Back in September in a screencast we noted the signs that the US manufacturing economy was showing, despite expectations, signs of continued growth.  Not only has the economy steadied but it seems to have accelerated, especially in the manufacturing sector.  Other indicators that show strength include:  tax receipts, rail loadings and temporary employment.  The effects of the economy can also be seen in the results from earnings season where companies showed above expectations results on both the top and bottom lines.  While skeptics of the equity market rally can point to weak spots, saying that the economy is in the tank is not one of them.  In today’s screencast we note how economic strength has helped gird the current rally.

Items mentioned in the above screencast:

On the strength in the US manufacturing economy.  (Economist’s View)

Tax withholding receipts continue to show growth.  (Big Picture)

Rail and temp staff indicators still point up.  (ValuePlays)

The ISM services survey shows an acceleration.  (ValuePlays)

The economy continues to surprise on the upside.  (Money Game)

S&P 500 sales are finally outperforming expectations.  (Bloomberg)

What sectors are beating earnings estimates this season.  (Bespoke)

Daily chart of the SPDR S&P 50o ETF (SPY).  (Finviz)