News

United States ISM Manufacturing New Orders Index dipped from previous 49.4 to 47.4 in November

United States ISM Manufacturing Employment Index declined to 44 in November from previous 46

Copper and PGMs stand out as traders aggressively stockpile metals, straining already thin global inventories.

Sector Overview

Today’s US stock market heatmap reveals significant sector disparities, with the Technology sector seeing substantial weaknesses, while Healthcare demonstrates resilience. Key tech players like Microsoft (MSFT) and Palantir (PLTR) are down by 1.03% and 2.53% respectively, indicating bearish sentiment within software infrastructure.

📉 Technology Sector Declines

• Microsoft (MSFT) has faced a decline of 1.03%, highlighting challenges within software infrastructure.
• Nvidia (NVDA) and Advanced Micro Devices (AMD) are also down by 1.30% and 1.43%, contributing to a negative semiconductor outlook.
• Palantir (PLTR) stands out with a significant drop of 2.53%, hinting at specific concerns or broader sector challenges.

🔬 Healthcare Resilience

• Eli Lilly (LLY) edges up by 0.06%, reinforcing stability and positive sentiment within the healthcare sector.
• Merck & Co (MRK) remains steady with a minor uptick of 0.29%, supporting the consistent performance in pharmaceuticals.

Market Mood and Trends

Overall market sentiment leans towards caution, with technology stocks generally underperforming due to potential industry-specific concerns and investor hesitancy. However, healthcare’s steadiness provides a counterbalance to today’s market dynamics. Investors seem wary of making aggressive moves amidst technology-driven volatility.

Strategic Recommendations

Investors should consider shifting focus towards the healthcare sector to capitalize on its steady performance amidst today’s tech sell-off. Keeping a close watch on the semiconductor space is advisable, especially given the declines in key players like NVDA and AMD.

For those considering diversification strategies, balancing tech exposure with healthcare might prove beneficial. It’s vital to remain vigilant against ongoing shifts in investor sentiment, with an eye on emerging opportunities in non-tech sectors.

Stay updated with real-time data and market analyses at InvestingLive.com for comprehensive insights and strategic portfolio adjustments.

This article was written by Itai Levitan at investinglive.com.

• Prior month 51.9

Details from S&P Global:

• Operating conditions improved for the fourth straight month in November, supported by a solid rise in production and further job gains.

• Overall performance was held back by a sharp slowdown in demand growth, driven by weaker sales.

• Weak demand caused an unprecedented second straight monthly surge in finished-goods inventories, the largest rise in the survey’s 18-year history.

• Inflation pressures remained historically elevated, with tariffs frequently cited for pushing input costs higher.

• Manufacturers passed along less of the cost increase, resulting in one of the lowest selling-price inflation readings of the year amid intense competition and soft demand.

• The headline S&P Global US Manufacturing PMI registered 52.2, down from 52.5, signaling continued—but slower—expansion.

• Output rose at the fastest pace since August, supported by gains in both new and existing client orders.

• Despite the uptick in orders, overall demand was only modest and slower than October due to ongoing uncertainty.

• Export demand remained a drag, with new export orders falling for the fifth consecutive month—the steepest drop since July—linked to tariffs and weaker demand from neighboring and Asian markets.

• Sales fell short of expectations for some firms, leading to unintended stockpiling as production outpaced orders.

• Business confidence jumped to its highest level since June, driven by plans for new products, higher investment, and expectations of stronger government spending after the federal shutdown ended.

• Firms added staff to fill vacancies and in anticipation of rising production and sales; employment growth was the strongest in three months.

• Backlogs of work fell modestly for the third month in a row, indicating firms kept ahead of workloads.

• After stockpiling earlier in the year, firms were cautious with purchasing; input buying rose only marginally.

• Supplier delivery times worsened for a third consecutive month, with logistical delays at tariff-affected borders cited.

• Tariffs continued to fuel elevated input-price inflation, especially in metals, while selling-price inflation—though still marked—eased to one of its lowest levels this year.

The more important ISM Manufacturing PMI for November will be released at the top of the hour with expectations of 49.0 versus 48.7 last month. The price is paid index is expected at 57.0 versus 58.0. The employment index came in at 46.0 last month while the new orders were at 49.4 last month

This article was written by Greg Michalowski at investinglive.com.

United States S&P Global Manufacturing PMI above forecasts (51.9) in November: Actual (52.2)

The British Pound (GBP) softens against the Japanese Yen (JPY) at the start of the week as hawkish comments from the Bank of Japan (BoJ) Governor Kazuo Ueda lift the Yen across the board. GBP/JPY trades near 205.25 at the time of writing, marking its lowest level in five days.

USTR is confirming earlier reports that there is an agreement in principle on pharmaceutical pricing between the US and UK.

• The deal secured continued UK invested by UK pharmaceutical companies in the US
• Deal will strengthen supply chains a great job in the US.
• Administration is reviewing drug pricing practices of many other US trade partners.
• Deal calls for UK NHS to increase that price it pays for new medicines by 25%.
• US will refrain targeting UK pharmaceutical pricing practices and any future section 301 investigation

This article was written by Greg Michalowski at investinglive.com.

• Prior month 49.6
• S&P Global manufacturing PMI 48.4
• The index has been below the critical 50.0 no change more for 1/10 consecutive month
• Similar trends were observed for both production and new
  orders. Firms continued to note a general air of uncertainty
  in product markets, which resulted in subdued demand and
  modest contractions in both output and new work. This was
  again especially the case for new export trade, which fell for
  a tenth successive month in November.Tariffs remained a
  factor weighing on international demand.
• The general lack of demand and falling production
  requirements tended to discourage firms from hiring
  additional workers in November.

• Firms had enough capacity to handle workloads, shown by a steep and accelerated drop in backlogs—the sharpest contraction since July.

• Business confidence stayed positive, supported by hopes that new product launches would attract new clients.

• Overall confidence, however, remained historically subdued due to ongoing uncertainty, particularly around tariffs.

• Despite expectations for higher production, firms cut purchasing activity and relied more on existing inventories.

• Both buying activity and stocks of purchases posted their largest declines since July.

• Longer supplier delivery times also pushed firms to use existing inventory, and many reported shortages of inputs at vendors.

• Tariffs and higher supplier charges raised input costs in November, though overall inflation slowed to its weakest pace in over a year.

• This softer cost environment contributed to a slower rise in output prices, with competitive pressures further limiting firms’ ability to increase selling prices.

From Paul Smith, Economic Director:

• Canada’s manufacturing sector remained in the
  doldrums during November, experiencing concurrent
  – and accelerated – drops in output and new orders.
  Market uncertainty, again linked to tariffs especially
  in relation to international trade, was again noted by
  panellists as leading to subdued performance.
• Firms were subsequently keen to utilise existing
  capacity to deal with current workloads and generally
  refrained from purchasing inputs or replacing any
  leavers at their plants. Workforce numbers subsequently
  fell further.
• However, there is some hope that the worst is behind
  the sector. The contraction in November was relatively
  shallow (despite accelerating since October), whilst
  the impact of tariffs on prices is fading with input
  price inflation dropping to its lowest level in over a
  year. With selling charges also rising at a below-trend
  pace, inflationary pressures appear increasingly well
  contained heading into the end of 2025.

This article was written by Greg Michalowski at investinglive.com.

Canada S&P Global Manufacturing PMI dipped from previous 49.6 to 48.4 in November