Stocks rose again last night as taper expectations continued with the upper hand. There was some decent data in support. Weekly jobless claims were strong:
In the week ending November 16, the advance figure for seasonally adjusted initial claims was 323,000, a decrease of 21,000 from the previous week’s revised figure of 344,000. The 4-week moving average was 338,500, a decrease of 6,750 from the previous week’s revised average of 345,250.
As well, the Markit PMI rebounded from its October shutdown slump:
On the other hand, the Philly Fed regional manufacturing index went the other way:
Manufacturing growth in the region continued in November but did not match the pace of growth in the preceding month, according to firms responding to this month’s Business Outlook Survey. The survey’s broadest indicators for general activity, new orders, shipments, and employment were positive, signifying growth, but readings for each fell from October. The survey’s indicators of future activity also moderated but continue to suggest general optimism about growth over the next six months.The survey’s broadest measure of manufacturing conditions, the diffusion index of current activity, declined from 19.8 in October to 6.5 this month. The index has now been positive for six consecutive months.
And producer prices came in weak, mainly on falling oil:
The balance for markets was another 13 point rise in the S&P500. More importantly, 30 year bond yields broke through to a new high at 3.94% but couldn’t hold it and slipped back to 3.88%. Gold dropped another $13, the US dollar firmed a touch and the Aussie was smashed as Glenn Stevens bought the paaain as predicted.
