from Dan Norcini:
Talk about a stark contrast from one day to the next! Yesterday we were all sifting through the inner parts of the FOMC statement and noting the dovish tone and the more downbeat assessment of the US economy from the Fed. Today the ISM (Institute for Supply Management) number for the month of July hit the wires and boy howdy was it a shocker.
Activity for US manufactures took a big leap upward to 55.4 from June’s 50.9 reading! That was the best reading since June 2011.
If that was not enough, the employment component of the data jumped to 54.4 from 48.7. That, coming on the heels of today’s jobless claims number, which came in at 326,000 versus an expected 345,000 got the attention of traders in a big hurry. With that, stocks were off to the races, bonds plummeted and the Dollar soared against all of the majors.
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