Registered Investment Adviser Caleb Lawrence
Generally positive but not overly significant economic data sent the major averages into the final hour with large gains erasing all of the week’s losses and then some.
The Philadelphia Fed regional survey fell a larger than expected 5.2 points to 22.7 in November on weakness in employment and inventories. Price data remains relatively high but moderated somewhat.
Import prices advanced for a 3rd month in October with a below expectations gain of .2%. On a year ago basis import prices increased 2.5%. Export prices were unchanged for the month but increased 2.7% from a year ago.
Industrial Production beat expectations in October with a .9% gain. Capacity Utilization jumped .6% to 77%. Non-Durable Goods and Utilities production led the advance and this report is todays reason dujour for the markets impressive gains despite the fact that manufacturing activity only makes up about 16% of total economic activity.
The NAHB or National Association of Home Builders Index gained 2 points in November to 70 on large gains in the Northeast. The South increased for a second month because major hurricanes apparently don’t matter.