Stock Market Update

[BRIEFING.COM] The Dow Jones Industrial Average (-0.4%) and Russell 2000 (-0.4%) trade lower while the S&P 500 (+0.2%) and Nasdaq Composite (+1.0%0 extend opening gains. 

The November ISM Manufacturing Index checked in at 48.4% (Briefing.com consensus 47.6%) versus 46.5% in October. The dividing line between expansion and contraction is 50.0%, so the November reading suggests manufacturing sector activity contracted versus the prior month but at a slower pace. This was the eighth straight month (and 24th out of 25) that economic activity in the manufacturing sector contracted.

The key takeaway from the report is that manufacturing sector activity overall continues to be weak, but showed a green shoot with the new orders index returning to expansion territory after seven straight months of contraction.

Total construction spending increased 0.4% month-over-month in October (Briefing.com consensus 0.1%) following an unrevised 0.1% increase in September. Total private construction was up 0.7% month-over-month while total public construction declined 0.5% month-over-month. On a year-over-year basis, total construction spending was up 5.0%.

The key takeaway from the report is that residential construction activity rebounded nicely, led by single family construction.