Dallas Fed Manufacturing Index Misses Expectations But Stock Traders Stay Bullish

Key Insights

• Dallas Fed Manufacturing Index increased from -23.2 in June to -20 in July. 
• Chicago PMI improved from 41.5 in June to 42.8 in July. 
• SP500 settled near yearly highs as traders remained bullish.

On July 31, Federal Reserve Bank of Dallas released Dallas Fed Manufacturing Index report for July. The report indicated that Dallas Fed Manufacturing Index improved from -23.2 in June to -20 in July, compared to analyst consensus of -18.

The Company Outlook Index declined to -16.9, while the Production Index held fairly steady at -4.8. According to the report, expectations regarding future manufacturing activity improved in July, so Future General Business Activity Index increased from -4.5 to 4.6.

Today, traders also had a chance to take a look at the Chicago PMI report for July. The report showed that Chicago PMI increased from 41.5 in June to 42.8 in July, compared to analyst consensus of 43.3.

Treasury yields were mostly flat after the release of the economic reports. It looks that bond traders are waiting for additional catalysts.

U.S. Dollar Index settled near the 101.65 level. U.S. dollar is mostly flat against a broad basket of currencies in today’s trading session.

Gold was trading near the $1965 level. Gold is moving higher amid a broad rally in precious metals markets.

SP500 continued its attempts to settle above the 4590 level. The reports did not have a material impact on stock market dynamics, although the weaker-than-expected Chicago PMI report triggered a temporary pullback.

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