|10-Year: +17/32....%.... GNMAs: .... USD/JPY: 112.31.... EUR/USD: 1.1406|
--Worries U.S-China trade deal will be averted after Huawei Technologies CFO is arrested in Canada (and expected to be extradited to U.S) on allegations the company violated U.S. trade sanctions on Iran
--All securities up for the day but finish well off best levels
--ADP employment Change for November: Actual 179,000, Briefing.com consensus 225,000, Prior revised to 225,000 from 227,000
--Q3 Productivity: Actual 2.3%, Briefing.com consensus 2.2%, Prior 2.2%. Unit labor costs: Actual 0.9%, Briefing.com consensus 1.2%, Prior 1.2%
--October Trade Deficit: Actual -$55.5 billion, Briefing.com consensus -$54.7 billion, Prior revised to -$54.6 billion from -$54.0 billion
--Initial Claims for week ending Dec. 01: Actual 231,000, Briefing.com consensus 225,000, Prior revised to 235,000 from 234,000. Continuing claims for week ending Nov. 24: Actual 1.631 million, Prior revised to 1.705 million from 1.710 million
--Factory Orders for October: Actual -2.1%, Briefing.com consensus -2.0%, Prior revised to +0.2% from +0.7%
--ISM Non-Manufacturing Index for November: Actual 60.7%, Briefing.com consensus 59.0%, Prior 60.3%
- The ISM Non-Manufacturing Index rose to 60.7% in November (Briefing.com consensus 59.0%) from 60.3% in October. The November reading was the second-highest reading this year.
- The key takeaway from the report is that the services-providing sector, which accounts for a much larger slice of economic activity than the manufacturing sector does, remains in a healthy and fairly vibrant state.
- The New Orders Index increased to 62.5% from 61.5%.
- The Employment Index dipped to 58.4% from 59.7%.
- The Prices Index rose to 64.3% from 61.7%.
- According to the ISM, the past relationship between the Non-Manufacturing PMI and the overall economy indicates the November reading corresponds to a 4.3% increase in real GDP on an annualized basis.
- Factory orders declined 2.1% in October (Briefing.com consensus -2.0%) following a downwardly revised 0.2% increase (from 0.7%) in September. Excluding transportation, orders were up 0.3%.
- The key takeaway from the report is that it shows a surprising lack of business investment in the face of business-friendly fiscal stimulus measures.
- Shipments of nondefense capital goods excluding aircraft -- a proxy for business investment -- were flat, unchanged from the Advance Durable Orders report, after declining 0.6% in September.
- Total shipments in October for all manufacturing industries were down 0.1% after increasing 0.7% in September.
- Orders for durable goods decreased 4.3% following a downwardly revised unchanged reading (from +0.7%) in September.
- Nondurable goods orders increased 0.3% on top of a downwardly revised 0.5% increase (from 0.6%) in September.
- The inventory-to-shipments ratio held steady at 1.34.
- Yield check:
- 2-yr: -11 bps to 2.69%
- 3-yr: -11 bps to 2.70%
- 5-yr: -10 bps to 2.69%
- 10-yr: -7 bps to 2.85%
- 30-yr: -5 bps to 3.12%