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ISM Prints At 57, In Line With Expectations, More Margin Concerns

Tyler Durden's picture





 

After construction spending printed at 0.4% on expectations of 0.2%, the ISM came in at 57, precisely in line with expectations. And as always, margin pressures remain: Price move from 69.5 to 72.5, in tune with the following comment from the survey: "Strong pressure still exists on raw material prices in almost every
area. It is unclear as to whether they can get them." Oddly enough, invntories declined by -4.9%, a move that makes absolutely no sense when juxtaposed with all the other diffusion index data from December.

Full table:

From the survey respondents:

  • "Company outlook looks positive into 2011. Solid revenue growth
    across the globe driven by strong volume in Q3 and Q4 2010." (Chemical
    Products)
  • "We continue to see strong demand for our product in Europe and Asia." (Electrical Equipment, Appliances & Components)
  • "The end of the year is surprisingly busy." (Computer & Electronic Products)
  • "Business remains slow, while vendors clamor for increases that
    should have no foundation in economics." (Nonmetallic Mineral Products)
  • "Strong pressure still exists on raw material prices in almost
    every area. It is unclear as to whether they can get them." (Plastics
    & Rubber Products)

Industry performance:

Of the 18 manufacturing industries, 11 are reporting growth in December,
in the following order: Apparel, Leather & Allied Products; Primary
Metals; Fabricated Metal Products; Machinery; Computer & Electronic
Products; Food, Beverage & Tobacco Products; Textile Mills;
Plastics & Rubber Products; Transportation Equipment; Electrical
Equipment, Appliances & Components; and Chemical Products. The four
industries reporting contraction in December are: Nonmetallic Mineral
Products; Paper Products; Printing & Related Support Activities; and
Miscellaneous Manufacturing.

Full report link.

 

 


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Mon, 01/03/2011 - 11:03 | Link to Comment EscapeKey
EscapeKey's picture

As expected?

"The ISM, however, was expected to climb to 57.5%, according to economists surveyed by MarketWatch."

http://www.marketwatch.com/story/ism-manufacturing-index-rises-to-570-in-december-2011-01-03

Mon, 01/03/2011 - 11:16 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

Don't split hairs. Everything will be better than expected.

Mon, 01/03/2011 - 11:22 | Link to Comment EscapeKey
EscapeKey's picture

Just wondering, really. Not every day ZH has a more positive spin on news than Marketwatch.

Mon, 01/03/2011 - 12:42 | Link to Comment cclaeys
cclaeys's picture

only on rare earth companies with billions of shares

Mon, 01/03/2011 - 11:07 | Link to Comment nudedude
nudedude's picture

Still good numbers, another sign the economy is improving.

Mon, 01/03/2011 - 11:12 | Link to Comment Tyler Durden
Tyler Durden's picture

Correction: another sign the latest supposedly non-recurring $900 billion in monetary stimulus is having a one-time impact.

Mon, 01/03/2011 - 12:31 | Link to Comment duo
duo's picture

Look at Jan 09.  SPX up 20 points on the first trading day of the year, peaking a couple of days later, then down 150 SPX points in 4 weeks.

Mon, 01/03/2011 - 11:31 | Link to Comment SheepDog-One
SheepDog-One's picture

-Another sign the 'economy' is improving-
Well sure, as long as Bernanke can keep passing out zero percent interest printed money like mad daily the economy is fine.

Mon, 01/03/2011 - 13:11 | Link to Comment Drag Racer
Drag Racer's picture

employment down, prices are up, supplier deliveries are down, backorders up.

then of course profits are up but not sustainable. economy is not improving.

Mon, 01/03/2011 - 11:10 | Link to Comment Ragnarok
Ragnarok's picture

How's BB going to sell QE2 expansion/QE3 now?  Find out in March?

Mon, 01/03/2011 - 12:45 | Link to Comment cclaeys
cclaeys's picture

same way he did last time, blame it on employment - fak, seems like most of these leading economic indicators include stock prices as part of the metric, seasonally adjusted of course.

Mon, 01/03/2011 - 11:09 | Link to Comment ??
??'s picture

I am looking forward to Breakfast with Dave next time (if) he publishes this week.  I would like to see his comments on SPX 1270. I wonder how much longer he will be at Gluskin?

