Thursday's Market Minute: Between A Rock And A Hard Place

After Tuesday’s weak manufacturing data dropped the major U.S. indices by more than a percentage point two days in a row, investors are keyed into what’s to come: today’s PMI Services and tomorrow’s Employment Situation.

All 11 sectors in the S&P 500 were down yesterday, sending the index below its 100-day moving average, while the VIX spiked above 20. What today’s data can tell us is whether the weakness in manufacturing has bled into the private sector services economy. Manufacturing represents about 10% of our economy, while services represents about 90%. The services side seems to have been in a strong expansion, which the PMI Services data may confirm or contradict when it comes out at 9:45am ET. The market expects a 50.9 level for September, 0.2% higher than in August.

Not all of the pressure falls on this morning though: September jobs data comes out tomorrow at 8:30am ET. One of the most anticipated economic data points, the change in nonfarm payrolls as well as the unemployment rate will indicate whether Tuesday’s fallout is the new trend or just a blip in an overall strong U.S. economy.

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