Today’s upbeat market activity occurred on downbeat economic news (see below) – an indication that investors are hoping the data would compel the Federal Reserve to cut interest rates soon.

The Institute for Supply Management released data today showing a slower than expected expansion in the manufacturing sector for August as compared to July. Meanwhile, the Commerce Department reported falling construction activity for July (a decline of 0.4%).

Market observers who have studied historical trading patterns say that the market is now entering one of its more difficult phases. The Stock Traders Almanac names September as the worst month for the three major indexes. However, according to one commentator, tech stocks are among the cheapest they have been (on an earnings per share basis) in roughly a decade. This may have prompted Bear Stearns to make Yahoo a 'top pick', as well as speak favorably about Intel and Apple.

In an M&A deal announced today, wireless phone service provider MetroPCS Communications made an offer for Leap Wireless International for roughly $5.1 billion.

Key economic data for the week starting September 3, 2007. Numbers shown are consensus estimates (market anticipates this value) and prior value.

Wednesday:
	8:15 ADP Survey August: 80K / 48K 14:00 Beige Book

Thursday:
	8:30 Non-Farm Productivity second quarter: 2.3% / 1.8% 10:00 ISM Non-Manufacturing Index August: 54.5 / 55.8

Friday:
	8:30 Non-Farm Payrolls August: 108K / 92K Unemployment Rate: 4.6% / 4.6% Average Hourly Earnings: 0.3% / 0.3%

© HGH Associated Press

News Archive (from 7/1/2007 until 9/30/2007)