Opening Comment — Monday, May 05, 2025
DJIA: 41,317.43, up 564.47
S&P 500: 5,686.67, up 82.53
NASDAQ: 17,977.73, up 266.99
Stocks lower ahead of PMI data
Stock futures are lower Monday morning as the S&P 500 and the Dow are coming off a nine-day winning streak. Investors are awaiting today’s April services purchasing managers’ index (PMI) data and looking ahead to the Federal Reserve (Fed) meeting concluding Wednesday. As of 7:20 AM ET, the Dow is decreasing 0.6%, while the S&P 500 is down 0.8%. The Nasdaq 100 is falling 0.9% relative to fair value on the GLOBEX.
U.S. equities were higher on Friday as April’s nonfarm payrolls rose more than forecasted, with manufacturing payrolls decreasing less than expected. Meanwhile, the unemployment rate remained unchanged at 4.2% while the labor force participation rate ticked up to 62.6%. March factory orders rose 4.3% month-over-month, slightly less than forecasted. The Dow was up 1.4%, while the tech-heavy Nasdaq Composite rose 1.5%. The S&P 500 increased 1.5% with all 11 sectors finishing in positive territory. The Communication Services sector was the top performer, rising 2.3%, while the Consumer Staples sector was the bottom performer, rising just 0.6%.
On the data front, the finalized reading of S&P Global’s composite PMI for April is expected to come in at 51.2, unchanged from the prior reading, while services PMI is expected to come in at 51.2, compared to the prior reading of 51.4. Meanwhile, the Institute for Supply Management’s April services PMI and the prices paid component are expected to register 50.3 and 61.4, respectively, versus the prior month’s 50.8 and 60.9, respectively.
Across the pond, European stocks are higher to start off the week as the U.K.’s markets are closed for a bank holiday.
Overnight in Asia, many countries were on holiday, including Chinese, Japanese, and South Korean markets. The finalized April readings of Australia’s composite and services PMI were both revised downward to 51.0 from the prior readings of 51.4.
In FOREX trading, the dollar is lower ahead of this week’s Fed and Bank of England meetings, scheduled to conclude on Wednesday and Thursday, respectively.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 1.6% lower at $57.38/barrel as the Organization of the Petroleum Exporting Countries and their allies announced plans to bring on more production than previously planned.
In the metals complex, gold is 2.4% higher at $3,320.70/ounce following a weakening dollar.