Business Blog Posts

The National Association of Realtors said sales rose 3.7 percent month over month to an annual rate of 5.10 million units after an upwardly revised 4.92 million unit pace in February.

Economists polled by Reuters had expected sales to rise 2.5 percent to a 5.0 million-unit pace from the previously reported 4.88 million unit rate. Sales have now risen in six of the past eight months.

"It's slow, steady progress, but you cannot not be disturbed by the slow pace of recovery," said Pierre Ellis, an economist at Decision Economics in New York. "Demand is rising even with higher mortgage rates so that's encouraging."

The housing market is struggling to find its footing as a wave of foreclosed properties keeps supply elevated and prices depressed.

Last month, foreclosures and short sales, which typically occur at about 20 percent below market value, accounted for 40 percent of transactions. That was the highest since April 2009 and was up from 39 percent in February.

The median home price fell 5.9 percent in March from a year earlier to $159,600. Compared with March last year, sales were down 6.3 percent.

"A sustained turnaround in the housing market is still far off based on earlier-released depressed readings for housing starts, building permits and builders' confidence indices," said Krishen Rangasamy an economist at CIBC World Markets in Toronto.

MORTGAGE APPLICATIONS UP

A separate report on Wednesday showed demand for home loans rose last week, as interest rates eased and purchase activity picked up. The Mortgage Bankers Association said its purchase index rose 10 percent to 210.8, the highest since early December.

Last month, all-cash purchases made up a record 35 percent of sales in March and the NAR said the lower and upper ends of the market were showing strong activity, with the middle part -- which accounts for the existing housing market -- remaining sluggish.

Sales last month rose across the board, with multifamily dwellings rising 1.6 percent and single-family home units advancing 4 percent.

At March's sales pace, the supply of existing homes on the market slipped to 8.4 months' worth from 8.5 months in February. However, the number of previously owned homes on the market rose 1.5 percent to 3.55 million.

A supply of between six and seven months is generally considered ideal, with higher readings pointing to lower house prices.

(Reporting by Lucia Mutikani; Editing by Neil Stempleman)

The No. 2 U.S. mobile service, which is planning to buy T-Mobile USA, managed to eke out a slight increase in subscribers in the first quarter, surprising Wall Street and sending its shares up almost 1 percent.

Its addition of 62,000 net contract customers in the quarter was much weaker than its fourth quarter growth of 400,000 but better than the average expectation for a loss of 83,000 customers from seven analysts polled by Reuters.

The decline reflected the February launch of iPhone at Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc.

The company also attributed some defections to network technologies changes for some customers resulting from its acquisition of Alltel assets and Centennial.

But Wall Street analysts were impressed that it managed to keep customer defections lower than expected.

"It doesn't look like (Verizon Wireless) decimated AT&T as many people thought they might," said Piper Jaffray analyst Christopher Larsen.

AT&T earnings rose to $3.4 billion, or 57 cents a share, matching the average Wall Street estimate, according to Thomson Reuters I/B/E/S. A year earlier it posted a profit of $2.5 billion, or 41 cents per share.

Revenue rose 2.3 percent to $31.25 billion compared with analyst expectations for $31.26 billion, according to Thomson Reuters I/B/E/S.

AT&T shares were rose to $30.53 in premarket trading after closing at $30.31 in the regular New York Stock Exchange session.

Its results came the day before the scheduled report of Verizon Communications, which owns Verizon Wireless along with Vodafone Group Plc. The Verizon Wireless iPhone hit stores Feb 10.

(Reporting by Sinead Carew; editing by Derek Caney)

Its addition of 62,000 net contract customers in the quarter was better than the average expectation for a loss of 83,000 customers from seven analysts polled by Reuters.

The reduction from 400,000 additions in the previous quarter reflected the Verizon Wireless iPhone launch in February.

AT&T earnings rose to $3.4 billion, or 57 cents a share, matching the average Wall Street estimate, according to Thomson Reuters I/B/E/S. A year earlier it posted a profit of $2.5 billion, or 41 cents per share.

Revenue rose 2.3 percent to $31.25 billion compared with analyst expectations for $31.26 billion, according to Thomson Reuters I/B/E/S.

AT&T shares were up 25 cents at $30.56 in premarket trading.

Its results came the day before the scheduled report of Verizon Communications, which owns Verizon Wireless along with Vodafone Group Plc. The Verizon Wireless iPhone hit stores Feb 10.

(Reporting by Sinead Carew; editing by Derek Caney)

* Tech majors Intel Corp (INTC.O) and Yahoo Inc (YHOO.O) beat revenue expectations after the market's close on Tuesday, an encouraging trend for the sector and sparking a strong rally in Asian and European tech shares.

* Intel shares traded in Frankfurt (INTC.F) were up 4.8 percent, while Yahoo shares traded in Frankfurt (YHOO.F) were up 1.8 percent.

* IBM shares traded in Frankfurt (IBM.F) were down 2 percent. The company reported a decline in signings of new business at its global services division during the first quarter, even as it reported profit and revenue ahead of analysts' projections.

* Companies scheduled to report quarterly results on Wednesday include Apple Inc (AAPL.O), American Express Co (AXP.N), AT&T Inc (T.N), United Technologies (UTX.N) and Freeport-McMoRan Copper & Gold (FCX.N).

* Apple is expected to report quarterly results on Wednesday, tempered by caution over how supply constraints will squeeze margins and restrain iPhone and iPad sales.

* Economic indicators include March existing home sales.

* On the M&A front, U.S. power company AES Corp (AES.N) said it would buy smaller rival DPL Inc (DPL.N) for $3.5 billion in cash to expand its footprint in the midwest region by adding 500,000 retail customers in West Central Ohio.

* Tokyo stocks snapped a three-day losing streak on Wednesday after Intel's earnings guidance sparked short-covering in chip-related stocks, while European stocks were up 1 percent in morning trade, led by tech shares such as ASML (ASML.AS) and Infineon (IFXGn.DE).

* U.S. crude oil futures were up $1.32 at $109.60 a barrel on Wednesday, as a rebound in equities and a weaker dollar eclipsed fears over eroding demand.

* Encouraging results from health care and materials companies lifted U.S. stocks on Tuesday, but weak earnings from Goldman Sachs limited gains in a market skeptical of the growth outlook.

* The Dow Jones industrial average .DJI gained 65.16 points, or 0.53 percent, to 12,266.75 at the close. The Standard & Poor's 500 Index .SPX added 7.48 points, or 0.57 percent, to 1,312.62. The Nasdaq Composite Index .IXIC advanced 9.59 points, or 0.35 percent, to 2,744.97.

(Reporting by Blaise Robinson; Editing by Louise Heavens)