The market was spinning its wheels all day long Monday getting no help from manufacturing data released that matched consensus estimate but is down for the 14th time in 19 months. Overall manufacturing saw new orders down 1.7%, as there were very few bright spots. Although it wasn’t modelled, it’s clear the street was hoping the weaker dollar would provide for a better showing.
In addition to manufacturing data, the street heard from two Fed officials that didn’t help too much.
Boston Fed President, Eric Rosengren, was more hawkish than the Yellen narrative, but says the market might be too pessimistic about the economy and the prospect of slowly removing accommodation. It must be noted that Rosengren is a voting member, so we must pay attention to his observations.
On the other hand, Minnesota Fed President, Neel Kashkari, isn’t a voting member of the FOMC, but he’s something of a superstar for his role in the bailout. His focus continues to be Wall Street and forcing Congress to take a harder stance on big banks.
So, for the market, it’s slow and steady with a goal of minimal consolidation.