Markets are coming out of the three-day mid-summer 4th of July holiday feeling pretty good about itself: the S&P 500’s seven-day winning streak is its longest since last August, while the Dow is enjoying four consecutive days closing in the green. Overall, we’ve seen five straight quarters with at least 5% gains, demonstrating the lasting quality of our post-Covid economy.
Compared to last week’s employment data and other reads, such as new and existing home prices, we’re a little more subdued this week. Still a week or so out from the beginning of Q2 earnings season — or at least the busy part of earnings season — our prints from economic indexes begin this week after the opening bell with new Services-sector news.
Expectations for June on the Markit Services PMI are for a 40-basis-point increase month over month to 65.2. On the ISM Services survey, a pullback is expected to 63.3%, down from the 64.0% reported a month ago. These expectations fairly mirror the Markit vs. ISM reads on Manufacturing previously: sequential gains on the former but a slight pullback on the latter. All of these figures are well into the “growth” category, however.
Indexes in today’s pre-market are a decidedly mixed bag at this hour: the Dow looks to open -25 points while the Nasdaq is currently +25. The S&P 500 — with a seven-session winning streak on the line — is flat at +0.25 points.
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