Equities and the dollar rallied while Treasuries sold off in the overnight session as the Senate’s passage of their version of tax reform sparked a risk rally. In Europe, eyes will be on Theresa May’s lunch with EU commissioner Jean-Claude Junker, as it appears that the two sides have finally made progress on addressing the Irish border, the rights of EU citizens in the UK after the split, and the financial settlement. If a breakthrough has indeed been achieved, the two parties can then move on to trade issues. In the US, the economic calendar is light today with only Factory Order and Durable Goods the docket. Tomorrow marks the beginning of the Fed’s blackout until it’s December 13th FOMC meeting, and with no Fed speakers on today’s calendar, that means the market won’t hear from any Fed officials until then.

Hafizan Hamzah
Director, Investment Management Group

12/04Factory Orders-0.40%1.40%
12/04Factory Orders Ex Trans0.70%
12/04Durable Goods Orders-1.10%-1.20%
12/04Durables Ex Transportation0.40%
12/04Cap Goods Orders Nondef Ex Air-0.50%
12/04Cap Goods Ship Nondef Ex Air0.40%
12/05Trade Balance-$47.5b-$43.5b
12/05Markit US Services PMI55.254.7
12/05Markit US Composite PMI54.6
12/05ISM Non-Manf. Composite5960.1
12/06MBA Mortgage Applications-3.10%
12/06ADP Employment Change190k235k
12/06Nonfarm Productivity3.30%3.00%
12/06Unit Labor Costs0.20%0.50%
12/07Challenger Job Cuts YoY-3.00%
12/07Initial Jobless Claims240k238k
12/07Continuing Claims1900k1957k
12/07Bloomberg Consumer Comfort51.6
12/07Household Change in Net Worth$1698b
12/07Consumer Credit$17.000b$20.830b
12/08Change in Nonfarm Payrolls199k261k
12/08Two-Month Payroll Net Revision90k
12/08Change in Private Payrolls200k252k
12/08Change in Manufact. Payrolls15k24k
12/08Unemployment Rate4.10%4.10%
12/08Average Hourly Earnings MoM0.30%0.00%
12/08Average Hourly Earnings YoY2.70%2.40%
12/08Average Weekly Hours All Employees34.434.4
12/08Labor Force Participation Rate62.70%
12/08Underemployment Rate7.90%
12/08Wholesale Inventories MoM-0.40%-0.40%
12/08Wholesale Trade Sales MoM0.30%1.30%
12/08U. of Mich. Sentiment9998.5
12/08U. of Mich. Current Conditions114113.5
12/08U. of Mich. Expectations88.9
12/08U. of Mich. 1 Yr Inflation2.50%
12/08U. of Mich. 5-10 Yr Inflation2.40%