Texas Manufacturing report came in much better than anticipated with same deflationary trends still in place.

• General business 2.7 from -6.3
• Business Production 17.6 from 9.3
• Shipments 17.6 from 10.2
• Utilization 15.7 from 11.2
• New Orders 9.3 from 5.5
• Outlook 5.0 from -0.9

Weakness & Concerns

• Raw Materials 9.8 from 17.0
• Uncertainty 18.6 from 9.7

Selling prices also declined underscoring the fact that passing on price increases isn’t easy for manufacturers.

The major indices are rebounding as global tensions ease. President Trump said the U.S. is very close to a trade deal with the EU, and sees a deal being reached with China, adding that there’s a “good chance” he could meet with Iran’s Rouhani. The Nasdaq rises 1.0% and the S&P 500 and Dow are up 0.9%, respectively.

Let’s not force the issue this afternoon.