Industrials Down after ISM Data -- Industrials Roundup

05/02/2022 | 04:31pm

Shares of industrial and transportation companies fell after weak factory data.

The Institute for Supply Management's Business Manufacturing PMI fell to 55.4 in April from 57.1 in March, the lowest reading since July 2020 and short of economists' targets.

In Europe, the factory data was also grim. The S&P Global eurozone manufacturing purchasing managers index fell to a 15-month low of 55.5 in April from 56.5 in March.

Wall Street strategists say worries about the implications of recent data, which may mask the strength of consumer demand in the U.S., may be overdone.

"An objective look at the GDP data, or pretty much any other recent economic data for that matter, shows no signs of a recession over the next 12 months," said Solita Marcelli, chief investment officer at money manager UBS Global Wealth Management, in a note to clients.

"Business investment, which in our view is the most important indicator of the economic cycle, rose at a strong 9.2% pace."

Boeing fell for the ninth consecutive session, testing two-year lows, amid fears that lockdowns in China and ongoing struggles with supply-chain issues would weigh on the aerospace giant's growth.

Boeing is now down by roughly 35% for the year to date. Australia's biggest airline, Qantas Airways, said it would order dozens of planes from Boeing's European rival Airbus, including new aircraft to fly nonstop between Australia and the U.S.

Penske Automotive Group is accelerating share buybacks after the car-dealership chain reported steeply higher profits as the industry-wide vehicle shortage continues to bolster prices.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

05-02-22 1630ET

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