The month of September, which has historically been a difficult one for those long equities, is holding true to form, at least for the first morning of the month. Indeed, the major U.S. equity indexes, taking their cue from sharp declines in Asia overnight and heavy selling on the Continent, are down significantly as trading reaches the midday hour on the East Coast.
Manufacturing activity slowed its rate of growth in August, according to the Institute for Supply Management, an Arizona-based trade group. On point, the group's survey on industrial activity came in with a score of 51.1 for last month. That was modestly above the dividing line of 50.0, which separates a growing manufacturing sector from one that is contracting.
As anxiety around the world about a slowing global economy rises, with worries about China’s decreasing rate of output at the heart of the concerns, investors received two encouraging reports about the health of the U.S. economy at 10:00 A.M. (EDT). It was a nice one-two combination, as the data highlighted strengthening consumer and housing sectors, which are big kingpins in the country’s economic output.