ISM Non Manufacturing Survey Results-
- headline index at 50.9% versus 50.0 Consensus
- business activity index 55.1 in sept (consensus 51.5) vs 51.3 in august
- prices paid index 48.8 in september vs 63.1 in august
- employment index 44.3 in september vs 43.5 in august
- new orders index 54.2 in september vs 49.9 in august
- above 50 for first time since aug 2008, at highest since may 2008
- employment index at highest since august 2008
- new orders index at highest since october 2007
Though data is just slightly on the positive side, stocks have reacted negatively and bonds have reacted positively, but only marginally on both accounts.
Stocks have fallen from about 1034 to about 1029. MBS are up 6 ticks on the day to 101-28, and the 10yr is up 10 ticks on the day to 3.18.
MBS Morning Commentary still on the way, but knew you'd be curious about the market reaction after the only scheduled economic indicator data of the day. The reaction so far seems to confirm the burgeoning sentiment that "it will take a lot of positivity in data to sustain the pace of the stock rally seen in recent months. There's some very important resistance at 1028 on the S&P and this is pretty much where it bounced after ISM. So additional upside in bonds is tough going unless stocks are willing to show that kind of weakness...
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