Stocks Inch Lower as Manufacturing Data Weighs: Markets Wrap
(Bloomberg) -- U.S. stocks inched lower as investors assessed the impact of another economic report on Federal Reserve monetary policy.
The S&P 500 fluctuated between gains and losses after U.S. manufacturing data topped estimates while also showing some weakness in employment figures. A measure of factory activity in May rose on stronger order growth. However, manufacturers are struggling because of supply shortages and labor constraints.
Energy shares were among the best performing Tuesday as the OPEC+ alliance agreed to hike output in July and gave a bullish forecast. WTI crude futures rose to their highest in more than two years. The dollar ended little changed, while Treasures, gold and Bitcoin slipped.
Global stocks are starting off the month near record highs, underpinned by a recovery from the health crisis and ample liquidity. Still, a raft of strong readings are stoking concerns of inflation and that central banks will withdraw support earlier than anticipated.
The employment figures from the ISM manufacturing report could be an indicator of a tight job market ahead of key American jobs data expected Friday. Federal Reserve Governor Lael Brainard said there are risks on both sides of monetary policy as the U.S. economy surges ahead while millions of people are unemployed.
Peter Tchir, head of macro strategy at Academy Securities Inc., said on Bloomberg TV that he tries to ignore most of the current data in favor of focusing on future expectations.
“We’re going to see more jobs,” Tchir said. “It seems awkward to dismiss current data but really it’s not telling us anything we don’t already know. So it’s really trying to anticipate what data’s going to look like five, six months down the road. I think it’s going to be very, very positive and this engine of growth is going to continue.”
Some corporate highlights:
- One-fifth of U.S. beef capacity was wiped out in the JBS cyberattack
- Mudrick Capital Management is said to have sold its entire AMC stake after an equity raise
- J&J must pay a $2.1 billion talc award after the Supreme Court rejected an appeal
- KKR and CD&R plan to take Cloudera private in a deal valued at about $5.3 billion
Here are key events to watch this week:
- Philadelphia Fed President Patrick Harker, Chicago Fed President Charles Evans, Atlanta Fed President Raphael Bostic and Dallas Fed President Robert Kaplan speak Wednesday
- U.S. employment report for May on Friday
These are some of the main moves in markets:
- The S&P 500 was little changed as of 4 p.m. New York time
- The Nasdaq 100 fell 0.2% to the lowest since May 24
- The Dow Jones Industrial Average rose 0.1%, climbing for the fourth straight day, the longest winning streak since May 7
- The MSCI World index rose 0.3% to a record high
- The Bloomberg Dollar Spot Index rose 0.1%, more than any closing gain since May 26
- The euro was little changed at $1.2219
- The British pound slipped 0.4%, more than any closing loss since May 19
- The Japanese yen was little changed at 109.49 per dollar
- The yield on 10-year Treasuries advanced two basis points to 1.61%
- Germany’s 10-year yield was little changed at -0.18%
- Britain’s 10-year yield advanced three basis points to 0.83%
- West Texas Intermediate crude rose 2.4% to the highest on record
- Gold futures fell 0.2% to $1,902 an ounce
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