stocks, jobs, and houses

Big economic news hit the market today that gave stocks a lift after opening lower. The news was generally termed “weak” for markets, but the U.S. economy is still growing amid talk of recession. The growth is in the service sector but it’s slowing.

Dow finished the day at 16,336, +183, (+1.1%)

Manufacturing is not good as that sector remains weak.

Overall the news is cause for concern.

Markit’s services purchasing manager’s index (PMI) missed forecasts, at 53.2, the lowest level in 27 months (expected at 53.7 by economists).

The Institute of Supply Management’s non-manufacturing composite index came in at 53.5 (55.1 estimated), the lowest since March 2014, and showed that the services sector grew at a slower rate.

Both indexes were above 50, the border between expansion and contraction.

Wednesday’s report from Markit showed that new work increased at a slower pace in January, though employment grew. ADP showed that 205,000 jobs were added in the private sector in January.

Home prices are edging higher. The national median home price increased 7.6% over the past 12 months to December 2015. and were the sources for this article.


Published by mikebertelsen

Global market, trade, and financial news. I keep up to date with what I assess is important.

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