Market comments for Aug. 31st. (Update)

I'll let the numbers say it all this morning on the release of PMI and comments from Forex. Here's the data:

Chicago PMI comes in at 56.7 Weaker than expectations
Written August 31, 2010 at 9:45 AM EST by Greg Michalowski

Chicago PMI 56.7
Business barometer 56.7 vs 62.3
Prices paid 57.2 vs 58.1 last month
Production 57.6 vs 65.0 last month
New orders 55.0 vs 64.6 last month
Order backlogs 56.2 vs 57.6 last month
Inventories 46.5 vs 50.8 last month
Employment 55.5 vs 56.6 last month
Supplier deliveries 61.2 vs 59.4 last month

So all the numbers are weaker than expected. What's amazing still is that the market rallied on the data as it was down about 44 on the Dow before the release of the numbers and after they are now in positive territory. I don't expect this to last and do expect a deterioration in markets. Much will hinge on the Consumer Confidence number which will also be worse than expected in my view. Come back shortly and see it as an Update.

UPDATE: 7"00am PST

Consumer Confidence up to 53.5 from an expected drop. It was expected to come in at 49.5 and in the prior period it came in at 50.4, so this is better than expected. It is amazing how they are spinning this on CNBC as a big positive.