Mon, 01/03/2011 - 11:11 | Link to Comment wiskeyrunner
wiskeyrunner's picture

How about that VIX, happens every Monday when stock are trending higher. The ole gap up on the open. Folks I have seen this over the past decade. Don't waste your time with these indicators it's all rigged. They are just a tool for manipulation. ALL THAT MATTERS IS PRICE. When the trend is up buy dips. It really is that simple. Don't read the articles on this site, it's all meaningless. They have been calling for the end of the stock market for quite some time, it's all over if you listen to these guys at zero hedge, there predictions are truly meaningless. 

 

FOLLOW PRICE ACTION AND WASH YOUR MIND FROM PLACES LIKE THIS. Oh I know they will say LOOK AT GOLD, WELL GUSEE WHAT EVERYTHING IS RISING EXCEPT THE US DOLLAR.

Mon, 01/03/2011 - 11:18 | Link to Comment Id fight Gandhi
Id fight Gandhi's picture

The people here know to trade the trend and not invest in this garbage.

You can't just buy a stock, walk away for a month and hope it will be a gain.

Mon, 01/03/2011 - 11:24 | Link to Comment Caviar Emptor
Caviar Emptor's picture

You in da kindergarten, we in da Supa Bowl

Mon, 01/03/2011 - 11:13 | Link to Comment macholatte
macholatte's picture

 

Bank of America Corp. will take an approximately $2 billion charge in its fourth quarter as it settles buyback claims on home loans sold to Fannie Mae and Freddie Mac.

The bank said Monday that it also expects to take a provision of about $3 billion in the quarter related to repurchase obligations on the home loans.

Bank of America shares jumped 4.4 percent in premarket trading on the news.

BofA to take $2B charge to settle home loan claims

 http://www.zerohedge.com/article/ism-prints-57-line-expectations

Mon, 01/03/2011 - 11:17 | Link to Comment RobotTrader
RobotTrader's picture

All bad news is getting shucked off.

New highs.

IBD Top 100 acting OK today.

http://clearstation.etrade.com/cgi-bin/bbs?post_id=9592582

Mon, 01/03/2011 - 11:27 | Link to Comment Boilermaker
Boilermaker's picture

Hey, look, a random worthless chart of nothingness...again.

Mon, 01/03/2011 - 11:31 | Link to Comment ??
??'s picture

Boiler, your charts are so much more valuable

Mon, 01/03/2011 - 11:46 | Link to Comment Boilermaker
Boilermaker's picture

I can't post charts.  Even if I could, what's the point?  Robo is awful at selecting some garbage and posting it, because he can (I guess).

Seriously, what in the hell am I (or anyone else) supposed to do with this?  Why even pollute the thread with it?

 

Mon, 01/03/2011 - 11:51 | Link to Comment Spalding_Smailes
Spalding_Smailes's picture

Ton's of info in his post. The charts are the momo runners & will show weakness w/financials before a pullback.

BankofAmerica up 4%

Mon, 01/03/2011 - 11:54 | Link to Comment Boilermaker
Boilermaker's picture

Wow, that's breaking news.  Stocks are being quote stuffed upward.  Golly, where was this vital information say...the last 2 years?

Mon, 01/03/2011 - 12:40 | Link to Comment Cdad
Cdad's picture

Boilerman,

Stocks are being quote stuffed upward.  Golly,

LOL! 

Going after Robo and Spalding...and 12 month charts of things that have already happened...like they predict the future.  I've been there, I tell ya.

LOLOLOLOL!

Mon, 01/03/2011 - 11:18 | Link to Comment stormsailor
stormsailor's picture

yeah,  hold your nose and go long, hahahahaahah.

 

the money is still green, and there is a heck of a lot more of it

Mon, 01/03/2011 - 11:17 | Link to Comment Gimp
Gimp's picture

I just saw the latest MSU report that showed unemployment was down and the real number is 5% nationally.

Note: MSU Report = Make Sh*t Up

 

Mon, 01/03/2011 - 11:28 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture

10 am might have just marked high dow print of the year.

TD exhaustion point (+9 sell setup) marked on monthly NDX and so is silver

Mon, 01/03/2011 - 11:38 | Link to Comment No Mas
No Mas's picture

Damn you're funny!  High DOW print of the year?  Has Ben said it is to be the high DOW print of the year?

