U.S. Economic News

New Housing Starts Fall Sharply during September

October 19, 2016

Data released today by the U.S. Department of Commerce indicate that initial construction for new privately-owed homes in the United States – new housing starts – fell sharply during September.

Specifically, the Commerce Department reported that on a seasonally-adjusted year-over-year basis new housing starts declined by 11.9% during September. Compared to the prior month, new housing starts declined by 9% ... continue reading >

New Housing Starts
International Economic News

China’s Economy Expands by 6.7% for Third Consecutive Quarter

October 19, 2016

China’s National Bureau of Statistics (“NBS”) reported today that China’s economy expanded at a 6.7% seasonally-adjusted year-over-year rate for the third consecutive quarter for the three months ended September 30, 2016.

Meanwhile, China’s NBS reported that during September sales at China’s retail stores rose at a faster pace while industrial production at China’s factories, mines and utilities rose at a slower pace, as compared to the same month a year ago.

Specifically, China’s retail sales rose at a 10.7% year-over-year rate during September, following a 10.6% increase during August, while the country’s industrial production rose at a 6.1% year-over-year rate during September, following a 6.3% increase during August.

The readings on the economic indicators mentioned above give no clear indication for the future direction of China’s economy.

Earnings News

Goldman Sachs, Intel, Kansas City Southern and Domino’s Pizza Report Q3 2016 Earnings

October 18, 2016

Goldman (GS) reported today that its net income rose by 46.8 (or 68.3 per diluted share) on a 19% increase in the company’s revenues for the quarter September 30, 2016, as compared to the same quarter a year ago.

Intel (INTC) reported that its net income, excluding restructuring charges and non-recurring gains, rose by 5.6 (or 5.5% per diluted share) on a 9.1% increase in the company’s revenues for the quarter September 30, 2016, as compared to the same quarter a year ago.

Kansas City Southern (KSU) reported that its net income declined by 8.3% (or 6.7% per diluted share) on a 4.3% decline in the company’s revenues for the quarter September 30, 2016, as compared to the same quarter a year ago.

Domino’s Pizza ( (DPZ) reported that its net income rose by 24. 8% (or 43.3% per diluted share) on a 16.9% increase in the company’s revenues for the quarter September 30, 2016, as compared to the same quarter a year ago..

Click Here for Calendar Q2 Earnings Tables

Geopolitical News

Iran Threatens to Shoot Down U.S. Reconnaissance Planes

September 13, 2016

Fox News reported today that the Iranian government threatened this past weekend to shoot down two U.S. reconnaissance planes that were flying purposefully close to Iran’s borders in the Persian Gulf but that were still in international airspace.

According to Fox, the Iranian military warned the two aircraft to change course or risk getting shot down. Fox reported that the U.S. military planes ignored the warning and continued flying in international airspace, although close to Iranian territory.

Trading Action

Stocks Headed Lower

October 16, 2016 (Updated every Sunday)

U.S. stocks moved modestly lower last week, with the Dow Jones Industrial Average declining by 102 points (0.6%), the S&P 500 Index falling by 1.0% and the Nasdaq Composite Index dropping by 1.5%, as compared to the prior week’s closes.

Meanwhile, the European Economic and Monetary Union Index (“EMU”) declined by 1.3%, Japan’s Nikkei 225 Index was unchanged and India's BSE Sensex fell by 1.4%, as compared to their closes on October 7, 2016.

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Company News
October 19, 2016
  • T-Mobile U.S. Inc. (TMUS): Reuters reported today that T-Mobile has agreed to pay a $48 million fine to resolve a federal probe into whether the company disclosed adequately speed and data restrictions for its "unlimited" data plan subscribers.

  • Henry Schein Inc. (HSIC): Henry Schein, the world's largest provider of health care products and services to office-based dental, animal health and medical practitioners, announced today that its Board of Directors has authorized  the company to repurchase up to $400 million of shares of its common stock. That repurchase program will be in addition to a $400 million repurchase program that the company announced during December 2015, which has approximately $29 million remaining authorized for future repurchases.

  • Oxford Industries Inc. (OXM): Oxford Industries reported today that the company expects its third quarter of fiscal 2016 to be negatively impacted by Hurricane Matthew and the recent bankruptcy filing by Hanjin Shipping.

  • Apple Inc. (AAPL): MarketWatch reported that Apple plans to unveil a new line of the company’s Mac personal computers on October 27.

NAHB Housing Market Index Declines Modestly

10/18/16: The National Association of Homebuilders (“NAHB”) reported today that its housing market index for the United States, which is based on recent sales of newly-constructed single-family homes, homebuilders’ expectations for home sales for the next six months, and the recent interest expressed by potential homebuyers to purchase a newly-constructed home, declined modestly over the four weeks ended October 14, 2016.


U.S. Industrial Production Declines for Third Consecutive Month

10/17/16: Data released today by the Board of Governors of the Federal Reserve indicate that industrial production at U.S. factories, mines and utilities declined, on a seasonally-adjusted year-over-year, for the 13th consecutive month during September. That’s a very negative development considering the fact that the U.S. economy, and U.S. stock prices, have historically move in the same direction as the country’s industrial production.