Market Analysis

Stocks improved today with the Dow up 230 points to near the 10,250 level and bonds retreated on news that August Institute of Supply Management Manufacturing Sector Index increased to 56.3 compared to an expected decline to 52.9 and a 55.5 reading in July.  There were analysts who were expecting the number to come in below a 52.9 reading and who thought we could see significant selling pressure in stocks today if the number had gone below 50 which would have signified contraction in the manufacturing section.  In a separate report, China's manufacturing sector also posted strong readings.  In other economic news, ADP Private Sector Employment change report for August showed a decline of 10,000 private sector jobs vs expectations for an increase of 13,000 and compared to a revised increase of 37,000 in July.  Construction Spending for July was down 1% vs expectations for a .7% decrease. Also Construction Spending for June was revised down to a .8% decline vs prior reports of a .1% increase.

Posted by Matthew Breston on September 1st, 2010 12:03 PMPost a Comment (0)

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