Tuesday, March 30, 2010
Friday, March 19, 2010
Foreclosures leveling off
The national foreclosure rate fell 2% in February from a month earlier, according to an industry report released Thursday, the latest sign that the pace of foreclosures is slowing.
In January, the foreclosure rate had fallen 10% from December, according to RealtyTrac. And though foreclosures were up 6% in February from a year earlier, even that marks the smallest jump since RealtyTrac began calculating year-over-year increases in January 2006.
Still, RealtyTrac CEO James Saccacio cautioned against calling an end to the foreclosure crisis, citing several factors that could be masking underlying weakness.
"This leveling of the foreclosure trend is not necessarily evidence that fewer homeowners are in distress and at risk for foreclosure, but rather that foreclosure prevention programs, legislation and other processing delays are in effect capping monthly foreclosure activity -- albeit at a historically high level," he said.
Lenders create the processing delays by not putting borrowers in default as soon as they fall behind on their payments. Instead, they evaluate their situations to decide whether they can benefit from the Obama administration's mortgage modification program.
That means many distressed mortgages are not counted in RealtyTrac's report; its numbers may be artificially depressed.
Also keeping a lid on foreclosures in February was foul weather, with heavy snow storms leading to court closings.
"If the county clerk's office is dark, it affects our numbers," said RealtyTrac's spokesman Rick Sharga.
It's possible that March will see a resurgence of foreclosure numbers. "We saw the same thing last January and February," said Sharga, "then, all hell broke loose in March."
Six states accounted for 60% of all foreclosure filings. California, with 68,562, led all states and had the fourth highest rate, with one of every 195 households receiving a filing.
The other top states for total filings included Florida, Michigan, Illinois, Arizona and Texas.
Nevada recorded the highest foreclosure rate of any state with one household of every 102 getting hit.
The number of homes actually taken back in bank repossessions fell to 78,683 during February, from 87,648 a month earlier.
According to Sharga, once those homes go back on the market, they're selling quickly. "In most parts of the country when a bank-owned home goes back on the market, it's getting multiple bids," he said.
In January, the foreclosure rate had fallen 10% from December, according to RealtyTrac. And though foreclosures were up 6% in February from a year earlier, even that marks the smallest jump since RealtyTrac began calculating year-over-year increases in January 2006.
Still, RealtyTrac CEO James Saccacio cautioned against calling an end to the foreclosure crisis, citing several factors that could be masking underlying weakness.
"This leveling of the foreclosure trend is not necessarily evidence that fewer homeowners are in distress and at risk for foreclosure, but rather that foreclosure prevention programs, legislation and other processing delays are in effect capping monthly foreclosure activity -- albeit at a historically high level," he said.
Lenders create the processing delays by not putting borrowers in default as soon as they fall behind on their payments. Instead, they evaluate their situations to decide whether they can benefit from the Obama administration's mortgage modification program.
That means many distressed mortgages are not counted in RealtyTrac's report; its numbers may be artificially depressed.
Also keeping a lid on foreclosures in February was foul weather, with heavy snow storms leading to court closings.
"If the county clerk's office is dark, it affects our numbers," said RealtyTrac's spokesman Rick Sharga.
It's possible that March will see a resurgence of foreclosure numbers. "We saw the same thing last January and February," said Sharga, "then, all hell broke loose in March."
Six states accounted for 60% of all foreclosure filings. California, with 68,562, led all states and had the fourth highest rate, with one of every 195 households receiving a filing.
The other top states for total filings included Florida, Michigan, Illinois, Arizona and Texas.
Nevada recorded the highest foreclosure rate of any state with one household of every 102 getting hit.
The number of homes actually taken back in bank repossessions fell to 78,683 during February, from 87,648 a month earlier.
According to Sharga, once those homes go back on the market, they're selling quickly. "In most parts of the country when a bank-owned home goes back on the market, it's getting multiple bids," he said.
Wednesday, March 10, 2010
Stocks post modest gains
Stocks rose Wednesday, with the Nasdaq ending at its highest level in more than 18 months, on strength in the financial services sector and an upbeat report on wholesale inventories.
