Stock Market Update

[BRIEFING.COM] The major indices trade near session highs. The Dow Jones Industrial Average is nearly 300 points higher and the S&P 500 trades up about 45 points.

The ISM Services PMI increased to 56.0% in October (Briefing.com consensus 53.5%) from 54.9% in September. That is the highest reading since July 2022. The dividing line between expansion and contraction is 50.0%, so the October reading reflects services sector activity accelerating from September.

The key takeaway from the report is that the pace of expansion in the largest sector of the U.S. economy accelerated to a two-year high with employment activity returning to expansion after a brief contraction in September. The Backlog Index showed a deepening contraction, which could slow the pace of expansion in the coming months.

Treasury yields are higher after the data. The 10-yr yield was at 4.33% shortly before 10:00 ET, but moved to 4.35% in response.