ISM, Factory Orders Outperform; Weak Global Data Pressures Stocks

ISMU.S. stock markets have been under selling pressure this morning despite new released economic data from the institute for supply management (ISM) that outperformed estimates.

New ISM data coming from sectors such as construction, real estate, and retail showed that the July reading registered at  58.7 percent which is  2.7 percentage points higher than the June reading of 56 percent, and above the forecast of 56.5 from briefing.com.

The July reading represents continued growth in the Non-Manufacturing sector and is the highest reading for the index since its inception in January 2008.

Factory orders for June, showing durable goods plus non-durable goods orders, registered at 1.1 percent, beating the forecast of 0.4 percent.

Weak Global Data

In China factory orders from China services purchasing managers’ index (PMI) showed a plunge to 50.0 in July from 53.1 in June, the highest reading in 15 months.

In Europe the euro was under pressure on Tuesday after PMI data in the euro area declined to 52.8 in July from 53.9 in June.

-Johnathan Schweitzer

 

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