The Dow Jones industrial average (INDU) rose 3 points, or less than 0.1%, at 10,567, according to early tallies. The S&P 500 index (SPX) added 5 points, or 0.5%, to 1,145.
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Apple Google or View resultsThe Nasdaq composite (COMP) rose 18 points, or 0.8%, to 2,358. The tech-heavy index closed at its highest level since August 2008. Wednesday marked the 10th anniversary of the Nasdaq's all-time closing high of 5,048.62 at the peak of the dot-com bubble.
Bank stocks advanced on upbeat analyst comments and bullish statements from some executives. Citibank (C, Fortune 500) rose 3.6% after the company priced a $2 billion offering of trust-preferred securities. Bank of America (BAC, Fortune 500) gained nearly 2%.
American International Group (AIG, Fortune 500) soared over 10% as investors cheered the insurance giant's recent asset sales. Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) also gained significant ground.
Citi, AIG, Fannie and Freddie: The Not Fab 4
Technology stocks also posted strong gains. The Sox (SOX), an index of semiconductor shares, gained about 2%.
However, traders said volumes have been declining this week as many market participants move to the sidelines amid a lack of market-moving economic reports.
"There are no buyers to get us over the next hump," said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams. He said the market has stalled, with the S&P 500 struggling to push past its Jan. 19 high of 1,150. "Until that happens, the market is just going to drift."
0:00 /2:35Many missed the markets big bounce
Shares of energy producers weakened as oil prices pared earlier gains. Oil briefly traded above $83 a barrel after the government reported a smaller-than-expected increase in oil supplies and a dip in gasoline inventory but ended 60 cents higher to settle at $82.09 a barrel. Gold prices fell.
Stocks managed slight gains Tuesday, which was the one-year anniversary of what many consider to be the bottom of the bear market.
Looking ahead, investors will turn Thursday to the government's weekly report on initial claims for unemployment benefits. Economists surveyed by Briefing.com expect claims to have risen last week by 9,000 to 460,000.
The Census Bureau's report on the January trade gap is also due out Thursday.
Economy: The U.S. Commerce Department said wholesale inventories fell 0.2% in January, after a 1% drop the month before, raising expectations that consumer demand is strengthening.
"It's not that inventories are rebuilding, but the declines are waning," said Bruce McCain, chief investment strategist at Key Private Bank. "Sooner or later, businesses will have to begin producing more."
Separately, the Labor Department said fewer states reported increases in unemployment in January.
The Treasury Department said the government suffered a record $220.9 billion budget deficit in February, after a shortfall of $42.6 billion in January. It was the 17th consecutive monthly deficit and was slightly smaller than the $221 billion shortfall economists had forecast.
Company news: Shares of Facet Biotech (FACT) surged 66% after Abbott Labs (ABT, Fortune 500) announced plans to acquire the company for $27 a share. Abbott gained about 0.7%.
Airline stocks rallied on growing expectations that 2010 is shaping into a profitable year for the industry. Shares of UAL (UAUA, Fortune 500), holding company for United Airlines, and Continental Airlines (CAL, Fortune 500) surged about 5%.
World markets: European markets posted solid gains, while Asian shares ended the session flat.
China reported a 46% increase in exports during February. The rise was due in part to stronger demand from consumers in the United States and Europe, analysts said.
The dollar and commodities: The dollar slipped versus the euro but rose against the yen and the pound.
The price of oil rose 60 cents to settle at $82.09 after hitting a high of $83.03 earlier in the session.
Meanwhile, the price of gold fell $14.20 to close at $1,108.10 an ounce.
Bonds: The price of the 10-year note fell, pushing up the yield to 3.71%. The government sold $21 billion worth of reopened 10-year notes Wednesday as part of a $74 billion offering of U.S. debt this week.
Market breadth was positive. On the New York Stock Exchange, winners beat losers by two to one on volume of 961 million shares. On the Nasdaq, advancers topped decliners by just under two to one on volume of 2.2 billion shares.
