ISM Manufacturing Index and SOX Philadelphia Semiconductor Index

ISM Manufacturing Index vs. Semiconductors Semiconductors are discounting a substantial rise in the U.S. ISM Manufacturing PMI, which suggests a robust expansion in manufacturing activity and overall economic growth. Image: BofA Global Investment Strategy

ISM Manufacturing PMI and ISM New Orders – Inventories

ISM Manufacturing PMI and ISM New Orders – Inventories The spread between U.S. ISM New Orders and Inventories suggests a potential rise in the ISM manufacturing PMI, with new orders increasing at a faster rate than inventories. Image: BofA Global Investment Strategy

ISM Manufacturing Index vs. S&P 500 Index

ISM Manufacturing Index vs. S&P 500 Index This chart shows the correlation between the ISM manufacturing index and the S&P 500 index year-over-year percent change, since 2011. The U.S. ISM Manufacturing Index in January stands at 49.1%, exceeding the consensus forecast of 47.2%, which is an encouraging sign. Click the Image to Enlarge

U.S. ISM Manufacturing PMI vs. S&P 500 EPS Growth

U.S. ISM Manufacturing PMI vs. S&P 500 EPS Growth The S&P 500 12-month forward EPS suggests that the U.S. ISM Manufacturing Index will rise to 52, potentially leading to an increase in manufacturing activity. Image: BofA Global Investment Strategy

U.S. Nonfarm Payrolls vs. U.S. ISM Manufacturing PMI

U.S. Nonfarm Payrolls vs. U.S. ISM Manufacturing PMI When the ISM manufacturing index is below 50, it suggests a contraction in manufacturing activity, which may impact payrolls, but the relationship between the index and actual payrolls is not straightforward. Image: BofA Global Investment Strategy

Sentiment – NFIB Small Business Optimism Index

Sentiment – NFIB Small Business Optimism Index The combination of rising interest rates, a tight labor market, and inflation has contributed to the low levels of optimism among small businesses. Will sentiment improve in 2024? Image: BofA Global Research

ISM Manufacturing PMI vs. ISM New Orders – Inventories

ISM Manufacturing PMI vs. ISM New Orders – Inventories The U.S. ISM New Orders less Inventories spread continues to suggest a higher ISM Manufacturing PMI. This correlation points towards a positive outlook for the manufacturing sector. Image: The Daily Shot

ISM Manufacturing Index and Autos vs. Retail

ISM Manufacturing Index and Autos vs. Retail When there is robust economic growth, it is generally expected that the autos sector would outperform the retail sector. Image: Goldman Sachs Global Investment Research