Opening Comment — Thursday, May 21, 2026
DJIA: 50,009.35, up 645.47
S&P 500: 7,432.97, up 79.36
NASDAQ: 26,270.36, up 399.65
Stocks lower before PMI data
Stock futures are lower Thursday morning ahead of today’s release of the preliminary reading of May’s purchasing managers’ indexes (PMI), along with fresh unemployment claims and housing starts data. As of 7:15 AM ET, the Dow and the S&P 500 Index are both decreasing 0.3%. The Nasdaq 100 is falling 0.5% relative to fair value on the GLOBEX.
U.S. equities were higher on Wednesday following market optimism over efforts to end the Iran war. Meanwhile, the Federal Reserve’s (Fed’s) April 29 Federal Open Market Committee meeting minutes showed a majority believing that a future interest rate hike may be necessary to combat inflation if it remains elevated. The Dow was up 1.3%, while the tech-heavy Nasdaq Composite rose 1.5%. The S&P 500 increased 1.1% with eight of 11 sectors finishing in positive territory. The Consumer Discretionary sector was the top performer, rising 2.5%, while the Energy sector was the bottom performer, falling 2.6%.
On the data front, initial jobless claims for the week ending May 16 are expected to come in at 210,000, lower than the prior week’s 211,000, while continuing claims are expected to come in at 1.79 million for the week ending May 9, slightly up from the prior week’s 1.78 million. The Philadelphia Fed will release their May Manufacturing Business Outlook Survey, with the diffusion index of current general activity forecasted to fall to 17.8 from the prior month’s 26.7. Housing starts are expected to have been an annualized 1.410 million in April versus the prior month’s 1.502 million, corresponding to a month-over-month (MOM) decrease of 5.3% versus the prior month’s increase of 10.8%. The preliminary reading of April building permits is expected to come in at an annualized 1.384 million versus the prior month’s 1.363 million, corresponding to a MOM increase of 2.5% versus the prior month’s decline of 11.4%. The preliminary reading of S&P Global’s composite PMI for May is expected to come in at 51.8 versus the prior month’s 51.7, with the manufacturing and services PMIs forecasted at 53.8 and 51.2, respectively, compared to the prior month’s 54.5 and 51.0, respectively. The Kansas City Fed will release their Manufacturing Survey for May, with the composite index expected to come in at 9.0, down from the prior month’s 10.0.
Across the pond, European stocks are lower in mid-day trading as preliminary May manufacturing PMIs for the eurozone, France, and Germany fell more than expected to 51.4, 48.9, and 49.9, respectively, while the U.K.’s reading held steady at 53.7 against expectations of a decline. Meanwhile, preliminary May services PMIs for the eurozone, the U.K., and France declined to 46.4, 47.9, and 42.9, respectively, while Germany’s reading rose more than expected to 47.8.
Overnight in Asia, stocks were mixed as South Korea’s Producer Price Index accelerated to 6.9% year-over-year (YOY) in April. The country’s exports and imports through the first 20 days of May increased 64.8% and 29.3% YOY, respectively. Australia’s preliminary May manufacturing, services, and composite PMIs declined to 50.2, 47.7, and 47.8, respectively. The country unexpectedly lost jobs in April while the unemployment rate rose to 4.5% despite the country’s labor force participation rate falling to 66.7%. The Japanese preliminary manufacturing, services, and composite PMIs for May fell to 54.5, 50.0, and 51.1, respectively. Meanwhile, Japan’s April trade surplus widened, defying expectations for a deficit following stronger-than-expected increases in exports and imports. The country’s core machine orders for March registered a decline of 9.4% MOM and increase of 5.9% YOY.
Forex trading, the U.S. dollar is higher ahead of today’s U.S. PMI data.
Over in the commodity pits, West Texas Intermediate (WTI) crude oil is 2.4% higher at $100.62/barrel partially retracing yesterday’s declines.
In the metals complex, gold is 0.7% lower at $4,513.81/ounce following a strengthening U.S. dollar.