By Bryan McCormick
The economic calendar is relatively light today, with the potential for markets to be quiet in the first few sessions after the Memorial Day holiday.
Motor Vehicle Sales will be released today. Generally each company begins issuing results at noon ET, though there is no fixed timetable for the releases. Domestic sales in aggregate are expected to come in at 8.9 million. Ford (NYSE:F), Honda (NYSE:HMC), Toyota (NYSE:TM), and Daimler (DAI) may be active before and after the reports.
The ISM Manufacturing Index will be reported at 10 a.m. ET. Consensus calls for a slight drop from previous levels, down to 59.5 from the previous 60.4. The range of expected values is quite wide, with 57.5 at the low end, which would be bearish, and 61.3 at the high end, which would be bullish.
Readings above or below the range would be surprises that would likely increase the reaction to the number significantly. A lower number would be a negative outlier surprise.
Construction Spending will also be released at 10 a.m. ET. The forecast calls for no change, but the range of expecations is wide, from a bearish -0.8 percent to a bullish 0.5 percent. The SPDR S&P Homebuilders (NYSEARCA:XHB) may be active before and after this report, as well as banks with large mortgage exposure such as Bank of America (NYSE:BAC), Citigroup (NYSE:C), JP Morgan (NYSE:JPM), and Wells Fargo (NYSE:WFC).
(Chart courtesy of tradeMONSTER)