The Institute of Supply Management’s factory gauge rose to 48.9 from June’s 44.8 in June. This is an eleven-month high and is less than the contraction that was predicted for last month. This piece of good news, or green shoots for some, is causing a boost in the market. As of this writing, the Dow is up more than a full percent, the S&P up 1.20% and the Nasdaq is higher by 0.95%.
From the official release:
Six of the 18 manufacturing industries reported growth in July.
These industries — listed in order — are: Nonmetallic Mineral Products; Paper Products; Printing & Related Support Activities; Electrical Equipment, Appliances & Components; Transportation Equipment; and Chemical Products.
The 10 industries reporting contraction in July — listed in order — are: Machinery; Plastics & Rubber Products; Wood Products; Textile Mills; Miscellaneous Manufacturing; Furniture & Related Products; Computer & Electronic Products; Food, Beverage & Tobacco Products; Fabricated Metal Products; and Primary Metals.
See it in its entirety HERE.
But there are still things to watch, in particular for this week the number of unemployment, which can only go higher.