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FedEx shares down after earnings, company pins miss on cyberattack, Hurricane Harvey

Shares of FedEx Corp. fell more than 3% late Tuesday after the logistics company reported fiscal first-quarter earnings below expectations, saying the quarter offered “significantly operational challenges” due to a cyberattack and Hurricane Harvey. FedEx said it earned $596 million, or $2.19 a share, in the quarter, down from $715 million, or $2.65 a share, in the year-ago period. Adjusted for one-time items, the company reported per-share earnings of $2.51, from $2.82 a share a year ago. Revenue rose to $15.3 billion in the quarter, from $14.7 billion a year ago. Analysts polled by FactSet had expected FedEx to report adjusted earnings of $3.09 a share on sales of $15.35 billion. Higher base rates were “more than offset” by reduced revenue and increased expenses resulting from the TNT Express cyberattack, TNT Express integration expenses, higher costs at FedEx Ground, a higher tax rate, and the impact from Hurricane Harvey, the company said in a statement. FedEx did not provide a fiscal 2018 GAAP earnings outlook, and lowered its 2018 adjusted fiscal-year forecast, saying it predicts earnings to be $11.05 to $11.85 a share for fiscal 2018. The earnings forecast before some pension accounting adjustments and excluding expenses related to the TNT Express integration and certain legal matters is $12 to $12.80 a share for fiscal 2018, the company said. The forecasts “assume moderate economic growth and continued recovery from the cyberattack,” FedEx said. The shares ended the regular trading session 0.5% higher.

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Adobe results top Street view, shares slip

Adobe Systems Inc. shares slipped in the extended session Tuesday even after the software company topped Wall Street estimates for the quarter. Adobe shares declined 1% to $154.99 after hours. The company reported third-quarter net income of $419.6 million, or 84 cents a share, compared to $270.8 million, or 54 cents a share, in the year-ago period. Adjusted earnings were $1.10 a share. Revenue rose to $1.84 billion from $1.46 billion in the year-ago period. Analysts surveyed by FactSet had estimated $1.01 a share on revenue of $1.82 billion.

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College Debt Is Postponing Homeownership—but by How Long?

By Susanne Dwyer

College debt is having a compounding effect on how millennials perceive and plan for homeownership.

Eighty-three percent of millennials in a recently released report by the National Association of REALTORS® (NAR) say they are delaying their home-buying plans by a median seven years as a result of their student loan debt. Twenty percent of the millennials surveyed in the study are homeowners; 80 percent are not. The typical millennial homeowner is burdened by $41,200 in student debt, and earning $38,800 annually.

Homeownership is not the only casualty of student debt—millennials are also postponing career changes, children, marriage and retirement savings, the study shows. Forty-one percent of millennials have put off marriage; 61 percent have skipped a retirement savings payment; and 86 percent have stayed in an unsatisfying job, or taken on a second job or one outside of their field, as a result of student debt.

“The tens of thousands of dollars many millennials needed to borrow to earn a college degree have come at a financial and emotional cost that’s influencing millennials’ housing choices and other major life decisions,” says Lawrence Yun, chief economist at NAR. “Sales to first-time buyers have been underwhelming for several years now, and this survey indicates student debt is a big part of the blame. Even a large majority of older millennials and those with higher incomes say they’re being forced to delay homeownership because they can’t save for a down payment and don’t feel financially secure enough to buy.

“Being unable to adequately save for retirement, on top of not experiencing the wealth-building benefits of owning a home, is an unfortunate situation that could have long-term consequences to the financial well-being of these millennials,” Yun says. “A scenario where only those with minimal or no student debt can afford to buy a home and save for retirement is not an ideal situation and is one that weakens the economy and contributes to widening inequality.”

Millennial homeowners are doubly pressured, unable to sell and trade-up due to their student debt. At the entry level, the inability to move keeps valuable inventory off-market, worsening already scarce supply in the tier.

“Millennial homeowners who can’t afford to trade up because of their student debt end up staying put, which slows the turnover in the housing market and exacerbates the low supply levels and affordability pressures for those trying to buy their first home,” says Yun.

Combating the issue comes down to education. Many millennials are in the dark about college costs—in fact, the study shows only 20 percent have a big-picture understanding of the expenses related to education.

“REALTORS® are actively working with consumers and policy leaders to address the growing burden student debt is having on homeownership,” says NAR President Bill Brown. “We support efforts that promote education and simplify the student borrowing process, as well as underwriting measures that make it easier for homebuyers carrying student loan debt to qualify for a mortgage.”

The study was conducted in conjunction with American Student Assistance (ASA), a non-profit guarantor.

