Markets have been choppy as investors try to get a clearer picture of how well the economy is recovering from the pandemic and when the Federal Reserve will eventually ease up on its support for the economy. The central bank will release its latest report on Wednesday.
Investors looked over a mixed bag of earnings from several large companies.
US home prices surge 17% in May, fastest in 17 years
WASHINGTON (AP) — U.S. home prices registered the fastest growth in 17 years in May as a surge in demand for housing outstripped the supply.
The S&P CoreLogic Case-Shiller 20-city home price index, released today, soared 17% in May from a year earlier on top of a 15% jump in April. The May increase was the biggest since August 2004.
The hottest markets were Phoenix — where prices surged 25.9% — San Diego (24.7%) and Seattle (23.4%). All 20 cities reported faster year-over-year growth in May than they did in April.
ATLANTA (AP) — UPS had another strong quarter with shipments to homes continuing at a blistering pace, though revenue at home was a little weaker than some had expected. Domestic revenue still grew 10.2% to $14.40 billion in the second quarter, with per-piece revenue rising 13.4%. However, Wall Street had projected domestic revenue of $14.76 billion.
Revenue from international operations spiked 30% to $4.82 billion, which was better than the $4.57 billion analysts had expected.
For the three months ended June 30, UPS earned $2.68 billion, or $3.05 per share. Stripping out one-time costs, earnings were $3.06 per share, easily beating the $2.75 that Wall Street was looking for.
IMF-WORLD ECONOMIC OUTLOOK
IMF forecasts 6% global growth this year as economies reopen
WASHINGTON (AP) — The International Monetary Fund is sharply upgrading its economic outlook this year for the world’s wealthy countries, especially the United States, as COVID-19 vaccinations help sustain solid rebounds from the pandemic recession. But the 190-country lending agency has downgraded its forecast for poorer countries, most of which are struggling to vaccinate.
Overall, the IMF says it expects the global economy to expand 6% this year — a dramatic bounce-back from the world’s 3.2% economic contraction in the pandemic year of 2020. The IMF’s forecast, unchanged from its previous estimate in April, would mark the fastest calendar-year global growth in records dating to 1980.
Study: Only half of American households donate to charity
UNDATED (AP) — For the first time in nearly two decades, only half of U.S. households donated to a charity.
The findings from an Indiana University study confirm a trend that is worrying experts. Donations to charitable causes are reaching record highs, but it’s being driven by an increasingly smaller slice of the population.
The study comes from a survey that has been tracking the giving patterns of more than 9,000 households since 2000. It shows giving participation rates for both religious and secular causes reached new lows in 2018, the latest year with comprehensive figures from those households.