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Major market averages opened trading on Tuesday to the downside with more data on the labor market and manufacturing on tap.
The Nasdaq Composite (COMP.IND) was 0.4%, the S&P 500 (SP500) was -0.3%, and the Dow(DJI) was -0.1%.
“July ended quietly for markets but the month overall was largely positive for assets across the board,” Deutsche Bank’s Jim Reid said. ” Commodities, and oil (CL1:COM) (USO), stole the show, as supply cuts spurred upward pressure on prices, but the AI excitement saw both S&P 500 and the NASDAQ extend their rally, securing their fifth and fourth consecutive month of positive returns, respectively.”
“However, fixed income took a hit in July, as central banks continued their hiking cycle and near-term cuts continue to be priced out.,” Reid said. “All-in-all, we had the strongest month in performance terms since January, with 32 of the 38 non-currency assets in our sample ending July in positive territory. In YTD terms, 36 out of 38 non-currency assets are now in the green.”
The 10-year Treasury yield (US10Y) was up 6 basis point to 4.01% and the 2-year Treasury yield (US2Y) was up 2 basis points to 4.89%.
On the economic calendar, the June Job Openings and Labor Turnover Survey hits shortly after the opening bell. The consensus is for a drop to 9.71M.
“Nearly 70% of companies do not complete the survey, raising major questions about quality,” UBS’ Paul Donovan wrote. “The data is more likely to reflect changes in labor market churn than absolute labor demand levels.”
At the same time the the July ISM manufacturing index hits. Economists expect a small rise to 47.8.
