Supply Chain Strengthening
The ISM Service Index came in at 54.3 for July, a number that’s better than expected. The index was at 53.8 in June and was expected to sink back to 53 in July. The ISM is the Institute for Supply Management, so its indices for both the service and manufacturing sector signal growth in the supply chain when they rise.
Jobs Are Up
The ADP employment report shows that 42,000 jobs were added in July and Friday’s Nonfarm Payrolls could surprise to the upside. July’s rise in private employment was the sixth consecutive monthly gain. However, over that period increases have averaged a modest 37,000, with no evidence of acceleration.
Yesterday’s market action remains in a tight trading range. Can the S&P 500 close above 1130 by week’s end? It’s possible.
Overall, the news has been positive, but underwhelming. However, given the long stretch of bad economic news we’ve been enduring for the past several years, any improvement is welcome news, indeed.