Growth and Trade Concerns Drive Manufacturing Index South

Growth and Trade Concerns Drive Manufacturing Index South

$DIA, $SPY, $SOX, $QQQ, $RUTX, $VXX

  • Stocks drop sharply amid trade tensions, growth concerns,
  • Crude Oil prices drop; weakness in the S&P 500 energy sector,
  • Flight to safety in US Treasuries; 10-yr yield hits lowest mark YTD.

US factory activity took a hit this month as the tariff war with China and an overhang of inventory dampened orders, adding to signs the economy could slow in Q-2.

The preliminary U.S. manufacturing purchasing managers’ index from IHS Markit fell 2 points to 50.6, the lowest reading since Y 2009, according to data Thursday. The drop was led by the new orders gauge, which showed a contraction for the 1st time since August 2009. IHS Markit’s gauge of US services also fell to a 3-year low.

Factories in the world’s largest economy have been thrown into uncertainty amid the intensifying trade conflict with China, as President Trump increased tariffs this month on some imports from the Asian country and threatened more. Companies had previously increased orders to avoid a round of tariffs and are currently working through that overhang.

Trade disputes remained Top of the list of concerns among manufacturers, alongside signs of slower sales and weaker economic growth both at home and in Key export markets. With the service sector’s performance being a Key gauge of the health of domestic demand, this broadening-out of the slowdown poses Southside risks to the outlook.

Thursday, the major US stock market indexes finished at: DJIA -286.14 at 25490.47, NAS Comp -122.56 at 7628.26, S&P 500 -34.03 at 2822.24,

Volume: Trade on the NYSE came in at 870-M/shares exchanged

  • NAS Comp +15.0% YTD
  • S&P 500 +12.6% YTD
  • Russell 2000 +11.3% YTD
  • DJIA +9.3% YTD

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral in here.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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