Stocks Mixed to Begin Week…..
U.S. equities were mixed to start the week after coming off of a six-week losing streak for the S&P 500. A slew of concerns continued to hamstring conviction, notably the aggressiveness of the Fed’s tightening campaign and persistently elevated inflation pressures. Worries about slowing economic growth also weighed on sentiment and the markets also digested softer-than-expected April retail sales and industrial production out of China, and an unexpected drop into contraction territory for New York manufacturing output in May. M&A news dominated the equity headlines, with JetBlue launching a hostile takeover of Spirit Airlines, and Carlyle Group agreeing to acquire ManTech International in a transaction with a total enterprise value of about $4.2 billion. Treasuries were higher, with yields cooling a bit after a recent jump, and the U.S. dollar lost ground after rallying to 20-year highs, while crude oil jumped, and gold prices were higher. Europe diverged amid the host of headwinds, with the ongoing war in Ukraine exacerbating the skittishness, while Asia finished mixed as China dipped on the data.
The Dow Jones Industrial Average rose 27 points (0.1%) to 32,223, while the S&P 500 Index decreased 16 points (0.4%) to 4,008, and the Nasdaq Composite lost 142 points (1.2%) to 11,663. In moderate volume, 4.4 billion shares of NYSE-listed stocks were traded, and 4.8 billion shares changed hands on the Nasdaq. WTI crude oil jumped $3.71 to $114.20 per barrel. Elsewhere, the gold spot price traded $15.00 higher to $1,823.20 per ounce, and the Dollar Index was down 0.3% at 104.58.
New York manufacturing drops, kicking off the week, consumer and housing set to be in focus
The Empire Manufacturing Index, a measure of activity in the New York region, showed the index unexpectedly fell back into a level depicting contraction (a reading below zero) last month. The index dropped to -11.6 in May from 24.6 that was posted in April and compared to the Bloomberg estimate of a decrease to 15.0. The disappointing report came as new orders and shipments both fell below zero, and the expansion in inventories slowed, along with prices paid but inflation pressures remained severely elevated. However, employment growth accelerated after the prior month’s slowdown.
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