Flash composite of purchasing manager’s activity out this morning underscores the economic momentum enjoyed in Germany and France, and even though the US is trailing, there are positive notes in the details.

US PMI Index

Activity in the United States’ private sector is at a seven month peak paced by “new work” only slightly slowed by recent hurricanes (which has bumped cost inflation in manufacturing).  According to Markit’s, backlog data supports the best hiring in manufacturing this year while service inputs reflect the strongest selling prices in three years.

The underlying growing strength of the economy is the cornerstone of my bullishness for the stock market, but there are certain truths at this moment.

• Action in a few stocks masked moderate gains for 98% of the publicly traded shares.
• Geopolitical factors could create air pockets but so far have bolstered conviction.

The next breakout on news, preferably strong jobs and wage data, will be monstrous coupled with across the board short squeezes. 

Have  a nice weekend.