The October ISM Services Index, a nonmanufacturing survey, registered
44.4 in October, 2.6 worse than expected and 5.8 lower than the 50.2
reading in September. This marks the lowest level on record, which
dates back to 1997. Because the result is below 50, it indicates
contraction in the services sector -- the sixth month of contraction in
2008.
The stock market remains in the red and has a mostly muted reaction to
the data. All ten of the economic sectors are in negative territory.
Two of the largest gainers yesterday -- materials (-3.3%) and energy
(-3.3%) -- are laggards this session. Longer-term Treasuries catch a
bid for the second day in a row, with the 10-year note up five ticks
and the 30-year bond up 15 ticks.