U.S. market indexes were higher on Tuesday. For the day, the Dow Jones Industrial Average closed at 18538.12 for a gain of 46.16 points or 0.25%. The S&P 500 was also higher, closing at 2186.48 for a gain of 6.50 points or 0.30%. The Nasdaq Composite closed higher at 5275.91 for a gain of 26.01 points or 0.50%. The VIX Volatility Index was lower at 11.93 for a loss of -0.05 points or -0.42%.
In the Dow Jones Industrial Average, stocks leading gains included the following:
Chevron (CVX, Financial) 1.49%
McDonald's (MCD, Financial) 1.23
A main focus for the day’s trading on Tuesday was the ISM Non-Manufacturing Index which reported on the U.S. economy’s services sector. The ISM Non-Manufacturing Index was down over 4 points from July to 51.4. The August report was also below consensus of 55.0.
A report from TheStreet provided more detail on the ISM Non-Manufacturing Index.
The lower ISM Non-Manufacturing Index report combined with last week’s weaker data in the manufacturing sector both signal slower growth than expected overall in the economy. In August, the PMI Manufacturing Index was lower at 52.0 versus 52.9. The ISM Manufacturing Index was also lower with the Index falling to 49.4 in August from 52.6 in the previous month’s report.
Despite the lower report, the market gained Tuesday as investors were satisfied with Friday’s employment data and also seem more comfortable with the Fed’s plans for a rate increase.
Other leading economic reports released on Tuesday included the Gallup U.S. Consumer Spending Measure and the Labor Market Conditions Index. The Gallup U.S. Consumer Spending Measure showed consumers spending an average of $91 per day in August, down from $100 per day in the previous month. The Federal Reserve’s Labor Market Conditions Index was lower in August. The Index reading for August was -0.7 which was down from 1.3 in July.
Disclosure: I do not own any stocks included in this article.
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