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What You Need to Earn to Live in the Cheapest and Priciest Metros

By Susanne Dwyer

Editor’s Note: This was originally published on RISMedia’s blog, Housecall. See what else is cookin’ now at blog.rismedia.com:

Ever wonder how much bacon you need to bring in to live comfortably in some of our country’s largest metros? HSH.com recently revealed the salaries needed to live in a median-priced home in 50 of the hottest areas of the U.S., and the numbers may surprise you. While the national average of median home prices cost $255,600, requiring a salary of just over $56,000, the salary difference between the least expensive and the most expensive is nearly $200,000 (!!).

5 Least Expensive Metros

  • Pittsburgh: $35,329.29
  • Cleveland: $36,553.26
  • Indianapolis: $37,429.34
  • Oklahoma City: $37,854.04
  • Memphis: $37,964.05

5 Most Expensive Metros

  • San Jose: $221,363.63
  • San Francisco: $181,341.49
  • San Diego: $116,875.11
  • Los Angeles: $101,531.66
  • New York City: $99,136.79

It’s no real surprise that four of the five priciest metros are all in the state of California. Get the full results from HSH.com and see how realtor.com broke down what is occuring in the “Best Places” housing markets.

Zoe Eisenberg is RISMedia’s senior content editor. Email her your real estate news ideas at zoe@rismedia.com.

For the latest real estate news and trends, bookmark RISMedia.com.

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MBS Issuance Up at Ginnie Mae

As the Government National Mortgage Association’s book of business continued to grow, a month-over-month increase in issuance was recorded.

As of Aug. 31, 2017, there were $1.8706 trillion in Ginnie Mae mortgage-backed securities outstanding, according to monthly operational data.

The Washington-based organization’s book of business expanded from $1.8570 trillion a month earlier and $1.7130 trillion as of the same date last year.

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Dollar hits 2-week high against Mexican peso in earthquake aftermath

The U.S. dollar hit a 2-week high against the Mexican peso on Wednesday, after an earthquake hit Mexico City. The quake measured 7.1 on the Richter scale. One dollar bought 17.8292 pesos at the intraday high, its highest level since Sept. 5. The pair since retreated to 17.8022 pesos per dollar.

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Regulator settled with Wells Fargo for 100 times less than law allowed: report

The Consumer Financial Protection Bureau could have fined Wells Fargo $10 billion instead of $100 million last year for the unauthorized customer accounts fraud, Reuters reported Tuesday. The regulator settled for so much less to resolve the matter quickly, according to documents sent to Republican staff on the House Financial Services Committee whose chairman, Representative Jeb Hensarling, released a 929-page report on Tuesday entitled, “Did the CFPB let Wells Fargo ‘beat the rap’?” One memo CFPB staff sent to Director Richard Cordray in July 2016 that was included in the report recommended the smaller figure, saying it was enough to act as an effective deterrent and close the matter quickly. CFPB spokesman David Mayorga told Reuters the agency has not had a chance to review the report, but defended its work policing Wells Fargo.

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‘Saturday Night Live’ sticks with live coast-to-coast airings after viewership boost

Comcast Corp.-owned broadcast network NBC said on Tuesday that its Emmy-winning sketch comedy show “Saturday Night Live” will remain live from coast to coast for its upcoming season, the show’s 43rd. The program began testing live coast-to-coast airings in April for the previous season and experienced an 11% bump in viewership compared with the prior season. Each episode of “SNL,” starting with the Sept. 30 premiere, featuring Ryan Gosling as host and Jay-Z as the musical guest, will air at 11:30 p.m. Eastern time, 10:30 p.m. Central, 9:30 p.m. Mountain and 8:30 p.m. Pacific. “SNL,” after what many contend was one of its best seasons in recent years, won four Emmy Awards, including a win for outstanding variety sketch series. Shares of Comcast have gained 8% in 2017, while the S&P 500 index is up 12% so far this year.

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Mexico City registers 7.1 earthquake: reports

Mexico City has been hit by a powerful earthquake, which has been registered as a magnitude 7.1, according to the US Geological Survey. According to reports the tremors caused “buildings to sway sickeningly on the anniversary of a 1985 quake that did major damage to the capital.” Tuesday’s earthquake follows a separate quake in Mexico about two weeks ago. The extent of damage or injuries wasn’t immediately clear, according to the reports.

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Mexico ETF falls to session low after earthquake

The largest exchange-traded fund to track the Mexico equity market fell on Tuesday, dropping to its low of the session following an earthquake in Mexico City. The iShares MSCI Mexico Capped ETF fell as much as 0.5% following the quake; it had been trading in more mildly negative territory prior in the session. The strength of the earthquake, as well as the extent to any damage, was unclear. More than 1.8 million shares of the ETF exchange hands in afternoon trading, above its 30-day average of 1.7 million. While the fund has lost 2.1% over the past month, it remains one of the bright spots among single-country funds thus far this year, having risen more than 26%.

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From:: Stock Market News