From Nasdaq: 2024-07-01 13:10:32

Stock indexes were mixed today, with the S&P 500 down -0.04%, Dow Jones down -0.02%, and Nasdaq 100 up +0.06%. Higher bond yields are impacting stocks after US economic news showed declines in the Jun ISM manufacturing index and May construction spending. Overseas stocks are higher with Euro Stoxx 50 at a 2-week high.
The US Jun ISM manufacturing index unexpectedly fell to a 4-month low of 48.5, below expectations. The Jun ISM price paid sub-index also declined to a 6-month low. May construction spending fell -0.1% m/m versus expectations of +0.2% m/m. The markets are discounting a -25 bp rate cut with a 9% chance in July and 59% chance in September.
Interest rates for September 10-year T-notes dropped today to a 2-1/2 week low, as the 10-year T-note yield rose to a 3-week high. European government bond yields are higher. The Eurozone Jun S&P manufacturing PMI was revised upward to 45.8. German Jun CPI (EU harmonized) eased to +2.5% y/y from +2.8%. Swaps are pricing in a 12% chance of a rate cut by the ECB in July.
Cruise line stocks are down, with Norwegian Cruise Line Holdings leading losses at -6%. Chip stocks also declined, with Advanced Micro Devices leading at -4%. O’Reilly Automotive is down after a Q2 sales estimate cut. Tesla is up over +6%, and Merck & Co up over +3%. Spirit AeroSystems is up after Boeing acquisition news.
Cryptocurrency-linked stocks are climbing, with the price of Bitcoin at a 1-week high. Coinbase Global, Marathon Digital, Riot Platforms, and Birkenstock Holding Plc are also up. Earnings reports from Grail Inc. were released on 7/1/2024.

Read more at Nasdaq Inc.: Stocks Waver on Higher Bond Yields and Weak US Economic News