The final Markit manufacturing PMI – Flash was 56.6 – Prior was 55.5 – Manufacturing 56.0 vs 55.8 flash – New orders 58.0 vs 58.1 flash A touch on the soft side but still very strong in the bigger picture.
Kudlow on CNBC – Trump knew the jobs data yesterday evening – Tweet wasn’t intended to signal a strong report – “I don’t think he gave anything away” What a joke. I’ll just leave this here.
Canada May manufacturing survey – Prior was 55.5 – New orders 57.6 vs 55.7 prior – Stockpiles 53.1 vs 51.3 That’s a seven-year high for the Canadian manufacturing PMI. The rise in stockpiles may have reflected purchases ahead of tariffs, or worries about tariffs and the availability of products so this number might not be…
Trump on NAFTA Here’s my belief. The details of NAFTA don’t matter. Canada has a trade deficit with the US or a very small surplus depending on the timeframe. Trade with the countries is balanced.
Auto sales numbers are trickling out – Fiat Chrysler +11.0% vs +7.4% estimate – For US light vehicles sales +0.5% vs -0.6% estimate Ford F-series truck sales were particularly strong, up 11.3% on prices $1400 higher.
GDP tracker rose this week The US Q2 GDP estimate from the New York Fed rose after this week’s data. “Positive surprises from personal consumption expenditures, wholesale inventories, and construction data accounted for the increase,” the report says.
Weekly oil and gas drilling data from Baker Hughes – Prior was 859 – Natural gas rigs 197 vs 198 prior – Total rigs 1060 vs 1059 The drilling continues.
Letter to be delivered today North Korean officials will hand-deliver a letter to the White House today that “expresses the North Korean leader’s interest in meeting without making any significant concessions or threats,” according to .
Stops hit in EUR/USD The euro ripped through stops below the 1.1650/40 in a quick move to a session low of 1.1617. The wobble came after Conte was sworn in as Prime Minister. That sent the MIB down about 1% in a quick move, even through it was entirely expected.
S&P 500 rebounds from tariff worries It’s a new month, so flows are always dominant but I’m shocked that the market is so sanguine about tariffs. The EU, Canada and Mexico have announced retaliation or the intention to retaliate. The US has promised to retaliate to the retaliation.