Home Prices Fall Further

Suzanne O?Halloran analyzes the morning business headlines.
10:36 | 01/31/12

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Transcript for Home Prices Fall Further
Hi everyone I'm Stephanie -- in New York Dow futures were up this morning tracking a rise in European markets joining me now to discuss all the business headlines. On this last day of January is -- -- -- ran from Bloomberg TV. -- I can't believe January's already over. I canyon and we -- And we see that it was a -- -- that we got a lot to talk about at the end of the month blitzer with the case Shiller home index which came out at nine it shows prices fell in 1920 cities tracked during November. Take just behind the headline. He -- this is that you just sat in November numbers it is a bit lagging and yes it is a disappointment to see prices continued to decline but we talked to Karl Case he's half of that -- half of the the person did -- together that index and -- pretty much told us as he said. He's seen positive signs going forward so there is -- view that perhaps a housing market. Or price declines could be bottoming out yes we would like it to be better but we do know they're still a lot of inventory out there consumers are still having a tough time getting a loan if you're looking. Mortgage -- -- by -- if the numbers declined. We are seeing US stocks pretty much shrugged off a disappointing economic news and instead they're focusing more on things like corporate profits. That we'll also at 10 this morning at consumer confidence and we learned yesterday -- -- consumer spending was unchanged in December. Does that give us a hand as to what today's number will be. He did not necessarily because last week we got another the U of Michigan consumer confidence number and -- better than expected -- got a little overshadowed. By the weaker fourth quarter GDP numbers so. I'm glad -- -- -- here Stephanie I think this summer may come in a little bit better than expected and that's what economists think as well and one thing we look at consumer confidence isn't January number on so it's a little bit more current. Then the consumer spending numbers we talked about yesterday another thing that gets consumers excited if -- -- is an improvement in the stock market and we have. -- in January -- and that's something that could impact the number because again it does ask consumers how they feel right now. We haven't seen the Dow trading as high for a long time generous and great month for the stocks okay. We've got more than two dozen S&P 500 companies reporting earnings today among them Amazon ExxonMobil and UPS Amazon doesn't report until after the closing bell today but we've already heard from ExxonMobil. How to -- details. Eight members were a little disappointing. They did actually missed their numbers I think ExxonMobil and most analysts will agree. This doesn't necessarily a surprise. -- the street was hoping he would do just a little bit better but. He did Bennett benefit when oil prices are higher but what happened with ExxonMobil is it weren't able to you do enough production and that's something the company continues to work on sale. This is a Dow member and this actually will likely be one of your weaker performers today. Perhaps looking at -- decline of about 1% -- -- -- have a conference call at eleven and so we will be looking for any potential. Optimistic comments from the CEO but. Exxon wasn't -- the disappointment at this company is still large. Investors understand it does take a while for them. To turn they need -- went production is slower both on the oil and gas -- what -- PSI think their business would mirror Amazon's a bit since we're talking about shipping -- it will eat it all comes together and that's a great point because one of the things CEO of UPS said this morning and talking to investors -- he's very surprised. At the holiday demand and demand was so strong. That the company was able to lift their 2012 forecasts of their outlook is a lot better because holiday sales were getting asked him probably should be a lot of products sold by Amazon such as they can now another thing else assemblage I think is really important he's he's at a recession here in the US now is pretty much off the table because -- the holiday spending season was so -- -- -- think -- EPS. And -- as well -- do you account for a fair portion of GDP so it'll be interesting to see if those results actually turn up in the first quarter numbers. As things improved but they're betting that the US economy will improve and they did say you know -- Europe this week we know that but the last may help offset. What we're seeing here on the negative side RadioShack. Came out with a disappointingly short what's the full story -- eat at RadioShack. Is certainly we know electronics business is very tough best buy had a bit of a rough couple of months as well the RadioShack is gonna be a huge loser today the stock perhaps may lose as much as 3020 to 30% of its value based on early trading. The company came out and they said that they are not gonna make -- fourth quarter numbers are going to be a lot weaker than expected. He's -- had to do a lot of discount dean. And promotions they were competing perhaps with the Amazon's of the world perhaps -- best buy and anyone else out there Wal-Mart that tried to get your dollars for the holiday guests there and else is suspended share repurchases and that's not a good sign because what that tells us. Is that there a little nervous about the future they want to conserve capital. The retail business is very tough particularly for electronics retailers because their -- their competing. With everyone else online -- -- -- walk into their RadioShack and get a battery your pet sounds whatever you may need that -- really -- -- some serious electronics shopping for TV for example even a computer. You know what you're gonna go online