The most recent ISM manufacturing report has left much to be pessimistic about, not that the markets or the media seemed to notice.
First, the headline PMI dropped below 50 (marginally to 49.7) with a drop of 3.8, indicating contraction in the manufacturing sector for the first time since July 2009. It also missed the consensus by 2.3 and was outside the consensus range from Econoday.
It was yet another week of hanging around the1100 mark with the S&P500. It's not that there weren't important developments during the week. The trade deficit narrowed much more than expected, and retail sales got a substantial boost in November. Retailers alone sold $314.1 billion of goods, 1.4% more than in October and 2.2% more than a year earlier.