- Futures on the Dow Jones Industrial Average (DJIA) are up Friday thanks to strong Chinese PMI data.
- China’s economy is not on track just yet as there are contradictory data points coming out of the country.
- The October jobs report is due out today and the unemployment rate is expected to increase.
Dow Jones Industrial Average (DJIA) futures are up Friday thanks to positive Chinese data that showed an expansion in factory activity last month, pointing toward a stronger stock market opening. The Caixin/Markit manufacturing Purchasing Managers’ Index (PMI) for October expanded at the fastest pace since February 2017, indicating that the country’s economy could be back on track.
The privately-sanctioned Caixin China PMI came in at 51.7 for October. Any reading above 50 indicates an expansion in factory activity. The October reading beat Reuters’ Caixin PMI forecast of 51.0 and was also better than the September reading of 51.4. According to Dr. Zhengsheng Zhong, the director of Macroeconomic Analysis at CEBM Group (an independent investment research firm):
“Both domestic and foreign demand improved substantially. The subindex for new orders stayed in positive territory and rose to the highest level since January 2013. The gauge for new export orders returned to expansionary territory and reached the highest point since February 2018, due likely to the U.S.’ move to exempt more than 400 types of Chinese products from additional tariffs.”
Dow futures has a China spike
Futures on the Dow Jones Industrial Average increased 49 points to 27,031 at 5.27 am ET after the index ended October in abysmal fashion. The Dow plunged below 27,000 points on Thursday thanks to trade war-related tensions, dropping 140 points to 27,046 at close on Oct.31.