Research

Credit ratings service Standard & Poor's (S&P) delivered a guarded but upbeat assessment of U.S. home builders, reporting that “operating conditions … have improved over the past six months, and the sector's overall credit quality has steadied as a result.” The new report cites a “cautiously stable” outlook for the sector overall, but warns that that trend could backpedal later this year if the baseline residential construction forecast doesn't materialize.

The S&P/Case Shiller Home Price Indeces showed positive annual growth rates in three key metrics for the first time since the summer of 2010.

“Home prices gained in the second quarter,” said David M. Blitzer, chairman of the Indx Committee at S&P Dow Jones Indices. “In this month’s report, all three composites and all 20 cities improved both in June and through the entire second quarter of 2012.” 

An article just released by Standard & Poor's Ratings Services predicted that mergers and acquisitions among forest product companies will continue to increase over the next few quarters due to strong balance sheets and attractive financing terms. But this M&A activity will largely be contained to the paperboard and packing sectors, according to "Top Investor Questions For The U.S.