- Prior month 53.9
- Manufacturing PMI flash 53.2 versus 53.9 estimate.
- Services PMI 56.8 versus 54.0 estimate. Prior month 54.6.
- Composite 56.0 versus 54.5 prior.
The manufacturing index was lower than expectations, but the services in the composite indices were higher. All 3 indices remain above the 50 level indicative of growth.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence commented on the report saying:
“US business is booming, with firms reporting the fastest output growth for over four years so far in the third quarter as the expansion picked up further momentum in August. The survey data for the third quarter are currently pointing to annualized growth approaching 3.0%, up solidly from the 1.5% pace seen in the second quarter. Jobs growth has also shown a welcome revival in August, with employers gaining in confidence as concerns fade over the negative economic impacts of tariffs and the conflict in the Middle East. However, the latter in particular remains a key area of concern for businesses, especially via the impact on supply lines and energy prices. Supply delays were again reported in August to one of the greatest extents seen over the past four years, clearly constraining output in many companies. Price pressures, while fading, also remain elevated and prone to renewed upward pressures should energy prices rise again. “Growth momentum has meanwhile shifted from manufacturing to services between the second and third quarters. As reduced safety stock building and supply delays dampen factory production growth, the service sector is now playing a key role in driving a sustained US expansion, underscoring a dependency on consumer spending and financial services growth.”
Overall the manufacturing was lower, the indices remain solidly in the a positive and the comments are more constructive from the flash estimate. For more, click here.
Taking a look around the markets, the 10 year yield is now up 1.8 basis points at 4.716%, the 30 year yield is up 2.3 basis points at 5.260%. The 2 year yield is also higher by close to 3 basis points to 4.214%.
In the US stock indices, the Dow industrial average is now up 0.71% and leading the way, but shares are well off pre-market levels.
The top five gainers in the Dow in early trading are:
- Goldman Sachs (GS): +2.36% at $1,025.64
- Cisco (CSCO): +1.95% at $111.73
- Merck (MRK): +1.58% at $151.34
- Caterpillar (CAT): +1.31% at $826.07
- Nike (NKE): +1.19% at $40.69
Goldman Sachs leads the Dow higher, gaining more than 2%, while Cisco and Merck are also providing solid support. Caterpillar and Nike round out the top five performers, each gaining more than 1%.
Bitcoin is up 6.48% and related bitcoin related stocks are higher. Below are a list of some of the gainers.
- Robinhood Markets (HOOD): +12.84% at $107.31
- Moderna (MRNA): +11.21% at $148.26
- Coinbase Global (COIN): +9.97% at $189.53
- Strategy (MSTR): +6.90% at $120.14
- Albemarle (ALB): +5.36% at $141.38
- Alcoa (AA): +5.13% at $53.15
- SoFi Technologies (SOFI): +4.72% at $18.76
- Ross Stores (ROST): +4.22% at $238.65
- Nebius (NBIS): +3.42% at $227.63
Crypto-related equities are prominent among today’s movers as Bitcoin rallies sharply.
This article was written by Greg Michalowski at investinglive.com.