First Time In 18 Months…
The ISM Index (Institute for Supply
Management), formerly the National Purchasing Manager’s Index, is
viewed as a read on general health in the manufacturing sector. The February
ISM index rose to a strong 54.7% from 49.9% in January. The number also compares
constructively to the consensus expectation of 51.0%. Any number above 50.0%
represents growth, which is good news today because the index had spent the
prior 18 months below 50.0%.
One of the more forward-looking components of the
ISM, the orders index, showed remarkable strength in February, rising to 62.8%
from 55.3%. These numbers show a need to rebuild inventories and is helping pull
the manufacturing sector out of recession. Now will be able to see if the
rebound can be continuous after the initial inventory rebuild is done.
U.S. stocks rallied on the news. The Dow Jones
Industrial Average
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$INDU |
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of trade. It has since picked up and rallied to the highs of the day at around
1:30 PM ET.
Micron Technology
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MU |
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biggest gainer among technology shares in the S&P 500. The S&P 500
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$SPX |
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The index had formed a double bottom on the daily chart and today broke
above the peak at 1120. Intel
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MSFT |
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are also helping push the 500 higher.
Novellus Systems [NVLS|NVLS|NVLS] triggered gains in computer-related
shares after it said sales may exceed estimates for the first quarter as demand
for semiconductor equipment picks up. The PHLX Semiconductor Index
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$SOX.X |
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is seeing one of its best days in a long while. The SOX is helping propel
the Nasdaq higher
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The Morgan Stanley Cyclical Index
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$CYC.X |
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is continuing its run today, up 4.82 to 572.97. Stocks
helping the rally today are: Caterpillar
(
CAT |
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(
DD |
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PowerRating), Eaton
(
ETN |
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PowerRating),
Georgia-Pacific
(
GP |
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PowerRating), 3M
(
MMM |
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PowerRating), PPG Industries
(
PPG |
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United Technologies
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UTX |
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PowerRating).
The Morgan Stanley Consumer Index
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$CMR.X |
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is up again today trading at 593.16, up 5.65. Individual stocks helping move
the index today are: Abbott Labs
(
ABT |
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(
AHP |
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Colgate-Palmolive
(
CL |
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PowerRating), Emerson Electric
(
EMR |
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PowerRating), Johnson & Johnson
(
JNJ |
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PowerRating),
Kimberly-Clark
(
KMB |
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PowerRating), Merck
(
MRL |
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PowerRating), Proctor & Gamble
(
PG |
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Safeway
(
SWY |
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PowerRating).
The AMEX
Pharmaceutical Index
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$DRG.X |
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trading at 389.87, up 5.73. Some of the stocks supplying the fuel to the move are
American Home Products
(
AHP |
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PowerRating), Bristol-Meyers Squibb
(
BMY |
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PowerRating), GlaxoSmithKline
(
GSK |
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PowerRating), Johnson & Johnson
(
JNJ |
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PowerRating), Eli Lilly
(
LLY |
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Merck
(
MRK |
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PowerRating).
Career Education (CECO)
is pulling back to the 20-day moving average. CECO is carries a
3-month relative strength rank of 88 from TradingMarkets.com.
ASM International (ASMI)
is breaking out of a six-week cup and handle. The stock is carrying a
3-month relative strength rank of 97 from TradingMarkets.com.
Ticketmaster (TMCS)
is breaking out of a triangle/slanted triple top. TMCS is holding a
3-month relative strength rank of 91 from TradingMarkets.com.