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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (17275)	12/1/2004 11:02:29 AM
From: mishedlo	Respond to of 116555

U.S. Nov. ISM manufacturing 57.8% vs. 56.8% in Oct. Wednesday, December 1, 2004 3:20:41 PM afxpress.com WASHINGTON (AFX) -- Activity in the U.S. manufacturing sector accelerated in November, the Institute for Supply Management said Wednesday. The ISM index rose to 57.8 percent from 56.8 percent in October. Economists were expected the closely watched index to remain steady at 56.8 percent. Readings over 50 percent indicate growth in the sector. The new orders index rose to 61.5 percent from 58.3 percent

To: Knighty Tin who wrote (17275)	12/1/2004 11:03:06 AM
From: mishedlo	Respond to of 116555

U.S. construction outlays flat in October - Wednesday, December 1, 2004 3:30:24 PM afxpress.com WASHINGTON (AFX) -- U.S. construction outlays were unchanged in October, as increased spending on highways was offset by a second straight monthly decline in homebuilding, the Commerce Department estimated Wednesday Economists had been looking for seasonally adjusted construction outlays to rise about 0.8 percent in October, according to a survey conducted by CBS MarketWatch. Outlays in September were revised slightly higher, to a 0.1 percent gain from no change previously. After providing a lift to economic activity over the past four years, construction has had fairly a benign impact for the past few months Construction outlays are up 7.1 percent in the past 12 months, but this pace has slowed to just 1.7 percent for the most recent six-month period. In the third quarter, investments in homes and business structures contributed just 0.1 percentage point to the 3.9 percent increase in the nation's gross domestic product Private-sector outlays fell 0.3 percent in October to $773.4 billion on an annualized basis, after slipping 0.1 percent in September. Private residential construction spending sank 0.3 percent to $549.4 billion for the second month in a row. U.S. residential spending is up 10.9 percent in the past 12 months, according to the Commerce Department's data Private nonresidential construction spending fell 0.4 percent to $224 billion in October, marking the largest decline since January Spending on private commercial space dropped 1.6 percent. Spending on offices, health-care and religious buildings also declined, while the biggest October gains came in communication and transportation Public-sector construction outlays rose 1.2 percent to $236 billion, with state and local spending climbing 1.5 percent to $218.4 billion. Outlays for highways and streets rose 6.4 percent to $66.7 billion, accounting for most of the gains. Spending on power rose 5.8 percent, while health-care construction spending increased 5.6 percent In Wednesday's other economic reports, the Commerce Department said the nation's consumer spending increased 0.7 percent in October, with personal incomes rising 0.6 percent. Separately, the Institute for Supply Management's November manufacturing index rose to 57.8 percent from 56.8 percent in October.

To: Knighty Tin who wrote (17275)	12/1/2004 11:06:34 AM
From: mishedlo	Read Replies (2) \| Respond to of 116555

From today's Rude Awakening. The total sum that Microsoft will dispense to shareholders is $32 billion. But Liquidity Trim Tabs estimates that only $22 billion to $25 billion of this special dividend will find its way back into the equity market. "Institutions, which own 54% of Microsoft shares, are likely to reinvest over 90% of their $17 billion distribution," Trim Tabs calculates, "which means institutions will reinvest about $16 billion in equities. Assuming that two-thirds of the individual holdings of Microsoft are held in taxable accounts, a 15% tax rate on the $10 billion received by taxpaying individuals reduces the $15 billion received by individuals to $13.5 billion. At least half and perhaps as much as two-thirds of this $13.5 billion, or $6.7 billion to $9.0 billion, is likely to be reinvested in equities, since individuals have turned bullish recently. "The Microsoft special dividend will hit investors' accounts on December 2," Trim Tabs continues, "but some institutional investors could begin to spend the money a few days earlier using existing cash or debt. Our best guess is that between 25% and 33% of the reinvested $22 billion to $25 billion - between $5 billion and $8 billion - will be reinvested during the first week of December. The rest will probably flow into equities during the rest of December."