Mixed Private-Sector Output Data Affect Equities

After a study revealed that US private-sector activity had improved to the slowest pace of contraction since October, US benchmark market indexes ended the day with mixed results.

The S&P 500 dipped 0.1% to 4,016.9, while the Nasdaq Composite dropped 0.3% to 11,334.3. To 33,734, the Dow Jones Industrial Average increased by 0.3%. The sector with the largest loss was communication services, followed by healthcare. Industrials gained the most, then utilities.

In recent economic news, the preliminary composite production gauge for this month improved to 46.6 from a print of 45 in December, according to S&P Global's SPGI purchasing managers' index. The production of the services sector increased to 46.6 from 44.7, exceeding the 45.5 consensus expectation from Econoday. In contrast to the Street's expectation of 46.5, the manufacturing PMI increased to 46.8 from 46.2. Contraction is indicated by a value below 50.

According to the Richmond Fed, a steep drop in new orders in January caused manufacturing output in the Mid-Atlantic area to shrink more than anticipated. This month, the composite index decreased from 1 in December to a negative 11. There was general agreement on Econoday for a negative 3 reading.

The yield on the US 10-year note dropped by 6.3 basis points to 3.46%, and the rate on the two-year note dropped by 2.8 basis points to 4.21%.

To $80.17 per barrel, West Texas Intermediate crude oil futures had a 1.8% decline.

Next week, Alphabet GOOG, GOOGL, Meta Platforms META, and Apple AAPL are all expected to disclose their most recent earnings.

According to a report from Scotiabank's head of capital markets economics, Derek Holt, "a slight risk-off tone is being applied across asset classes this morning." An important factor is the uncertainty around the extent to which layoff announcements presage earnings doom in the US tech sector.

Sales and profitability for the fourth quarter of Paccar PCAR exceeded market estimates. Its stock increased 8.6%, making it the top gainer on the Nasdaq and S&P 500.

With a 6.2% decline, 3M MMM had the worst performance on the S&P 500 and the Dow. The industrial behemoth revealed a plan to remove about 2,500 manufacturing jobs globally after reporting weaker fourth-quarter profits that fell short of analysts' expectations.

Silver increased by 0.9% to $23.77 per ounce while gold increased by 0.5% to $1,955.50 per troy ounce.