Yesterday, America turned 236 years old. Let’s just have a little think on that. As countries go, America is still quite young. China, for example, is thousands of years old and Britain is somewhere near 807, if one sees the Magna Carta as the beginning of Britain as a “modern” country. My point being, America is a brash upstart in the world, as she powers forward economically, creating a better life for many. Although there is still much to do regarding economic equality, she is still trying to get it right, so, on that note, “Happy Birthday, young gal.”
I hope everyone enjoyed the day off yesterday. I know I did. Basically, I did nothing, which in my mind is what a day off should be. It seems the market did not have a good day off, though, even if it did nothing yesterday. I say that because today the market woke up in a bad mood, and the reason for the malcontent is not quite clear. As far as I can tell, the news out there today is positive. Aside from the ECB and China cutting rates and England stimulating its economy …
The US labor market shows signs of improving. Unemployment claims dropped and the ADP report points to more jobs created. The mixed bag of manufacturing reports don’t really tell us much, as the breathless media reported US manufacturing shrank in June for first time in nearly three years, yet just yesterday, a US Commerce Department report showed new orders for U.S. factory goods rose more than expected in May.
The report showed broad gains across industries making everything from machinery and appliances to cars and planes.
What is a fella to do? May manufacturing up June down. Perhaps looking at the US auto sales for June will help. Yup, the numbers below paint a different and somewhat brighter picture.
GM sales climbed 16 percent in June, beating the 7.6 percent increase that was the average estimate of 11 analysts surveyed. Deliveries rose 20 percent for Chrysler and 7.1 percent for Ford, topping analysts’ average estimates for gains of 18 percent and 3.7 percent, respectively. Nissan Motor Co. (7201) sales rose 28 percent, exceeding the 21 percent average estimate.
I could now throw in the numbers of US construction spending, but that would take up precious writing real estate, so I will quickly drop in the news from China.
China’s official non-manufacturing Purchasing Managers Index rose to 56.7 in June from 55.2 in May. The sub-index of new orders rose to its highest level this year at 53.7, showing the non-manufacturing economy is growing steadily. Meanwhile, the PMI for the property sector rose to the highest point since December 2010, while the new order sub-index for the sector rose to 55.7, reversing a period of continuous decline for 1.5 years. The PMI in the building industry stayed high at 58.1 in June, and is expected to remain buoyant as infrastructure investment is expected to increase in the second half of the year.
Okay, even after using up so much space on China, I still have some room left …
US construction spending rose 0.9 percent in May, helped by housing and commercial projects.
I wish the market were happier, especially since America’s future is looking so bright.
Trade in the day; Invest in your life …
