2025-09-19 20:16
Housing stock index outperforming broader market in Q3 30-year mortgage rate down to lowest since Oct 2024 Economic data in coming week includes new, existing home sales NEW YORK, Sept 19 (Reuters) - As the U.S. Federal Reserve restarts interest rate cuts, housing shares are one of the areas of the stock market that may benefit, and they have perked up in recent weeks as markets priced in more monetary easing. On Wednesday, the U.S. central bank lowered its benchmark rate for the first time since December and indicated more cuts would follow as it tries to shore up a shaky labor market. Sign up here. The Fed's move stands to help interest-rate sensitive areas such as small-cap and consumer discretionary shares. Homebuilder stocks could also benefit if monetary easing translates into lower mortgage rates and more robust economic activity that helps the struggling housing sector, investors said. "The Fed is rebooting the easing cycle," said Angelo Kourkafas, senior global investment strategist at Edward Jones. "If we think about areas that may stand to benefit from that... homebuilders is one of them." The S&P 500 (.SPX) , opens new tab ended on Friday at record high levels, up over 13% on the year, after the Fed cut its benchmark rate by a quarter of a percentage point to the 4-4.25% range. On Thursday, the small-cap Russell 2000 (.RUT) , opens new tab posted a record-high close for the first time in nearly four years. Some investors hope the restart of monetary easing will boost economically sensitive stocks, broadening market leadership beyond the megacap technology companies that have driven indexes higher. The PHLX Housing index (.HGX) , opens new tab has jumped 15% so far this quarter, against an over 7% gain for the S&P 500, although the housing gauge still trails the benchmark stock market index on a year-to-date basis. Big gainers this quarter include DR Horton (DHI.N) , opens new tab, up over 30%, and KB Home (KBH.N) , opens new tab and Toll Brothers (TOL.N) , opens new tab, both up over 20%. Home improvement retailers Lowe's (LOW.N) , opens new tab and Home Depot (HD.N) , opens new tab are up about 20% and 13% so far in the quarter. The Mortgage Bankers Association said this week that the contract rate on a 30-year, fixed-rate mortgage fell to 6.39% in the week ended September 12, the lowest since early October 2024, while analysts at Keefe, Bruyette & Woods projected that the mortgage rates could approach 6% by year-end. The Fed's move to lower interest rates comes amid signs of struggle in the housing market. U.S. single-family homebuilding plunged to a near 2-1/2-year low in August, data on Wednesday showed. Fed Chair Jerome Powell described housing sector activity as "weak" in a press conference after the central bank's policy decision. "If you can get some of those mortgage rates to come down, maybe that breathes a little bit of life back into the housing market," said Jack Janasiewicz, lead portfolio strategist at Natixis Investment Managers Solutions, adding that getting mortgage rates down in the 5% range was an important threshold. Investors cautioned that a lower Fed funds rate may not reduce mortgage rates by the same extent, because mortgage rates are more tied to the 10-year U.S. Treasury yield , which is influenced by broader factors. The 10-year Treasury yield was last around 4.13%, down from 4.6% in May. The extent of Fed rate reductions this year remains unclear, as persistently firm inflation could prompt the central bank to keep rates higher. Data in the coming week will shed more light on the housing market, including on existing and new home sales. "A good housing turnover is generally good for economic activity," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest Wealth Management. "So we'd like to see those numbers rising consistently." Economic data next week includes an updated read of second-quarter gross domestic product, manufacturing and services sector reports, and the personal consumption expenditures price index, a closely watched inflation gauge, while investors will also be watching remarks from Powell on Tuesday. With the central bank noting it is not on a preset path and a disparity among Fed members about the expected trajectory of rates, "this likely means there will be volatility around forthcoming economic data — especially data on the labor market and inflation," Seth Basham, director of equity research at Wedbush, said in a note. https://www.reuters.com/business/finance/wall-st-week-ahead-us-housing-shares-shine-fed-restarts-rate-cuts-2025-09-19/
