ISM Update
A fund manager of my acquaintance -- who has been short and is just killing it lately -- writes in:
NYT: Stocks bounced around on Tuesday but were decidedly down at midday, as investors weighed a strong report on the manufacturing industry against concerns about pricey oil and ailing banks. (emphasis added).
Cramer liked that report too, said it provided evidence that we’re not going into a recession.
Do these people read the reports? New orders, down. Employment, down. Backlog, down. Inventories, up. Prices paid, at a multi-year record.
Money quote from the ISM bossman: “When viewed from the manufacturer’s perspective, they are experiencing higher prices for their inputs while demand for their products is slowing.’
I was going to take apart ISM (a/k/a Chicago Survey of Purchasing Managers, or PMI) this morning, but Mike did such a good job, there's no need for me to even bother:
ISM is up, but it isn't good new
http://pbp.typepad.com/economy/2008/07/ism-is-up-but-it-isnt-good-news.html
See also:
Automakers Worst Month Since 1992
http://globaleconomicanalysis.blogspot.com/2008/07/automakers-worst-month-since-1992.html
Tuesday, July 01, 2008 | 01:00 PM | Permalink
| Comments (17)
| TrackBack (0)
add to de.li.cious | 
digg this! | 
add to technorati | 
email this post
TrackBack
TrackBack URL for this entry:
https://www.typepad.com/services/trackback/6a00d8341c52a953ef00e5537f73ea8833
Listed below are links to weblogs that reference ISM Update:
Comments
The biggest jump was in the category "customers' inventories," from 47 to 55. And the market and Cramer see that as a good thing?
In the short term, both the market and Cramer may be fools. But in the long run, Cramer will likely stand alone. ;-)
Posted by: Bob_in_MA | Jul 1, 2008 1:21:34 PM
The comments to this entry are closed.
