SEPTEMBER QUARTER CONSTRUCTION STOCKS SURGE

摘要

The summer quarter was a strong one for the Construction Magazine Index, despite the efforts of Hurricanes Ka-trina and Rita to blow the index off course. A relief rally at the end of our session lifted stocks as Wall Street began to hope that losses from the storms may not be as severe as originally feared. Oil continued to sound a worrisome note, as its continued rise and pressures from the hurricanes on supply continued to dog the market. However, the Chicago purchasing managers' index jumped to 60.5 in September, after 49.2 registered in August, the lowest number since April 2003. Economists had expected the index to rise to 51.00. A figure above 50 on the index denotes expansion, not contraction. "If there's anything you can hang your hat on, its that with every passing day, some investors become convinced that there's not going to be any serious fallout or damage to the economy or earnings due to the hurricanes," said Hugh Johnson, chairman and chief investment officer of Johnson Illington Advisors.