Expected to bolster the suggestive Q1 rebound seen in Chicago area manufacturing, the ISM ticked lower on the month. Estimated to have risen to a 57.7 print, the figure declined below the previous month’s figure, posting a 55.2. Even with the prices paid component rising above consensus, traders deciphered the report as an indication of a potential slowdown forming in the economy. As a result, speculation mounted over the day that the next rate hike would definitely be the last one enacted by the current Federal Reserve Board, bidding the greenback lower. Comparatively, offering some lift in sentiment was the construction spending figures. Expected to rise 0.5 percent, the report was boosted by 0.8 percent as overall spending on a seasonally adjusted annual rate climbed to $1.185 trillion in the month of February. A sign of continued expansion, the month’s report may be a lagging one with the overall sector expected to weaken slightly throughout the year.
Stocks rose higher on the session, climbing 120 points to 11,226.58 adding gains on to the best first quarter performance in seven years. The broader S&P 500 index was higher by 11.85 points to 1,306.68. Equity traders took to the better than expected construction spending figures in bolstering shares coupled with momentum seen on Friday’s session. Shares of Lucent gained 4 cents to $3.09 as it was announced that the combination of Alcatel and Lucent, upon completion, would hold an 18 percent share of the total telecom equipment market. Subsequently, the combined entity plans to cut about 10 percent of the workforce. Verizon stock additionally jumped, rising higher by 55 cents to $34.61. Verizon Communications Inc. announced intent to sell its Caribbean and Latin American telecommunications operations to America Movil SA, owned by Carlos Slim, and Telefonos de Mexico. The deal includes Verizon’s assets in the Dominican Republic, Puerto Rico and Venezuela.
Bonds markets continued to sell off as expectations run high of at least one more 25 basis point rate hike on May 10th, the next time policy makers convene. The benchmark note dipped $1.25 per $1,000 face amount to 97 1/8. Conversely, yields rose 2 basis points to 4.87 percent.
Stocks rose higher on the session, climbing 120 points to 11,226.58 adding gains on to the best first quarter performance in seven years. The broader S&P 500 index was higher by 11.85 points to 1,306.68. Equity traders took to the better than expected construction spending figures in bolstering shares coupled with momentum seen on Friday’s session. Shares of Lucent gained 4 cents to $3.09 as it was announced that the combination of Alcatel and Lucent, upon completion, would hold an 18 percent share of the total telecom equipment market. Subsequently, the combined entity plans to cut about 10 percent of the workforce. Verizon stock additionally jumped, rising higher by 55 cents to $34.61. Verizon Communications Inc. announced intent to sell its Caribbean and Latin American telecommunications operations to America Movil SA, owned by Carlos Slim, and Telefonos de Mexico. The deal includes Verizon’s assets in the Dominican Republic, Puerto Rico and Venezuela.
Bonds markets continued to sell off as expectations run high of at least one more 25 basis point rate hike on May 10th, the next time policy makers convene. The benchmark note dipped $1.25 per $1,000 face amount to 97 1/8. Conversely, yields rose 2 basis points to 4.87 percent.
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