people seeking U.S. unemployment benefits dropped 8,000 last week to a seasonally adjusted 287,000, as the total number of beneficiaries dropped to its lowest level in more than eight years. The four-week average of applications, a less volatile measure, fell 4,250 to 294,750, the Labor Department said Thursday. Overall, 2.3 million people are receiving jobless aid. That’s the fewest since June 2006, which predates the start of the Great Recession by 18 months. Applications are a proxy for layoffs. The recent decline suggests that employers are keeping their workers, likely because they expect continued economic growth and may be contemplating more hires. The steady decline in people applying for benefits began at the end of April, after brutal winter weather temporarily caused a halt to economic growth.
5 MYSTERIES OF US JOB MARKET WAITING TO BE SOLVED
WASHINGTON (AP) — Just how healthy is the U.S. job market? Despite steady hiring and falling unemployment, the question has provoked sharp debate and considerable uncertainty on the eve of the September jobs report. Will millions without jobs who aren’t looking for one eventually start looking? Why aren’t companies filling more of their openings? Why can many people find only part-time work? Much of the uncertainty flows from a big question: Does today’s 6.1% unemployment rate, far below the 10% it hit in 2009, mean the job market is near full health? Or does the unemployment rate overstate the improvement? The answers, whenever they come, could play a key role in when the Federal Reserve decides to finally raise interest rates.
AVERAGE US 30-YEAR MORTGAGE RATE AT 4.19%
WASHINGTON (AP) — A key long-term U.S. mortgage rate dipped this week, the second drop after a large increase two weeks ago. Mortgage company Freddie Mac said Thursday the nationwide average for a 30-year loan slipped to 4.19% from 4.20% last week. The average for a 15-year mortgage, a popular choice for people who are refinancing, was unchanged at 3.36%. The 30-year rate is down from 4.53% at the start of the year. Rates have fallen even though the Federal Reserve has been trimming its monthly bond purchases, which are intended to keep long-term borrowing rates low. The purchases are set to end next month. Mortgage rates often follow the yield on the 10-year Treasury note. The 10-year note traded at 2.41% at midday Thursday, down sharply from 2.57% a week earlier.
HALF OF NEW MEXICO MMJ DISPENSARIES TO LOSE BANK ACCOUNTS
Medical marijuana dispensaries in New Mexico that have gotten used to the convenience of having a bank account may be in for a rude awakening. Several credit unions in New Mexico sent notices to roughly half of the state’s MMJ dispensaries, letting them know that their accounts would be closed because they’re “unable to comply with federal guidelines for servicing the accounts,” according to a release issued this week by the Drug Policy Alliance. The executive director of R. Greenleaf Organics, one of the dispensaries to have its account closed, criticized Wells Fargo for doing business with New Mexico’s medical cannabis program but refusing to deal with dispensaries. The lack of access to financial services remains one of the biggest hurdles facing the cannabis industry. In August, a federal Treasury Department official said that 105 banks across the country are now working with marijuana companies. The official declined to name the banks, however.
JP MORGAN SAYS DATA BREACH AFFECTED 76M HOUSEHOLDS
LOS ANGELES (AP) — JPMorgan Chase & Co. says that a recent cyberattack compromised customer information for about 76 million households and 7 million small businesses. The New York-based bank said Thursday that customer information including names, addresses, phone numbers and email addresses were stolen in the cyberattack. However, JPMorgan says there’s no evidence that the data breach included customers’ account numbers, passwords, Social Security numbers or dates of birth. The lender says it has not any unusual customer fraud related to this data breach. JPMorgan Chase, the nation’s biggest bank by assets, has been working with law enforcement officials to investigate the cyberattack.
CAN A FOOTBALL STADIUM BE AS ‘SMART ‘ AS A PHONE?
SANTA CLARA, Calif. (AP) — It’s a tough challenge for the National Football League to entice fans off their comfy couches and into stadiums when ticket prices are almost as high as the sport’s TV ratings. The temptation to stay home goes beyond cost. Equipped with high-definition televisions, Wi-Fi and laptops, tablets and smartphones, fans at home can watch multiple games on Sunday while simultaneously checking their fantasy rosters and celebrating (or taunting) friends via text. So when the owners of the San Francisco 49ers drew up plans for the team’s new $1.3 billion stadium, they tapped the ingenuity surrounding their Silicon Valley home. The result? Levi’s Stadium is home to the first mobile app designed to enhance every aspect of a fan’s stadium experience, from steering fans to their parking spots to identifying the least-crowded restrooms.
