Stocks meander on Wall St, despite strong factory data

US share prices have wavered without any clear direction today, with better-than-expected manufacturing reports failing to entice buyers at the stock market’s current lofty levels.

By early afternoon in New York, the Dow Jones had slipped back 0.12% or 18 points to 16,067, while the more extensive S&P 500 index rose 0.08% to 1807.2. The NASDAQ 100 dropped 0.04% to 3486.4.

Economic data continues to paint a picture of steady recovery, with a number of reports released today suggesting expansion in the US manufacturing sector.

Markit’s manufacturing Purchasing Managing Index climbed to a mid-month reading of 54.7 for November from October’s final level of 51.8. Readings above 50 for the PMI denotes expansion, and so the data suggests growth is picking up pace. With the new orders component surging to 56.2, there is evidence to suggest momentum may be carried into December.

The pick-up in Markit’s PMI now means that there is agreement with the other widely-followed manufacturing indicator, namely the ISM manufacturing index, which also improved last month, rising to a two-and-a-half year-high of 57.3 from October’s already buoyant level of 56.4. The new orders component in this index jumped 3 points to 63.3, also the best level seen in two-and-a half years.

The strength of the manufacturing reports gave a boost to the US dollar today, with USD/JPY jumping 0.65% and EUR/USD sinking 0.38%. The dollar index, a gauge of the dollar’s strength against a basket of six leading currencies, rose 0.32%.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.