Empire State Manufacturing Stronger Than Forecast (FCX, AA)
February 16, 2010 10:20 AM
The Empire State Manufacturing Survey came in with a better-than-expected reading for February, helped by a jump in inventories.
The General Business Conditions Index rose to 24.91 in February from 15.92 in January. Analysts were looking for a reading of 18.0 on the index.
Inventories came in at zero to indicate no change from January, ending a long deep run of negative readings. Restocking of inventories has yet to begin, but the reading indicates that destocking has come to an end.
New orders, at 8.78, and shipments, at 15.14, are both well above the break-even level to indicate month-to-month expansion. Employment posted a solid reading at 5.56 to indicate a month-to-month expansion in the region's factory payrolls.
The report helped push-up materials stocks such as Freeport McMoRan (NYSE: FCX) and Alcoa Inc. (NYSE: AA) in pre-market activity.