I think not in either case.  Again the herd of ZH sheeple must be taught the most basic of truisms:

DO NOT FIGHT THE FED.

Write that on the palm of the hand you don't use to pleasure yourself and read it at least 24 times a day.  It will save you a lot of frustration.  Kind of like gravity; like it or hate it, it is what it is.

Mon, 01/03/2011 - 11:52 | Link to Comment Boilermaker
Boilermaker's picture

Gold sold off 10 cents.  Silver and Copper are up.  Wierd...

Mon, 01/03/2011 - 12:11 | Link to Comment HarryWanger
HarryWanger's picture

They just don't get it. The Fed wants a strong market, they're getting it. You are correct, like it or hate it, it is what it is and it will stimulate the economy as we have been seeing.

Mon, 01/03/2011 - 13:17 | Link to Comment Drag Racer
Drag Racer's picture

What part of stealing from the populus to prop up poorly run companies that invest these funds overseas do you see as having the ability to 'stimulate the economy'?

Mon, 01/03/2011 - 13:28 | Link to Comment Boilermaker
Boilermaker's picture

When you say "populus" I assume you're not counting those unwashed peasants.  They shouldn't count anyway.  When the richest 10% own 85% of the stock market (which they do) then I think you know which "economy" is getting stimultated with a french tickler.

I didn't hear the stylist at Great Clips raving about the stock market gains nor the garbage man nor the neighborhood mechanic.

Mon, 01/03/2011 - 11:30 | Link to Comment Caviar Emptor
Caviar Emptor's picture

Let's see: debt ceiling up by $600B = 1000 Dow Points. 

Think the Tea Baggers might switch to power drinks

Mon, 01/03/2011 - 11:38 | Link to Comment Hondo
Hondo's picture

We are seeing just how worthless the data gathering is/has been or they are having some major problems collecting the correct data.

Mon, 01/03/2011 - 11:48 | Link to Comment goldmiddelfinger
goldmiddelfinger's picture
 Darrell Issa CONTINUED INITIAL OVERSIGHT INVESTIGATIONS LINEUP: failure of financial crisis inquiry commission to target origins of financial crisis.... 21 minutes ago
Mon, 01/03/2011 - 12:24 | Link to Comment Tense INDIAN
Tense INDIAN's picture

what has happened to the BDI...its been printing 1773 for the past one week.....has the BDI crew taken an extended holiday

Mon, 01/03/2011 - 12:27 | Link to Comment gloomboomdoom
gloomboomdoom's picture

Marc Faber is really like an economic jesus if you think about it...

http://www.goldalert.com/2010/12/marc-faber-no-u-s-double-dip/

Mon, 01/03/2011 - 12:36 | Link to Comment cosmictrainwreck
cosmictrainwreck's picture

And he sez the 10 year should be around 5%. Yeah, and the market shoulda rolled over, and Congress shoulda not passed 280,765 pages of BS printed matter, and I shoulda been retired by now and...........

Mon, 01/03/2011 - 12:39 | Link to Comment gloomboomdoom
gloomboomdoom's picture

Yeah, It should be 10000% on that yield... Bernanke's hands must be cuffed.

Look at his track record. He has called market tops and bottoms almost to the exact digit!

Mon, 01/03/2011 - 12:55 | Link to Comment HarryWanger
HarryWanger's picture

Wasn't there a post here a couple weeks ago about a big January 3rd sell off?? Another completely wrong and ill-advised prediction.

Mon, 01/03/2011 - 13:14 | Link to Comment gloomboomdoom
gloomboomdoom's picture

here's a junk. There's a junk.

Everywhere a JUNK JUNK!

Come on people... I am bored! Make with the trannies or else I am going to invest with Cramer

Mon, 01/03/2011 - 14:04 | Link to Comment GetReal
GetReal's picture

Check out John Hussman's latest essay: http://hussmanfunds.com/wmc/wmc110103.htm

"The upshot is that there is little historical basis at present to expect positive returns as compensation for accepting risk in stocks, bonds, or precious metals. This will change, possibly soon, but the result of the recent speculative run is that risk premiums have been compressed to levels that have historically been inadequate to compensate for risk...".

