"It seems the New York and the Philly Fed index did a bit of a role reversal: New York was very weak last month and bounced back this month and there was the opposite pattern with Philly," said Jay Feldman, an economist at Credit Suisse First Boston in New York.
Given that the Philly Fed survey is seen as probably the most reliable of the regional U.S. manufacturing surveys, the question is whether the weakness in Thursday's report will be reflected in June national factory data due early next month.
Some analysts have been predicting that the Institute for Supply Management's survey on U.S. manufacturing will also show contraction in June as inventories in the economy are worked off. In May, the ISM survey stood at 51.4.
"Even with a few conflicting signs within the breakdown and the conflict with the Empire State survey, the data is certainly bullish for bonds, and raises the chances of an eventual dip in the ISM manufacturing index below 50," said Alan Ruskin, research director at 4CAST Ltd. in New York.
**Also watching DWA, pondering if oversold enough to catch a safe cat bounce, below IPO price.
D
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