Small business optimism rebounds in July - Wells Fargo

"Small Business Optimism jumped 1.6 points in July to 105.2, its largest month-to-month gain since the election results, despite continued lack of action on tax and regulatory reform," Wells Fargo Research Team said on Tuesday.

Key quotes:

"Seven of the 10 optimism indicators improved in the month of July, with the biggest increases in firms reporting job openings and expectations of higher sales."

"The percentage of firms with plans to hire reached 19 percent last month, which is the highest level since December 1999. This is consistent with the optimistic outlook for improved sales and economic conditions."

"Small businesses continue to report taxes as the largest problem facing their firm. However, increased economic activity in the second quarter seems to have outweighed the inability in Washington to pass any tax reform."

"The proportion of firms with few or no qualified job applicants rose 6 points to 52, an all-time high. This indicates the labor market continues to tighten as workers are harder to come by."