U.S. home price gains slowed for the fifth straight month in August as higher mortgage rates have lowered home sales.
The S&P CoreLogic Case-Shiller 20-city home price index increased 5.5 percent in August compared with a year earlier, down from a 5.9 percent gain in the previous month.
The deceleration reflects a broader weakening in the nation’s housing market. Sales of existing homes have dropped for six straight months and sales of new homes have fallen for the past four. Home price increases ran ahead of wage gains for five years and appear to have left many would-be buyers on the sidelines.
Prices rose the most in Las Vegas, San Francisco and Seattle. But price gains have slowed compared with a year earlier in 14 of the 20 cities tracked.
Florida Man Sues Tesla Over Autopilot Feature, Crash
A Tesla spokeswoman says there’s no reason to believe an autopilot feature in a Model S vehicle malfunctioned, despite a Florida driver’s claims in a lawsuit.
Tesla’s Keely Surpizo says drivers should always maintain control of the vehicle when using the autopilot function.
Shawn Hudson filed the negligence lawsuit in state court in Orlando, Florida, on Tuesday, claiming Tesla made false statements about the autopilot safety on his vehicle. He says his Model S failed to detect a stalled car on a highway, leading to a collision that left him with permanent injuries.
It’s the second such lawsuit in as many months. A Utah driver filed a similar complaint last month.
Hudson’s attorney says there’s a disconnect between that official company policy and what salespeople tell customers in showrooms.
Energy Giant BP Says 3Q Earnings More Than Double
Energy giant BP says third-quarter earnings more than doubled as it reaped the benefits of higher oil prices and streamlined operations.
Underlying replacement cost profit jumped to $3.84 billion, the highest quarterly figure in five years, from $1.87 billion in the same quarter last year. The figure, which excludes one-time items and fluctuations in the value of inventories, is the industry’s preferred gauge of earnings.
Net income rose 89 percent to $3.35 billion.
Oil companies are profiting after they cut costs and sold assets to adjust to an era of lower oil prices when crude dropped below $30 a barrel in January 2016. Brent crude averaged $75.16 a barrel for the most recent quarter — 44 percent higher than a year earlier.
Fiat Chrysler Profits Hit by Charges for Diesel Probe
Fiat Chrysler Automobiles is reporting a nearly 40 percent drop in third-quarter profits due to one-off charges to cover possible payments for a U.S. diesel scandal.
The Italian-American car company on Tuesday reported a net profit of 564 million euros ($641 million), compared with 910 million euros in the same period last year.
Fiat Chrysler said the lower profits took into account a 700-million-euro charge to deal with any future settlement over alleged illegal emissions devices in some of the company’s diesel pickup trucks. It said no settlement had been reached, nor was the charge an admission of liability.
The company’s guidance for cash on hand dropped by half to 1.5-2 billion euros from 3 billion euros, due to an accelerated U.S. pension contribution.
Aetna Puts Up Strong 3Q Numbers
Aetna, which got a step closer this month to completing its $69 billion merger with CVS Health this month, is reporting better-than-expected profits and revenue.
The Hartford, Connecticut, company on Tuesday reported third-quarter net income of $1 billion, or $3.03 per share. Earnings, adjusted for non-recurring gains, were $2.96 per share, or 12 cents better than Wall Street had expected, according to a survey by Zacks Investment Research.
The health insurer’s revenue was $15.48 billion, or $15.51 billion adjusted, which is also above analyst projections.
Shares of Aetna Inc. have increased 8 percent since the beginning of the year.
Pfizer Tops Expectations for the Quarter
Pfizer, which will be under the leadership of a new CEO starting next year, is reporting better than expected earnings for the third-quarter.
Earnings reported Tuesday were $4.11 billion, or 69 cents per share. Earnings, adjusted for one-time gains and costs, came to 78 cents per share, or 2 cents better than expected, according to a survey by Zacks Investment Research.
The drugmaker posted revenue of $13.3 billion.
Pfizer Inc. expects full-year earnings in the range of $2.98 to $3.02 per share, with revenue in the range of $53 billion to $53.7 billion.
Pfizer shares have climbed 19 percent since the beginning of the year.
MasterCard: 3Q Earnings Snapshot
MasterCard Inc. (MA) on Tuesday reported third-quarter profit of $1.9 billion.
On a per-share basis, the Purchase, New York-based company said it had profit of $1.82. Earnings, adjusted for non-recurring gains, came to $1.78 per share.
The results beat Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of $1.68 per share.
The processor of debit and credit card payments posted revenue of $3.9 billion in the period, also surpassing Street forecasts. Eleven analysts surveyed by Zacks expected $3.86 billion.
MasterCard shares have climbed 26 percent since the beginning of the year, while the Standard & Poor’s 500 index has dropped 1 percent. The stock has risen 29 percent in the last 12 months.
AutoNation: 3Q Earnings Snapshot
AutoNation Inc. (AN) on Tuesday reported third-quarter profit of $112 million.
The Fort Lauderdale, Florida-based company said it had profit of $1.23 per share. Earnings, adjusted to account for discontinued operations, came to $1.24 per share.
The results fell short of Wall Street expectations. The average estimate of 12 analysts surveyed by Zacks Investment Research was for earnings of $1.25 per share.
The auto retailer posted revenue of $5.35 billion in the period, which also did not meet Street forecasts. Twelve analysts surveyed by Zacks expected $5.57 billion.
AutoNation shares have fallen 18 percent since the beginning of the year, while the Standard & Poor’s 500 index has declined 1 percent. The stock has decreased 11 percent in the last 12 months.
Under Armour: 3Q Earnings Snapshot
Under Armour Inc. (UAA) on Tuesday reported third-quarter net income of $75.3 million.
On a per-share basis, the Baltimore-based company said it had profit of 17 cents. Earnings, adjusted for restructuring costs and pretax expenses, were 25 cents per share.
The results beat Wall Street expectations. The average estimate of 17 analysts surveyed by Zacks Investment Research was for earnings of 12 cents per share.
The sports apparel company posted revenue of $1.44 billion in the period, also exceeding Street forecasts. Fourteen analysts surveyed by Zacks expected $1.41 billion.
Under Armour shares have increased 26 percent since the beginning of the year. The stock has increased 13 percent in the last 12 months.
Allergan: 3Q Earnings Snapshot
Allergan PLC (AGN) on Tuesday reported a loss of $37.9 million in its third quarter.
On a per-share basis, the Dublin-based company said it had a loss of 11 cents. Earnings, adjusted for non-recurring costs, came to $4.25 per share.
The results exceeded Wall Street expectations. The average estimate of 19 analysts surveyed by Zacks Investment Research was for earnings of $4.01 per share.
The Botox maker posted revenue of $3.91 billion in the period, also surpassing Street forecasts. Nineteen analysts surveyed by Zacks expected $3.84 billion.
Allergan expects full-year earnings in the range of $16.20 to $16.60 per share, with revenue in the range of $15.58 billion to $15.73 billion.
Allergan shares have increased 6 percent since the beginning of the year, while the Standard & Poor’s 500 index has declined 1 percent. The stock has dropped nearly 3 percent in the last 12 months.
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