The major European stock indices are closing mixed on the day:
- German DAX -0.12%
- France's CAC, +0416%
- UK's FTSE 100 -0.10%
- Spain's Ibex +0.68%
- Italy's FTSE MIB +0.06%
As London/European traders head for the exits, the major US stock indices are mixed
- Dow industrial average is up 191 points or 0.40% at 47667
- S&P index is up 5.24 points or 0.08% at 6835.
- The NASDAQ index is down -22 points or -0.09% at 23391.74
US yields are lower but off the lows levels:
- 2-year yield 3.499%, -1.6 basis points
- 5 year yield 3.639%, -0.9 basis points
- 10 year yield 4.073%, -1.5 basis points
- 30 year yield 4.740%, unchanged.
Looking at other markets:
- Crude oil is trading up $0.30 at $58.98.
- Gold is trading down $3 and $4202
- Silver is down $0.29 at $58.15.
- Bitcoin is up $1100 and $92,422.
The U.S. ISM Non-Manufacturing PMI edged up to 52.6 in November from 52.4, slightly above expectations and signaling continued, modest expansion in the services sector. Business activity improved to 54.5, and employment strengthened to 48.9, its best reading since May—though still below the 50 contraction line. New orders softened notably to 52.9, the weakest since September, while prices paid eased sharply to 65.4 from 70.0, suggesting some cooling in input inflation pressures. Other components showed broad stabilization, with backlogs, export orders, and imports all improving from the prior month. Respondent commentary pointed to persistent tariff-related uncertainty, mixed economic conditions, margin pressures, affordability challenges, and uneven demand across industries, though pockets of optimism remain as supply chains stabilize and some sectors finish the year with solid activity.
U.S. industrial production in September rose 0.1%, matching a modest improvement but coming in just above expectations, while prior-month figures were revised notably lower, painting a softer underlying picture. Manufacturing output was flat on the month after an upward revision the prior month, underscoring uneven momentum across factory activity. Capacity utilization held at 75.9%, well below the 77.3% expected, reflecting continued slack in industrial capacity despite stable headline output. Looking through the monthly noise, industrial production increased at a 1.1% annual rate in the third quarter, though the downward revisions to August suggest the sector entered the fall period with less strength than previously reported. Overall, the report showed a mixed performance: modest growth in September offset by weaker historical data and continued underuse of manufacturing capacity.
ADP reported a weaker-than-expected labor print for November, showing a 32,000 decline in private payrolls versus expectations for a modest gain. The prior month was revised up to 47,000, but November saw broad weakness across both goods-producing (-19K) and services (-13K) sectors. Small businesses remained under significant strain with a 120,000 job loss, marking negative readings in six of the past seven months, while medium and large firms added 51K and 39K, respectively. Industry detail showed strength in education (+30K) and leisure/hospitality (+13K), contrasted by notable declines in manufacturing (-18K), information (-20K), and professional/business services (-26K). Wage growth indicators continued to cool, with job changers seeing pay rise 4.4% (down from 4.5%) and job stayers rising 6.3% (down from 6.7%). Overall, the report pointed to a softening labor market, particularly among small firms and cyclical sectors.
