Market Watch: Slow manufacturing stalls markets

On the first trading day of September some discouraging news on manufacturing in the U.S. led to some nervous movements by investors. The ISM (Institute for Supply Management) manufacturing survey fell to 49.4 in August when it was expected at 52. Any reading below 50 is a sign of contraction. The survey had shown a rise in each of the past months prior to the release of the August data, as new orders and output plummeted and factories cut jobs.

Diane Swonk, CEO of DS Economics, which works closely with its clients to help them uncover the economic risks they face said today:

“It’s nasty. It really is a tale of two economies still. That’s the issue. The consumer is doing fine. It’s not going to determine what the Fed does. It’s a signal that we’ve already seen … that the manufacturing sector continues to struggle.”

Swonk also said she was keep a very close eye on auto sales in the month of August as a gauge of consumer spending. A decline of 3 % was expected in the auto industry last month.  Wal-Mart also announced it is eliminating 7,000 positions.

Watch more from CNBC below.

 

Here are the final numbers from Thursday, September 1, 2016 on Wall Street:

Dow Jones Industrial Average: 18,419.30 (+18.42 / +0.10%)

NASDAQ: 5,227.21 (+13.99 / +0.27%)

S&P 500: 2,170.86  (-0.09/ -0.00%)

Phil Cannella

Phil Cannella

As a partner with CBS Radio in Philadelphia, Phil Cannella reports on the issues most important to the American retiree.
Phil Cannella
- 6 days ago
Phil Cannella
Phil Cannella
Phil Cannella

Latest posts by Phil Cannella (see all)

Leave a Reply

Your email address will not be published. Required fields are marked *