China’s manufacturing reports were mixed, global markets are choppy, several economic reports are due, and three stocks are poised to make big moves today.
Here are four things to know in the market today, June 1st:
1. Mixed Manufacturing News from China
Two reports out of China, the world’s second-largest economy, had mixed results for the country’s manufacturing sector.
China’s official purchasing managers index showed slight expansion in the manufacturing sector last month, which beat expectations. But a survey from Caixin, which focuses primarily on small and medium-sized manufacturers, showed contraction in May.
2. Global Markets Are In a Bad Mood
China’s mixed manufacturing data gave way to negative sentiment in the global market. A warning from the U.S. about traveling to Europe lowered confidence even further.
The U.S. State Department recently issued a travel alert, citing potential terrorist attacks at tourist sites and major events.
Wall Street opened lower, with the S&P 500 down 11.64 points, the Dow losing 119.33 points, and the Nasdaq falling 21.99 points.
In early trading, European markets were mostly lower, and Asian markets closed with mixed results.
3. Investors Are Focused On Economic Updates
A report on the U.S. manufacturing industry is due early today. Economists expect the ISM manufacturing index to show slower activity for the month of May, possibly slipping into contraction.
The U.S. Census Bureau will also be releasing the construction spending report.
The Fed’s Beige Book will be released later this afternoon, which will provide insight into the current state of the U.S. economy.
Meanwhile, Shinzo Abe, Japan’s Prime Minster, has announced that the country will delay a 10% hike to sales tax as the economy is still too fragile for such a measure. The sales tax hike will be pushed to late 2019.
4. 3 Stocks to Watch: Under Armour (UA), Staples (SPLS) and Alibaba (BABA)
Under Armour shares were down in premarket after the company announced that it would lose millions from its relationship with the bankrupt sporting goods retailer Sports Authority.
Staples announced that its CEO, Ron Sargent, would be stepping down in June. The news comes just one week after the company called off its merger plans with Office Depot (ODP) due to antitrust concerns.
Softbank (SFTBY), Alibaba’s largest shareholder, announced that it would be dumping $8 billion in shares. Softbank invested in the company early on, but is now looking to cash in on its 32% stake to boost its financial position.
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