Monday morning at 10am, we get a read on November manufacturing with the release of the ISM report. Readings above 50 indicate growth while readings below 50 imply a contracting economy. With the consensus forecasting a reading of 51.5, expectations are calling for very modest growth.
In our Database of Economic Indicators we track how the market reacts to over 35 different economic indicators based on how they come in versus expectations. Below we highlight the overall summary for the S&P 500 and its sectors on ISM report days. As the results illustrate, weaker than expected reports are more common (56.6%) than stronger than expected reports (41.6%). The average performance of the S&P 500 and each of its sectors is also better on days when the report is weaker than expected as opposed to when it is stronger.
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