Stocks are mixed as Google’s earnings are pushing Nasdaq to record highs, while Boeing’s earnings are keeping the Dow Jones Index in check. The Nasdaq is up 0.6 percent to 5,193, while the Dow is off 0.4 percent to 18,047.
Meanwhile, the S&P Retailing Industry Group index jumped 0.1 percent to 1,201.
Homebuilding jumped 9.8 percent in June, blowing past estimates. Blame it on the Millennials, because most of the building was the result of apartments being constructed since they prefer to rent and not buy. However, many will argue that today’s young adults enter the market with huge college debts and land jobs that don’t pay enough money for a down payment in many housing markets.
In other economic news, the Consumer Price Inflation data or CPI rose 1.8 percent for the past year, essentially meeting expectations. For June alone, prices rose 0.3 percent after rising 0.4 percent in May. It’s the fifth month in a row where prices rose, mostly due to gas prices creeping up again and food prices. The bird flu has caused the price of eggs to jump 18.3 percent. Rent prices have increased, which explains the surge in apartment building and shelter costs are also expected to rise. Personal-care costs also went higher, while apparel and household furnishings saw price declines.
“I love not being public,” said Kenneth Cole on CNBC this morning. The clothing designer had been a public company, but went back to being private in 2012. “You can be so much more strategic if you have the luxury of thinking long-term. It’s hard to do that in the public market.” Cole went on to say, “We don’t even have a board anymore. Today, we can build a business without having to meet the needs of quarterly reporting.” Cole also talked about how his approach to business has changed. “I used to believe my job was to sell my brand, but today everyone is their own brand,” said Cole. “Now, I have to convince you to allow me to be a part of your brand.”
Google is up over 12 percent after reporting its earnings after the market closed on Thursday. Google indicated that YouTube was starting to make real contributions to the revenue stream. Google Play was basically in line with analysts’ estimates. New chief financial officer Ruth Porat said she would begin trying to rein in costs, as she tries to balance between spending on initiatives like self-driving cars and what the company considers regular expenses.
In global news, German lawmakers voted to approve negotiations on Greek bailout talks. The IMF insists there must be a debt restructuring, while the Germans oppose such a thing.