ISM Out In 30 Minutes, Ways To Play It

The ISM is out in just under half an hour, and expectations are for a reading of 54.0, which would indicate expansion. This would be down from the 54.4 reading for September, but any number above 50.0 indicated expansion. If the number comes in better than expected, manufacturing companies should see a tick up, and here are a few manufacturing companies for traders to think about. Eaton Corporation ETN provides electrical components and systems for power quality, distribution, and control. It has a strong dividend yield, around 2.6%, and trades at a reasonable price to earnings ratio, under 13. Illinois Tool Works Inc. ITW manufactures a range of industrial products and equipment worldwide. It offers metal and plastic components, fasteners, and assemblies as just a portion of the variety of products it offers. Illinois Tool Works also has a strong dividend yield, at 3%, and trades at 12.6 times 2011 earnings. Cooper Industries plc CBE engages in the manufacture and sale of electrical products and tools in the United States and internationally. It has a smaller dividend yield than the other two companies mentioned, at just 2.1%, and trades at 14.2 times 2011 earnings.