Home Price Index rose year-over-year, Consumer Confidence Index soared in August, Shares of Apple under pressure

August 30, 2016

Tuesday – August 30

The June S&P/Case-Shiller 20-city Home Price Index rose 5.1% year-over-year, which was in line with estimates and just below the 5.3% recorded in May. The housing market remains steady in a somewhat slowing economy. A spokesperson from Case-Shiller said residential real estate and housing is in good shape. Portland, Seattle and Denver reported the highest year-over-year gains among the 20 cities over each of the last five months.

The Conference Board reported that its Consumer Confidence Index soared in August to the best levels since September 2015 rising to 101.1 versus the 97 expected. “Consumer confidence improved in August to its highest level in nearly a year, after a marginal decline in July,” said Lynn Franco, Director of Economic Indicators at The Conference Board. Those surveyed said current conditions improved, business conditions are “good” and labor market conditions were considerably more favorable than in July.

Shares of Apple Inc. are under pressure today after the European Union (EU) has ordered the tech giant to pay $14.5 billion in back taxes that the company owes to Ireland. The EU stated that Apple was given illegal tax benefits over a span of two decades. Ireland offers a corporate tax rate of 12.5% compared to the 35% in the U.S. but the EU says Apple paid only 1% beginning in 2003 dropping to 0.0005% in 2014. Irish authorities and Apple will fight the finding, while the U.S. Treasury was “disappointed” with the EU’s ruling. Apple says it follows the law and pays all the taxes that it owes.