Ahead of today’s opening bell, stock futures were suggesting a positive start for the major indexes. Markets in Asia were mostly higher in overnight trading, led by a 2% jump in Japan’s Nikkei Index. Meanwhile, the European indexes were largely in the plus column.
We have a full slate of economic reports out this week. This morning, the Institute for Supply Management (ISM) was due to release its Purchasing Managers Index (PMI) for the non-manufacturing (service) sector for December. Wall Street was calling for a small uptick to 53.2, versus the 52.1 registered in November. If the numbers are close to the mark, it would be the fifth-straight month of expansion. (Figures above 50 denote growth, while those below 50 indicate contraction.) Also today, the Bureau of Labor Statistics was scheduled to release its Job Openings and Labor Turnover Survey (JOLTS) for November. Analysts were expecting an increase to 7.770 million, compared to 7.744 million the month before.
Tomorrow brings ADP’s private payroll report for December, with expectations pointing to an increase of 131,000 positions, down from the 146,000 added in November. Additionally, the Department of Labor will release its latest figures for initial unemployment claims, where the consensus is looking for a dip to 210,000, versus 211,000 the week before. Also due out will be the minutes from the last Federal Open Market Committee (FOMC) meeting, from which traders will try to get a clearer reading on the central bank’s next move on the interest-rate front.
Last, but far from least, will be Friday’s Nonfarm Payrolls report from the Bureau of Labor Statistics. Forecasts are pointing to an increase of 154,000 positions in December, down from the 227,000 added in November. Additionally, the unemployment rate is expected to remain flat, at 4.2%, while the increase in average hourly earnings holds steady at 4.0%.
Note: The New York Stock Exchange will be closed on Thursday to honor the late former President Jimmy Carter.
Summing up Monday’s moves for the major stock indexes, the Dow Jones Industrials lost 25 points, or 0.1%, the S&P 500 gained 32 points (0.6%), and the NASDAQ advanced 243 points (1.2%). –Mario Ferro
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.
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