Opening Comment — Tuesday, May 05, 2026
DJIA: 48,941.90, down 557.37
S&P 500: 7,200.75, down 29.37
NASDAQ: 25,067.80, down 46.64
Stocks higher ahead of PMI data
Stock futures are higher Tuesday morning as market concerns for a further increase in tensions in the Middle East eased. Meanwhile, investors are awaiting today’s economic releases, including April services purchasing managers’ index (PMI) from the Institute for Supply Management (ISM) and March job openings data. As of 7:19 AM ET, the Dow is rising 0.1%, while the S&P 500 is up 0.3%. The Nasdaq 100 is increasing 0.5% relative to fair value on the GLOBEX.
U.S. equities were lower on Monday following strikes from both Iran and the U.S. as the latter assisted two vessels out of the Strait of Hormuz. Meanwhile, factory orders for March posted a larger than expected increase of 1.5% month over month (MOM). The Dow was down 1.1%, while the tech-heavy Nasdaq Composite fell 0.2%. The S&P 500 decreased 0.4% with 10 of 11 sectors finishing in negative territory. The Energy sector was the top performer, rising 0.9%, while the Materials sector was the bottom performer, falling 1.6%.
On the data front, the U.S. trade deficit is expected to widen in March to $61.0 billion from the prior month’s $57.3 billion. The finalized S&P Global services PMI for April is expected to remain unchanged from the initial reading of 51.3, while the composite PMI is expected to come in at 52.1 slightly above the initial reading of 52.0. ISM’s April services PMI and the prices paid component are expected to register 53.7 and 73.5, respectively, versus the prior month’s 54.0 and 70.7, respectively. New home sales are projected to have been at an annualized 652,000 pace in March corresponding to a 3.0% MOM increase versus the prior month’s decrease of 17.6%. Meanwhile, the March Job Openings and Labor Turnover Survey (JOLTS) is forecasted to show job openings of 6.85 million, versus the prior month’s 6.88 million. The finalized reading of March building permits will be released today.
Across the pond, European stocks are mostly higher in mid-day trading following yesterday’s confrontation in the Middle East.
Overnight in Asia, stocks were mostly lower as the Reserve Bank of Australia increased its official cash rate target to 4.35%, but signaled the possibility of making no rate change during their next meeting. Meanwhile, the country’s household spending rose by 1.6% MOM in March.
In FOREX trading, the U.S. dollar is slightly higher ahead of today’s U.S. PMI and job openings data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 2.0% higher at $104.25/barrel.
In the metals complex, gold is 0.5% lower at $4,544.79/ounce following a strengthening U.S. dollar.