The first week of the month typically produces a string of manufacturing PMI reports from around the globe. The ISM Manufacturing report, which focuses on manufacturing conditions in the U.S., is always a focal point and occasionally a market mover. Tomorrow's release should garner increased attention, considering global markets have shown particular sensitivity to key growth indicators as of late.
ISM Manufacturing Index for December (Thursday, January 3, at 10:00 a.m. ET)
- Why it's important
- It's the first economic release every month, providing timely information on business activity in the manufacturing sector.
- The report can either build confidence, or reduce confidence, in economic prospects.
- The report's dividing line between expansion and contraction in the manufacturing sector is 50.0% (above 50 signals expansion and below 50 signals contraction).
- With PMI readings also seen from abroad, the ISM Index will provide some insight on how the U.S. manufacturing sector is faring on a comparative basis.
- The ISM Index offers information on the pace of new orders, production, employment, deliveries, inventories, export orders, and prices paid for manufacturers.
- A closer look
- The ISM Manufacturing Index for November increased to 59.3% from 57.7% in October.
- The November reading was the 26th straight month the index has been above 50.0.
Thurs., Jan. 3 Time of Release Briefing.com Consensus Prior ISM Mfg. Index 10:00 ET 57.8 59.3
- What's in play?
- Sector ETFs
- Industrial Select Sector SPDR (XLI)
- Materials Select Sector SPDR (XLB)
- PowerShares Dynamic Industrials (PRN)
- Index ETFs
- SPDR S&P 500 ETF (SPY)
- Invesco QQQ Trust (QQQ)
- iShares Russell 2000 (IWM)
- SPDR Dow Jones Industrial Average ETF (DIA)
- Treasuries (TBT, TLT, SHY, SCHO)
- Fed funds futures
- Sector ETFs