Home›Forex›Major Pairs›Dow slips despite strong mid-Atlantic manufacturing an…

Dow slips despite strong mid-Atlantic manufacturing and jobless claims

Manufacturing activity in the region hit a five-year high, while the Philadelphia Fed activity index surged to 47.4 from 41.4, outpacing expectations of 25.

Reported · Written up by our desk · Major Pairs

The Dow Jones Industrial Average traded near 53,050 and was down more than 400 points on the session after two strong US economic releases in a tight 12:30 GMT window were sold on delivery, according to FXStreet.

Manufacturing in the mid-Atlantic region posted a five-year high, with a six-month outlook at its best since August 1983. Weekly jobless claims fell to 206K versus a 210K consensus and a 212K prior, while the Philadelphia Fed's current activity index rose to 47.4 in August from 41.4.

FXStreet said the optimism carried a second-order effect through pricing expectations, as forward-looking components pushed higher. The forward-looking general activity measure jumped to 73.6, future new orders reached 66.0, and future shipments rose to 63.5, while future prices paid climbed 6 points to 62.9 and future prices received rose 18 points to 59.8, both back above long-run averages.

The outlet linked the selloff to rising bond yields, noting the ten-year yield hovered near 4.70% and the 30-year yield moved back above 5.25% after a brief retreat. It added that the US Treasury's plan to at least double longer-dated buyback operations to 4 billion dollars from 2 billion dollars was expected to rearrange maturities rather than reduce debt, with the first larger purchase scheduled for September 9.

Latest closeDow Jones 53,732.41 ▼0.2%

More like this

Sources