Surprisingly, Economics has taken over even in a month chalked full of earnings reports by large companies. Currently the broad Economic releases are having a far greater impact than the 90 day treadmill we speak so much of.
Philadelphia Fed Survey Rocks (Volatile)
Expectations versus actual were the name of the game on this regional survey released on 7-16-13 as the result was a whopping 19.8 and the expectation was for a 9. This is a regional survey and is very volatile. The surprisingly positive result sparked market participants as doubt had been lingering from several prior released regional reports.
ISM Manufacturing Rips Higher
While this report is actually the first day of August, we included it in our July review. Market participants had been waiting for another positive signal to bid up the capital markets and they got one in this report. Again, expectations were much lower than actual, breathing confidence into the US Economy.
This from our friends at Econoday:
It’s hard to understate the gains in this report. Employment is up, imports are up, export orders show growth, delivery times are up which is a sign of congestion in the supply chain consistent with strong activity.
Interest Rates Still VERY Important
Of course, what would a monthly review be without a discussion of rates. With rates much higher today, closer to 2.7% we wanted to preview this chart as we will discuss it again later when we look at where rates may go in the future. It is safe to say, HIGHER is very probable!
Phil Michelson wins the Open
A picture worth 1000 words…or maybe swings!
Well Done Phil, You Deserved it!
Have a Great Day!
John Kvale
http://www.jkfinancialinc.com http://www.street-cents.com 8222 Douglas Ave # 590 Dallas, TX 75225