In The News:
Good News with a Dose of Oops…
On Monday, the ISM (Institute of Supply Management) released its monthly PMI (Purchasing Managers Index) showing American factories gained momentum throughout the second quarter of the year despite an uneven global recovery. Manufacturing activity accelerated for the fourth consecutive month in May with the manufacturing sector index rising from 54.9 in April to 55.4 in May. A reading above 50 indicates expansion, while a reading below 50 represents contraction in the economy.
The “oops” moments came twice on Monday as the ISM grappled with a software-programming error. This error caused the group to initially release an index of 53.2, a number well below economist expectations, signaling a slowdown however, after two attempts the group seem to get it right. The initial report moved markets lower in the early session of the trading day. After the release of a corrected report, the markets moved again, this time higher.
It’s All About The Software, Baby…
Apple (APPL), at its annual developer’s conference, did little to quell the clamor for new gadgets forgoing new hardware and focusing instead on under-the-hood main software updates. Apple’s big announcements on Monday were a new way for apps to talk to each other, called Yosemite and plans to make the iPhone a hub for home and fitness apps. The moves reflect Apple’s ongoing effort to woo both developers of apps and customers as competition from Google (GOOGL) intensifies. Apple shareholders didn’t seem to be too impressed with the new additions as the stock lost ground closing at $628.65.
Monday Pilgrim’s Pride Corp. raised its offer for Hillshire Brands Co. by more than $1 billion escalating the battle for the maker of Jimmy Dean sausages and Sara Lee cheesecakes. The new offer values the Chicago-based meats and Desserts Company at $55 a share or more than $6.7 billion. The new offer trumps last Thursday’s $50-a-share offer from Tyson Foods Inc. Tyson and Pilgrim’s Pride , two of the world’s biggest meat processors, are pursuing Hillshire in an effort to capture the company’s widely known brands, such as Ball Park hot dogs and Hillshire’s namesake lunch meat.
In The Markets:
Asian stocks closed mixed on Tuesday after China’s PMI came in slightly lower than its preliminary reading but higher than April’s final figure.
European markets moved mostly higher Monday after softer-than-expected euro-zone manufacturing data add to expectations the European Central Bank will announce easing measures at its meeting on Thursday.
U.S stock markets started the week off higher with the S&P and Dow Jones hitting record highs again. Stocks started out the day lower after the ISM reported erroneous data twice however, once the real data was released markets rallied. DJIA: +26.46 16743.63 NASDAQ: -5.42 4237.20 S&P: +1.40 1924.97
In Dinner or Drink:
1 oz. Smirnoff® vodka Fluffed Marshmallow Flavored
.5 oz. Smirnoff® vodka Green Apple Flavored
cranberry juice Splash
1 bitters dash
Mix ingredients in a cocktail shaker and serve in a shot glass. Garnish with apple slices.
Word Of The Day:
Purchasing Managers Index (aka PMI):
An economic indicator of a country’s manufacturing private sector health from one month to the next. The index compiled by the Institute of Supply Management is based on five major indicators:
1. New Orders
2. Inventory Levels
4. Supplier Delivers
5. Employment Environment
A reading of 50 represents expansion in the manufacturing sector, compared to the previous month. A reading under 50 represents a contraction, while a reading at 50 indicates no change.