The major stock indexes started the week mostly higher. However, ahead of the opening bell, the futures were suggesting that the markets may give up some ground at the beginning of today’s session. In overnight trading, markets in Asia were largely in the green. Meanwhile, the European markets were also in positive territory.
Investors across the globe are anxiously awaiting further details on tariffs that President Donald Trump planned to implement beginning on April 2nd. Indeed, rather than targeting only the United States’ top trading partners, President Trump has indicated that his reciprocal tariffs will impact all other countries. So far, President Trump reportedly plans to announce 25% levies on imports from countries purchasing oil from Venezuela, and to reinstate 25% tariffs on autos imported from Canada and Mexico. These will be followed by a 25% duty on auto parts beginning May 2nd. Until the dust settles, and the potential economic impact of these and other moves becomes clearer, investors should expect market volatility to remain elevated.
In the meantime, we have a full slate of economic reports due out this week. This morning, we’ll hear from the Institute for Supply Management (ISM) when it releases its Purchasing Managers Index (PMI) for March. Wall Street is looking for manufacturing activity to show a modest dip, with the index coming in around 49.6, down from February’s reading of 50.3. (Readings above 50 indicate expansion, while those below 50 denote contraction.) If close to the mark, it would be the 11th month of decline out of the last 12. The Bureau of Labor Statistics is also scheduled to publish its Job Openings and Labor Turnover Survey (JOLTs) for February. The consensus is looking for a decline to 7.73 million, versus the 7.74 million logged in January.
Tomorrow brings ADP’s Nonfarm Employment Report, which is expected to show an increase of 118,000 for March, up from 77,000 the month before. Then, on Thursday, we’ll get the Department of Labor’s release on initial jobless claims. Analyst estimates are calling for a total of around 227,000, versus 224,000 the week before. We’ll also get ISM’s March PMI for the non-manufacturing (services) sector. Projections suggest the reading will come in around 53, down slightly from the 53.5 recorded in February, marking a 9th-straight month of expansion.
The week wraps up with the Bureau of Labor Statistics’ nonfarm payrolls report, where analysts are looking for an increase of 139,000 positions in March, down from 151,000 the month before. Additionally, the unemployment rate is expected to hold steady at 4.1%.
Summing up Monday’s price moves for the major indexes, the Dow Jones Industrials advanced 417 points, or 1.0%, while the S&P 500 gained 30 points (0.6%). However, the tech-heavy NASDAQ went against the grain, shedding 23 points (0.1%). – 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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