(See also Karl Denninger at http://market-ticker.org/akcs-www?post=176325)

"However, this condition is also associated with what I've called 'unpleasant skew' - the most probable market movement is actually a small advance to marginal new highs... [before the crap hits the fan]."  (Bracketed note mine.)

Mon, 01/03/2011 - 14:13 | Link to Comment pat53
pat53's picture

At least Hussman has some credibility, Denninger is just another permabear full of hot air and BS, and who has been DEAD WRONG for what, years now !!?  LOL I'm surprised his site is still up and running, I doubt anyone reads it anymore... complete moron.

Mon, 01/03/2011 - 14:18 | Link to Comment Boilermaker
Boilermaker's picture

Look Pat53, Harry Wanger is the resident dumb ass permabull here.  Now, if you want to challenge him then you're going to have to step it up a bit.  I don't doubt that you're not retarded enough to make it happen.  I'm just saying you're going to have to hit some home runs instead of these singles.

Don't you belong on the Yahoo boards...

Oh, yea, LOL LOL

Mon, 01/03/2011 - 14:24 | Link to Comment GetReal
GetReal's picture

Wrong on the content of many of his economic essays, or wrong mainly on his timing? I say the latter.

Mon, 01/03/2011 - 15:06 | Link to Comment EscapeKey
EscapeKey's picture

Timing, really. Denninger is no moron, despite whatever pat53 said. On the contrary, when it comes to pure mathematics, he's pretty damn sharp. Obviously, you'd never get mathematically challenged morons, who argue you really CAN keep running exponentially increasing debts perpetually without destroying the monetary system in question to admit this, because... well, they're mathematically challenged morons.

Anyway, Denninger's just another of those who can't believe this can continue (and has continued thus far).

Mon, 01/03/2011 - 15:18 | Link to Comment gloomboomdoom
gloomboomdoom's picture

Good point. Denninger's IQ is off the chart. We need him for the coming "Revolution" (not the revaluation).

Anna Chapman is all over the news today.

Not this Chapman?

http://theinternationalforecaster.com/International_Forecaster_Weekly/Ne...

Mon, 01/03/2011 - 15:24 | Link to Comment EscapeKey
EscapeKey's picture

You have to be fucking joking? From what I read about her, she was completely incompetent, asking people to help her connect her laptop to an ad-hoc connection in Starbucks, and seemingly more interested in getting drunk and having sex, than asking questions about privileged information.

If that's what the KGB are looking for in spies, then sign me up right now!

 


Anna Chapman stars in New Year 'Soviet spy film'

MOSCOW — Undercover spy turned media star Anna Chapman marked the New Year by starring in a parody of a popular Soviet spy film and then telling Russians never to keep love a secret.

Mon, 01/03/2011 - 15:42 | Link to Comment gloomboomdoom
gloomboomdoom's picture

lol, I know buddy. Putin and Iran are evil...right?

Fascism is hell.

Glad I got to visit Italy last year. Hopefully I get a chance to see Russia before capital controls and people controls comes.

Mon, 01/03/2011 - 14:18 | Link to Comment GetReal
GetReal's picture

Denninger's prediction for 2011: "Margin compression - or if you prefer, collapse - will be the buzzword this year."

Mon, 01/03/2011 - 14:37 | Link to Comment gloomboomdoom
gloomboomdoom's picture

Alan Greenspan's acts were intentional

Alan poy boy predicts run-away inflation, dollar crash and new currency system.

Btw... I am sick and tired of hearing the phrase "Democratic Society"...

What good was the enlightenment and/or the Renaissance?

Benjamin Franklin, Thomas Paine, Alex Hamilton and Tommy J would be dissappointed. How many of them liked Gold? How many of them loved paper?

http://youtu.be/z5MVsm2cpc0

Mon, 01/03/2011 - 16:13 | Link to Comment gcmays
gcmays's picture

The ISM number looks good. But if you look at the numbers over the long-term we are now sitting at or near 25 year highs in many of the indexes. Check out the graph...

http://maysreport.com/2011/01/03/ism-manufacturing-index-ends-year-higher-has-it-peaked/

Do NOT follow this link or you will be banned from the site!