STOCK MARKET OUTLOOK: DOW, S&P 500, NASDAQ PEEL BACK ON DISAPPOINTING ISM MANUFACTURING PMI REPORT
- Dow Jones, S&P 500, Nasdaq leap larger on the opening bell on Wall Road
- Shares give again early positive aspects following lukewarm ISM manufacturing PMI information
- The Dow Jones might preserve altitude if FOMC taper hawks are saved at bay
Shares gapped larger to kick off the primary day of buying and selling in June. The Dow Jones popped 0.8% on the New York opening bell, main each the S&P 500 and Nasdaq. Major stock indices are beginning to peel again and shut their gaps to the upside, nonetheless, as buyers digest the newest spherical of ISM manufacturing PMI information simply launched. The ISM PMI report was considerably disappointing when diving into the small print.
DJIA – DOW JONES PRICE CHART: 15-MINUTE TIME FRAME (25 MAY TO 01 JUNE 2021)
Headline manufacturing PMI crossed the wires at 61.2, which topped the market forecast of 61.0 and was larger than the prior studying of 60.7. The employment subcomponent was fairly weak at 50.9, nonetheless. That compares to the consensus forecast of 54.6 and prior studying of 55.1. This might probably tee up a tender NFP report scheduled for launch this Friday, 04 June at 12:30 GMT. The costs paid part of the manufacturing PMI report stays one other level of concern for buyers.
Although the costs paid part declined barely from 89.6 in April to 88.80 in Might, inflationary pressures throughout the manufacturing sector proceed to persist and will complicate the transitory inflation narrative being spun by the Federal Reserve. Nonetheless, the month-over-month decline is probably going a welcomed improvement. This, mixed with lack of robust enchancment in employment, might arguably hold FOMC taper hawks at bay. In flip, shares have potential to remain broadly afloat.
The Dow Jones may look to defend final week’s excessive close to the 34,600-price stage as prior resistance-turned-support. Though, if danger developments deteriorate, maybe corresponding with a notable spike larger in Treasury yields and the S&P 500-derived VIX Index, buyers might steer the Dow Jones decrease to check its 20-day easy shifting common.
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