Broadcasting live to New York, Bloomberg eleventh Rio to Washington, d C. Bloomber to Boston, Bloomberg twelve hundred to San Francisco, Bloomberg nine to the countries, Jus General one nine and around the globe the Bloomberg Radio Plus happened, Bloomberg got gone. This is taking stock. Coming up on taking stock, We're gonna take stock of home ownership. We'll also talk about a shift that's going on toward long deferred major renovations
and remodeling projects. Talk about kitchens, bathrooms, and whole house remodels. That's all coming up with Brad Hunter, chief Economist, Home Advisor. Right now, let's go to Charlie Pellett to the Bloomberg news room for Bloomberg Business Flag, and I thank you him.
Fox the Bulls getting a remodeling right now. Trading Laura the dalv smp NESDAK all declining companies including Intel and Southwest Airlines, disappointing investors, casting doubt on whether corporate earnings will be healthy enough to keep equities trading at records. Southwest Airlines prominent example, down right now by eleven point one percent. It's said heightened competition is driving down airfares more than in previous quarters as the industry's capacity expansion
outstrips demand. CEO Gary Kelly was on Bloomberg Television this morning talking about the latest quarter. Up. We had all time record earnings, earnings per share, We're up fifteen and a half percent, so as a stellar quarter. We had revenue growth of about five percent on a unit basis. Our revenues were also up, so we're outperforming the industry in every way. And again we've got Southwest down eleven percent, dropping four sixty four thirty nine right now on shares
of Southwest Mario drawn. He says the European Central Bank will not hesitate to add fresh stimulus if needed once it has a clearer picture of the economic impact from the UK's vote to leave the European Union, and the National Retail Federation says US back to school spending will grow eleven percent this year, a sign that families are more confident about the economy and ready to stock up
on supplies. X on Mobile buying natural gas explorer inter Oil Corp. For more than two and a half billion dollars. X on Mobile down three tenths of one percent, crude is down two and a half percent. West Texas Intermediate crewde to forty four sixty of barrel Laura now by one point one percent. Gold up thirteen dollars the ounce the thirteen thirty two, a gain there of one percent ten year of six thirty seconds, the yield one point five SMP down ten to sixty two, a drop of
point five percent. And now let's take a look at other stories making news. Thank you, Charlie from the Bloomberg newsroom. I'm Jill Schneider. This news update is brought to you by the Jeep Grand Cherokee, the most awarded suv ever. The Grand Cherokee continues to raise the bar with its luxurious interior and legendary four by four capability. Drive one your local jeep dealer today. Texas Senator Ted Cruz says he will listen to Donald Trump's speech tonight, but Willie
endorse him for that. We turned to Bloomberg's Michael Barr. Texas Senator Ted Cruz says he has not committed to voting for Donald Trump, but he definitely won't be voting for Hillary Clinton. Crews speaking to the Texas delegation in Cleveland, was asked by a delegate why he didn't stick to the pledge to support the party's eventual nominee. I am not in the heaven of supporting the people who attacked
my wife and attack my father. Crews was vooed by delegates after he refused to endorse Trump in his speech at the Republican National Convention. Michael Barr Bloomberg Radio. The White House is responding to comments Donald Trump made about NATO. Trump said he might reconsider America's commitment to the Allies in the event of a possible attack by Russia. Here's
White House spokesman Josh Ernest. NATO is the cornerstone of American national security is a policy that the United States has pursued under every post World War Two president Democratic, Democratic, Republican. The n y p D says a man suspected of tossing a hoax bomb through the window of a police car is in custody after an overnight standoff. Chief James O'Neil says the object was thrown from another vehicle. It turned out to include a candle and a harmless electrical component.
