Tuesday, November 3, 2009

Quick Notes for the Day - November 3

Factory Orders Rise - The Commerce Department estimated that orders for manufactured goods increased a seasonally adjusted 0.9% in September on gains in machinery, autos, defense goods and chemicals. Factory orders have risen in five of the past six months, but are down 13.9% in the first nine months of 2009 compared with the same period a year ago. Orders for durable goods increased an upwardly revised 1.4% in September versus the 1% gain estimated last week. Orders and shipments for nondurable goods increased 0.6%. Inventories fell 1%, the 13th consecutive decline.

UK PMI Rises - The CIPS/Markit manufacturing purchasing managers index (PMI) rose to 53.7 from a revised reading of 49.9 in September. A figure of more than 50 means a majority of managers saw a rise in activity, while a figure of less than 50 signals a decline.

October ISM Jumps to 55.7% - The Institute for Supply Management (ISM) reported Monday that the ISM index jumped to 55.7% in October from 52.6% in September. Readings above 50 indicate expansion. Below the headline, the key employment index improved to 53.1 in October from 46.2 in the prior month.

Pending Home Sales Rise 6.1% in September - The National Association of Realtors reported Monday that the index that tracks pending sales of existing homes rose a seasonally adjusted 6.1% in September for its eighth consecutive monthly increase. Pending sales are up 19.8% compared with September 2008. Buyers were rushing to beat the expiration of an $8,000 federal tax credit for first-time buyers, according to Lawrence Yun, chief economist for the real estate lobbying and advocacy group. Sales activity typically drops in the fall. On a non-seasonally adjusted basis pending sales fell 7.8% in September.

Berkshire Hathaway to Buy Burlington Northern - "Warren Buffett's Berkshire Hathaway Inc will pay $26 billion to buy out railroad Burlington Northern Santa Fe Corp in what the billionaire investor called a bet on the U.S. economy. The deal, Buffett's biggest-ever acquisition, is priced at a premium of 31.5 percent over BNSF's closing stock price on Monday and values the railroad at $34 billion."

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