Events · who it helps and who it hurts

ISM manufacturing PMI

A monthly survey of factory purchasing managers; above 50 means factories are growing.

Not on our calendar

The reads below are for when factories report stronger conditions than expected. Expect the opposite when factories report weaker conditions.

Sectors

IndustrialsUsually helpsIndustrial companies sell into exactly this activity.

Basic MaterialsUsually helpsMore building and manufacturing means more demand for raw materials.

Consumer CyclicalUsually helpsA stronger economy means more consumer spending.

EnergyUsually helpsA busier economy burns more fuel.

Financial ServicesUsually helpsBusinesses borrow more when they are growing.

UtilitiesUsually hurtsUtilities fall when a strong economy lifts rates.

Communication ServicesLittle effectLittle direct link.

Consumer DefensiveLittle effectEveryday essentials sell the same either way.

HealthcareLittle effectHealthcare does not track the business cycle.

Real EstateLittle effectMore tenants but higher rates; mixed.

TechnologyLittle effectCompany tech budgets follow growth with a delay; higher rates offset it on the day.

Where each sector’s relative strength sits this week is on the rotation board.

Farm & Heavy Construction MachineryUsually helpsCompanies buy machinery when they expect growth.

SteelUsually helpsNew factory orders mean more steel.

ChemicalsUsually helpsChemical volumes follow factory activity.

RailroadsUsually helpsRailroads carry factory output.