ISM Index Falls to Two-Year Low

The stock market is up a bit as I write this. Growth stocks are leading value but not by much. The only group that’s an outlier is energy, with many energy stocks down over 2.5%.

Since today is the first day of the month, this is when the ISM Manufacturing Index is released. For June, the ISM fell to 52.8. That’s the lowest reading in two years. However, any number above 50 means that the factory sector of the economy is expanding. This morning’s report was a little better than expectations of 52.0.

July turned out to be the best month for the S&P 500 since 2020. For the month, the index gained 9.1%. On Friday, the S&P 500 closed 12.6% above its closing low from June 16. This makes it the largest rally in this bear market. The previous record holder was an 11.05% gain from March 8 to March 29. The S&P 500 still needs to gain another 16% to make a new high.

On our Buy List, AFLAC (AFL) is due to report after today’s close. Wall Street expects earnings of $1.28 per share. The duck stock hasn’t missed earnings in more than five years.

You’ll have to forgive me for the unpardonable sin of not mentioning Hershey’s (HSY) dividend increase from last Thursday. This is especially bad on my part because I told you it was coming soon. The quarterly dividend was increased by 15% to $1.036 per share. This makes the annual rate $4.142. This is the company’s 13th consecutive annual dividend increase.

Two of our Buy List stocks came together today as Silgan Holdings (SLGN) started trading on the NYSE. The exchange is owned by Intercontinental Exchange (ICE). Nearly 300 companies have switched their listings to the NYSE since 2000.

Posted by on August 1st, 2022 at 11:07 am


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