Global News twenty four hours a day, powered by more than journalists and analysts in more than one twenty countries. I'm Jill Schneider, and this is Bloomberg, Charlie, and we thank you. And again recapping the SMP five hundred indecks down nine at one sixty three, a drop there of five tenths of one percent. And again the down industrials trading lower by eighty nine points, drop of five tenths of one percent. I'm Charlie, PA, that's a Bloomberg business
flash you're listening to. Taking stocked with Pim Fox and Kathleen Hayes on Bloomberg Radio. Housing getting its groove back. Housing market has been show more signs of life. Sales of previously owned homes last month hit their highest level since two thousand seven. This all according to the National Association of Real Chairs. Mortgage applications aimed at purchasing a home have been on the rise, and hard housing stock figures earlier this week showed that groundbreaking on new homes
rebounded in June. Here to tell us more about the home building sector is Brad Hunter. He's chief economist for Home Advisor and he can be followed on Twitter at Bradley Hunter. Brad thanks very much for coming in. Good to see him. All right. Tell people, first of all, before we get into the details of housing, tell us what is home Advisor. Home Advisor is an online marketplace where we connect people who are homeowners that need help
from a professional to do some sort of home improvement project. So, for example, if you're looking for someone to do the electrical work on your house, or trying to maybe get a carpenter or a subcontractor and of that. Yeah, a remodel of a room or any kind of repair even made services. Okay, And it is a division, separate business division of I A c interactive correct, right, chief exactly,
Barrett Dialer. Maybe he calls for some who same as match dot Com, same same parent companies match dot Com. So in a sense, you're matching up the home build the home improvement expert with with the customer. All right, what's your take right now on the on the home building industry in the United States, the state of housing, The home building business is still proceeding a pace. You know. I think that we're gonna be up twelve for single family.
I think that we're probably topping out on multi family. I think we're hitting a saturation point now. It's hard to make deals pencil nowadays on multi family where land
prices are. It's getting harder with the single family with land prices too, So the builders are going more to the remote locations and UH but as a consequence, they're able to buy the land cheaper and they're able to bring product in that sometimes is under two hundred thousand dollars for a new house, let's express homes, that kind of thing. So the demand is there, but the supply, at least in the areas that are most most desirable,
are lacking. Demand is growing and supply is growing, but it's a struggle to keep up in a sense because of the land shortages and then the UH land prices. We're back above previous peak land prices for for developed lots now and a lot of markets around the country, And of course we're not anywhere near well getting near previous peak home prices. But the builders are feeling a squeeze, and I think they're gonna feel a little bit more
of a margin squeeze going forward. All right, Let's say you actually already have a home to live in UH and you're looking for renovation and remodeling statistics to help you understand some of the trends. You say that you've
noticed a shift that's going on. Yeah, we uh. We track about ten million service requests going through our network each years, so we have a lot of granularity, a lot of detail on what's going on with home improvement, and we're seeing a shift towards more major renovations that is not so many of the sort of basic maintenance and repair operations, but more like you know, entire kitchen remodels and more of the bathroom remodels. Garage remodels are
up sixty percent. We're seeing multi room major remodels up over the last year. You noted that the number one fastest growing type of service request is for moving services. Yeah. What does that tell you, Well, if you look at what happened with the home sales number that came out this morning, strong one point one pc increase um, there's more churn, as I call it, and when there's churn, there's more need for home improvement. What happens is the
person is getting ready to sell the house. They have to get some contractors to come in, fix things up, get it ready to pass the inspection, and get it ready to show. So they're putting on fresh paint and everything like that. And then when the new person comes and buys it, they want to personalize it, they want to make it their own place. So they say, well, I don't like these cabinets, are going to replace those in flooring and whatever. What is the Homeowner Happiness Intacts.
That's something that's actually officially coming out tomorrow, so you and your listeners are getting a little bit of a sneak preview of it. We surveyed eighteen thousand homeowners around the country and we asked them questions across a spectrum of three major categories, which is the dwelling, the community they live in, and accessibility and convenience. So how happy are you among across those those factors? And San Francisco is the place where in the country people are the
happiest with where they live. Couldn't have something to do with the weather. The weather is actually one of the one of the strong indicators there. And uh, you know, it's a it's overall, just across the board almost every category of what people like. Uh. The one thing that they did say that they didn't like so much is the commuting. The commuting all right, so all right, So if you go down from not down, but the next city that you've found to be in the happiness index.
Where else? If you're not in San Francisco, where do people want another? Another couple of popular places are Seattle, Denver. St. Louis very strong in terms of the homeowner hack happiness index in all of those cities. All right, give us the worst, the one at the at the at the bottom. What is it. I think it's a Washington d C. Yeah, Washington, it's one of the words. And also commuting is a problem. Milwaukee is also on your list. Yeah, not not high community.
That was not very high either. Brad Hunter, thank you very much, Chief economist for a Home Advisor. You can follow him on Twitter at Bradley Hunter. I'm pim Fox and this is Bloomberg coming up on taking stock. It's been thirteen months since the last time the SMP five hundred broke new records. We've got Hillary Kramer, the president chief investment officer of A and G Capital Group. Next.