Friday, all 11 S&P 500 sectors opened and closed in the Red.
The energy (-6.0%) and consumer discretionary (-4.6%) sectors took the biggest hits, and the consumer staples sector (-1.2%) declined the least.
Investors had to contend with President Trump threatening new tariffs on China for its handling of the coronavirus outbreak, as well as the ISM Manufacturing Index for April declining to its lowest mark since Y 2009 with a 41.5% reading.
Friday’s economic data,
- The ISM Manufacturing index for April registered a 41.5% reading, posting the lowest mark since April 2009. The headline number was better than expected, but when you look within the report, it was mostly bad.
- The Key takeaway from the report is that the better-than-expected reading was a function of a sizable uptick in the index for supplier deliveries (to 76.0% from 65.0%) that is the result of supply chain disruptions and an uptick in the index for inventories (to 49.7% from 46.9%), which is an indication of weak demand as inventory sits around longer on weak demand.
- Total construction spending increased 0.9% M-M in March on the back of a downwardly revised 2.5% decliner in February. Residential spending was up 2.3% M-M; nonresidential spending declined 0.1% M-M.
Friday, the major US stock market indexes finished at: DJIA -622.03 at 23723.69, NAS Comp -284.60 at 8604.96, S&P 500 -81.72 at 2830.71
Volume: Trade on the NYSE came in at 9.23-M/shares exchanged.
- NAS Comp -4.1% YTD
- S&P 500 -12.4% YTD
- DJIA -16.9% YTD
- Russell 2000 -24.5% YTD
HeffX-LTN over all technical outlook for the major US stock market indexes on 1 May 2020 is Bullish across the board with a Very Bullish bias.
Looking Ahead: Investors will receive Factory Orders for March Monday.
Have a healthy weekend, Keep the Faith!