right for the best. Right especially with all -- free shipping offers to OK let's talk about apple they've made an unusual move and hired someone from outside the company. As their top retail executive is this -- sign that CEO Tim Cook is changing the company culture there. I'm not necessarily in this is an interesting hire because the -- they hired -- Broward he actually. Is leaving. Dicks and this is the largest electronics retailer in the UK unless really interesting about apple -- -- is they get 50%. Of their sales overseas that's where roughly 50% of their stores are as well sell it appears Tim Cook kids. Discontinue lead in the past that was laid out by Steve Jobs -- Ron Johnson -- who actually was in charge of Apple's retail operations he's now JC -- making a lot of changes there. But it looks as if they'll continue on that happened because this guy has. Experience does it in electronic space and also international experience that's can be very key it also tells us that apple is -- on future growth. Outside of the US and one of the things that Tim Cook talked about their conference call when they reported earnings was able. Underestimated for example all the demand for the iphones in China. And other products you know we're call they were late opening one of their stores their -- products and Atlanta Bryant practically there was a riot in they were throwing eggs at the retail gets out of the retailer sell. It looks like stage that this sort of the commitment or an affirmation that they understand that emerging markets. An outside the US is -- broke perhaps a lot faster. Then here in the last I think also -- apple has a hundred billion dollars in cash. Nobody is that something that's been widely reported as well as they can use that cash for a number of things. Well look to them to perhaps to reinvest that cash in the business because they don't pay a dividend right now. Investors would like to see that but no change that in -- short term and they don't you buybacks as -- so that's something else that we can keep and -- -- apple they have a lot of cash to invest in the business. And it's likely they'll do that. Are you some and that through the retail stores. Okay as -- -- January -- -- closed today and it certainly has been a profitable month for stockholders of history is any indication Suzanne. What does this signal anything for the rest of the year. Well you know there's that -- so goes January so goes the hearing has its at least that's up about 4% the -- I believe January since 1997 to. It did start to the year but we talk to strategists they are encouraged. About what the next few months may hold up profits are improving. For example we talked about EPS -- -- we still have that European. Overhang -- -- over and that's still -- remains a wild card cell. Unlike other January's I think we have a little bit more uncertainty. With the -- -- factor but it is important to note that earnings have been coming in pretty good and it was encouraging that investors got back into the market and the US economic data does continue to improve let's face it -- -- improving. Auto sales are improving we'll get updated numbers out later in the week from the big auto makers in terms of how December was. Excuse me had January was we'll see if the trend continued. To be pretty solid for the out of makers and -- -- strategists are poking focusing on -- I think it's a good sign that we saw such a solid performance in January for US stocks. And -- -- emerging markets had a huge recovery as well that's important because their business is almost more dependent on Europe. So the fact that investors -- investing in emerging markets such as Brazil that's a pretty good sign in terms of confidence perhaps. All the nervousness of last year may have been a little bit -- done and there's more confidence in the market. OK Suzanne I don't know if your football fans I can't prices -- -- big -- -- going for the patriot I'm glad I'm from New England confectionery side they. Caps -- so -- minivan each other out on this show because obviously -- rooting for the giants okay. It but I hear that ticket prices for the Super Bowl -- -- they've dropped 300 -- The last three days what is going on this -- -- -- like a sold out game I would imagine right now rate. Yeah I think -- be sold out but yes there's said. This adds up and those other ticket service says that we survey they did make invitation -- prices are down about 300 dollars -- gonna cost you roughly 3900 dollars to get a -- to receivable of your planning an ongoing and they declined about 20%. And the past couple of days but Stephanie they did say they don't express expect. Prices to fall too much further -- you're planning on dying he might wanna get online and I get online rather get a ticket -- -- gets set out that is an aviation -- -- Actually -- just looking at some of the points spreads in New England is favored to win but not much to get three points to either way it's gonna be a great game and I also think it's important to note that there were tickets Atlanta I -- last week somebody produces a ticket for sixteen. Thousand dollars. So maybe -- prices dropping the cheapest seats are still 3000 dollars that's right we only -- -- -- you can go out there if you wanna drag out there and not. Try to get a ticket may -- from a -- last minute but still you can end up paying on many ahead. A couple of 1009 that is going to be out of my price ranges -- a bad seeds and realize how it means that some may be maybe these tickets as well. We'll actually go off without a problem eight last looks want to see Tom Brady and pity me. Or realize that -- yeah. Go back and forth all day on this -- -- -- -- -- -- But he does Suzanne Alexander -- Hamburg TV back -- -- where if they flat standard disease is.

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

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