Domestic stocks started the new quarter on a mixed note, and the futures are indicating the major indexes will likely see some backpedaling at the start of today’s session. In overnight trading, markets in Asia closed mostly in positive territory. Meanwhile, stocks in Europe are mixed. Elsewhere, oil prices have continued to move higher, with West Texas Intermediate up about 1.4%, to around $84.90 a barrel.
Yesterday’s news on the manufacturing sector was stronger than Wall Street was expecting. Specifically, the Institute for Supply Management’s Purchasing Managers Index (PMI) for March came in at 51.4%, versus 47.8% for February, and the analyst consensus of 49.8%. (Readings higher than 50% indicate expansion, while those below 50% denote contraction.) The latest figure was notable as it marked the first time the sector grew since September of 2022. This served to reinforce the probability that the Federal Reserve will not hurry with its plan to cut the overnight lending target rate, which currently stands at 5.25%-5.50%.
This morning, the Census Bureau is due to release factory orders for February, which are widely expected to show a month-to-month increase of around 1%, versus a decline of 3.6% registered in January. At the same time, the Bureau of Labor Statistics is scheduled to announce its Job Openings and Labor Turnover (JOLTs) report for February, where analysts are calling for a dip to around 8.79 million, compared to 8.863 million the month before, which would represent a bit of tightening in the labor market.
Tomorrow, the Institute for Supply Management will release its March PMI for the non-manufacturing (service) sector. Wall Street analysts are looking for the reading to come in slightly higher, at 52.7%, compared to 52.6% the month before. If the numbers come in close to that mark, it would be the 14th straight month of expansion.
On Thursday, the Department of Labor will announce initial jobless claims for last week, where the consensus is that the numbers will tick higher, to around 214,000, up from 210,000 the week before. The week wraps up with the March jobs report from the Bureau of Labor Statistics. Expectations are calling for nonfarm payrolls to show an increase of around 205,000 positions, down from the 275,000 added the month before. Meanwhile, the unemployment rate appears likely to remain unchanged, at 3.9%.
Summing up Monday’s moves for the major indexes, the Dow Jones Industrials fell 240 points, or 0.6%, the S&P 500 moved down 10 points (0.2%), and the tech-heavy NASDAQ went against the tide, rising 17 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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