A Data Driven Market

Good economic data drove the overall market today as ISM non-manufacturing data was reported at 57.1 vs 53 estimate. Even the most generous estimate of 55 fell over 2 points shy of the actual. This is the highest one month change in ISM data on record.

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The ISM number jumped from 51.4 last month to 57 today. The ISM Index has not been above 57 since October 2015. The same report indicated business activity increased to 60.3 in September, 8 points higher than August. Data indicates service companies are expanding at the fastest rate in the past year. Service companies account for two-thirds of all personal expenditures in the United States. In the face of uncertainty this report help ease some concerns, but we will have to wait until next month to see if the impressive numbers become a trend.
The release early this morning help the S&P 500 retain its high open.

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Strong economic data has an inverse relationship with the price of precious metals such as gold. XAU, the Gold and silver index plummeted. That chart is pictured below. ism

It is important to stay up to date with economic conditions.  Keep up with economic indicators here: New York Fed Economic Calendar

Other Links:

September 2016 Manufacturing ISM® Report On Business®

Bloomberg article on manufacturing data

 

 

 


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