The CML Close - Stocks rise, manufacturing and construction data come in weak, some prices have dropped - 07-01-2022
Markets
Stocks rose to start the third quarter following the worst first half of a year in five decades.
Economic data continues to show a slowing economy.
| • SPX | 3,825.33 | +39.95 | (+1.06%) |
| • NASD | 11,127.84 | +99.11 | (+0.90%) |
| • DJIA | 31,097.26 | +321.83 | (+1.05%) |
| • R2K | 1,727.76 | +19.77 | (+1.16%) |
| • VIX | 26.70 | -2.01 | (-7.0%) |
| • Oil | 108.46 | +2.70 | (+2.55%) |
• Manufacturing prices paid showed the lowest reading in five-months.
• ISM Manufacturing PMI fell to it lowest level since May 2022.
• ISM Manufacturing new orders decreased to 49.2 signaling contraction.
• Construction spending fell.
Headlines of the Day
Stocks Finish Higher to Start Second Half
Investors entered the second half of 2022 with the same fears that made the first half the worst start to a year since 1970: Higher inflation, higher interest rates, and a higher risk of a U.S. recession. Yet optimism won the day.
US Manufacturing Growth Weakens to Two-Year Low as Orders Slump
ISM June purchasing managers index falls to 53; est. 54.5. New orders index contracts, sinks to lowest since May 2020.
Wheat Sinks to Pre-War Levels as Recession Fears Grow
Chicago corn tumbles to a five-month low as US acres expand. Soybeans fall about 4% as economic concerns weigh on futures.
US 10-Year Yield Slips Back Below 3% as Recession Fears Grow
The yield on the benchmark 10-year Treasury note dropped back below the psychologically important 3% mark on Thursday as fear of recession increasingly occupies traders’ minds more than inflation.
JPMorgan’s Michele Warns on Recession as Brutal First Half Draws to End
Four-decade veteran says 2022 is most challenging of career
Economic Data Results for 7-1-2022
ISM Manufacturing PMI
The ISM Manufacturing PMI fell to 53 in June of 2022 from 56.1 in May, pointing to the slowest growth in factory activity since June of 2020, and below market forecasts of 54.9.
United States ISM Manufacturing Prices Paid
The ISM Manufacturing Prices subindex in the United States decreased to 78.50 points in June from 82.20 points in May of 2022. It is the lowest reading in five months, below market forecasts of 81.
ISM Manufacturing New Orders
The ISM Manufacturing New Orders subindex in the United States decreased to 49.20 points in June from 55.10 points in May of 2022.
United States Construction Spending
Construction spending in the US fell by 0.1 percent from the previous month to a seasonally adjusted annual rate of USD 1.78 trillion in May of 2022, compared to the upwardly revised 0.8 percent gain in April and market expectations of a 0.4 percent rise.
Economic Data Due Tuesday7-5-2022
Factory Orders MoM MAY
LMI Logistics Managers Index Current JUN
Total Vehicle Sales
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