Stocks Mixed To Start The Month, But Economic Optimism Is Strong  Image: Bigstock Stocks closed mixed yesterday with the Dow up a bit, the S&P and Nasdaq both down a bit, while the small-cap Russell 2000 was up more than 1%. After they all opened up strongly, they went their different ways shortly thereafter. But they all still remain within striking distance of their all-time highs. News that another ransomware attack, this time on one of the country's largest meat producers, has caused concern. No word yet on if the attack could cause a supply shortage. But it's an uncomfortable reminder that many businesses are vulnerable to online criminals. In other news, there is growing concern over labor shortages. There are various reasons at play for different states. But it's interesting to note that for several states facing this dilemma, it ranks as the chief concern, even topping COVID worries. The administration is set to continue negotiations on their infrastructure package. And we'll also start hearing more about their proposed $6 trillion budget. In the meantime, the economy continues to impress. And with forecasts for full-year GDP to come in at the fastest pace in 37 years, it's easy to see why. Underscoring this optimism was yesterday's PMI Manufacturing report which came in at 62.1 vs. last month's 60.5 and views for 61.5. The ISM Manufacturing Index also came in better than expected at 61.2 vs. last month's 60.7 and estimates for 60.9. Construction Spending rose 0.2% m/m, which was under the consensus for 0.6%. But for context, last month's 0.2% gain was revised up to 1.0%. And on a y/y basis, it's up 9.8%, which is a marked increase over last month's snapshot of 5.9%. As the great reopening continues, we're about to see unprecedented pent-up economic demand meet an unprecedented amount of stimulus money. That is a recipe for a soaring economy. And that bodes well for a soaring stock market. So make sure you're taking full advantage of it. See you tomorrow,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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