US Housing Starts Hit a Four-Year High Showing Signs of Revival (BAC, AXP)
Big news came from the US housing market today, showing a 15% jump in housing starts, reaching a four-year high and suggesting recovery. Sentiment was positive from this news and lifted stocks of several home builders and retailers. The Dow finished higher for the fourth day in a row and the S&P 500 and Nasdaq ended with slight gains as well. European markets were up on Wednesday also after Moody's confirmed Spain's bond rating, avoiding a decline. Exxon Mobile Canada (XOM) announced its plan to acquire Celtic Exploration for $3.1 billion.Earnings reports continued with Pepsico (PEP) releasing results that were higher than expected while after the bell American Express Co. (AXP) announced its earnings were about flat. Oil remained around $92 a barrel and crude supplies rose more than expected at 2.9 million barrels.
Word on the Street
- US housing starts jumped 15% in September, the highest level in four years.
- A Canadian subsidiary of Exxon Mobile (XOM) buys Celtic Exploration Ltd. for about $3 billion.
- Bank of America (BAC) reports a capital ratio of 8.7%, beating other major banks.
- Dean Foods Co. (DF) to raise $368 million in its IPO of WhiteWave Foods Co.
- Spain avoids a ratings downgrade, leading to the rise of US-listed shares of foreign companies.
- American Express (AXP) shares up after announcing Q3 results on Wednesday.
- Weaking corporate demand fears grow after weak tech stock sales.
Published on Oct 17, 2012By InvestorGuide Staff