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US 500 Retraces After PMI Data

  • PMIs from Europe and the United States came better than expected
  • Wall Street in mixed sentiment – US500 on minimal decline -0.1%

US futures fluctuates amid mixed corporate earning results and as investors are evaluating latest economic data. Today, PMIs in the US came higher than expected with the manufacturing index at 50.4 and services at 53.7. Values above 50 points suggest that the US economy is still strong and in the expansion cycle, which increases chances of a 25pb hike at the FED meeting in May. 

Officials from the Federal Reserve still have a hawkish stance on controlling inflation. Cleveland Fed President Loretta Mester has suggested another rate hike to keep inflation under control, but also mentioned the importance of monitoring recent bank stress that could negatively impact credit and the economy. Meanwhile, Dallas Fed President Lorie Logan has commented that inflation has been excessively high.

US500 dropped after PMI data was released. Price fell below 4140 points from 4160 and then bounced back to 4160. 

Company news:

  • Tesla (TSLA.US) increse after the electric-vehicle maker increased prices of its Model S and X vehicles in the US. Multiple price cuts this year have pressured profitability and shares at the EV maker.
  • Big Lots (BIG.US) shares decline 7% after Piper Sandler downgrades the retailer to underweight from neutral, citing weakening demand for home furnishings and mattresses.
  • HCA Healthcare (HCA.US) shares rise 5% after the hospital firm boosted its earnings per share and revenue forecasts for the full year, leading peers highe.
  • Invitae Corp. (NVTA.US) shares rise 4% after Cathie Wood, whose Ark Investment funds are among leading holders in the genetic testing company, spoke to CNBC yesterday about holding the stock, which has been trading near a record low in recent weeks. Stocks currently trading near all time low, $1.25 is far below ATH in mid 2020 at $58.
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