Industries down after ISM data – Industry roundup
Shares of industrial and transportation companies fell after weak factory data.
The Institute for Supply Management’s business manufacturing PMI fell to 55.4 in April from 57.1 in March, the lowest since July 2020 and below economists’ targets.
In Europe, factory data was also grim. The S&P Global Eurozone Manufacturing Purchasing Managers Index fell to a 15-month low of 55.5 in April from 56.5 in March.
Wall Street strategists say worries about the implications of recent data, which could mask the strength of consumer demand in the United States, may be overblown.
“An objective look at GDP data, or pretty much any other recent economic data for that matter, shows no signs of a recession over the next 12 months,” said Solita Marcelli, chief investment officer at the manager. UBS Global Wealth Management funds, in a note to clients.
“Business investment, which we believe is the most important indicator of the business cycle, grew at a healthy 9.2%.”
Boeing fell for the ninth straight session, testing two-year lows, amid fears that lockdowns in China and ongoing struggles with supply chain issues could weigh on the aerospace giant’s growth.
Boeing is now down about 35% year-to-date. Australia’s biggest airline, Qantas Airways, said it would order dozens of planes from Boeing’s European rival Airbus, including new planes to fly non-stop between Australia and the United States.
Penske Automotive Group is accelerating share buybacks after the car dealership chain reported sharply higher profits as industry-wide vehicle shortages continue to support prices.
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(END) Dow Jones Newswire