9/9/2014 2:29:00 AM
HEADLINES
FINdex Drops Despite Brisk U.S. Manufacturing
While U.S. manufacturing grew in August “at the strongest pace in more than three years,” according to the Associated Press, publicly-traded fastener company shares did not fare well.
The FIN Fastener Stock Index has lost 4% of its overall value since July 1, compared to a 1.8% gain by an index of related industrial stocks.
Fourteen of the 20 stocks tracked by the FINdex lost share value in July and August.
FINdex companies losing 10% or more in stock price during the period included Anixter (down 10.8%), Carpenter Technologies (down 13.5%), Simpson Mfg. (down 10.8%), and TriMas (down 16.9%).
FINdex companies gaining 10% or more in share value during July and August included Alcoa (up 11.5%), Bisco Industries (up 133%), and Nucor (up 10.3%).
During the first half of 2014, the FINdex achieved a modest 2.9% gain, compared to a 3.1% increase by an index of related industrial stocks. By contrast, the FINdex gained 15% in the first six months of 2013 on its way to a 33.3% increase for the year, including 7% growth in the final quarter.
Despite lackluster returns for investors, economic indicators point to an improved U.S. economy.
In July the Institute for Supply Management’s manufacturing index rose from 57.1 to 59 — the highest reading since March 2011.
“The U.S. economy is on a notably firmer growth track this summer, even if consumers are riding in the caboose,” commented BMO Capital Markets economist Sal Guatieri.
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