The Closing Look

Stocks fell on Monday on the first trading day of the month and quarter. Economic data was mixed. The PMI Manufacturing Index came in at 51.5, lower than the last reading of 52.0. The ISM Manufacturing Index came in at 51.5, beating estimates for 50.2. Finally, construction spending slid -0.7%, missing estimates for 0.3%. Meanwhile, shares of Tesla (TSLA) gapped up after a report was released that suggested the electric car company will report a solid quarter.

Gary’s Thoughts: Mushy day but no biggie. Bottom line, except for Nasdaq/Ndx, major indices remain stuck in a loooooong range. There was one attempt to break out, but that did not work. Maybe next time. Continued weakness in utilities, real estate, consumer staples (food,beverages,tobacco,household products) and watch gold/silver. It has held recent support 3x but starting to fell it is going to break support to the downside. On the other side, Oils/energy in pay as OPEC finally talks tough on production.