The Dow Jones industrial average (INDU) rose 3 points, or less than 0.1%, at 10,567, according to early tallies. The S&P 500 index (SPX) added 5 points, or 0.5%, to 1,145.
Facebook Digg Twitter Buzz Up! Email Print Comment on this story
Quick Vote
Which company do you most admire?
Apple Google or View resultsThe Nasdaq composite (COMP) rose 18 points, or 0.8%, to 2,358. The tech-heavy index closed at its highest level since August 2008. Wednesday marked the 10th anniversary of the Nasdaq's all-time closing high of 5,048.62 at the peak of the dot-com bubble.
Bank stocks advanced on upbeat analyst comments and bullish statements from some executives. Citibank (C, Fortune 500) rose 3.6% after the company priced a $2 billion offering of trust-preferred securities. Bank of America (BAC, Fortune 500) gained nearly 2%.
American International Group (AIG, Fortune 500) soared over 10% as investors cheered the insurance giant's recent asset sales. Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE, Fortune 500) also gained significant ground.
Citi, AIG, Fannie and Freddie: The Not Fab 4
Technology stocks also posted strong gains. The Sox (SOX), an index of semiconductor shares, gained about 2%.
However, traders said volumes have been declining this week as many market participants move to the sidelines amid a lack of market-moving economic reports.
"There are no buyers to get us over the next hump," said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams. He said the market has stalled, with the S&P 500 struggling to push past its Jan. 19 high of 1,150. "Until that happens, the market is just going to drift."
0:00 /2:35Many missed the markets big bounce
Shares of energy producers weakened as oil prices pared earlier gains. Oil briefly traded above $83 a barrel after the government reported a smaller-than-expected increase in oil supplies and a dip in gasoline inventory but ended 60 cents higher to settle at $82.09 a barrel. Gold prices fell.
Stocks managed slight gains Tuesday, which was the one-year anniversary of what many consider to be the bottom of the bear market.
Looking ahead, investors will turn Thursday to the government's weekly report on initial claims for unemployment benefits. Economists surveyed by Briefing.com expect claims to have risen last week by 9,000 to 460,000.
The Census Bureau's report on the January trade gap is also due out Thursday.
Economy: The U.S. Commerce Department said wholesale inventories fell 0.2% in January, after a 1% drop the month before, raising expectations that consumer demand is strengthening.
"It's not that inventories are rebuilding, but the declines are waning," said Bruce McCain, chief investment strategist at Key Private Bank. "Sooner or later, businesses will have to begin producing more."
Separately, the Labor Department said fewer states reported increases in unemployment in January.
The Treasury Department said the government suffered a record $220.9 billion budget deficit in February, after a shortfall of $42.6 billion in January. It was the 17th consecutive monthly deficit and was slightly smaller than the $221 billion shortfall economists had forecast.
Company news: Shares of Facet Biotech (FACT) surged 66% after Abbott Labs (ABT, Fortune 500) announced plans to acquire the company for $27 a share. Abbott gained about 0.7%.
Airline stocks rallied on growing expectations that 2010 is shaping into a profitable year for the industry. Shares of UAL (UAUA, Fortune 500), holding company for United Airlines, and Continental Airlines (CAL, Fortune 500) surged about 5%.
World markets: European markets posted solid gains, while Asian shares ended the session flat.
China reported a 46% increase in exports during February. The rise was due in part to stronger demand from consumers in the United States and Europe, analysts said.
The dollar and commodities: The dollar slipped versus the euro but rose against the yen and the pound.
The price of oil rose 60 cents to settle at $82.09 after hitting a high of $83.03 earlier in the session.
Meanwhile, the price of gold fell $14.20 to close at $1,108.10 an ounce.
Bonds: The price of the 10-year note fell, pushing up the yield to 3.71%. The government sold $21 billion worth of reopened 10-year notes Wednesday as part of a $74 billion offering of U.S. debt this week.
Market breadth was positive. On the New York Stock Exchange, winners beat losers by two to one on volume of 961 million shares. On the Nasdaq, advancers topped decliners by just under two to one on volume of 2.2 billion shares.
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