2025-09-19 20:14
WASHINGTON, Sept 19 (Reuters) - The Trump administration said late Friday it has struck a deal to restore federal control of Washington Union Station in the nation's capital. Last month, the U.S. Department of Transportation announced it planned to reclaim management of Washington's Union Station, one of the country's biggest rail hubs, in President Donald Trump's latest move to increase federal control. Under a new agreement between U.S. passenger railroad Amtrak, the Union Station Redevelopment Corporation and the Federal Railroad Administration, the federal government will take control of the station. "Reasserting control of the facility will free up Amtrak to focus on its core mission of providing rail transportation," the FRA said Friday. Sign up here. USDOT said it will improve security with a short-term focus on addressing a backlog of capital projects and a long-term vision of Union Station that uses private investment. The majestic but worn Beaux-Arts style station, which opened in 1907, is owned by the federal government but has been run by a non-profit corporation working with Amtrak, the government-owned passenger rail service. Washington Mayor Muriel Bowser last month praised the decision, saying the city could not afford $8 billion or more to renovate the station. https://www.reuters.com/world/us/trump-administration-strikes-deal-regain-control-washington-union-station-2025-09-19/
2025-09-19 19:29
MEXICO CITY, Sept 19 (Reuters) - Mexico's economic growth is expected to continue slowing in 2025 before ticking up slightly next year, the International Monetary Fund said on Friday, while warning that fiscal and structural measures are needed to secure long-term economic stability. WHY IT'S IMPORTANT The outlook for Latin America's second-largest economy is clouded by trade tensions, infrastructure gaps, and fiscal vulnerabilities, the international lender said in a statement after a staff visit to Mexico. Sign up here. The IMF noted that risks to the country's financial stability appear to be low, and that the economic outlook could improve if U.S. demand is stronger than expected, and if Mexico secures a favorable review of its trade pact with the U.S. and Canada. BY THE NUMBERS The IMF projects GDP to grow by 1.0% this year, from 1.4% in 2024, before ticking up to 1.5% in 2026. Mexico's public gross debt-to-GDP ratio could rise to 61.5% by 2030 under current policies, the IMF said. KEY QUOTES "Mexico's record of very strong policies and policy frameworks has also proved to be an important asset as the country navigates the uncertain economic environment. Growth is expected to accelerate somewhat in 2026 although the effect of tariffs and trade uncertainty will continue to be felt." "Further deficit reduction and policy measures are needed going forward to prevent further upward drifts in public debt and create fiscal space to respond to possible shocks," the IMF said. CONTEXT Mexico's government forecasts growth next year of between 1.8% and 2.8%, while its budget deficit falling slightly to 4.10% next year. WHAT’S NEXT The IMF recommends Mexico target a 2.5% fiscal deficit by 2027 and adopt measures to enhance fiscal credibility. https://www.reuters.com/world/americas/imf-sees-mexico-growth-improving-mildly-2026-urges-debt-cuts-2025-09-19/
2025-09-19 18:54
PARIS, Sept 19 (Reuters) - Stellantis unveiled an electric vehicle prototype on Friday featuring a faster-charging, lighter and more affordable battery that eliminates the need for a separate inverter and charger. The IBIS (Intelligent Battery Integrated System) was developed in partnership with TotalEnergies (TTEF.PA) , opens new tab subsidiary Saft. It is one of the first of its kind and provides weight and space savings and is easier to service, Stellantis said. Sign up here. The new system is 10% more efficient than an EV with the same-sized battery and reduces charging time by an hour. A lack of affordable models and slow charging times have been a barrier to broader public acceptance of EVs. German manufacturer Porsche (P911_p.DE) , opens new tab is also working on the concept of a "modular multi-level inverter" integrating numerous separate electrical components into a single unit. The new IBIS battery is now undergoing road tests in a Peugeot e-3008. "This milestone marks a major step forward in the electrification of mobile and stationary energy applications," Stellantis said in a press release. According to the Franco-Italian-American automaker, this technology could be integrated into its production vehicles by the end of the decade. Contemporary EVs use an inverter to convert the battery's direct current into alternating current to power the electric motor. In charging mode, alternating current from the grid is converted into direct current for the battery. Stellantis said in the IBIS these functions are integrated directly into the battery using electronic control via 200 transistors, reducing vehicle weight by 40 kg (88 lb), freeing up space and reducing charging time by 15%. https://www.reuters.com/business/autos-transportation/stellantis-unveils-lighter-faster-charging-ev-battery-2025-09-19/
