Dow Jones clear another major hurdle at 16500 and close at 16533 on good PMI and ISM data. The market tone is very bullish and many traders, investors are getting into the market.
The ISM data were within the range of expectations, car sales were pretty good, so it is not surprising to see markets go higher. But there is another factor -- we are in the earnings sweet spot right now, and as companies start reporting in the next couple of weeks, they will start beating lowered expectations,” said John Canally, economist and investment strategist at LPL Financial.
U.S. manufacturing companies expanded in March at a slightly faster pace compared to the prior month, a survey of executives found. The Institute for Supply Management manufacturing index edged up to 53.7%, slightly below the consensus forecasts. Any number over 50% means more companies are seeing an expansion of business instead of a contraction.
Separately, the final Markit PMI for the U.S. in March was unchanged at 55.5, down from 57.1 in February. Any reading over 50 in the purchasing managers index indicates growth.