Stocks Mixed, Yields Jump Ahead of JPow Roundtable.
After narrowly avoiding a government shutdown over the weekend, Monday early trading saw mixed reactions for stocks. As of 10:31a (EDT) Gold was down 1% to $1,845, while 10yr yields were up nearly 8bps to 4.65%
- Gold down 1% in early trading.
- Treasury yields saw a significant increase, with the US 10-year yield rising by over 7 basis points.
- Early trading saw Brent Crude at $91.01 and West Texas Intermediate WTI at $89.67.
- Corn and Wheat were up, with Soybeans Flat ahead of the USDA Export inspections release.
- Federal Reserve Chairman Jerome Powell was scheduled to speak in a roundtable discussion on Monday. Powell’s comments were highly anticipated as they were expected to provide insights into future monetary policy decisions.
Manufacturing PMI and Construction Spending release
On October 2, the Institute for Supply Management (ISM) released its Manufacturing PMI report for September, revealing an improvement from 47.6 in August to 49 in September. This exceeded the analyst consensus of 47.7, although it still indicates a contraction in the sector as values below 50 signify such.
The New Orders Index also saw an increase from 46.8 in August to 49.2 in September, while the Production Index grew from 50.0 to 52.5. The Institute for Supply Management commented on this, stating that “The U.S. manufacturing sector continued its contraction trend but at a slower rate, recording its best performance since November 2022. Companies are still managing outputs appropriately as order softness continues, but the month-over-month improvement in September is a clear positive.”
Additionally, traders had an opportunity to review the final reading of the S&P Global Manufacturing PMI report for September, which showed an increase from 47.9 to 49.8, surpassing the analyst consensus of 48.9.
Manufacturing PMI Actual 49
- (Forecast 47.9, Previous 47.6)
Employment Index Actual 51.2
- (Forecast -, Previous 48.5)
Prices Paid Actual 43.8
- (Forecast 49, Previous 48.4)
New Orders Index Actual 49.2
- (Forecast -, Previous 46.8)
Construction Spending MoM Actual 0.5%
- (Forecast 0.5%, Previous 0.7%)