Stable manufacturing and auto sales data are expected Tuesday after Monday's weak Chicago-area manufacturing data, one of the few disappointing reports released in the lead-up to the impending interest rate hike by the U.S. Federal Reserve.
The Institute of Supply Management (ISM) issues its purchasing managers index at 10 a.m. EST, 15 minutes after Markit Economics releases its own PMI. On Monday, a report showed Chicago-area manufacturing contracted in November. While the Chicago data is often taken as an indicator of the ISM report, the most recent report may reflect weakness specific to heavy-equipment manufacturers in the area, Wall Street Journal said.
The ISM report is expected to register 50.3 for November compared to 50.1 for October, according to fxstreet.com. The Markit report is expected to register 52.6 in November, the same as in October. In both cases, 50 and above indicate expansion.
Car sales are expected to slip to an annualized 18.1 million from 18.2 million, fxstreet.com said. The sales numbers, however, are expected to be a record for the month of November -- usually a slow month -- because of bigger holiday promotions, the Detroit Free Press said.
Also due, construction spending, which climbed to a 7 1/2-year high in September and is expected to show a 0.5 percent increase.
The Fed is expected to raise interest rates this month for the first time in nine years, with improving employment and other data indicating the economy can take higher rates. The November employment report is due Friday.