2025-09-19 18:06
Rig count rises to 542, highest since July Total rig count still 8% below last year EIA projects increase in crude and gas output for 2025 Sept 19 (Reuters) - U.S. energy firms this week added oil and natural gas rigs for a third week in a row for the first time since February, energy services firm Baker Hughes (BKR.O) , opens new tab said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, rose by three to 542 in the week to September 19, its highest since July. , , Sign up here. Despite this week's rig increase, Baker Hughes said the total count was still down 46 rigs, or 8% below this time last year. Baker Hughes said oil rigs rose by two to 418 this week, their highest since July, while gas rigs held steady at 118. In the Denver-Julesburg (DJ)-Niobrara shale in Colorado, Wyoming, Nebraska and Kansas, drillers added two rigs this week, boosting the count to 11, the highest since April 2024. In Colorado, meanwhile, drillers added two rigs this week, boosting the count to 14, the most since August 2024. The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. The independent exploration and production (E&P) companies tracked by U.S. financial services firm TD Cowen said they planned to cut capital expenditures by around 4% in 2025 from levels seen in 2024. That compares with roughly flat year-over-year spending in 2024, increases of 27% in 2023, 40% in 2022, and 4% in 2021. Even though analysts forecast U.S. spot crude prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025. On the gas side, the EIA projected a 61% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020. The EIA projected gas output would rise to 106.6 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023. https://www.reuters.com/business/energy/us-drillers-add-oil-gas-rigs-third-week-row-baker-hughes-says-2025-09-19/
2025-09-19 18:02
Sept 19 (Reuters) - Type One Energy CEO Christofer Mowry said on Friday U.S. government-owned utility Tennessee Valley Authority plans to use its technology at the retired coal-fired Bull Run plant, which will be the site of a commercial fusion plant. Nuclear power has been making a comeback in the U.S. after decades of stagnation, driven by record electricity demand from AI data centers as well as the electrification of industries such as transportation and manufacturing. Sign up here. Type One Energy said it will provide stellarator technology, which is a more advanced version of the tokamak reactor and is the only fusion technology shown to operate in a stable and steady state manner, making it appropriate for use in a power generation application. Existing nuclear plants rely on nuclear fission, where larger atoms are split into smaller ones, whereas nuclear fusion joins two or more small atoms into a larger one, offering greater energy production without generating large amounts of radioactive waste. Fusion is still at an experimental stage as developers have yet to achieve net energy gain in a commercially viable way, but investment has been boosted by a flurry of interest from Big Tech groups that have entered the sector alongside investors such as energy giants such as Chevron (CVX.N) , opens new tab, Shell (SHEL.L) , opens new tab and Siemens (SIEGn.DE) , opens new tab. "What's really exciting about fusion energy is it has a very light regulatory structure to it...so the timeline and the cost of permitting and licensing is a small fraction of what you traditionally see in a nuclear project," Mowry said in an interview with Reuters. Type One expects the construction of the power plant to begin as early as 2028, but did not disclose the exact value of the contracts signed with TVA. Axios had reported earlier today TVA would use Type One technology at the plant. https://www.reuters.com/business/energy/tennessee-valley-authority-develop-commercial-fusion-plant-retired-coal-site-2025-09-19/
