Stocks Make Great Gains for First of September

Stocks Make Great Gains for First of September

The Dow Jones Industrial Average was up more than 224 points, the NASDAQ was up more than 55 points, and the S&P 500 was up more than 27 points today, after a really dismal August that saw a loss of more than 10,000 jobs. Housing numbers for August were very weak, as was manufacturing data for most of the month. Data released today indicated that Manufacturing was up significantly, even though construction was down more than 1% for the month of August.
Toyota, GM and Ford, the world’s three biggest automakers had low sales reported for the third quarter, as consumers stayed at home.

The Institute of Supply Management said its construction index rose to 56.3 % in August, an excellent sign for economic recovery. ISM’s Norbert Ore said, “August represents the 13th consecutive month of growth in US manufacturing.”

Nomura Global Economics analyst Zach Pandl said, “The better-than-expected result shows the manufacturing sector has a bit more momentum than we had anticipated, and that the economy is very far from recession.”

Consumer incomes rose a paltry 0.2% in July, and spending was up by a mere 0.4%, likely due to the Back to School shopping season. Gas prices have fallen and crude oil has reached approximately $75 a barrel on low demand for gasoline this summer. The high manufacturing numbers still indicate a rather sluggish economy, and gas prices are expected to stay steady or even drop slightly in September, because September is traditionally a time of decreased demand for gasoline. August saw a loss of 10,000 jobs in the private sector. It is still uncertain when the economy will fully recover from the recession.