A brand-new month is off to a solid start: exchange traded funds (ETFs) across all asset classes are moving higher and the Dow Jones Industrial Average is up nearly 200 points.
Last month, the manufacturing sector grew for the 12th consecutive month, although that growth was a notch slower. Though the index dropped for the third month in a row, it still is above 50, which means it’s still in expansion mode. Construction spending also rose in June, by 0.1%. Don’t look to the private sector or housing – they didn’t contribute. It was all government building driving the numbers, as well as the PowerShares Dynamic Building & Construction (NYSEArca: PKB), which rose 7.5% in July. [5 ETFs to Play the Recovery.]
With brighter economic sentiment tends to come higher oil and commodity prices, and this morning is no exception. Oil is past $81 a barrel, while copper prices are up 2% on the news that manufacturing activity continues to expand. United States Oil (NYSEArca: USO) is up more than 3% early today. First Trust ISE Global Copper (NASDAQ: CU) is up 2.6%. [How Not to Get Burned by Commodity ETFs.]
Federal Reserve Chairman Ben Bernanke commented on the U.S. economy this morning, saying that while it continues to grow, there are significant hurdles to surmount. Namely, unemployment, foreclosure and damage to Americans’ savings. [Homebuilder ETFs: Behind the Numbers.]
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.