Stocks End Mixed To Begin The Month Of March  Image: Shutterstock Stocks ended mixed yesterday with the Dow and the small-cap Russell 2000 finishing slightly higher, while the S&P and Nasdaq finished modestly lower. We had a handful of economic reports out yesterday. MBA Mortgage Applications was the first one out of the gate. And that showed mortgages down -5.7% w/w, with purchases down -5.7%, and refi's down -5.5%.
The PMI Manufacturing report came in at 47.3 vs. the consensus for 47.8. A reading above 50 means the manufacturing sector is generally expanding, while a reading below 50 means it's generally contracting.
The ISM Manufacturing Index came in at 47.7 vs. last month's 47.4 and views for 48. That missed the consensus, but is an improvement nonetheless. Although, still under the 50 mark. Construction Spending slipped -0.1% m/m vs. estimates for 0.2%. On a y/y basis it's up 5.7%. A solid increase, albeit down from last month's pace of 8.7%. And the Survey of Business Uncertainty report showed U.S. firms see sales growth up 4.08% in the year ahead period, and employment growth up 4.29%. Both of those are down from last month's snapshot of 4.30% and 4.34% respectively. But the forecast is clearly for growth and not contraction. Today we'll get another look at the economy with Weekly Jobless Claims, and the Productivity and Costs report. Inflation will continue to be a concern for a while. Same for interest rates. We'll get another look at inflation with the next CPI and PPI reports on March 14, and 15.
And then we'll hear from the Fed on rates at the end of their next FOMC meeting on March 21-22. But those are several weeks away. In the meantime, inflation, in spite of still being too high, has moderated quite a bit from last year's summer peak. Interest rates, in spite of still likely to go higher, are closer to the end of their interest rate hike cycle than not. And the economy, even though it has eased, is still chugging along with current quarter GDP estimated to come in at 2.3%. All of those all bullish factors. There's likely to be more volatility as we get closer to the next inflation reports and Fed meeting. But the economy continues to expand. And if the next inflation reports happen to show more easing of inflation, that could send stocks sharply higher. February was a rough month, but stocks are still off to a solid start this year. And well above last year's October lows. And with the seasonal factors on the market's side this year, that too bodes well for stocks. If the move from last year's lows caught you flatfooted. Don't let that happen again. If you're looking for ways to beef up your portfolio on this recent pullback, you should check out our latest commentary on blockchain stocks. While blockchain was put on the map for its use in the cryptocurrency market, it's evolved into an indispensable business tool for processing all types of transactions and data transfers – from financial, to shipping, to health records, and more. It's truly revolutionizing virtually all industries that rely on security, cost efficiency, and speed. And the companies using it are as impressive as the companies providing it. To learn more about how the blockchain technology is shaping the way companies do business, and more importantly, how to profit from it, be sure to read our latest commentary... The Smartest Way to Buy Blockchain Stocks Best,  Kevin Matras
Executive Vice President, Zacks Investment Research | 
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