State of the Union

(1) The state of emerging economies is not so good, but the crisis may be abating. (2) The state of the US economy is quite good. (3) The US carries a lot of weight. (4) Employment indicators are upbeat. (5) Jobs more plentiful. (6) Regional and small business surveys show hiring and job openings. (7) Factset survey shows no increase in capital spending. (8) R&D and software may be reducing need to expand physical capacity. (9) Orders for both industrial and metalworking machinery at record highs. (10) Focus on overweight-rated S&P 500 IT sector.