US Manufacturers’ Economic Optimism Hit Historic High
US manufacturers’ economic optimism hit historic high at 94.6 percent in Q4 of 2017, the highest rate ever recorded in the survey’s 20 year history, according to The National Association of Manufacturers (NAM) report.
US Drill Rigs Running Rose Last Week
The number of drill rigs running in the US rose by two last week, led by Texas (up by 5). Meanwhile, Canadian drilling fell by three rigs compared to the previous week. US last week 931, last year 624. Canada last week 219, last year 230. AMM
Good Demand and Tight Supply for US Ferrous Scrap
The environment of good demand and tight supply for US ferrous scrap continues as Midwestern steel mills wasted no time locking up their December raw material needs. AMM
Third Short Term Interest Rate Hike This Year
The Federal Reserve raised short term interest rates by 1/4 of a point, its third hike this year and remained on track to chart a similar course next year. The federal funds rate will rise to 1.5% from 1.25%. WSJ
US Cutting Tool Consumption Up 8%
The stars continue to align with consumer confidence at an all time high. Aerospace and automotive industries continue to stay strong along with the rest of the economy, which bodes well for the cutting tool industry.”
Empire State Manufacturing Survey Reports Continued Business Activity Growth in December
The Federal Reserve Bank of New York released its Empire State Manufacturing Survey and reports business activity continued to grow in December, according to firms responding to the survey. General business condition level remained about the same while the new orders index and shipments index both showed sustained strong gains.
Job openings fell back in October but are still up 7.3percent on the year. Wells Fargo
Small Business Optimism Jumped 3.7 Points in November
Small business optimism jumped 3.7 points in November with 8 of 10 components posting increases. The gain brought Small Business Optimism to its highest level in 34 years. Wells Fargo
The Producer Price Index (PPI) for Final Demand Rose in November
The Producer Price Index (PPI) for final demand rose in November as energy prices moved up again. The PPI points to inflation picking up. Wells Fargo
Weakening in Mexican Industrial Production in October
Strong improvement by mining output was not enough to prevent further weakening in Mexican industrial production in October. Manufacturing weakened for a second month. Wells Fargo
Failed Attack Injured Terrorist
An explosion Monday in Manhattan disrupted thousands of commuters. The suspect, a Bangladeshi man, was wearing a pipe bomb fortunately injured only himself and is in custody. WSJ
This creep has been here as a result of “chain immigration” and his attack was ISIS inspired. This crap is out of hand. Extreme vetting really is in order.
Tax Bill Reconciliation
The House and Senate Republicans have reached an agreement on the final version of a tax bill, clearing the way for completion of a legislative priority before Christmas.
The agreement would set the top marginal rate at 37%, down from today’s 39.6%. The corporate rate would be 21% and would take effect in 2018. Full details will be released later this week and votes are set for next week. WSJ
I would prefer the 15% corporate rate Trump wanted along with lower rates for individuals but the game of politics must be played.
Have a great weekend, God Bless America
Happy Hanukkah friends
Enjoy the Christmas season
After 3 glorious weeks in Cabo San Lucas I will be back at my desk on Monday, fully recharged and ready to roll.