U.S. manufacturing came in slightly below consensus, but the market is reacting more harshly. There was hope of a big number after the resolution of the GM strike. The November read of 48.1 is down from 48.3 in October, but it held above the 47.8 print for September.
It’s been eight consecutive months of softness or contraction and the report cited the usual suspects:
The generally feeling is angst and confusion will be short-lived, but not settled until early 2020.
Investors Ringing Register with Tech
Before the manufacturing data gave would-be sellers the window they were looking for to take profits, Morgan Stanley downgraded Roku to “underweight” noting the 400% rally in the share price.
When a super-hot name like Roku gets hit on a single downgrade, it underscores how anxious some investors might be to cash in given the right impetuous. By the same token, I’m excited to see Roku pullback, as I’ve been looking for a chance to re-enter (we’ve been in the stock three separate times this year).
Interestingly, selling is a lot more intense in NASDAQ, which came into the session up more than 30% for 2019.
Key NASDAQ Composite Technical Support Points
An early test for Nasdaq is 8,570, but 8,500 is the big downside test early in the week. The worst-case scenario is 8,325.
The market still believes the administration will suspend or remove tariffs scheduled for December 15th because Wilbur Ross saber-rattling hasn’t knocked the stuff out of a vulnerable market session.
|Thank you for sending my husband and I the information. We appreciate it.|
Brenda F Wissler on 12/2/2019 9:09:46 PM
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