The Closing Look

Stocks were relatively quiet on Thursday as investors waited for Friday’s fake jobs report to be released. Before Thursday’s open, stock futures were slightly higher after several international factory orders jumped, mainly in China, UK, and other parts of Europe. China’s factory activity jumped to the fastest pace in nearly two years and U.K.’s factory activity also rose, offsetting concerns about Brexit. Stocks fell shortly after the open, because two separate U.S. factory reports missed estimates. The ISM purchasing managers index came in at 49.4, missing estimates for 52.2. It was also below the boom/bust level of 50, signalling a contraction. Separately, the PMI manufacturing index came in at 52.0, missing estimates for 52.9. The weaker-than-expected manufacturing data lowered the chance the Fed would raise rates in September. Technically, the bulls showed up on Thursday and defended the 50 DMA line for the Dow Jones Industrial Average. Elsewhere, oil prices plunged again and oil has now fallen over 12% in the past week.

Gary’s Thoughts: See you in morning for fake employment number. Again…there will be no rate hike regardless. We have no clue what the number will be. Expectations are 180,000 fake jobs gained.