Is a Bad ISM PMI Really Worth a 3% Pullback?
What’s in Today’s Report:
- Jobs Report Preview
- Is A Bad ISM Really Worth a 3% Pullback?
Futures are enjoying a modest oversold bounce despite more trade noise and disappointing economic data.
On trade, the U.S. imposed $ 7.5 billion worth of tariffs on the EU following a WTO ruling. But, while the headline is scary, this was widely expected and not a new negative.
Economic data was soft again as Japanese and EU composite PMIs and the UK services PMI all missed estimates.
Today the focus will be on economic data and the key report is the ISM Non-Manufacturing Index (55.4). If it badly misses expectations, concerns about a broader economic slowdown will grow further, and that will weigh on stocks again. We’ll also be watching Jobless Claims (E: 215K) for any signs of slowing in the labor market.
There are also several Fed speakers today, but with rate cuts expected, I doubt they will say anything too material. Speakers today include: Quarles (8:30 a.m. ET), Mester (12:10 p.m. ET), Clarida (6:35 p.m. ET).
