ISM Data Propels Stocks to Higher Ground

By on May 1, 2012

The stock market took off earlier today with the major averages approaching their highs for the year as a report showed economic strength. Positive ISM data appeared to be the catalyst for the unexpected upward thrust which came at the beginning of the “sell in May” period. The bears are currently running for cover.

As reported at the Calculated Risk blog:

PMI was at 54.8% in April, up from 53.4% in March. The employment index was at 57.3%, up from 56.1%, and new orders index was at 58.2%, up from 54.5%.

Calculated Risk concludes:

This was above expectations of 53.0%. This suggests manufacturing expanded at a faster rate in April than in March. It appears manufacturing employment expanded faster in April with the employment index at 57.3%.

On a longer term chart the upward move in the PMI appears to be a blip:

ISM Data

Source: Calculated Risk

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