Daily Market Commentary for January 3, 2012
Institute for Supply Management reported their manufacturing index for December climbed to 53.9% from 52.7% in November, which is a six-month high. (read more at Millennium-Traders.Com) http://www.millennium-traders.com/news/newscommentary.aspx
Institute for Supply Management reported their manufacturing index for December climbed to 53.9% from 52.7% in November, which is a six-month high. The acceleration of manufacturing activity in December is highlighting the U.S. economyâ€™s momentum heading into 2012, according to a key index released by the ISM. The production and employment gauges each rose 3.3 points with a 0.9 percentage point gain for the new orders index. â€œBusiness seems strong, but likely due to tax advantages of purchasing capital expense items,â€ said a purchasing manager in the machinery sector. A manager in transportation equipment added, â€œBusiness is steady today around the world.â€ Of the 18 industries surveyed, nine reported growth while nine reported contraction. A chemical products manager reported a â€œslowâ€ Q4 and a wood products manager said the â€œmarket has definitely slowed in the last month.â€ Slowing rates of contraction have been seen in the U.K., Germany and France. A slight expansion has been seen in China, Japan and Australia in the final month of the year.
Commerce Department reported outlays for U.S. construction projects rose 1.2% in November. October construction spending was revised down to show a 0.2% decline from the previous estimate of a 0.8% gain. During November, spending on private construction rose 1.0%, spending on public projects rose 1.7% and residential construction rose 2.0%.
According to the Semiconductor Industry Association, worldwide semiconductor sales during November fell 2.4% from October as flooding in Thailand contributed to supply chain disruptions. Sales of semiconductors were reportedly $25.13 billion for the month, down 3.1% from a year earlier with year-to-date sales reported as 0.8% higher. Weaker November sales were attributed to the continuing European financial crisis, which is having a broad impact on other economies and global demand. "Supply chain disruptions resulting from the floods in Thailand have impacted semiconductor sales in the near term, however [original equipment manufacturers] are expected to recover production losses over the course of the next few months," said SIA President Brian Toohey.
Gold futures were riding high once again at $1,600 an ounce today alongside oil and stocks. The precious metal move higher was helped by a weaker dollar to start 2012 on a high note after a 10% yearly gain during 2011. On the Comex division of the New York Mercantile Exchange, Gold had traded as high as $1,602 an ounce early in the trading session.
U.S. Navy warships will remain in the Persian Gulf, shrugging off a warning from Iran, per a statement from Pentagon spokesman George Little who said the vessels are there in accordance with international law. A top Iranian general warned the United States against returning one of its aircraft carriers to the Persian Gulf. The warning comes roughly a week after the carrier U.S.S. John C. Stennis sailed from the Persian Gulf through the Strait of Hormuz. The U.S.S. John C. Stennis made its voyage after Iran threatened to disrupt oil shipping through the strait in protest to moves by the U.S. along with its allies to impose economic sanctions on Iran for its controversial nuclear-development program. International law calls for the Strait of Hormuz to be open to all traffic, as it is located between Iran and Oman and is one of the world's busiest oil-shipping routes.
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