Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


While you were sleeping: US builders gain confidence

While you were sleeping: US builders gain confidence

Aug 19 (BusinessDesk) - Wall Street climbed amid better-than-expected confidence among US home builders and a bidding war over Family Dollar Stores.

A report showed the National Association of Home Builders/Wells Fargo Housing Market index, a gauge of home builder confidence, rose to 55 in August from 53 in July, increasing for the third month in a row. It was a welcome sign of optimism in an industry that has struggled to recover.

“As the employment picture brightens, builders are seeing a noticeable increase in the number of serious buyers entering the market,” NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Delaware, said in a statement. “However, builders still face a number of challenges, including tight credit conditions for borrowers and shortages of finished lots and labour.”

The data helped strengthen the greenback, which rose 0.3 percent against the euro and 0.2 percent against the yen.

Takeover activity, specifically a bidding war for Family Dollar Stores, also helped drive gains on Wall Street. Shares of Dollar General soared, last up 11.2 percent, after it offered to buy Family Dollar Stores, outbidding rival Dollar Tree. Shares of Family Dollar Stores jumped 5 percent. Shares of Dollar Tree were last down 2.1 percent.

“Dollar General can more easily justify a higher price because of the greater potential operating synergies,” Erik Gordon, a professor at the University of Michigan’s Ross School of Business, told Bloomberg News, adding that Dollar Tree may have incentive to come back with a counteroffer. “The acquisition would do more to transform Dollar Tree’s business.”

In late afternoon trading in New York, the Dow Jones Industrial Average climbed 0.99 percent, the Standard & Poor’s 500 Index gained 0.77 percent, while the Nasdaq Composite Index rose 0.89 percent.

On Wednesday minutes of the latest US Federal Reserve meeting, held in July, will be released and scrutinised by investors for clues about the timing of a potential interest rate increase. Eyes will then turn to Fed Chair Janet Yellen’s speech at the annual Jackson Hole, Wyoming global central bank gathering.

A drop in geopolitical tensions helped too. Gains in shares of United Technologies and Visa, up 2.1 percent and 1.9 percent respectively, led the Dow higher.

"The Fed remains accommodative, the economy is continuing to improve, and earnings are more or less not disappointing, which is all good news," Adam Sarhan, chief executive of Sarhan Capital in New York, told Reuters.

In Europe, the Stoxx 600 finished the session with a 1.2 percent advance from the previous close. The UK’s FTSE 100 Index rose 0.8 percent, France’s CAC 40 increased 1.4 percent, while Germany’s DAX added 1.7 percent.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news