How are you enjoying August so far?
Yes, that is a rhetorical question because the flow of economic data made it easy for stocks to breakout above 1700 to new highs. In that parade of data we had:
• Jobless Claims ebbing lower to 326K which corresponds well with higher job adds.
• ISM Mfg soared to 55.4 vs. 50.9. Plus New orders thriving at 58.3.
• PMI Mfg corroborates ISM strength moving up to 53.7 with New orders at 55.5.
• And just for good measure European manufacturing came in at an expansionary pace above 50 for the first time in a year.
This all bodes well for a further breakout above 1700 as the large stockpile of investor cash finds a better home wit h stocks.
Best,
Steve Reitmeister (aka Reity…pronounced “Righty”)
Executive Vice President
Zacks Investment Research
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