Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Housing, Jobs, and Earnings Moving the Dow Today

Before we get into some earnings numbers today, let's take a look at some of the economic data that was released today. The Department of Commerce said that housing starts surged by 12.1% last month to an annual rate of 954,000 units. While this number is extremely volatile and often revised -- as in November, when it was lowered from 861,000 to 851,000 -- the number of permits for home construction edged higher by a 903,000-unit rate, which was the fastest since July of 2008.

In addition to the improved housing numbers, the number of first-time unemployment claims decreased in the most recent reading. The previous number of claims was 372,000, but this past week that fell to 335,000 claims. Most economists expected 370,000, so the drop of 37,000 claims was a great surprise.

Due to the rather positive economic data and a few solid earnings reports released this morning, as of 12:55 p.m. EST the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is up 92 points, or 0.68% to 13,603. Only six of the index's 30 components are trading lower so far, and three of the biggest losers are Bank of America (NYSE: BAC  ) , JPMorgan Chase (NYSE: JPM  ) , and Boeing (NYSE: BA  ) .

So why are they down?
Shares of Bank of America are trading down by 3.9%, making it the Dow's biggest loser of the day. The fall comes after the company announced its quarterly earnings this morning, posting net income of only $367 million. This resulted in earnings per share of $0.03. During the same quarter last year, Bank of America posted net income of $1.6 billion, but after the bank paid roughly $4.7 billion in settlement claims with Fannie Mae and U.S. bank regulators, it would have been nearly impossible to match that number this year. Although the settlements hurt now, the sooner B of A pays the fines and moves on, the better off shareholders will be.

Shares of JPMorgan Chase are down 0.8% on a bad day for the banking industry as a whole. Although JPMorgan posted earnings yesterday that, like Bank of America's, were not terrible, JPMorgan has a number of issues it still needs to clean up before most investors have their full confidence restored.

Shares of Boeing are down 0.28% today after it was announced late in the day yesterday that the company's fleet of 787 Dreamliners has been deemed unsafe for flight at this time by the Federal Aviation Administration and has been grounded until further review. Just yesterday, Japan's two largest airlines, which operate a number of the 787 jets, voluntarily grounded their Dreamliner fleets after one plane made an emergency landing due to an alarm from the aircraft's lithium batteries. Just last week, a 787 in Boston had a fire in the battery storage compartment. This is a major blow for Boeing, and it is unclear how long the planes will be grounded and what the full costs of this problem will amount to.

More foolish insight
With all the issues Boeing has recently experienced, some investors are wondering whether now is the time to buy or sell the stock. Prior to most of these mechanical problems, one of our top analysts put together a great premium research report in which he detailed all the opportunities and risks the company will face in the future. To find out whether or not the stock is a buy, click here today. 

Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2201936, ~/Articles/ArticleHandler.aspx, 9/30/2016 1:15:50 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 3 hours ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 4:00 PM
BA $131.03 Down -1.20 -0.91%
Boeing CAPS Rating: ****
BAC $15.16 Down -0.22 -1.43%
Bank of America CAPS Rating: ****
JPM $65.65 Down -1.06 -1.59%
JPMorgan Chase CAPS Rating: ****