Stock Market Update

[BRIEFING.COM] The S&P 500 (-3.4%) is flirting with correction territory, trading nearly 9.8% below its high close on July 16. At this morning's low, the S&P 500 was down 10.7% from that level.

The ISM Non-Manufacturing Index rose to 51.4% in July (Briefing.com consensus 51.3%) from 48.8% in June. The dividing line between expansion and contraction is 50.0%, so the July reading reflects services sector activity expanding after two contractions over the previous three months.

The key takeaway from the report is that overall activity in the largest sector of the U.S. economy rebounded strongly with Indices for Business Activity and Employment jumping back into expansionary territory after contracting in June. 

Treasury yields moved higher in response. The 10-yr note yield is down two basis points to 3.77% and the 2-yr note yield is down one basis point to 3.86%.