Grupp: Huvudforum
Chart of the day
One positive for the stock market has been a very positive earnings environment. Today?s chart illustrates an adjusted Institute for Supply Management (ISM) Purchasing Managers Index (PMI) or Chart of the Day (COTD) PMI. The purpose for adjusting the inputs of the PMI is to better emphasize those components that correlate with the financial markets. Today's chart illustrates how the COTD PMI has tended to peak 12 months before S&P 500 earnings. The supporting logic for this phenomenon is that a surging economy puts upward pressure on inflation and interest rates, which can then negatively impact corporate earnings. Today's chart illustrates that the COTD PMI peaked 12 months ago.