The outlooks of purchasing managers (and the manufacturing sectors they represent) generally are improving in recent months, benefitting from the positive news of COVID-19 vaccine development, approval, and distribution. The UK is leading the recovery, as its PMI has risen to 64.2 from sub-50 last quarter. (Note: any survey reading above 50 indicates economic expansion.) The Eurozone is also surging. The non-German economies in Europe recorded a 63.1 PMI in May -- a sharp gain from 48.1 in the prior quarter. Nations that are less reliant on consumer services and have heavier exposure to industrial activity, such as Germany and the U.S., have reported more consistent (and solid) PMI readings. China has pulled back a bit, due to a slowing in exports as the dollar has declined. Still, manufacturing trends in China remain positive. Japan has finally moved into expansion phase, with a reading of 53.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

As we do each week, we'll offer an update on the ongoing trends in insider-sentiment data from Vickers Stock Research, while also pulling out new insights gleaned from the weekly data.

This pick list highlights constituents of the Morningstar US Large Cap Index that we believe offer investors the best risk-adjusted return prospects. Stocks of large-cap companies where neither growth nor value characteristics predominate. Stocks in the top 70% of the capitalization of the U.S. equity market are defined as large cap.

Continuing the Process: Our Monthly Survey of the Economy, Interest Rates, and Markets

This edition features where to look for infrastructure opportunities; the upcoming Berkshire meeting; an earnings roundup; and notes from Sage Group, Caterpillar, and General Dynamics.