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.
ISM Manufacturing Index for October (Thursday, November 1, 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 September decreased to 59.8 from 61.3 in August. The August reading was the highest since May 2004.
- The September reading was the 24th straight month the index has been above 50.0.
Thurs., Nov. 1 Time of Release Briefing.com Consensus Prior ISM Mfg. Index 10:00 ET 59.0 59.8
- 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