- ISM non-manufacturing unexpectedly jumps to 56.9
- ADP sees weakest job growth in more than 9 years
- US500 at the pivot point after the open
ISM non-manufacturing index unexpectedly jumped to 56.9 points in May from 55.5 points in April. The moves is surprising as the PMI (Markit version of the index) slid to as low as 50.9 points. The ISM thus suggests that the major sector of the US economy still does fairly well – good news amid a generally deteriorating picture. Earlier today the ADP report showed the weakest employment growth in the private sector since March’10 at just 27k. The ADP is less volatile than the NFP report (it will be published this Friday) so the decline may be a concern for investors and the Fed alike. Lower interest rates would be generally positive for stocks but weak macro picture may fuel slowdown concerns and the single ISM print (keep in mind that manufacturing ISM tumbled in May) is not enough to sooth these fears.
After a stunning rally on Tuesday, US500 is at the pivot point and the bears are back on the scene. Source: xStation5
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