The CML Close - Stocks down, manufacturing activity down, manufacturing prices down, construction spending down - 08-01-2022
Markets
Stocks fell slightly. Manufacturing activity is slowing, prices paid by manufacturers fell far below estimates, and construction spending plummeted while home price appreciation slowed at its fastest pace ever.
| • SPX | 4,118.63 | -11.66 | (-0.28%) |
| • NASD | 12,368.98 | -21.71 | (-0.18%) |
| • DJIA | 32,798.40 | -46.73 | (-0.14%) |
| • R2K | 1,883.31 | -1.92 | (-0.10%) |
| • VIX | 22.84 | +1.51 | (+7.08%) |
| • Oil | 93.86 | -4.76 | (-4.83%) |
• Manufacturing PMI falls more than expected.
• Manufacturing prices paid plummet.
• Construction spending shrank by the most since February 2021.
• Retail investors are getting back into tech.
• Home price gains cooled at a record pace but remain highly elevated.
Headlines of the Day
Stocks Pause After Big July Gains
Stocks are pausing to kick off August trading after a wildly good July. Economic data are in focus.
Are we in a recession? It doesn’t matter, Fed official says: ‘I’m focused on the inflation data’
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, told CBS’ “Face the Nation” that inflation poses a larger threat than a potential recession. “We’re going to do everything we can to avoid a recession, but we are committed to bringing inflation down, and we are going to do what we need to do,” Kashkari said.
Individual Investors Ramp Up Bets on Tech Stocks
Shares of Amazon, Alphabet, Meta Platforms and others have suffered double-digit declines, but believers say they expect a rebound.
Home prices cooled at a record pace in June, according to housing data firm
Home price gains are cooling fast, as demand wanes and supply builds. The annual rate of price appreciation fell two percentage points from 19.3% to 17.3%.
China’s Rebound Remains Fragile as Factories, Property Slump
Factory activity unexpectedly contracted in July, PMI shows. Property sales from China’s top developers continued to drop.
Economic Data Results for 8-1-2022
United States ISM Manufacturing Prices Paid
The ISM Manufacturing Prices subindex in the United States decreased to 60 points in July from 78.50 points in June of 2022. It is the lowest reading since August of 2020, well below forecasts of 75.
United States ISM Purchasing Managers Index (PMI)
The ISM Manufacturing PMI edged lower to 52.8 in July of 2022 from 53 in June, beating market forecasts of 52. The reading pointed to a 26th straight month of rising factory activity but the weakest rate since June of 2020.
United States Construction Spending
Construction spending in the US fell by 1.1 percent from the previous month to a seasonally adjusted annual rate of USD 1.76 trillion in June of 2022, compared to the revised 0.1 percent increase in May and market expectations of a 0.1 percent gain. It was the largest decrease since February of 2021.
Economic Data Due Tomorrow on 8-2-2022
JOLTs Job Openings JUN
JOLTs Job Quits JUN
LMI Logistics Managers Index Current JUL
United States Total Vehicle Sales
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