30-year mortgage rate dips to 3.86%
A terrorist attack in Spain and political drama in Washington continued to put downward pressure on mortgage rates this week.
According to the latest data released Thursday by Freddie Mac, the Federal Home Loan Mortgage Corp., the 30-year fixed-rate average dropped to its lowest level in nine months, falling to 3.86 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.89 percent a week ago and 3.43 percent a year ago. The 30-year fixed rate has fallen the past three weeks.
The 15-year fixed-rate average remained the same as it was a week ago, holding steady at 3.16 percent with an average 0.5 point. It was 2.74 percent a year ago. The five-year adjustable-rate average edged up to 3.17 percent with an average 0.5 point. It was 3.16 percent a week ago and 2.75 percent a year ago.
Investors are becoming increasingly wary of the political climate in Washington and tensions around the world. Those concerns have prompted them to flee toward the safe haven of government bonds. As a result, bond prices have risen and yields have fallen.
The yield on the 10-year Treasury sank to 2.17 percent Wednesday, its lowest level in two months. Mortgage rates tend to follow the same path as long-term bond yields.
-- The Washington Post
Chuck E. Cheese's pulling plug on band
One of the longest-running musical acts in show business is nearing its end.
Chuck E. Cheese's is phasing out its iconic animatronic band, the larger-than-life ensemble that has performed at the kid-friendly pizza chain for decades, in a bid to become more parent-friendly.
An early-phase remodeling of Chuck E. Cheese's restaurants in San Antonio and Kansas City, Mo., includes "a calmer, more inviting" environment, a focus on food and a live stage show. The animatronic band, however, seems to have lost its gig.
"We removed the animatronics in seven locations," Christelle Dupont, a spokesman for the Irving, Texas-based chain, said Wednesday. "We're testing to see how those remodeled locations do and what parents and kids like and what's resonating with them."
Dupont said the animatronic band will be removed in successive remodels but declined to say when. An animatronic Chuck E. Cheese performs as a solo act at most locations, Dupont said.
Chuck E. Cheese's has 512 corporate-owned restaurants in the U.S. The company is majority-owned and controlled by investment funds affiliated with Apollo Global Management.
The band may be getting a little long in the tooth, said Tom Leverton, CEO of Chuck E. Cheese's. Children, he said, now "have higher expectations of both realism and special effects."
-- Chicago Tribune
Tiffany's revenue, profit sparkle in 2Q
Growth in fashion and designer jewelry helped drive Tiffany & Co. revenue to $959.7 million during the second quarter, even as sales of wedding rings underperformed, the company said Thursday. The sales were well above the $930.4 million analysts had projected and the biggest surprise since the first fiscal quarter of 2015.
The jeweler reported a profit of $115 million, or 92 cents a share, in the second quarter that ended last month, up from $105.7 million, or 84 cents per share, a year ago. Same-store sales exceeded estimates in the U.S. and Japan while missing in Europe and the Asia-Pacific region.
The results reflect Tiffany's strategy to win back customers, including younger shoppers, by renovating stores and offering new designs, such as the HardWear collection promoted by singer Lady Gaga. The collection features bracelets, rings and earrings designed to appeal to younger shoppers.
"One of the more promising areas of progress is the company's attempts to better connect with younger consumers -- a constituency with which it had lost traction," said Neil Saunders, managing director of GlobalData Retail.
Lady Gaga was introduced as the new face of the jeweler in an ad that aired during the Super Bowl in February. The chain had long been most closely associated with Audrey Hepburn's image, which was embedded into popular culture with the 1961 movie Breakfast at Tiffany's.
The company's stock fell $1.17, or 1.3 percent, to close Thursday at $87.55 in New York after earlier gaining as much as 4.3 percent.
-- Bloomberg News
DFW airport shows off updated terminal
GRAPEVINE, Texas -- Upgrades have been completed at one of the oldest terminals at Dallas-Fort Worth International Airport as part of $2.7 billion in overall renovations.
Airport officials on Wednesday unveiled the Terminal E high-tech improvements meant to bolster passenger comfort and convenience at all 36 gates.
Airport Chief Executive Officer Sean Donohue said it's another step toward the mission to transform travel and enhance the customer experience.
DFW airport opened in 1974. The five-terminal airport, according to its website, handles more than 65 million travelers annually.
The grand reopening of all gates at Terminal E, now with free Wi-FI and more than 20 restaurant and other concessions, marked the second completed terminal as part of the three original terminals being renovated.
-- The Associated Press
Jobless-aid claims up 2,000 to 234,000
WASHINGTON -- Slightly more Americans applied for unemployment benefits last week. Despite the small increase, the number of people completing applications remained close to historic lows.
Weekly unemployment applications rose by 2,000 to 234,000, the Labor Department said Thursday. The less volatile four-week average declined 2,750 to 237,750. The increase in claims followed a large drop the previous week. The number of people collecting unemployment benefits has fallen 9.5 percent over the past 12 months to 1.9 million.
The job market appears solid as the U.S. enters its ninth year of recovery from recession. Employers are holding on to workers with the expectation that business will continue to improve. Unemployment claims -- a close indication of layoffs -- have come in below 300,000 for 129 weeks in a row. That's the longest such stretch since 1970, when the U.S. population was much smaller.
The unemployment rate has fallen to a 16-year low of 4.3 percent. The government's jobs report for July showed that U.S. employers added 209,000 jobs.
-- The Associated Press
Business on 08/25/2017