Puerto Rico defaults. Manufacturing picks up. Construction spending drops. Robo-car’s first fatality. Airbag recall, seriously. Road tripping on the Interstate Highway System; thanks Ike. Financial Review by Sinclair Noe for 07-01-2016 DOW + 19 = 17,949 SPX + 4 = 2102 NAS + 19 = 4862 10 Y – .03 = 1.46% OIL + .88 = 49.21 GOLD + 19.60 = 1342.30 SILV + .98 = 19.78   Puerto Rico defaulted Friday on debt that is supposed to be guaranteed by the Puerto Rican constitution. In other words, Puerto Rico was supposed to pay creditors who hold general obligation bonds before paying anyone else, even police. But Governor Alejandro García Padilla said: No. He argued that paying teachers, emergency personnel and other critical needs must come first. Puerto Rico did not make the $800 million payment to its bondholders due on July 1. Puerto Rico’s government says it is in a “dire” financial position with only about $350 million in cash on hand right now.   Puerto Rico’s default marks the first time that a state or U.S. territory has failed to pay general obligation bonds since the Great Depression. The default was expected, and thus isn’t causing much havoc in the wider bond market. The island is over $70 billion in debt. Congress passed a bill this week preventing lawsuits on the default and imposing strict financial oversight.   A default would force the three major insurers backing Puerto Rico’s debt to pay out as much as hundreds of millions of ...