K96.3 FM Kelowna's Classic Rock - Radio Rallies & Reversals

Well the big number the markets will be waiting on today is the ISM Manufacturing index south of the border, along with comments on all of its components. Anything over 50 means expansion and consensus is calling for +60.

According to Credit Suisse, GDP in the U. S. should regain its previous cyclical peak from 2008 by the summer of this year, at which point the economic recovery turns into an expansion. Corporate balance sheets are strong as a result of cost cutting after the credit crises. With lots of cash on hand, it's time to cash out. Credit Suisse expects the cash to be spent as follows: 1. share buybacks in industrials, materials, consumer, media & financials; 2. dividend increases in utilities, staples and financials; and finally cash will be spent on M&A in technology, healthcare and materials.

Anyway, global equities are up ytd led by small caps, and North American equity markets are in the green this morning. That's it for me this morning. We invite you to join us for Rallies & Reversals Morning Coffee this Friday. Call us for details.

GB