The Federal Reserve Board issued an upbeat economic report on Tuesday (Dec. 9) which, combined with an optimistic Louisville show last week, most likely resulted in the stocks of Coachmen Industries Inc. and Winnebago Industries Inc. establishing new 52-week highs on Tuesday.
Until recently, Coachmen’s 52-week high was $17.50 a share but, on Tuesday, Coachmen’s stock gained 75 cents a share to close at $18.75.
Earlier during Tuesday’s New York Stock Exchange trading session, Coachmen’s stock climbed as high as $18.79 a share, its new 52-week high.
Meanwhile, Winnebago’s stock climbed above $60 a share for the first time in recent memory in New York Stock Exchange trading Tuesday. Winnebago’s stock gained $1.05 a share Tuesday to close at $60.55.
Earlier during Tuesday’s session, Winnebago shares climbed as high as $60.80, its new 52-week high.
The Fed, on Tuesday, decided to leave interest rates unchanged at their historically low levels.
As a result, it can be assumed that lenders will keep their benchmark prime rates, to which RV-dealer and consumer-loan rates are pegged, at 4%, the lowest level for the prime since 1958.
The prime has been at 4% since June 27.
The Fed reported on Tuesday that it believes the chance that low interest rates will cause deflation, a period when all prices are declining, now is very low.
Deflation would be bad for the RV industry because it would encourage consumers to delay their purchases on the assumption that prices will go down further.
The Fed also believes the chance that inflation will accelerate also is slim, so it suggested that it will leave interest rates unchanged “for a considerable period.”