LIVE MARKETS-Autumn in New York: Empire State flips negative
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AUTUMN IN NEW YORK: EMPIRE STATE FLIPS NEGATIVE
Investors embarked on Fed week with a whiff of disappointment from the New York State manufacturing sector.
The New York Fed's Empire State index USEMPM=ECI printed at -8.7 for September in an unexpected reversal of August's 11.9 reading. Analysts expected the number to land at an even 5.0, reflecting some loss of momentum. But flipping into negative territory, which indicates a monthly contraction of factory activity, was not in the cards.
Drilling down, the crucial new orders component took a nosedive, dropping to -19.6 from 15.4, while employment also dipped into contraction, falling to -1.2 from 4.4.
On a positive note, prices paid - an inflation predictor - cooled by 8 points, from 54.1 to a still-elevated 46.1. A combination of hot input costs and softening demand is considered a toxic cocktail, keeping stagflation worries alive.
"Capital spending plans continued to be soft," writes Richard Deitz, Economic Research Advisor at the New York Fed. "Firms expected some improvement in conditions in the months ahead, but optimism remained subdued."
"Employment levels are expected to be flat over the next six months," Deitz added.
The U.S. manufacturing sector continues to struggle with supply chain and price pressures arising from ongoing trade and tariff disputes. Almost two weeks ago, the Institute for Supply Management's Purchasing Managers' Index showed broader U.S. factory activity has been in contraction for six months.
The Philadelphia Federal Reserve will help provide a more complete overview of Atlantic region manufacturing activity when it releases its Philly Fed index on Thursday.
(Stephen Culp)
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EARLIER ON LIVE MARKETS:
WALL STREET SET TO OPEN FED WEEK HIGHER WITH TESLA RALLY - CLICK HERE
ARNINGS EXPECTATIONS ARE STILL TOO STINGY CLICK HERE
EARNINGS EXPECTATIONS ARE STILL TOO STINGY - CLICK HERE
WHY MORE INSURANCE M&A COULD BE COMING - CLICK HERE
EQUITY POSITIONING OVERWEIGHT, BUT SENTIMENT STILL SHAKY- CLICK HERE
FINANCIALS AND DEFENCE LIFT THE STOXX - CLICK HERE
BEFORE THE BELL: FRENCH STOCKS SHRUG OFF FITCH - CLICK HERE
IT'S ALL ABOUT CENTRAL BANKS THIS WEEK - CLICK HERE
US premarket snapshot https://tmsnrt.rs/3Viuhfx
Empire State 
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