The markets continue to experience more churning action. While stocks were mixed today, selling pressure was concentrated mostly in large growth stocks like Amazon, FB and Google while banks, utilities, real estate and materials were mostly higher. At the close the Dow was up 4 points at 24,819. Trading volume was heavier than what we saw on Friday. The NASDAQ fell 120 points to 7,333 and the S&P 500 was also lower. The yield on the 10-year treasury continues to fall and now stands at 2.08%.
Economic data out today showed a slowing in the growth rate for manufacturing. The ISM index declined to 52.1 in May coming in below estimates calling for a reading of 53. Meanwhile the new order index increased to 52.7 indicating future activity should be ok. The employment index increased to 53.7 and the prices paid index also increased to 53.2 from a reading of 50 in April. The overall tone of the reports shows manufacturing growing but at a slower rate. Major concerns cited in the report were trade disputes with China and a tight labor market.
Shares of Boeing fell to a new low as the company and the FAA released news about defects in the manufacturing process of leading-edge slate tracks which are part of the wing assembly for the 737 Max. The parts will apparently need to be replaced as they could be subject to cracking. On top of that piece of news Azerbaijan airline AZAL canceled a $1 billion contract to buy 10 Boeing 737 Max jets. On the flip side the Puget Sound Business journal is reporting that Air New Zealand (home of the flying haka) gave a commitment to Boeing for eight new 787-10’s which is the largest airplane in the lineup and can carry 330 people.