Amazon (AMZN) is the second U.S. company to reach the $1 trillion mark.  Apple was the first company to ascend on the 13-digit number at the beginning of August 2018.  AMZN traded as high as $2050.50, $0.23 above the magic number of $2050.27 that took it to a trillion-dollar market cap.  Congratulations to Jeff Bezos who earlier in the year became the richest person alive, with a net worth of roughly $166.5 billion. 

Construction Spending

Construction spending for the month of July increased 0.1% ($1,315.4 billion), below consensus of 0.5%.  Nonresidential private constructions spending was the main culprit for the sluggish growth.  Private construction was lower by 0.1%, while public works increased 0.7% for July.  June construction spending was revised higher (from -1.1% to -0.08%), picking up some of the slack reported in July.   Year-over-year construction expenditures were higher by 5.8%. 

ISM Manufacturing

The Institute for Supply Management reported that its index for August came in at the second highest reading in its 25-year history.  August’s reading of 61.3% was the highest reading since 61.5% in May of 2004. 

Highlights:

• New orders increased 4.9% to 65.1%
• Employment rose 2% to 58.5%
• Production increased 4.8% to 63.3%
• Supplier Deliveries Index rose 2.4% to 64.5%
• Inventories increased 2.1% to 55.4%

Overall demand remains strong, with 16 of the 18 manufacturing industries reporting growth in August.  Wood Products and Primary Metals were the two industries that contracted.    

Equites initially got a lift after the ISM release but have since treaded water.  The Dow has regained more than half of its losses, which was down 160 at its low, and is currently off 60 points.  The major markets are trading lower by 0.30% to 0.50%.

Breadth:

• NYSE advances 931 to declines 1,994; new 52-week highs 107 to new lows 72
• Nasdaq advances 996 to declines 1,988; new 52-week highs 136 to new lows 52

We like the market's resolve but still need to see it overcome intraday resistance levels.