ISM Exports and Stocks

"Looks like they're getting ready for some heavy duty action."
--Cowboy (Kelly's Heroes)

'New Export Orders' is one of the areas examined in the ISM's monthly survey of manufacturing purchasing managers. Given the trade war backdrop, it should be no surprise that exports (as well as imports) have been dropping.

However, the historical correlation of the export series with the SPX should give stock bulls cause for pause. ISM typically leads the SPX by a couple of months.

If past is indicative of future, then strap yourselves in and prepare for some heavy duty action.