June ISM manufacturing report comes in below expectations

Yahoo Finance Live anchors discuss June ISM manufacturing report data.

Video transcript

BRIAN SOZZI: Seeing a little bit of a market reversal here. Stocks were under pressure. Some of them turned good.

JULIE HYMAN: Yes, but now this number is not so good.

BRIAN SOZZI: Not so good.

JULIE HYMAN: So the ISM manufacturing report coming in at 53. 54 and 1/2 was the estimate. So unlike the S&P Global number, this one missing estimates. So, again, this is for the month of June. And this is what was more broadly expected I don't see any effect in the market. We'll continue to watch as-- see if that trickles through. The price's paid component, though-- maybe this is giving a little silver lining to folks-- it's coming in at 78 and 1/2.

That's lower than the 80 that was estimated. And it's a decrease from the 82.2 level on prices paid in the prior month. New orders weaker than expected, 49.2 versus the 52 estimated. And the employment index is contracting as well, at 47.3. So on balance, we are starting to see this rollover that we've been broadly expecting in some of this economic data, this one much more so than in the S&P report.

BRIAN SOZZI: Seeing a little bit of that rollover in inflation. We saw a little bit of that as well in the PCE earlier in the week.

JULIE HYMAN: Well, again, it appears to be demand-led, right, that people-- that maybe there are fewer orders, these new orders contracting, and then seeing that number maybe moderate a little bit as well.

BRAD SMITH: Yeah, and just in terms of the PMI that we had touched on earlier, Chris Williamson, chief business economist at S&P Global Market Intelligence, saying, the survey has fallen in June to a level indicative of the manufacturing sector acting as a drag on GDP, and with that drag set to intensify as we move throughout the summer as well. So that's something to keep an eye on.