Last week's employment report has dominated the business, financial, and political news over the weekend. With no action expected from Congress, attention will focus on the Fed. Since Chairman Bernanke will testify before the Congressional Joint Economic Committee on Thursday, we will soon have an update on Fed thinking.
Mark Thoma raises the policy question and provides helpful context.
Improved ISM Services Results Boosts Equity Markets
U.S. equity markets rose sharply following the release of a better than expected ISM Service Sector Report. Trader demand for more risky assets was up even before the U.S. markets opened, and the friendly ISM Report helped drive them higher. Oversold short-term conditions also helped to fuel the rally.
The first trading day in the month of September has been extremely active, which is characteristic of thin trading conditions. U.S. economic data was positive providing temporary relief for the equity and currency markets but the rally was short-lived as concerns about fresh losses in the banking sector swept over the market.
ISM Non-Manufacturing Numbers Leaked - 41.9 v. 53 Expected
The ISM Non-Manufacturing numbers were released an hour early today as a result of rumors of the numbers being leaked across the market. Consensus for the ISM Non-manufacturing were 53 with the index reporting 41.9. Does it mean that the US is officially in a period of contraction? I figured we were a little while ago but it's always nice to have numbers to back it up.