Philly Fed Has Positive Reading

The Philadelphia Fed Index rose to 8.7 for the month of October, the first positive reading since July. As you can see in this chart the readings have bounced around in recent months, with very low readings the two months prior.

The Philly Fed Index has a high market impact, with a 78% positive correlation with the national ISM index (which monitors employment, production, orders and delivers by manufacturing firms). A positive Philly Fed Index, and a corresponding positive ISM reading generally favor stocks, which can move money out of bonds and affect home loan rates.

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