U.S. ISM nonmanufacturing index rose 1.5 points to 53.1 in March U.S. ISM nonmanufacturing index rose 1.5 points to 53.1 in March after slipping 2.4 points to 51.6 in February (that was the lowest since February 2010). Components were generally favorable. The employment index bounced to 53.6 from 47.5, though is a little shy of numbers since the summer. New orders improved to 53.4 from 51.3. New export orders recovered to 49.5 from 47.5. Prices paid climbed to 58.3 from 53.7. The composite manufacturing and services index was 53.2 from 51.8.
Treasury Action: yields inched up Treasury Action: yields inched up after a mixed round of data, with claims up and the trade gap wider, though neither really tips the scales on payrolls tomorrow and markets will be following ECB Draghi's words closely. The T-note yield initially rose over 2.805% before pulling back, having bounced yesterday on bearish positioning following the solid ADP jobs print. The 2s-10s spread remains elevated near +235 bp.
Futures remain quiet following release of economic data Stock futures continued to drift following the release of economic data. There were 326,000 initial claims versus the expected 319,000 claims. There were 2.8M continuing claims versus the expected 2.8M. The Trade Balance report showed a deficit of $42.3B versus the expected deficit of $38.5B. Earlier, the Challenger job cuts report showed that job cuts were down 30.2% versus the same period a year ago.
Jobless Claims data reported Week of 3/29 Jobless Claims up 16K from prior week