Reply To: Traders Market Weekly: Fed and BOJ Dribble Ahead

#74624
MoneyNeverSleeps
Participant

May S&P Global US Manufacturing PMI – Final 51.3; Prior 50.0

May ISM Manufacturing Index 48.7% (consensus 49.6%); Prior 49.2%

The key takeaway from the report is that it showed a faster pace of contraction in manufacturing activity that will stir worries about the economy missing its mark with a soft landing.

April Construction Spending -0.1% (consensus 0.2%); Prior -0.2%

The key takeaway from the report is that nonresidential spending was down in both private and public construction markets, which will be a drag on Q2 GDP growth.

ISM Manufacturing Index reflected a faster pace of contraction than the market expected (actual 48.7%; expected 49.6%). A reading below 50% indicates a contraction in activity.

Yields moved lower in response.

The 10-yr note yield fell 11 basis points to 4.40% and the 2-yr note yield fell seven basis points to 4.82%. Dropping market rates had been a source of support for equities recently, but worries about an economic slowdown that could affect earnings prospects drove stock market action today.

Atlanta Fed GDPNow model estimate for Q2 real GDP growth is now 1.8%, down from 2.7% on May 31, in response to the soft data.