And so the amusing data continues. After yesterday's Chicago PMI missed (and was released early), it was only a matter of time before it would be offset by a better than expected ISM. This was also expected following the PMI number which came out earlier today, and which also missed. Which is precisely why we, as usual, had a slightly cynuical take on the data, and were fully expecting a beat from the Manufacturing ISM as we reported previously. To wit:
What time will the Mfg ISM beat by 2-3 std devs?
— zerohedge (@zerohedge) November 1, 2012 [5]
A second PMI, not that first PMI, reports a weak number that will be refuted by the ISM
— zerohedge (@zerohedge) November 1, 2012 [6]
The time is 10:00 am, and the beat, while not as massive, came just as expected, and was sufficent to send the Headline scanning algos into a buying frenzy, after the ISM came at 51.7, well above expectations of 51.0 and above last month's 51.5. This was the highest Manufacturing ISM since May 2012, following yesterday's just as important number looking into the health of the manufacturing sector, whose employment index came at a 33 month low. Nothing like keeping the algos absolutely stupefied by constantly conflicting, if upward biased data. And definitely ignore the Employment Index in the Manufacturing ISM which declined from 54.7 to 52.1.
The other data was not quite as exciting, with Consumer Confidence rising from a downward revised 68.4 (was 70.3) to 72.2, and missing expectations of a 73.0 print although still coming at the highest print since February 2008 just in time for presidential boasting, while Construction Spending also missed expectations, rising from a revised -0.1% to 0.6%, even as consensus was hoping for a 0.7% print.
So 2 out of 3 misses, but for the algos only the beats matter, which is why futures have ramped a solid 10 points since the market open on virtually nothing substanial, but merely more gaming of kneejerk reactions to flashing red headlines.