Daily News 7/21/2015

July 21, 2015

Tuesday – July 21

Corporate earnings reports are dominating the business headlines this week in the absence of any major geo-political headlines or economic reports this week. Yesterday afternoon after the Stock markets closed, tech giant IBM reported a decline in sales for the 13th consecutive quarter. “Big Blue” reported that U.S. sales fell 8%, while sales in Europe, Middle East and Africa declined 17%. Verizon reported and stated that its subscriber growth in its wireless division added one million new customers during the quarter, though down nearly a third from a year ago. Apple will report earnings after the close of trading on Tuesday.

The Bureau of Labor Statistics (BLS) reported today that in June, 21 states and the District of Columbia had over-the-month unemployment rate decreases, 12 states had increases, and 17 states had no change. The BLS said that 42 states and the District of Columbia had unemployment rate decreases from a year earlier, five states had increases, and three states had no change. The job sector has been steadily improving over the last year as the U.S. economy continues to recover from the Great Recession and housing bubble burst back in 2008.

After being put out to pasture after the housing market imploded, interest-only loans are starting to make a comeback in the mortgage market. However, the rules have changed from the housing bubble days. To secure an interest only loan, potential borrowers will now have to make a sizable down payment of 20% and have a 720 FICO score. In addition, borrowers must qualify on what the future payments will be once they are adjusted higher, not just at the starter rate.