Mortgage rates stop nearly two-month rise

Rates on benchmark 30-year mortgages, which have been rising steadily since late June, dropped this week, offering a bit of a break to potential home buyers. Refinancing activity, however, continued to slow.

The average rate on 30-year fixed-rate mortgages for the week ending Aug. 15 was 6.24 percent, down sharply from last week’s rate of 6.34 percent, which marked the highest rate seen in a year, Freddie Mac, the mortgage giant, reported Thursday in its weekly nationwide survey.

Rates on 30-year mortgages slid to a record low of 5.21 percent the week ending June 13 and stayed at that level the following week. After that, 30-year mortgage rates began a steady upward swing.

Earnings

Area retailers report mixed quarterly results

Several retailers with stores in Lawrence reported quarterly earnings Thursday.

Kohl’s Corp. announced earnings of 33 cents per share versus 36 cents per share for the same period a year ago. The results beat analysts’ expectations of 32 cents per share.

Target posted earnings of 39 cents per share versus 38 cents in the year-ago period, while American Eagle Outfitters earned 11 cents per share versus 14 cents per share a year ago. The Buckle reported earnings of 17 cents per share compared to 19 cents in the period a year ago.

International

U.S. trade deficit shrinks

America’s trade deficit narrowed in June as exports climbed to the highest level in two years, helped by better economic growth overseas. Imports were flat.

The Commerce Department reported Thursday that the trade gap was trimmed by 4.7 percent in June from May — to $39.5 billion.

Exports of goods and services rose by 2.4 percent in June to $84.6 billion, the best showing since June 2001. Overseas sales of U.S.-made capital goods, including airplanes and computer accessories, showed the biggest gain. Exports of capital goods grew by $818 million to $24.1 billion from May to June.

Imports, meanwhile, held steady at $124.2 billion in June. A big drop in imports of consumer goods, such as clothing and toys, offset gains elsewhere, including imports of automobiles and parts, which rose to a record $18.2 billion in June.

Wall Street

Markets plan to open despite power outage

Upbeat economic news reassured investors Thursday that business is improving, sending stocks moderately higher on a day when a giant power outage struck the Northeast just after the market closed.

The power failure, blacking out cities from New York to Cleveland, Detroit and Toronto, sent stock exchanges scrambling to switch to backup generators. The major exchanges said they were prepared to open as scheduled today, using backup power if necessary.

After falling as much as 52.94 in the early going, the Dow Jones industrial average closed up 38.80, or 0.4 percent, at 9,310.56. The Nasdaq composite index rose 13.73, or 0.8 percent, to 1,700.34. The Standard & Poor’s 500 index advanced 6.48, or 0.7 percent, to 990.51.