Stocks continued to rebound finishing the day up 347 points on lighter trade to close at 25,309. Notes from the Federal Reserve indicated that while the economy was past full employment, wage gains were only “moderate”. This was good news to investors. For the week the Dow eked out a 0.37% gain.
The Nordstrom’s family owns over 31% of Nordstrom’s stocks and today announced they are working to take the company private with plans to have details before they report earnings next Thursday. Shares were higher today as a result of the announcement.
Lumber prices continue to exhibit strength. According to Random Lengths, the framing lumber composite price hit the $500 mark and is closing in on the all-time high of $510. Housing starts are projected to be on pace for 1.326 million units in 2018. Canadian lumber company Canfor announced they will build a $120 million dollar mill in Washington, GA and Georgia Pacific has also released plans to build a $135 million dollar mill in Warren County, Georgia. For years, mills have limped along but now they are making hay and looking to invest.
Spokane based Potlatch Company completed its acquisition of Arkansas based Deltic Timber. Potlatch now has close to 2 million acres of timberland up from 1.4 million before the buyout. The land base has 1.1 million acres in the south, 600k elk covered acres in Idaho and 150k frozen acres in Minnesota. Potlatch has 6 lumber mills, one fiber board plant and one plywood mill. I’ll bet right about now Weyerhaeuser is wishing they had not sold their mills.