U.S. Mortgage, Refinancing Activity Drops; Indexes Down

Arthi Gupta
06 Jul, 2011
New York City

U.S. indexes futures traded lower on global economic worries. U.S. mortgage and refinancing activity declined last week. China raised interest rates by 25 basis points to stem the fastest inflation since 2008. Compuware agreed to acquire dynaTrace software for $256 million.

[R]8:40 AM New York – U.S. indexes futures traded lower on global economic worries. U.S. mortgage and refinancing activity declined last week. China raised interest rates by 25 basis points to stem the fastest inflation since 2008. Compuware agreed to acquire dynaTrace software for $256 million.[/R]

World stocks edged lower after a rating agency downgraded Portugal''s credit rating to junk status.

Portugal is the second nation after Greece in the euro-zone to receive sovereign bond status below investment grade as the prospects or bond restructuring or default mount.

The People''s Bank of China raised the benchmark deposit and lending rates for financial institutions by 25 basis points to 6.56%. The Chinese central bank raised its interest rates for the third time this year to curb inflationary pressures.

China is the world''s biggest energy consumer, accounting for 20.3% of last year''s total energy use, relegating the United States to the second place with 19%, according to the ""Statistical Review of World Energy"" for 2010 released by BP Plc.

However, the U.S. is the largest importer of oil with a 21.1% world market share, according to the report.

U.S. Mortgage, Refinancing Activity Fall

U.S. mortgage applications decreased last week, according to industry data released today. The Mortgage Bankers Association''s seasonally adjusted index of mortgage application activity fell 5.2% last week.

The MBA''s seasonally adjusted index of refinancing applications slumped 9.2% in the week ended July 1, the lowest since May.

Fixed 30-year mortgage rates averaged 4.69% in the week, up from 4.46% the week before.

Boeing Forecasts Strong Market in India

Boeing Co. forecasts a $150 billion market for 1,320 new passenger airplanes in India over the next 20 years as the Indian economy aims for double-digit growth, stimulating strong demand for new and replacement airplanes, Boeing India President Dinesh Keskar said.

Compuware Acquires dynaTrace

Compuware Corp. said it acquired privately held dynaTrace software for $256 million in cash. The acquisition closed on July 1.

Earnings Review

Kirkland Lake Gold Inc., the operating gold mining company reported fiscal year 2011 revenue increased 105% to C$105.18 million compared with C$51.23 million in the prior-year period. Net income for the year was C$20.09 million or C$0.29 per share versus a loss of C$12.26 million or C$0.20 per share last year.

Walgreen Company ((WAG)), the drugstore chain operator reported sales in June rose 6.8% to $6.04 billion from $5.65 billion a year ago on a 4.8% rise in comparable stores sales.