Stocks Soar as ISM Rises For the First Time Since May

     Just what the doctor ordered-manufacturing is up for the first time since May. This along with some better factory data in the Euro and China were enough to see stocks soar to three digit gains.

     "The manufacturing sector expanded for the first time since May, with the ISM index rising to 51.5 in September from 49.6 in August. Economists had expected a reading of 49.7, according to a Reuters survey. A reading above 50 indicates an expansion."

     "The ISM survey followed a string of weak regional surveys last month. The Chicago PMI, a survey which measures business activity in the Midwest, showed its first contraction since 2009 in September."

 

      http://www.cnbc.com/id/49239979

 

      "Overnight, PMI data from China and the euro zone showed some signs of stabilization though both remained firmly in contraction mode."

 

       Europe is still in contraction territory but it's improving:

 

       "European shares ended sharply higher as worries over Spanish bank eased. Investors have been watching to see if Moody's would downgrade Spain's credit rating, but the ratings agency said Spain's bank recapitalizations were credit-positive for the country."

       "Meanwhile, the euro zone PMI was revised up to 46.1, up from a preliminary estimate of 46 and from a reading of 45.1 in August. Still, the reading was below 50, which indicates a contraction. The improvement helped the euro stabilize against the dollar."

        "And China's official PMI rose to 49.8 in September from 49.2 in August, but it was the seventh straight quarter of slowing growth for the world's second-largest economy."

 

       Ths rally today lifted banks with Facebook now continuing to rise after all it's pain. It may not be such a bad time to buy Facebook-in my opinion of course and no I'm not a licensed analyst but then their record is no better than mine!

 

        I should also point out the rise of the banks including Bank of America to my good buddies Nanute and Woj. Assuming Woj still even reads me, I sense he may have been put off by my "partisan turn" over the last few months.

 

        Before that I was writing about monetary stuff a lot more. What do you want buddy? I do call this Diary of a Republican Hater and that's exactly what I do. If you wanted a website that says " a pox on both your houses"-I think he's an independent-you are at the wrong place.

 

        I liked it at $7 and argued it could hit $9 which is what it's done. Don't get me wrong this doesn't necessarily do much for you unless you have good timing-if you like as I do to play the options. On the other hand if you simply bought it at $7 outright you've seen a profit of close to 30%. Not that any of this helps me right now-I can't afford any market stuff right now.

 

        If you believe Bill Clinton what's the harm in buying up a little BAC-the stock not the option. The options are much more speculative so only if you feel you have any ability at timing should you even consider options.

 

        We'll see if any of this shows up in the BLS job report that comes out on Friday. The prediction is for 115,000 jobs, a modest amount though last month was only 96,000.