Weyerhaeuser wouldn’t normally top your list of big movers, but the stock was added to the “Conviction Buy” list as brokers at Goldman Sachs initiated coverage, in a new report on the paper and forest products sector that rates it “neutral” overall.
Goldman said the company’s particular specialties give it substantial leverage to a housing recovery.
That said, it was still early days to talk of housing recovery, as the latest housing starts this week disappointed and things looked rocky in the US existing home sales arena on Thursday too. Sales of previously-owned US homes unexpectedly fell in August for the second month in a row as rising prices and tight inventories held buyers back.
Shares of Weyerhaeuser, which has a market capitalisation of $22.7bn, gained 5.7% to $32.08—its largest move since February 2012—while the S&P 500 rose 0.7% on Thursday.
The Fed’s thinking
The US Federal Reserve has left short-term interest rates unchanged although it said the case for a rate hike had “strengthened” and left the door open for a move this side of the New Year.
Three out of the ten Fed policymakers voted against the decision, calling instead for an immediate increase in interest rates.
But Yellen, along with the other six members, wants to wait for more data to back up the view that the US economy is on the mend.
“The committee judges that the case for an increase in the federal funds rate has been strengthened, but decided, for the time being, to wait for further evidence of continued progress towards its objectives,” the Fed said in a statement.
Apple to buy McLaren?
Many analysts are seeing the approach as the clearest sign yet that the iPhone maker wants to take on the likes of Tesla and Google and dominate the automotive industry of tomorrow.
According to insiders, the talks started earlier this summer, with Apple reportedly considering a full takeover or at least a strategic investment in the Woking-based firm.
The US tech giant has been working on a self-driving electric vehicle for a couple of years now, and any tie-up could accelerate the project.
Estimates at what Apple would have to pay to buy Mclaren outright have varied, although most agree it would be somewhere in the region of £1bn to £1.5bn.
Story by ProactiveInvestors