From the Desk of Lou Brien:
“The May reading of the ISM Mfg. Index was better than forecast at 59.7, down seven tenths from the month before. The details were generally flat like the headline.
- Prices Paid was down a half point to 77.5
- Production fell three tenths to 66.6
- New Orders were flat at 65.7
- Backlog of Orders rose two points to 59.5
- Employment was up one point to 59.8.
Both key components were strong; Residential was up 4.5% and NonResidential gained 2.0%.”
The major indices have bounced from their slide this morning and Wall Street is experiencing some of its favorite color, Green. Although it is unsure how long the honeymoon will last this morning, stocks are up by roughly half a percent. Oil is up .70 and gold continues to rise another 1%
The U.S. economy continues to signal a recovery, although the rest of the world continues to juke markets into sinking lower. When and if the entire Euro crisis is through, the U.S. markets will likely recover stronger gaining steam from true growth rather than overstretched speculation.
Disclosure: no positions