Afternoon Note
More signs the economy is building up a head of steam in the second half of the year from two key economic data points this morning.
The Institute for Supply Management’s ISM report showed a major surge in business activity and new orders along with a pop in employment.
ISM Service Economy Report |
Index |
Change |
Business Activity |
60.3 |
+8.5% |
New Orders |
60.0 |
+8.6% |
Employment |
57.2 |
+6.5% |
Factory Orders seemed ho-hum upon release, but a closer look at business investment indicates impressive increases now over the past three months. Non-defense capital goods excluding aircraft increased 0.9% in August after improving 0.8% July and 0.5% June.
Oil has broken above $50/barrel on the 5th straight weekly EIA report of declining inventories. Today's report indicated a decline of 3 million barrels. The $50 level is a key support/resistance level. The energy sector is up 1.67% today.
The financial sector is also rallying, up 1.5% on the strong data. The Financial Select SPDR (XLF) has made a convincing break above its 50-day moving average at $19.35.
The major indexes are trading at the highs of the day here at midday. Market internals are solid with up volume strong on both the NYSE (76%) and NASDAQ (78%) and 105 new NYSE highs along with 171 new highs on the NASDAQ. Both the Dow and SP500 charts are making consolidation formations that are ripe for a breakout move.
Comments |
Noticed large drop today in interest sensitive stocks like utilities. Any buys here? When the 10 year bond was at what I would call a 'Normalized Rate' of 4-5%, utilities were much higher. I looked at ERH as a representative example: on 5/1/08 ERH was $26. and the 10-yr was 4.05; on 3/1/09 ERH was $9.40 and the 10-yr was 2.68. 10-yr now 1.716 and ERH is $11.94. Is this an over-reaction? And, our some names like ERH buys? TOM HOLCOMB on 10/5/2016 5:02:27 PM |
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4/19/2024 1:20 PM | Fair Chunk of Rotation |
4/19/2024 9:35 AM | DON’T OVERREACT |
4/18/2024 1:37 PM | Didn’t Break Down |
4/18/2024 9:40 AM | MARKET OFF SCRIPT |
4/17/2024 1:59 PM | Facing Pressure |
4/17/2024 9:37 AM | POWELL STILL WANTS TO HELP |
4/16/2024 1:35 PM | Muted |
4/16/2024 9:42 AM | FEAR ARRIVES |
4/15/2024 1:17 PM | Making a Statement |
4/15/2024 9:45 AM | Equal Opportunity Drubbing |
4/12/2024 1:37 PM | Pressure Overall |
4/12/2024 9:42 AM | WHO YA GONNA CALL? |
4/11/2024 1:38 PM | No Urgency |
4/11/2024 9:27 AM | Tough Sledding |
4/10/2024 1:22 PM | Hang In There |
4/10/2024 9:51 AM | HERE COMES THE LATEST RATIONALE FOR PERSISTENT INFLATION |
4/9/2024 1:56 PM | Fighting the Trend |
4/9/2024 9:46 AM | NEXT TIME, MAKE IT A HOLIDAY |
4/8/2024 9:45 PM | Cautious Feel |
4/8/2024 7:19 AM | IT’S ECLIPSE DAY |
4/5/2024 1:51 PM | Higher and Cheaper |
4/5/2024 9:23 AM | MARKETS REEL ON BIDEN’S ISRAEL ULTIMATUM |
4/4/2024 1:42 PM | Stocks Bounce |
4/4/2024 9:31 AM | ESCAPING GRAVITY = ESCAPING REALITY? |
4/3/2024 1:41 PM | Cuts Not Soon |
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