Dallas Fed Manufacturing Index Slides In September, Missing Analyst Estimates

Key Insights

• Dallas Fed Manufacturing Index decreased from -17.2 in August to -18.1 in September. 
• Production Index increased from -11.2 to +7.9.
• New Orders Index grew from -15.8 to -5.2.

On September 25, the Federal Reserve Bank of Dallas released Dallas Fed Manufacturing Index report. The report indicated that Dallas Fed Manufacturing Index declined from -17.2 in August to -18.1 in September, compared to analyst consensus of -10.

Production Index improved from -11.2 in August to +7.9 in September, while New Orders Index increased from -15.8 to -5.2. Capacity Utilization grew from -3.7 to +7.8.

The future remains uncertain for survey respondents, and the corresponding Outlook Uncertainty indicator increased from 12.7 in August to 27.0 in September.

Treasury yields continue to move higher as traders fear that Fed may be forced to raise rates one more time this year to fight inflation.

U.S. dollar tests multi-month highs as traders focus on rising Treasury yields. Currently, U.S. Dollar Index is trying to settle above the 106.00 level.

Rising Treasury yields and strong dollar put significant pressure on gold markets. Gold pulled back towards the $1915 level and is moving towards the nearest significant support level, which is located in the $1900 – $1915 range.

SP500 remains under pressure after the release of Dallas Fed Manufacturing Index report. SP500 settled below the 4320 level as the pullback continues.

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