Home Prices and Goods Orders Drop

Ellen Braitman analyzes the morning business headlines.
9:21 | 02/28/12

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Transcript for Home Prices and Goods Orders Drop
And there is the opening bell for this Tuesday February 20 hi everyone I'm Stephanie -- in New York we have breaking news this morning. Orders for so called a durable goods have lost launched their biggest drop in nearly three years so joining me now to discuss all the business headlines. Is Alan brain and from Bloomberg TV Helen -- and great to see if it's taste step mega stressed to the this week so I'm not I'm not -- -- -- -- I'm lucky. -- I am let's start -- this breaking news on durable goods are we had unexpected decrease. Nine point 3% in January the Commerce Department says orders. -- were down 4% actually in January again that's the largest amount in almost three years what do you make of this. Rate down 4% and if you take out transportation it's a decline of 3.2 percent. Some of the commentary that I've seen it and one of the focuses that we have this morning. Is the fact that at the end of last year you basically had ending a tax break. Four major purchases that allowed you to have full depreciation on equipment purchases of some of the commentary. After the number came out says that you know perhaps you've had companies. Viewing some of their buying earlier than they otherwise may have you know one of the positives in the report. Is that you have the strength in the auto industry that's coming back but again it really seems to be that tax issue that brought that number down and as you -- more than had been expect. Yet so it's not necessarily the end of the world put into context but also out this morning Elena case Shiller housing index and it shows. Home prices fell for a fourth straight month in most major cities so take us behind the headline there. Yes so in -- a headline numbers then we can dig a little deeper up month over month this twenty city index. Put out by S&P case -- was down half a percent if you -- year over year prices were down 4%. Peter Buck parties and analysts I like to follow he's at Miller tape back and he says. Sales we know in housing are coming back. But he says not prices and consumers. Are the buyers really the ones in the driver's seat right now because we know there's so much inventory out there so many distressed -- so many foreclosures. They don't have to pay up for that. And that is continuing to put pressure on these prices. OK let's turn for a second overseas to Europe where German lawmakers have endorsed the bailout package for Greece. How the idealist -- -- -- is -- big deal it was expected to pass but. One thing that seems to really matter here is that Angela Merkel didn't get what's known as. A chancellor's majorities so that there were dissenters in the opposition party but also within her party as well so if you look ninety votes against approving the bailout fund. And 296. Votes in favor in the lower house so again. He did house but it shows there. There's dissent as we now when it comes to -- -- support is going to come from countries but in this case Germany. Which we know has been an engine of growth when it comes to the Euro zone and also in terms of pushing through and the leadership along with Sarkozy so long with -- of what are these packages going to look like. Wright was seems like there's a lot of -- news let's take another look at the Dow right now just in the first minute of trading here. The Dow is trading very flat we spent most of yesterday a -- that thirteen thousand mark but couldn't manage to close there. What's going on it doesn't look like the market knows how to receive all this news. Yeah you know. -- trading as we note near these four month highs for the benchmark averages for the Dow for the S&P in the plus column. You have the fact that the economy in the US continues to -- As wells the fact that corporate earnings a lot of them are coming -- stronger than expected. On the flip side you have the concerns about Europe even though Greece did just get the approval for that bail -- money in Germany they're stepping -- say yes we as a country approve -- doing that. But we also have this latest -- tell -- or head when I should say of higher oil prices so that's one of the other concerns. But keep in -- -- stocks really have been on -- terror. -- so far this year four point this month I should take four point 2%. For the -- peace so again you know we've installed the last few days but we have to remember. It's been a pretty strong here -- your stocks and right now the S&P headed for the third consecutive monthly. A hearing is still is a pretty hot markets out there. We heard speculation about this story at last week GM may be buying a stake in Q how does this look like a win win -- So the idea here and what we're hearing today is that G -- -- buy a stake of about 7%. In -- in terms of whether it's a win went. It really does seem to be a question mark GM has the Opel unit in Europe now that's been losing money. Who -- also has had sales down and also losing money. You have the head of Fiat Sergio Marchionne who has come out and said there's overcapacity of course I'm sure -- be happy if another company not his own is the one to take capacity adding market. Maryann Keller she's a long time auto analyst and once things she said -- critical. -- on auto mergers in general because she says basically the history of collaborations in the auto industry. Is miserable -- -- if you have a company in this case something like GM. Ed doesn't have the power to do layoffs or close factories. Also just want to point out when it comes to GM keep in mind the European business -- week. But we know in the US and we're just talking about that's when it came to the durable goods numbers the auto industry has been coming back one story Bloomberg is -- reporting today. Is GM looking to beat up the Cadillac -- Bring out some more and new cars under that umbrella trying to become the fourth biggest luxury brand. In the US -- a spot that's currently held by Lexus and Cadillac is that many many years off its peak sales in the U -- hoping that -- can start beefing up Cadillac. As well interest saying our economic class and -- -- Internet titans to talk about -- and fees what exactly is going on. Rates and this is a fight over intellectual patents we talk a lot about in the Smartphone market -- the -- patent wars will hear this is. A little bit different and the intellectual property right -- to Yahoo! saying to -- but. We want you to license technology is covered by our intellectual properties otherwise we will take a legal action. Yahoo! did not spell out specifically. What it's talking about in terms of what's being covered by -- intellectual property. When we contacted FaceBook FaceBook said. It doesn't yet and has not yet fully a evaluated. That claims and all of this as Yahoo! is looking for ways -- got the new CEO it's had a big shake up on its board. Looking for ways to beat up the profit if the lost so much of the search business to. And time rate that we l.s been on a computer to FaceBook to Google -- -- -- so it seems here like. Perhaps a new way a new strategy -- -- looking to act -- backed business or you know make money and. Is it says it is certainly don't when yell at you guys are gonna continue to follow over -- Bloomberg. OK let's earnings among companies reporting today Cablevision -- -- -- an office. Depot headlines out of those earning reports so far. Sued Cablevision had a big drop in profit in the fourth quarter down 47%. But that was because it had spun off the -- AMC unit. In terms of Domino's it did beat on the profit front one thing that stood out for me. Is the company said -- it was the eighteenth full year it had consecutive quarterly growth in same store sales same store sales of course being. Stores that have been open for at least a year to looking for consistency in those numbers right on office -- -- North American same store sales and they were down 5% a tech company that has struggled for many years. But it did say business it's as you know its turnaround it says is doing better. And profit did beat analysts have been looking for kind of flat no profit but it did make a few cents a share. Okay finally -- tomorrow is as you know February 20 ninth and I understand -- uncovered some -- your deals for us tells him to got. Read the retailers never would miss an opportunity to try to do some -- is special to get a -- right. Staples for example you can see it on their website they have 29 offers things like ten bucks off a case of -- Paper. On the subway is offering you a free -- for any purchase that you make. This one I really like to zap us which is now owned by Amazon. If you are as apple shopper you may know they have a 365. Day return policy you have a three year to return outlined by. Well because next year it's that thing. You by tomorrow on February 20 ninth you would not be able to return on February 20 ninth. They're gonna get any purchases tomorrow or purchases -- the warriors to return so they I -- loud and clear -- -- and then return them like why did she prepared. Brand new strip -- Oxford for years and -- returned. I think probably it's a way to get us to talk about the company and more than does that -- -- Here and ally and that I -- say you've ever bought it they are expected to customer services operas that are rather accommodating and that's true but I haven't gotten a copy Paper and -- -- daring. Allen's rate and everybody -- at a free -- eight. Alan great to see you haven't let him out by bank.

This transcript has been automatically generated and may not be 100% accurate.

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