Stocks of U.S. furniture makers rebounded on Monday, Aug 31 after a dip in late August brought on by the Chinese stock crises, which has roiled global financial markets over the past month. Although continued concerns about the Chinese manufacturing sector sent the market plummeting again on Tuesday.
Overall wood furniture manufacturers appear to be somewhat of a safe haven for investors for the time being. Although the situation is highly fluid, companies that import furniture and furniture components from China could see some benefit as the U.S. dollar continues to strengthen against the Chinese yuan, making the costs of importing goods much cheaper for them.
But in the long-term diminishing consumer demand from China's domestic market could impact U.S. exports and a continuing slowdown in the Chinese economy could affect the overall confidence of U.S. consumers as well, according to some economic analysts.
China's market crash seemed to take investors by surprise, however, analysts have noted that there were warning signs in the U.S. prior to the stock market collapse primarily with the slowdown at West Coast ports. Although that situation was initially caused by logistics and labor issues, shipping never returned to its normal rate after the problems were resolved. Jock O'Connell, a trade advisor, told the Wall Street Journal, "The number of containers coming from China was continuing to grow, but beginning in 2013, fewer loads were being sent in the other direction."
Furniture maker stock prices as of Mon. morning, August 31:
|Masco||$26.43 (up 0.76% over 5 days)|
|Herman Miller||$27.27 (up 1.15% over 5 days)|
|HNI||$46.62 (up 1.35% over 5 days)|
|Steelcase||$17.64 (up 0.94% over 5 days)|
|Ethan Allen||$29.67 (up 0.58% over 5 days)|
|Bassett Furniture||$29.22 (up 0.86% over 5 days)|
|Dorel||$35.30 (up 3.46% over 5 days)|
|La-Z-Boy||$27.80 (up 0.98% over 5 days)|
Source: Google Finance - Yahoo Finance - MSN Money
Have something to say? Share your thoughts with us in the comments below.