Chin Up in the Downswing: TiVo Stock Getting Good Reception, New Home Sales and Durable Goods Orders Show Improvement
by Anne Szustek
TiVo stocks performed well Wednesday on the back of its business partnership with Blockbuster. Commerce Dept. data show improvement in two benchmarks: durable goods orders and new home sales.
Shares of television recording service TiVo rose Wednesday on the back of its new partnership with video rental company Blockbuster to allow customers to rent movies directly through TiVo. Blockbuster also plans to retail TiVo items both online and at its brick-and-mortar stores. The stock was trading in the $7 range this morning. TiVo’s price per share has been above $5 since early December and has held steady in the low $6 range as of late, reports BloggingStocks.
Statistics provided Wednesday by the U.S. Department of Commerce show improvement in sales of new homes last month: up 4.7 percent to 337,000, higher than the 323,000 projected by economists polled by MarketWatch. “Meanwhile, the government revised January’s sales pace for new homes to 322,000 units, up from the 309,000 reported earlier,” MarketWatch reports. This follows information released earlier this week that showed improvement in sales of previously owned homes and in mortgage refinancing applications.
Another Commerce Department report released today showed positive developments in durable goods, which, along with the housing market, Bloomberg called one of the two “biggest drags on the U.S. economy.” Bookings for such products as machinery and computers were up 3.4 percent during the month of February, despite expectations to the contrary. This was the first sign of growth in durable goods sales in seven months and the largest gain in more than a year. An additional harbinger of potential business growth was a 6.6 percent increase in demand for nondefense capital goods excluding aircraft last month, compared to a decrease in January of 11.3 percent. “The more we get economic data points like these, the more there’s an indication that stabilization in the economy is starting to unfold,” Jonathan Basile, an economist at New York’s Credit Suisse Holdings USA, told Bloomberg.