The market was drifting a bit before the one-two punch from a strong manufacturing number from the Chicago PMI report and news of a takeover offer for Hersey’s from Mondelez International lifted it higher.

The Chicago PMI reading of 56.8 is well above the 50.7 consensus and the highest level since October 2014.  Moreover, backlogs surged to their highest level since March 2011.  On the other hand, the employment segment plunged to a reading of contraction, with its fastest decline since November 2009.

This is interesting against the backdrop of massive anti-trade sentiment that points to our deteriorating manufacturing sector.   While there is no doubt trade agreements are leaky, and rules are not enforced, other elements are also driving away the need for human beings to stamp out assembly line parts.