Dow fell 41, decliners just ahead of advancers & NAZ went up 7. Then MLP index was off fractionally in the 502s & the REIT index rose 1+ to 520, a new yearly high. Junk bond funds were mixed & Treasuries slid back. Oil dipped below 80 & gold was lower.
AMJ (Alerian MLP Index tracking fund)
US manufacturing expanded in Oct at a faster pace than forecast, indicating the industry remains a pillar of strength for the economy. The Institute for Supply Management’s factory index increased to 59, matching Aug as the highest since Mar 2011, after 56.6 the prior month. Readings above 50 indicate expansion. A gauge of production was the strongest in a decade. The pickup signals US factories are withstanding slower global markets as improving balance sheets give households & companies the wherewithal to spend. A stronger job market & the cheapest gasoline prices since 2010 will probably provide an added boost to consumer demand, keeping assembly lines busy. American factories are expanding faster than their counterparts in the rest of the world. European manufacturing barely grew last month as output in France & Italy shrank, while factories in China showed signs of cooling. The ISM’s US gauge of production advanced to 64.8, the highest since May 2004, from 64.6. The new orders measure climbed to 65.8 from 60 in Sep, while the index of bookings waiting to be filled rose to 53 from 47 in the prior month.
Manufacturing in U.S. Expanded More Than Forecast in October
A gauge of China's services industry fell to a 9-month low in Oct, joining manufacturing in signaling a broadening economic slowdown. The gov non-manufacturing Purchasing Managers' Index fell to 53.8 last month from 54 in Sep. The official manufacturing PMI released Sat was at 50.8 in Oct compared with Sep's 51.1. Readings above 50 for both measures indicate expansion. The pullback in services & manufacturing will test the gov’s determination to refrain from increased stimulus as the economy heads toward the slowest full-year growth since 1990. The economy expanded 7.3% in Q3, the weakest pace in more than 5 years. A separate PMI index from HSBC Holdings & Markit Economics for Oct was at 50.4, unchanged from the preliminary figure & up from Sep’s final reading of 50.2. Higher new-export business was attributed to stronger demand from customers across key export markets, suggesting robust external demand is helping underpin the economy. The official PMI report released Sat showed growth slowed from Sep for output, new orders, new export orders, stockpiles & expectations. The economy “still faces some headwinds” although a downward trend is unlikely after the gov implemented policies to stabilize growth in Q3, the statement said. China will “stabilize” property-related consumption & make it easier for people to access mandatory housing savings, according to a gov statement citing a State Council meeting chaired by Premier Li Keqiang. This came after the central bank on Sep 30 relaxed mortgage rules for homebuyers who have paid off existing loans.
There were computer problems with this post but the early data from Oct looks to be favorable, as expected, highlighted by a strong showing on US manufacturing. Dow is taking a breather after closing an unusually volatile Oct at a new record high. The Senate elections will be a major story tomorrow evening. The outcome can have a major impact on the US economy.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CLF15.NYM | ...Crude Oil Jan 15 | ...80.34 |  ...0.08 | (0.1%) |
| GCX14.CMX | ...Gold Nov 14 | ...1,169.70 | ...1.40 | (0.1%) |
US manufacturing expanded in Oct at a faster pace than forecast, indicating the industry remains a pillar of strength for the economy. The Institute for Supply Management’s factory index increased to 59, matching Aug as the highest since Mar 2011, after 56.6 the prior month. Readings above 50 indicate expansion. A gauge of production was the strongest in a decade. The pickup signals US factories are withstanding slower global markets as improving balance sheets give households & companies the wherewithal to spend. A stronger job market & the cheapest gasoline prices since 2010 will probably provide an added boost to consumer demand, keeping assembly lines busy. American factories are expanding faster than their counterparts in the rest of the world. European manufacturing barely grew last month as output in France & Italy shrank, while factories in China showed signs of cooling. The ISM’s US gauge of production advanced to 64.8, the highest since May 2004, from 64.6. The new orders measure climbed to 65.8 from 60 in Sep, while the index of bookings waiting to be filled rose to 53 from 47 in the prior month.
Manufacturing in U.S. Expanded More Than Forecast in October
A gauge of China's services industry fell to a 9-month low in Oct, joining manufacturing in signaling a broadening economic slowdown. The gov non-manufacturing Purchasing Managers' Index fell to 53.8 last month from 54 in Sep. The official manufacturing PMI released Sat was at 50.8 in Oct compared with Sep's 51.1. Readings above 50 for both measures indicate expansion. The pullback in services & manufacturing will test the gov’s determination to refrain from increased stimulus as the economy heads toward the slowest full-year growth since 1990. The economy expanded 7.3% in Q3, the weakest pace in more than 5 years. A separate PMI index from HSBC Holdings & Markit Economics for Oct was at 50.4, unchanged from the preliminary figure & up from Sep’s final reading of 50.2. Higher new-export business was attributed to stronger demand from customers across key export markets, suggesting robust external demand is helping underpin the economy. The official PMI report released Sat showed growth slowed from Sep for output, new orders, new export orders, stockpiles & expectations. The economy “still faces some headwinds” although a downward trend is unlikely after the gov implemented policies to stabilize growth in Q3, the statement said. China will “stabilize” property-related consumption & make it easier for people to access mandatory housing savings, according to a gov statement citing a State Council meeting chaired by Premier Li Keqiang. This came after the central bank on Sep 30 relaxed mortgage rules for homebuyers who have paid off existing loans.
There were computer problems with this post but the early data from Oct looks to be favorable, as expected, highlighted by a strong showing on US manufacturing. Dow is taking a breather after closing an unusually volatile Oct at a new record high. The Senate elections will be a major story tomorrow evening. The outcome can have a major impact on the US economy.
Dow Jones Industrials
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