Opening Comment — Tuesday, August 05, 2025
DJIA: 44,173.64, up 585.06
S&P 500: 6,329.94, up 91.93
NASDAQ: 21,053.58, up 403.45
Stocks higher ahead of PMI and trade data
Stock futures are mostly higher Tuesday morning ahead of today’s June trade balance and July’s services purchasing managers’ index (PMI) from the Institute for Supply Management (ISM). As of 7:15 AM ET, the Dow is little changed, while the S&P 500 is up 0.3%. The Nasdaq 100 is increasing 0.4% relative to fair value on the GLOBEX.
U.S. equities were higher on Monday as factory orders for June declined in line with expectations. The Dow was up 1.3%, while the tech-heavy Nasdaq Composite rose 2.0%. The S&P 500 increased 1.5% with 10 of 11 sectors finishing in positive territory. The Communication Services sector was the top performer, rising 2.6%, while the Energy sector was the bottom performer, falling 0.4%.
On the data front, the U.S. trade deficit is expected to narrow down in June to $61.0 billion from the prior month’s $71.5 billion. S&P Global’s finalized services and composite PMIs for July are expected to come in at 55.2 and 54.6, respectively, both unchanged from the prior reading. Meanwhile, ISM’s July services PMI and the prices paid component are expected to register 51.5 and 66.5, respectively, versus the prior month’s 50.8 and 67.5, respectively.
Across the pond, European stocks are higher in mid-day trading as France’s industrial production for June registered a greater-than-expected increase of 3.8% month-over-month (MOM), while rising 2.0% year-over-year (YOY) against expectations of a decline. The finalized July composite and services PMIs from S&P Global showed slight downward revisions for the eurozone and upward revisions for the U.K., with all remaining in expansionary territory. The eurozone’s Producer Price Index accelerated to 0.6% YOY in June and registered a smaller-than-expected increase of 0.8% MOM, marking a rebound from the previous month's deflation.
Overnight in Asia, stocks were mostly higher as China’s private July services PMI from S&P Global rose further into expansionary territory, while the composite PMI fell slightly, though remained in expansionary territory. Meanwhile, the finalized July composite and services PMIs from S&P Global for Australia and Japan were all revised slightly higher, moving further into expansionary territory. South Korea’s Consumer Price Index eased to 2.1% YOY and increased 0.2% MOM in July.
In FOREX trading, the dollar is higher ahead of today’s U.S. PMI data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 1.2% lower at $65.47/barrel.
In the metals complex, gold is 0.6% lower at $3,355.50/ounce following a strengthening dollar.