Key Manufacturing and Housing Reports Boost Stocks
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Stocks are being driven up from Friday's losses after better-than-expected key economic reports on manufacturing and housing. At noon, the Dow is up 100 points after falling 250 on Friday.
The ISM Manufacturing report showed a manufacturing index of 55.7, ahead of economist's predictions of 53. This is the fastest rate of growth in the manufacturing industry since April 2006. With the third consecutive month above 50 shows that the index is growing.
ISM report showed a growth in the employment index for the first time in 14 months. The employment index registered 53.1 percent in October, 6.9 percent higher than the 46.2 percent in September. When an employment index is above 49.7 it is generally consistent with an increase in the Bureau of Labor Statistics on manufacturer reporting.
September pending home sales rose 6.1 percent to 110.1, the eighth consecutive monthly gain. This result is ahead of the economist estimate flat growth. The rise in the housing index can be attributed to the first-time home-buyer tax credit.
Yet another report on economic activity, construction spending, showed a rise of 0.8 percent in September, which was well ahead of the economist estimate of a 0.2 percent slide.
"This should help relieve some of the fears that the recovery is not sustainable," said Peter Cardillo, chief market economist Avalon Partners Inc. of the reports.
All signs from the reports point to the emergence of the manufacturing and housing industries from the weak economy.
The Dow is currently up $112.00 to $9824.73 following the report; this is a 1.15 percent jump.
The ISM Manufacturing report showed a manufacturing index of 55.7, ahead of economist's predictions of 53. This is the fastest rate of growth in the manufacturing industry since April 2006. With the third consecutive month above 50 shows that the index is growing.
ISM report showed a growth in the employment index for the first time in 14 months. The employment index registered 53.1 percent in October, 6.9 percent higher than the 46.2 percent in September. When an employment index is above 49.7 it is generally consistent with an increase in the Bureau of Labor Statistics on manufacturer reporting.
September pending home sales rose 6.1 percent to 110.1, the eighth consecutive monthly gain. This result is ahead of the economist estimate flat growth. The rise in the housing index can be attributed to the first-time home-buyer tax credit.
Yet another report on economic activity, construction spending, showed a rise of 0.8 percent in September, which was well ahead of the economist estimate of a 0.2 percent slide.
"This should help relieve some of the fears that the recovery is not sustainable," said Peter Cardillo, chief market economist Avalon Partners Inc. of the reports.
All signs from the reports point to the emergence of the manufacturing and housing industries from the weak economy.
The Dow is currently up $112.00 to $9824.73 following the report; this is a 1.15 percent jump.
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