Bad news from industry. But Wall Street ends with a plus

A poor reading of the economic situation in the American industry did not interrupt the New York stock exchanges in the end of the day in the plus. Wall Street moods were not broken by even another salvo in the customs wars of President Trump.

The S & P500 index ended the Monday session at 5,936.03 points, which translated into an increase of 0.41%. It is worth adding that the powekend trade began in a minus after President Donald Trump announced a doubt on Friday evening and so almost prohibitive duties on steel and aluminum.

Nasdaq managed to gain 0.67% and climb to a height of 19,242.61 points. Dow Jones gave a modest 0.08% and finished with a score of 42,305.48 points.

However, looking at the market in a slightly broader perspective, we have been observing for three weeks that the main American stock indexes stopped after a very dynamic relaxation after even more violent declines from early April. It can be seen that investors are waiting for new impulses and clarifying the situation on the front of the Trump's administration trading wars.

The main problem is the lack of progress in commercial negotiations with China. Beijing knows that he has strong tender cards and does not intend to overcome the tail in reaction to the host of the White House.

In addition, on Monday we got to know the disappointing data from the American industry. The ISM index for the manufacturing sector in May recorded a small recourse to 48.5 points against 48.7 points. a month earlier. This is signaled by the third in a row in a row in the US industry after two months of rickety revival, which in turn occurred after 26 months of uninterrupted regression. American manufacturers complained about everything: for customs, uncertainty, bird flu, cuts in federal administration, poor demand, etc.

But the most important issue was raised by a representative of the chemical industry. – Most suppliers transfer the duties to us in full. Suppliers treat them as a tax, and taxes are always transferred to consumers – one of the managers announced in the report of the Supply Management Institute (ISM). – The duties themselves introduced almost so much confusion in the supply chains as Covid -19 – a representative from the electrical equipment industry echoed.

– Business and investors are still dealing with great uncertainty associated with the height of customs tariffs and fiscal policy, as well as what the response of monetary policy will be – said Bill Merz, head of capital markets research at the US Bank Wealth Management.

A little more can be explained later in the week in which we will get a series of reports from the American labor market. Already on Tuesday, it will be a Jolts survey measuring the number of vacancies, on Wednesday ADP report measuring a change in employment in the private sector, on Thursday Challenger report (giving the number of announced exemptions in the corporate sector), and Friday's official report of the Government Office of Labor Statistics.

KK

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