Markets Now: Dow Drops 39 Points as Data Suggests It Doesn’t Get Much Better Than This

Want to know why the Dow Jones Industrial Average is doing what it’s doing? Check back here for a semi-live look at the volatile markets from Barron’s reporters.

10:44 a.m. The U.S. economy is firing on all cylinders–and that’s enough to rally the market off its lows.

The Institute for Supply Management’s manufacturing index jumped 61.3 in August, its highest since to 2004. That’s up from 58.1 in July, and well above forecasts for 57.9.

The market got a nice bounce off its lows when the news came out, but hasn’t quite fought its way out of the red. The S&P 500 has declined 0.1% to 2899.16, while the Dow Jones Industrial Average has fallen 39.63 points, or 0.2%, to 25,925.19. The Nasdaq Composite has dipped 0.1% to 8,099.20.

Not everyone was so thrilled with the report, however. “Notwithstanding the headline jump, the number of industries surveyed that saw growth fell to 16 from 17 of the 18 surveyed,” writes Bleakley Advisory Group’s Peter Boockvar. “Of note too, the number of industries seeing Higher Inventory rose 2 pts to 14, the most since January 2015 that I have data on…My bottom line, the rise in inventories and new orders likely reflects this tariff uncertainty as companies scramble to get product and restock their shelves after the Q2 draw.”

Dow Dips 14 Points Because Summer’s Over and Nothing’s Changed

6:23 a.m. Summer may be over, but the market doesn’t seem to have gotten the message. S&P 500 futures have ticked up 0.1%, while Dow Jones Industrial Average futures dipped 14 points, or 0.1%. Nasdaq Composite futures have advanced 0.1%.

The quiet trading comes despite continued concerns around trade with China and Canada. “Futures on both sides of the Atlantic are pointing higher today and the respite from any bearish trade-related headlines seems to allow for some positivity in the markets,” writes Konstantinos Anthis, head of research at ADSS. “Investors are still worried about the lack of progress in the US-China trade talks but this should be anticipated at this stage so the bullish bias in the global equity markets may extend for a bit more.”

Whether the stay that way is another question.

Sign up to Review & Preview, a new daily email from Barron’s. Every evening we’ll review the news that moved markets during the day and look ahead to what it means for your portfolio in the morning.

Source link

Share with your friends!

Products You May Like

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest crypto & stock news
straight to your inbox

Subscribe to our mailing list and get interesting stuff and updates to your email inbox.