Economic Journal - Monday, 6/2/2014

(As of 7:20 am PST)

 

Stocks began the month of June on a positive note, but then quickly turned lower as investors weighed disappointing economic data at home with strengthening reports abroad.  The session kicked off with the major indexes in the green as traders welcomed an upbeat manufacturing report out of China which helped lift markets globally.  Shortly thereafter, US stocks retreated after two reports on manufacturing disappointed investors.  The final reading of the Markit manufacturing PMI edged up slightly, while the more closely-watched ISM manufacturing index grew at a slower pace than expected.   The ISM index fell to 53.2 last month compared to 54.9 in April.  A reading above 50 indicates more companies are expanding than shrinking.  The first week of June is full of activity with the data calendar plentiful throughout the week.  The nonfarm payrolls jobs report will close things out on Friday.  Also, on Friday is the much anticipated 7-for-1 stock split of Apple shares.  Shares of the iPhone maker have soared recently as investors have been bidding to get in on Apple’s new capital deployment program.  In other news, gold is up slightly today, while oil is down to $102.50 per barrel.  Interest rates are higher with the 10 yr. treasury yield trading at 2.5% after dipping below 2.5% briefly last week.