Recapping the day's news and newsmakers through the lens of CNBC.
Market watchers are keeping a close eye on a slew of data this week, hoping for "Goldilocks numbers"—meaning not too good to up anxiety about the Fed rolling back its stimulus earlier than expected, but not too bad to suggest that the U.S. economic recovery has faltered.
The first numbers were just right—U.S. manufacturing activity was up in June, bolstered by new orders and higher production, but not up too much to cause discomfort. The Institute for Supply Management said its index of factory activity increased to 50.9 in June. That's up from 49 in May, which was the lowest reading in four years. Any number over 50 suggests growth.
Spending on residential homes was up by 0.5 percent in May compared with April, according to the Commerce Department. But spending on nonresidential projects (offices and shopping malls) fell by 1.4 percent. Again, tempered good news.
All along, the Fed has said that tapering would be tied to employment—that number comes out Friday. If you're in the game of speculating, though, one of the ISM data points showed that factories cut jobs in June.
"It is all about jobs. In general, most analysts and economists definitely tried to spin weak into strong. There is no doubt about it. The cost-benefit analysis concept seems to get lost. When you check out the Fed, and you check it out versus inputs and output, what tends to happen is we have all of these programs and we see what the data is, and it is no surprise, I think, that we try to spin these mediocre, middling Goldilocks numbers to keep the Fed in the game and it really isn't about inputs and outputs."—CNBC's Rick Santelli
Bulls on Parade?
Not long after the market panicked over the Fed signaling a time frame for tapering its bond-buying program, market watchers have begun speculating about the early stage of a secular bull market. Sure, volatility will stay with us for a while longer, but every dip should be treated as a buying opportunity, especially since there's so much cash on the sidelines. A Piper Jaffray strategist is among the more bullish, boasting a S&P 500 target of 1,700 this year and 2,000 next year.
"People are still hung up on the data point du jour. They're so desperately seeking a trend of some sort, be it good or bad, that every single data point that comes out they latch onto and if it is good, they run the market and if it is bad, they sell it. I don't see that changing any time over the rest of the year."— U.S. Trust President Keith Banks
"We think the stock market is ready to make new highs once again. We continue to see money flow coming out of fixed income and coming back into equity funds, and with our charts we continue to see the economic sensitive sectors of the market such as consumer cyclical, industrials and financials continuing to show many constructive, longer-term charts."—Craig Johnson, Piper Jaffray senior technical strategist