The Dow Jones has touched a record high today in early trading despite mixed U.S. manufacturing data for July.
The Dow Jones is currently at 21,961, rising .32 percent.
The ISM Index in July rose 56.3, below a consensus Bloomberg estimate of 56.4, marking a decrease of 1.5 percentage points from the June reading of 57.8 percent.
The New Orders Index registered 60.4 percent, a decrease of 3.1 percentage points from June’s reading of 63.5 percent.
Despite the weaker headline ISM reading in July, expanding business conditions were reflected in the report from a panel with “new orders, production, employment, backlog and exports all growing in July compared to June, as well as supplier deliveries slowing (improving) and inventories unchanged during the period.”
Meanwhile, another manufacturing reading today from IHS U.S. Markit Manufacturing PMI in July showed improvement and registered 53.3, up from 52.0 in June, revealing a solid improvement in operating conditions in the US manufacturing sector.
New orders from US manufacturing firms increased at a solid pace, recovering from a nine month low in June.
Chris Williamson, Chief Business Economist at IHS Markit said the following about July’s IHS Markit PMI manufacturing data in a released statement:
“The second half of the year got off to a good start for US manufacturers, with the health of the sector improving at the fastest rate for four months. Output, new orders, employment and buying activity all grew at increased rates. The only real blot on the copybook was a decline in exports for the first time since last September.”
“However, although rising, the survey indices remain consistent with only very modest increases in comparable official data such as manufacturing output, durable goods orders and payroll numbers. Clearly the manufacturing sector remains stuck in a low gear, though is at least gaining momentum and will hopefully shift up a gear as we move through the second half of the year if demand continues to improve.
IHS Markit expects GDP growth to accelerate to a near 3 percent annualized rate in the third quarter, fueled by gains in consumer spending and business investment, which should benefit manufacturing.”
Apple’s 3rd quarter earnings results are due later today after the market close.
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