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Global Manufacturing Indexes Are Better Across the Board

Indices worldwide rallied off of better-than-expected economic data. Japanese large manufacturers recorded a reading of 4 on the June Tankan survey, as was expected. This reading is significantly better than the -8 recorded in March, and it's the first time a positive number was reported since September 2011. The Nikkei 225 (INDEXNIKKEI:NI225) climbed 1.28% on the day. Great Britain's manufacturing report topped estimates with a reading of 52.5. The FTSE 100 (INDEXFTSE:UKX) finished the day up 1.49%.

Markit's US PMI came in slightly worse than expected with a reading of 51.9 against the 52.3 expected. The ISM national manufacturing report topped estimates and last month's number, coming in at 50.9 versus the 50.5 expected. This was an increase from the prior month's contractionary reading of 49.5. Most of the report's subindexes showed stronger growth in production, new orders, and inventories, but a sharp decline in employment was the one sore spot. Construction spending grew less than expected in May with month-over-month gains of 0.5% vs the 0.6% estimate.

The S&P 500 (INDEXSP:.INX) finished the day up 0.55% to 1,615. ((((does this need to be updated?))))) The SPDR S&P 500 Homebuilders ETF (NYSEARCA:XHB) outperformed the market, finishing the day up 1%. Gold and copper rallied on the day, while silver lagged the other precious metals. Gold finished the day up more than 2%, copper climbed more than 3%, and silver finished slightly in the red. The 10-year yield finished the day down 1 basis point to 2.49%.

Shares of Onyx Pharmaceuticals, Inc. ( ONXX ) traded up 51% on the day after receiving a $120 tender offer from Amgen, Inc. ( AMGN ). The company declined the offer and is currently shopping for other potential suitors. Wall Street analysts from Deutsche Bank and Lazard viewed the fair value of Onyx at between $130 and $148 per share.

Best Buy Co., Inc. ( BBY ) shares rose 9% on the day after Credit Suisse Group AG ( CS ) reiterated its outperform rating.

Tomorrow's Financial Outlook

Great Britain's PMI report will be released at 4:30 a.m. EDT tomorrow. After seeing a reading of 50.8 last month, the consensus is 51.1.

May US factory orders will be released at 10:00 a.m. EDT. Orders are expected to have risen 2% month over month. June vehicle sales will be released at 5:00 p.m. EDT tomorrow afternoon. Analysts are expecting the month's sales to show tepid gains to a 12.05 million annual rate from an 11.95 million rate in May.

Acuity Brands, Inc. ( AYI ) will be releasing earnings before market open tomorrow. Analysts expect EPS of $0.88 and revenue of $518.76 million.

Twitter: @Minyanville

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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