Last updated: 2:00 PM EST
Stock indexes are currently lower in today’s trading following the Federal Reserve Bank of Atlanta’s latest GDPNow update, which provides a real-time forecast of GDP growth. As more economic data is released throughout the quarter, the “nowcast” becomes more accurate. Economic growth is currently projected to be around 1.8% in the second quarter, lower than the previous forecast of 2.7% from the Institute for Supply Management and the U.S. Census Bureau in a recent release.
In fact, the Institute for Supply Management released its monthly report for the ISM Manufacturing Purchasing Managers’ Index, which measures the change in production levels from the previous month. A reading above 50 indicates expansion, while a reading below 50 means contraction. The report came in at 48.7, below expectations of 49.8.
Additionally, the Census Bureau released its U.S. Construction Spending report, which measures month-over-month changes in construction spending, showing spending decreased -0.1% in April, below the expected growth rate of 0.2% predicted by forecasters.
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U.S. futures were mixed on Monday morning as investors looked forward to a new trading month. Nasdaq 100 futuresNedix) and the S&P 500 (Spocks) rose about 0.34% and 0.12%, respectively, as of 4:18 a.m. ET on June 3, while the Dow Jones Industrial Average (DJIA) decreased by 0.04%.
Over the past month, all three major indexes, the NDX, SPX, and DJIA, have risen on the back of strong corporate earnings reports and rally driven by artificial intelligence. The Nasdaq Composite Index rose 6.9%, hitting its highest close since November 2023. Additionally, during this period, the S&P 500 and Dow Jones Indices recorded gains of 4.8% and 2.3%, respectively.
Turning to the economic reports this week, the manufacturing Purchasing Managers’ Index (PMI) report for May is due to be released today, while investors await the release of Services PMI data on Wednesday, plus last month’s nonfarm payrolls and unemployment rate on Friday.
In terms of revenue, CrowdStrike (CRWD), Hewlett Packard Enterprise (Hewlett-Packard), Stitch Fix (SFIX), Dollar Tree (DLTR), ChargePoint Holdings (Chinese), Lululemon (Lulu), and DocuSign (documentary) is due to announce its results this week.
Meanwhile, the 10-year U.S. Treasury yield has declined and is hovering around 4.48% at the time of writing. At the same time, WTI Crude Oil futures have been trending higher and are hovering around $77.01 per barrel as of last check.
Meanwhile, European markets opened higher today as investors await the European Central Bank’s interest rate decision due later this week.
Asia Pacific markets rise on Monday
Most Asia Pacific stock indexes rose today following China’s better-than-expected manufacturing activity report for May.
Hong Kong’s Hang Seng Index rose 1.78%. Meanwhile, China’s Shanghai Composite Index fell 0.27%, while the Shenzhen Composite Index rose 0.07%. Japan’s Nikkei Stock Average and TOPIX ended up 1.13% and 0.92%, respectively.
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