Financial markets rallied across the board today despite weak non-manufacturing data in hopes of further short-term interest rate cuts from the U.S. Federal Reserve.
Factory orders MoM for August were down 0.1% vs -0.2% consensus estimate.
ISM Non-manufacturing PMI for Sept came in at 52.6 vs consensus estimate of 55.0.
“We are concerned that the manufacturing slowdown is bleeding into services, but while the number was weak this morning, it was still in positive territory,” said Janet Johnston, portfolio manager at TrimTabs Asset Management. “In this environment where one day you have good data and the other you have weak data, we think the best way to play it is with high-quality companies with free cash flow growth, strong balance sheets and other moats,” reported CNBC.
As for the timing, it’s just a question of “the number”… That is, how far does the S&P 500 have to fall before the stampede begins… reported Zero Hedge.
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