Indices started the week in the red zone, despite rebounding somewhat from early low levels. Financial and Consumer Discretionary stocks appeared to sell off on a variety of economic news. The ISM Manufacturing Index dipped to 57.2 in March from 57.7 in February, which was weaker than expected. On Tuesday, stocks edged higher, led by a rise in shares of manufacturers. By mid-week, stocks fell reversing a surge in prices early in the trading day. The ISM Nonmanufacturing Index fell from 57.6 in February to 55.2 in March, again below expectations. Furthermore, minutes from the March Federal Open Market Committee meeting showed that interest rates could continue to rise even as the Fed’s balance sheet shrinks by tightening monetary policy. Indices ended trading in green territory on Thursday. Energy stocks led the way up on a jump in crude oil prices. In economic news, the Department of Labor showed new jobless claims fell by 25,000 to 234,000, marking a two-year low level. The labor report, while positive, came in well below expectations, which may have dampened investor enthusiasm by the close of the markets last Friday as trading closed in red territory. Department of Labor data showed the U.S. economy added 98,000 jobs in March versus estimates of 180,000. Additionally, the unemployment rate dropped to a 10-year low of 4.5%. Syrian conflict concerns likely also contributed to the decline.
