Bloomberg
The numbers: The Richmond Fed manufacturing index fell 1 point to a reading of 20 in July. That’s above economists’ forecasts of 19, according to Econoday. Any reading above zero indicates improving conditions.
What happened: The employment and shipment indexes fell in July but other components including new orders held steady. Firms were optimistic about future growth.
The big picture: The Richmond Fed index is of particular interest because it appears to be the most sensitive to U.S. trade policy, said Ian Shepherdson, chief economist at Pantheon. He noted the region covers ports of Baltimore, Norfolk and Charleston, which account for more container traffic than Los Angeles. The index has plunged in April when trade tensions first erupted but has since recovered.
Market reaction: Stocks opened higher on positive earnings reports and moved even higher after the data was released. The Dow Jones Industrial Average DJIA, +0.65% was up 133 points to 25,177.