US Manufacturing enters deeper contraction
The US manufacturing sector sank further into contraction territory during July.
The ISM's manufacturing PMI registered a reading of 46.8 in July, down from June reading of 48.5 and lower than the 48.5 economists expected, according to Bloomberg data. The reading was the lowest reading since November 2023.
Readings above 50 for this index indicate an expansion in activity while readings below 50 indicate contraction.
“Demand remains subdued, as companies show an unwillingness to invest in capital and inventory due to current federal monetary policy and other conditions," Chair of het Institute for Supply Management Timothy Fiore said in a release.
Thu, August 1, 2024 at 2:31 PM GMT+1
Stocks open higher after Fed decision, Meta jumps 8%
Stocks opened higher on Thursday to build on the prior session's rally after the Federal Reserve laid the groundwork for a September rate cut and Facebook parent Meta (META) reported better than expected results.
The S&P 500 (^GSPC) climbed 0.4%, while the tech-heavy Nasdaq Composite (^IXIC) gained almost 0.5%. The Dow Jones Industrial Average (^DJI) edged up 0.4%.
Stocks rose after Fed chair Jerome Powellsaid on Wednesday that a September interest-rate cut "could be on the table."
Meta shares rose about 8% after a strong quarterly report from the social media giant. Like other Big Tech firms, Meta said it expects "significant" capital-expenditure growth in 2025 as it builds out its AI-focused infrastructure.
Thu, August 1, 2024 at 2:06 PM GMT+1
Jobless claims rise more than expected
Weekly jobless claims once againrose more than expected last week in the latest sign of a cooling labor market.
New data from the Department of Labor showed 249,000 initial jobless claims were filed in the week ending July 27, up from 235,000 the week prior and above the 235,000 economists had expected. This marked the highest level of weekly filings since August 2023.
Meanwhile, the number of continuing applications for unemployment benefits once again hitits highest level since November 2021, with 1.877 million claims filed in the week ending July 20, up from 1.84 million the week prior.
"The claims data of the past few weeks have been signaling incremental labor market weakness, albeit from a position of strength," Jefferies US economist Thomas Simons wrote in a note on Thursday. "This is another step in the process of the labor market coming into better balance, but we must remain vigilant in watching for signs of slack. We are particularly concerned about a negative impulse in the labor market data, but things can deteriorate quickly once they start."