Homebuilders most optimistic since ’99
WASHINGTON — U.S. homebuilders are feeling more optimistic than they have in nearly two decades.
The National Association of Home Builders/Wells Fargo builder sentiment index released Monday rose five points to 74 this month. That’s the highest reading since July of 1999, more than 18 years ago.
Readings above 50 indicate more builders see sales conditions as good rather than poor. The index has remained above 60 since September of 2016.
The index exceeded the expectations of analysts surveyed by FactSet, who expected a reading of 70.
All three components of the index rose in December. The reading gauging builders’ view of single-family home sales rose four points to 81, while the outlook for sales over the next six months ticked up three points to 79. The measure of traffic by prospective buyers jumped eight points to 58.
The Commerce Department reported late last month that Americans bought new homes in October at the fastest pace in a decade — a 6.2 percent monthly increase — reflecting a strong economy but also a worsening shortage of existing homes for sale.
NEW YORK — Pinnacle Entertainment is being snapped up by Penn National in a deal worth about $2.8 billion as the gambling industry seeks to diversify and cut costs at the same time.
Penn National Gaming Inc. is spending $20 in cash for each share, and Pinnacle shareholders will get 0.42 shares of Penn for each Pinnacle share they own. The stock-and-cash bid is worth an implied $32.47 per share, the companies said.
As part of the deal, Boyd Gaming Corp. is buying four of Penn National’s newly acquired properties. Those include the Ameristar St. Charles and the Ameristar Kansas City, both in Missouri, as well as the Belterra Casino Resort in Florence, Ind., and Belterra Park in Cincinnati. Boyd will pay $575 million for those assets.
Penn says the combined company will have 41 properties in North America, not including those acquired by Boyd. The company also expects about $100 million in annual cost savings as a result of the deal.
“The combined company will benefit from enhanced scale, additional growth opportunities and best-in-class operations, creating a more efficient integrated gaming company,” said Penn Chief Executive Officer Timothy J. Wilmott.
In morning trading, Pinnacle Entertainment shares rose 24 cents to close at $31.19. Penn National shares dipped 66 cents to $29.03, and Boyd Gaming shares rose $2.44, or 7.6 percent, to $34.77.