Newscasts - Trading At Noon: Wall Street's indices fall after manufacturing activity dropped to an 8-month low

Marathon Oil

01/08/2024 17:00

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Source: 'Reuters - Business videos'

Description: Treasury yields fell below 4% for the first time since February
after the ISM manufacturing PMI dropped to an eight-month low in July amid a
slump in new orders. The index dropped to 46.8 last month, the lowest reading
since November, from 48.5 in June.
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Video Transcript:

Wall Street indices fall after manufacturing activity dropped to an 8-month
low. Welcome to Trading at Noon. I'm Ludovica Brignola. Treasury yields fell
below 4% for the first time since February, after the ISM's manufacturing PMI
dropped to an 8-month low in July, amid a slump in new orders. The Index
dropped to 46.8 last month, the lowest reading since November, from 48.5 in
June. The number of Americans filing new applications for unemployment
benefits increased to an 11-month high last week, suggesting some softening in
the labor market. Investors are now looking ahead to nonfarm payrolls due out
tomorrow. The economy may have added 175,000 jobs in July. Wall Street
benchmarks opened higher after the Federal Reserve on Wednesday signaled a
September rate cut and after the Bank of England cut rate from 16-year highs.
Indices then reversed course on the release of that ISM number. Meta is
surging though, thanks to a rosy sales forecast. Its second quarter revenue
beat estimates and it also posted an upbeat third quarter sales forecast,
pointing to the possibility that its artificial intelligence costs would be
covered. US oil and gas producer ConocoPhillips posted a second quarter profit
that beat Wall Street estimates on Thursday benefiting from higher output and
oil prices. This comes as Conoco Phillips is pursuing a $22.5 billion takeover
of Marathon Oil. Biogen lifted its full-year profit forecast on Thursday due
to cost cuts and better-than-expected sales of its various treatments, even as
the US adoption of its Alzheimer's drug remains slow. Spirit Airlines forecast
its current-quarter revenue below analysts' estimates on Thursday, as excess
capacity and intense competition on its routes hamper the ultra-low-cost
carriers pricing power. It also anticipates a $7.2 million hit to its
third-quarter operating income due to operational disruptions caused by the
CrowdStrike IT outage, which forced the carrier to cancel 470 flights. Oil
prices reversed gains on the ISM number they had been higher after the killing
of a Hamas leader in Iran raised the threat of a wider Middle East conflict
and on signs of strong oil demand in the US. A meeting of top OPEC+ ministers
has kept oil output policy unchanged including a plan to start unwinding one
layer of output cuts from October. And repeated that the hike could be paused
or reversed if needed. Well, that is Training at Noon