(As of 7:54 am pacific)
Markets ticked up to open as investors anticipated 2
reports this morning – ISM manufacturing data and monthly construction figures. The Institute for Supply Management reported
at 7 am pacific Tuesday that its gauge for manufacturing output rose to 54.8%
from 53.4% in March, the highest reading since June 2011. A reading over 50% indicate expansion. This was a surprise to investors as analysts
expected the ISM index to fall slightly to 53.3% as recent reports had been
lagging. Also reported this morning,
the Commerce Dept. announced that US construction projects rose 0.1% in
March. It was the first gain in 3
months, but fell short of estimate of 0.5%.
February construction spending was also revised down from a 1.1% drop to a 1.4% decline. The market seemed to shrug off the
construction report and focused on manufacturing data as the ISM index
surprised many. Most European markets
and Asian markets are closed today in view of the May Day holiday. The market finished down yesterday as the
Chicago-area purchasing managers index fell to its lowest level since November
2009. April closed as the worst month of
the year for US stocks with the Dow eeking out a 0.1% gain, the Nasdaq shedding
1.80% and the S&P down 0.8%. On the
day, oil prices added 0.94% to 105.84 while gold traded flat at 1663. The US dollar was mixed and 10 yr. treasury
yields remained low at 1.90%. The 30 yr.
mortgage rate remained near historic lows at 3.81%. The VIX shed 3.67% to 16.52.
