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Dimon speaks—What you need to know in markets on Tuesday

Myles Udland
Markets Reporter

After a rocky start to the trading week, US stocks finished the week’s first day lower, but ultimately little-changed.

The Dow lost 13 points, the S&P 500 was off about 4 points and the Nasdaq lost 17 points. In economic data, Monday featured the March report on auto sales, which was a disappointment, while manufacturing surveys conflicted but still indicated expansion in the sector.

In March, auto sales slowed to a seasonally-adjusted annualized sales rate of 16.6 million cars, according to Autodata, below the 17.2 million expected by analysts.

“The unexpected dip in March auto sales is the latest hard data release to suggest that the Trump reflation trade may have run its course,” said Mizuho economist Steve Ricchiuto.

“The dip in sales should not have caught so many by surprise. In fact, our reading on the industry suggested that sales have been running well ahead of reality for some time,” Ricchiuto added.

“The rising forward rate structure and rising default rate on sub-prime loans all suggest the ability to discount has faded. Additionally, used vehicle prices seem to be weakening as well. All these considerations indicate that this industry, like corporate investment spending, has run its course for the current cycle.

Manufacturing numbers

On the manufacturing side, a reading from Markit Economics showed US manufacturing growth slowed to a six-month low in March, with the firm saying that a “loss of momentum reflected softer rates of output and new order growth, alongside a slower rise in payroll numbers.”

Another manufacturing survey, from the Institute for Supply Management, was in-line with expectations, with this report indicating that commodities cited by industry experts were down in price in March.

Looking out to the calendar for Tuesday, we’ll get data on the trade balance and factory orders in February.

Additionally, Yahoo Finance will host a livestream of a town hall interview with JP Morgan CEO Jamie Dimon, who will also release his latest letter to shareholders in the morning.

Myles Udland is a writer at Yahoo Finance. Follow him on Twitter @MylesUdland

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