CUNA News Now

CUNA News Now - Market Filed on 2009-11-02, published the first business day after.

Market News

MADISON, Wis. (11/3/09)

Buoyed by the biggest jump in housing construction in more than six years, U.S. construction spending unexpectedly rose in September. The September increase was largely due to residential home builders pushing to finish projects before the possible end of the first-time home-buyers' $8,000 tax credit, analysts said. The 0.8% increase--the largest since September 2008--followed a revised 0.1% drop in August previously reported as a 0.8% gain, according to Commerce Department figures released Monday. Spending on government and residential projects rose, while outlays for private commercial construction fell for a fifth consecutive month, the department said. Total construction spending for September tallied $940.3 billion compared with the revised figure of $933 billion in August (The New York Times, Bloomberg.com and Moody's Economy.com Nov. 2) ...
For the eighth consecutive month, pending U.S. home sales increased, marking the longest streak of gains since the measurement began in 2001, according to the National Association of Realtors (NAR). The Pending Home Sales Index, a forward-looking indicator based on contracts signed in September, rose 6.1% to 110.1 from 103.8 in August, and is 21.2% higher than September 2008 when it stood at 90.9. The gain from a year ago is the largest annual increase on record, and the index is at the highest level since December 2006 when it was 112.8. Lawrence Yun, NAR chief economist, said the momentum is understandable. "What we're witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month," he said. "Home values will stabilize sooner rather than over-correcting. That, in turn, will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery." For Pending Home Sales Rise for Record Eight Straight Months, use the link ...
Ford Motor Co. posted a third-quarter profit of nearly $1 billion--the first profitable quarter in its North American unit in more than four years. The quarterly gain was due to cost cutting, higher pricing and increased market share, the automaker said. On Monday, Ford posted a profit of $997 million--or 29 cents per share--compared with a year-ago loss of $161 million--or seven cents per share. However, Ford is warning that a stronger North American operation will not be able to mitigate the European market--which is anticipated to be steeply down for the quarter and into 2010 (The Wall Street Journal and The New York Times Nov. 2) ...
The federal deficit is too high, according to Treasury Secretary Timothy Geithner, who appeared Sunday on NBC's "Meet the Press" (The Associated Press Nov. 2). Geithner said President Barack Obama wants to deal with the deficit in a way that does not add to the tax burdens of those making less than $250,000 a year. He also noted that the administration is focused on economic recovery, job creation and helping small businesses. Despite the fact that 115 banks failed this year, Geithner said he thinks there is a dramatic improvement in confidence with private capital in the financial system. However, he warned that if banks "overcorrect" and don't take on enough risk, the economy may not recovery as quickly. "We need them to take a chance again on the American economy," he said ...