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Don’t miss our next trade idea. Get on the Bear Traps Report Today, click hereFriday’s ISM data showed U.S. factories surged in August to the fastest pace of expansion in six years, largely powered by an employment uptick.
- Factory index climbed to 58.8 (est. 56.5) from 56.3 in July.
- Employment gauge jumped to 59.9, highest since June 2011, from 55.2.
- Economists polled expected a reading of 56.8%. Any reading above 50% indicates improving conditions.
Friday’s jobs report in the U.S. displayed the strongest month for manufacturing hiring since August 2013. Manufacturing and construction accounted for an additional 64k new jobs.
U.S. 10 Year Treasury Bond was 3.73% the last time ISM Data was this Strong
Inside the data, the measure of new orders fell to 60.3 from 60.4; order backlog gauge rose to 57.5, matching a three-year high. The August PMI is at its highest level since August 2011, when it touched 59.1. And the August PMI is 3.4% above the 12-month average of 55.4 and 2.1% above the 2017 average of 56.7. ISM noted, 14 of the 18 manufacturing sectors contributing to the report expanded in August. It’s clear, bond yields are being suppressed by U.S. political and global geopolitical risks – not economic growth data.
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