Sunday, June 16, 2024

Nasdaq, S&P, Dow rise as more economic data looms

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The major market averages shifted higher on Monday, as investors turned their focus to jobs data, which is expected to land in the week after the PCE report came largely in line with consensus on Friday.

Early on and the Nasdaq (COMP.IND) was +0.8%, the S&P 500 (SP500) was +0.3%, and the Dow(DJI) was unchanged.

The 10-year Treasury yield (US10Y) was down 3 basis points to 4.46%. The 2-year yield (US2Y) was unchanged at 4.88%. See how other yields trade across the entire yield curve here.

The major market averages ended Friday’s trading session higher after markets rallied in late afternoon, while an in-line PCE report boosted hopes of rate cuts taking place this year.

“U.S. equities staged a very late month-end comeback on Friday after trading lower much of the day as the personal spending data hinted at a weakening US consumer,” Deutsche Bank’s Jim Reid said.

“Core PCE numbers are improving, but more progress is needed for rate cuts,” Pantheon Macroeconomics said.

“Despite the weak personal spending data, the PCE inflation numbers helped raise the amount of rate cuts expected this year,” Reid added.

Traders will now turn their attention to the April JOLTs job openings report slated to land tomorrow, and the May non-farm payrolls data expected to be released on Friday.

The economic calendar for today is fairly light. The May PMI manufacturing index is expected shortly. Economists expect a rise to 50.9.

The May ISM manufacturing PMI index will also be released at 10:00 am ET, and is forecasted to rise to 49.8.

“The ISM manufacturing index ticking up to the 50 mark hardly constitutes a recovery in the sector. The trend in the index seems to be gently rising, but manufacturing is still struggling under the weight of high interest rates and subdued external demand,” Pantheon Macro added.

April construction spending is also due at the same time, and is expected to show a monthly growth of +0.2%.

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