Stock Picking Based On ISM Manufacturing Index, January 2012
By Ronald RutherfordThe recent jobs reports was such good news for the economy and the markets that it overshadowed the good news contained in the ISM reports. My latest article on the ISM reports was lukewarm at best, but this month has more silver linings. The biggest upside surprises occurred in the non-manufacturing index where the headline index jumped up 3.8 to 56.8% beating the consensus of 53.3-53.5% and the consensus range of 52-54%. This was even after revisions in December upward of 0.4%. The manufacturing headline also bumped up one percent to 54.1% but after a revision down last month of 0.8%. Econoday succinctly stated a summary of the market reactions to the report.
The manufacturing sector is a bulwark of the economy and, despite troubles in Europe and slowing in Asia, continues to expand, underscored by a faster rate of expansion for new export orders which rose 2 points toComplete Story »