US Manufacturing Activity Decreases For Fourth Straight Month, Hits 8-Month Low: 'Companies Show An Unwillingness To Invest In Capital'
Portfolio Pulse from Piero Cingari
US manufacturing activity decreased for the fourth consecutive month in July, hitting an 8-month low. The ISM Manufacturing PMI Index fell to 46.8%, below expectations. This decline contrasts with the overall economic expansion driven by the services sector. The news impacted various financial instruments, including the U.S. dollar index, Treasuries, and stock market indices.
August 01, 2024 | 2:26 pm
News sentiment analysis
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POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) rose 1% as Treasuries rallied and yields fell following the weak manufacturing report.
The weak manufacturing data led to a rally in Treasuries, benefiting the TLT ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The iShares Russell 2000 ETF (IWM) tumbled 1%, extending declines after the ISM report indicated deeper contraction in manufacturing activity.
The deeper contraction in manufacturing activity negatively impacted small-cap stocks, leading to a decline in the IWM ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Invesco DB USD Bullish Fund (UUP) saw early session gains cut to 0.1% following the disappointing manufacturing activity survey for July.
The decline in manufacturing activity led to a weaker U.S. dollar, impacting the UUP fund negatively.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80