Thursday, July 2, 2009

Market Reflections 7/1/2009

The ISM manufacturing report did show more positives than negatives but one of the negatives, or at least not one of the positives, was a fizzling out in new orders where momentum in prior months was strong. ADP's jobs call is also weak, pointing to little or no improvement in the June employment report which will be released tomorrow. Housing data struck out with mortgage applications, construction spending and pending home sales all flopping. Vehicle sales at day end were no better.

But stocks still got a lift from the ISM report which also showed deep inventory destocking, a surprise that optimists say points to even greater restocking ahead. The S&P rose 0.4 percent to 923. Oil ended at $69 with gold at $940, both in the middle of tight ranges.

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