Stocks and exchange traded funds (ETFs) are back-and-forth following a weak manufacturing reading this morning.
The Institute for Supply Management said that its index fell to 38.9, the lowest reading in 26 years, says Ellen Simon for the Associated Press.
Any reading below 50 signals a contraction, and it’s far below the expected reading of 41.5.
Construction spending has also fallen, but by a smaller than expected amount, reports Martin Crutsinger for the Associated Press. A rebound in nonresidential activity helped to offset weakness in the sector. Many economists expected a 0.8% drop in spending, but it only fell 0.3%.
- Industrial Select Sector SPDR (XLI), down 34.7% year-to-date