U.S. Stocks Trade Higher As Crude Oil Gains 1% and ISM Manufacturing PMI Tops Expectations

Photo of author

By Ronald Tech


U.S. stocks found themselves in a buoyant mood midday on Thursday with the S&P 500 increasing by around 0.5%.

The Dow was up by 0.23% at 38,238.99, while the NASDAQ rose by 0.54% to 15,245.46. Not to be left out, the S&P 500 also joined in on the action, gaining 0.48% to hit 4,868.71.

Feeling festive? Consumer staples shares were in party mode, rising by an impressive 1.4% on Thursday, while the financial sector wasn’t in the mood, with shares falling by 0.9%.

Let’s Get Into the Nitty-Gritty

The ISM manufacturing PMI for the month of January surpassed expectations, hitting 49.1, the highest level since October 2022. This comes compared to 47.1 in December, well above the market estimates of 47.

Movers and Shakers

Feeling the love, Cimpress plc’s (NASDAQ:CMPR) share price surged by a whopping 24% to reach $93.21. This surge occurred after the company reported better-than-expected second-quarter financial results and announced a $150 million share repurchase authorization.

Meanwhile, NeuroBo Pharmaceuticals, Inc. (NASDAQ:NRBO) also rode the wave, experiencing a 55% surge to hit $5.07 after the announcement of FDA clearance for a Phase 1 clinical trial of DA-1726 for the treatment of obesity. And not to be outdone, Celularity Inc. (NASDAQ:CELU) also joined the party, witnessing a 28% gain to $0.4861 after forecasting FY24 net sales of $50 million to $56 million.

Sadly, it wasn’t all roses and rainbows. Revelation Biosciences, Inc. (NASDAQ:REVB) saw its shares plummet by 61% to $3.4450 following the announcement of a $6.2 million public offering. Equally disheartening, shares of Peloton Interactive, Inc. (NASDAQ:PTON) were down by 22% to $4.3150 after the company reported mixed second-quarter financial results and issued third-quarter revenue guidance below estimates. On a similar note, Volcon, Inc (NASDAQ:VLCN) nosedived 24% to $0.1020 after announcing a 1-for-45 reverse stock split.

Commodity Chronicle

In the commodities arena, crude oil emerged as the hero of the day, trading up by 1.1% to hit $76.70, while gold also made gains of 0.5% at $2,077.90. Silver got in on the action too, trading up by 0.4% to $23.26 on Thursday, but copper was feeling blue, falling by 1.1% to $3.8645.

Turning to Europe

European shares had a bit of a rough day. The Eurozone’s STOXX 600 fell by 0.45%, London’s FTSE 100 fell by 0.22%, and Spain’s IBEX 35 Index fell by 0.74%. The German DAX, French CAC 40, and Italy’s FTSE MIB Index also went down swinging, with falls of 0.39%, 1.06%, and 0.27%, respectively.

See also  Why Wait? Alibaba Stock (NYSE:BABA) Why Wait? Alibaba Stock (NYSE:BABA)

In the Eurozone, the inflation rate landed at 2.8% year-over-year in January, slightly lower than the 2.9% in the prior month. HCOB Eurozone manufacturing PMI surged to 46.6 in January, marking the highest level in ten months. However, the S&P Global UK manufacturing PMI took a downward turn to 47 in January compared to the preliminary reading of 47.3. Meanwhile, German manufacturing PMI sparkled, rising to 45.5 in January from 43.3 in December, and the HCOB France manufacturing PMI also flexed its muscles, climbing to 43.1 in January from 42.1 the prior month.

Asia-Pacific Adventure

Across the pond, Asian markets had a mixed bag of results. Japan’s Nikkei 225 fell by 0.76%, Hong Kong’s Hang Seng Index gained 0.52%, China’s Shanghai Composite Index fell by 0.64%, and India’s S&P BSE Sensex dipped by 0.14%.

The Hong Kong Monetary Authority chose to stand pat, maintaining its base rate at 5.75%. Retail sales in Hong Kong put on a 4.8% year-over-year show in December, compared to a revised 12.4% surge in the previous month. The au Jibun Bank Japan manufacturing PMI made a small move, edging up to 48.0 in January from 47.9 in December. However, the HSBC India manufacturing PMI dipped to 56.5 in January versus a flash reading of 56.9. The Caixin China general manufacturing PMI played it cool, remaining unchanged at 50.8 in January.

Economic Explorations

In economic news, nonfarm business sector labor productivity stepped up by 3.2% in the fourth quarter compared to a revised 4.9% increase in the third quarter. Unit labor costs decided to take a different path, rising by an annualized 0.5% in the fourth quarter versus a revised 1.1% decline in the prior period. U.S. initial jobless claims increased to 224,000 in the week ended January 27, compared to a revised 215,000 in the prior week and the market estimates of 212,000. The S&P Global US manufacturing PMI rose to 50.7 in January versus a preliminary reading of 50.3. Construction spending was a bright spot, rising by 0.9% month-over-month to an annual rate of $2,096 billion in December.