Dallas Fed Manufacturing Index Exceeds Analyst Expectations

Key Insights

• Dallas Fed Manufacturing Index decreased from -19.9 in November to -9.3 in December. 
• Production Index improved from -7.2 to 1.4.
• New Orders Index grew from -20.5 to -10.9.

On December 26, the Federal Reserve Bank of Dallas released Dallas Fed Manufacturing Index report. The report indicated that Dallas Fed Manufacturing Index declined from -19.9 in November to -9.3 in December, compared to analyst consensus of -20.5.

According to the report, Texas factory activity stabilized in December after contracting in November. Production Index increased from -7.2 in November to 1.4 in December. New Orders Index improved from -20.5 to -10.9, while Company Outlook increased from -18.8 to -11.0.

Longer-term Treasury yields were mostly flat after the release of the report. It looks that bond traders are not ready for big moves after Christmas.

U.S. Dollar Index settled near 101.60. The American currency remains under pressure as traders bet on dovish Fed.

Gold remained stuck below the $2060 level as traders waited for catalysts. From a big picture point of view, gold bulls stay focused on the weakness of the U.S. dollar.

SP500 pulled back from session highs as traders reacted to the better-than-expected report. At this point, it looks that SP500 needs stronger catalysts to climb above the recent highs at 4787.

For a look at all of today’s economic events, check out our economic calendar.