Stocks traded near breakeven levels most of the day but then moved up during happy hour as we neared the closing bell. The Dow finished the day up 69 at 26,786 on very light trading volume in what we call ghost volume. BTS has moved into high yield which is a bullish signal and IBD continues to have markets in rally mode.
In economic news the US manufacturing sector is experiencing a slowing growth rate as the latest ISM reading slipped to a 51.7. Out of 18 industries, 12 showed growth making this month’s reading the 34th consecutive monthly reading above 50. On the labor front, the employment index rose to 54.5 in May as companies are bringing on summer help.
The US consumer continues to show strength as personal incomes in May were up 0.5% while consumption spending increased 0.4%. These are some of the highest readings in two years. Prior month figures were also revised higher. Interest income, wages and salaries pushed incomes up and are now higher by 4.1% over the past year.
The bottom line from all this data is the US consumer, which accounts for 2/3rds of the economy is healthier than a horse on race day while manufacturing which makes up the other one third of the economy has slowed from a torrid pace but is still chugging along.
There will be no blip for tomorrow unless some unexpected news hits the wire. The Greystone offices will be closed by noon.