Stock Market Update

[BRIEFING.COM] The major indices trade lower across the board.

The ISM Services PMI decreased to 52.8% in January (Briefing.com consensus 53.9%) from a downwardly revised 54.0% (from 54.1%) in December. The dividing line between expansion and contraction is 50.0%, so the January reading reflects services sector activity expanding but at a slower pace than the prior month. January marked the 53rd time in 56 months that the Services PMI indicated expansion.

The key takeaway from the report is that the pace of expansion in the nation's largest sector decelerated in January. That will likely temper growth forecasts for the first quarter.

Treasury yields were already lower in front of the release. The 10-yr yield is down eight basis points to 4.43% and the 2-yr yield is down five basis points to 4.17%. 

Buying interest in Treasuries is related to some safe-haven interest after President Trump added some uncertainty to the geopolitical scene by floating a view at a press conference yesterday with Israeli Prime Minister Netanyahu that the U.S. should takeover Gaza and run a redevelopment effort there.