(As of 7:15 am PST)
US
markets began the month of March on a positive note as the broad benchmarks
traded higher to start Tuesday’s session. Despite yesterday’s late day selling,
the Dow Jones Industrial Average managed to record its first monthly gain since
November, while the S&P500 and Nasdaq finished with losses for the month of
February – the third consecutive monthly loss for the two indexes. Today,
markets are looking to recover some of yesterday’s losses. Rising oil prices helped
to lift markets initially. The market held steady until about 7:00 am PST when
a raft of economic data hit the wires. A report on construction spending showed
spending ticked up 1.5% in January, much better than anticipated and higher than
the prior month, indicating the housing market continues its strong recovery.
US manufacturing, as measured by the ISM index, contracted in February,
although at a much slower pace than expected. The ISM manufacturing index rose
to 49.5 in February from 48.2 in January. A reading below 50 indicates contraction. It was a positive report in the markets eyes, which helped to bid
stocks higher. Rounding out the data later this morning are reports on auto and
truck sales. There is a lot of green around the globe today. Most Asian markets
finished the day higher despite disappointing manufacturing data out of China.
Europe is mostly higher as well with investors shrugging off weak manufacturing
PMI readings out of Spain, Italy and France as well. The policy stimulus move
from China yesterday is helping to prop up Asian markets, and the thought that
the Fed’s timeline on its next rate hike might be pushed back is also driving
markets higher at the moment. Interest rates are higher this morning as is the
US dollar.
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