Fast start to the new week, new month as ISM manufacturing
and Construction Spending handily beat expectations. The Institute for
Supply Management Manufacturing composite jumped 2.2 points to 59.0, the best
reading in 3 years. New orders were up 3.3 points, the best print since
April of 2004. Record aircraft orders did the trick. The employment
index fell .1 yet remained strong at 58.1. Overall, this is an impressive
report. Construction Spending was also released, up 1.8% month on
month. Again, this was the best reading in over 2 years with Residential
construction up .7% and Nonresidential up 2.5%.
The week ahead will feature tier one data with Factory
Orders and the Fed’s Beige book tomorrow, ADP Employment estimates, Weekly
Unemployment Claims, and ISM Non-Manufacturing (services) data on Thursday, and
then Big Daddy, the Employment Report for August on Friday.
In world news, Russian Leader Putin warned Europe he could
take Kiev in 2 weeks! Bold talk from the honey badger yet this hasn’t moved the
market. For now, the geopolitical spotlight has focused on the European
Central Bank Meeting this Thursday and overall risk in Europe.