HONG KONG PROTESTS HIT CITY’S ROLE AS FINANCE HUB
HONG KONG (AP) — Shops in Hong Kong have closed and the local stock market has plunged but protesters are gambling their agitation for greater democracy will pay off by preserving institutions that made this former British colony a profitable asset to China. The impact on Hong Kong’s key industries of finance and trade is limited so far. But economists warn Hong Kong’s appeal to global companies might erode if they start to think protests will become more frequent — or if they end in a violent crackdown. In the latest blow, mainland authorities on Wednesday suspended group tours to Hong Kong, cutting a critical source of revenue to its growing travel industry. Protests erupted after the communist Beijing government announced candidates in the first direct election of the territory’s chief executive in 2017 would have to be approved by a panel dominated by business leaders allied with the mainland.
IMF HEAD: IMPROVED POLICIES NEEDED TO BOOST GROWTH
WASHINGTON (AP) — The head of the International Monetary Fund says that six years after the financial crisis, the world is still mired in a disappointing economic recovery and will only be able to regain momentum through improved government policies. IMF Managing Director Christine Lagarde said Thursday that the world has experienced a sub-par recovery that is “brittle, uneven and beset by risks.” Those risks include potential escalation of the strife in the Middle East and Ukraine, as well as the Ebola outbreak in Africa. Policymakers must pursue reforms to break out of a prolonged period of mediocre growth, Lagarde said in a speech at Georgetown University to preview next week’s meetings of the 188-nation IMF and its sister lending agency, the World Bank. She called for reforms of labor markets and increased spending on infrastructure.
US FACTORY ORDERS POSTED RECORD DROP IN AUGUST
WASHINGTON (AP) — Orders to U.S. factories fell in August by the largest amount on record, but the drop was heavily weighed by an expected plunge in volatile aircraft orders. A key category that tracks business investment plans posted a small increase, offering an encouraging sign that factory production will sustain momentum in the second half of this year. Orders declined 10.1% in August after a record increase of 10.5% in July, the Commerce Department reported Thursday. Both months were affected by swings in demand for commercial aircraft, which soared in July only to plummet in August. Core capital goods, a category seen as a proxy for business investment, managed to rise a slight 0.4% in August after a 0.1% July dip.
OBAMA TOUTS ECONOMIC GAINS UNDER HIS WATCH
EVANSTON, Ill. — In a speech at Northwestern University that marked a shift in attention from foreign entanglements to domestic concerns, Obama laid claim to an economic recovery that he said has made steady progress, yet he conceded that many families have not benefited from lower unemployment, beefed-up corporate profits and a pumped-up stock market. President Barack Obama touted his pivotal role in the midterm political campaign Thursday, arguing that the November congressional elections are a referendum on his economic policies and blaming Republicans for blocking his efforts to boost wages and create more jobs.
MEXICAN BASEBALL RETURNS TO TUCSON TONIGHT
TUCSON - The Mexican Baseball League is back at Kino Stadium, Thursday through Sunday, for its fourth annual Vamos a Tucson Mexican Baseball Fiesta. The tournament, sponsored by Visit Tucson and Cox Communications, features eight games between some of the best and most popular professional baseball teams in Mexico. Visit Tucson reports last year's Mexican Baseball Fiesta generated about $$350,000 for Tucson and Pima County.
PHOENIX TO START SAVING WATER IN TUCSON
TUCSON - The City of Phoenix will soon begin diverting its share of Colorado River to Tucson. Phoenix will purchase space to store the water in Tucson aquifers, as part of an agreement announced Thrusday. Phoenix only uses about two-thirds of its allotted water and has been diverting its excess back to the Central Arizona Project (CAP) - which manages Colorado River water - because the city doesn't have the infrastructure to pump it all. Now, Phoenix will begin diverting its excess share of water to Tucson, which has a more extensive pumping system. Tucson can then direct the equivalent amount to Phoenix if supplies run low. In turn, Tucson will spend less money pumping water because water levels will stand higher, officials said.
HISTORIC MIRACLE MILE EVENT PART OF TUCSON MODERNISM WEEK
TUCSON - The Historic Miracle Mile Event will be held this Saturday, beginning at 10 a.m. Free program guides, self-guided driving brochures, and kids’ coloring sheets and crayons will be available at an information booth at the Pima Community College Downtown Campus parking lot off Stone Avenue and Oracle Road. The annual event is part of Tucson Modernism Week, which runs from Oct. 3 - 11.
Tucson Modernism Week: https://bit.ly/1nSLFVr
Read the news release: https://1.usa.gov/1vBkjmz