Stock Market Update

[BRIEFING.COM] Stocks moved lower after a slate of economic data.

The July ISM Manufacturing Index checked in at 46.8% (Briefing.com consensus 48.5%) versus 48.5% in June. The dividing line between expansion and contraction is 50.0%, so the July reading suggests there was a faster pace of contraction in the manufacturing sector last month. This was the fourth straight month (and 20th out of 21) that economic activity in the manufacturing sector contracted.

The key takeaway from the report is that it conveys clear weakness in the manufacturing sector that is a byproduct of subdued demand.

Total construction spending declined 0.3% month-over-month in June (Briefing.com consensus 0.1%) following a downwardly revised 0.4% decline (from -0.1%) in May. Total private construction was down 0.3% month-over-month while total public construction was down 0.4% month-over-month. On a year-over-year basis, total construction spending was up 6.2%.

The key takeaway from the report was that construction spending was soft across both the private and public sectors, reflecting weaker demand patterns that are part of a softening economy.

The 10-yr note yield dipped below 4.00% to 3.97%.