Treasury prices are modestly lower following a relatively quiet overnight session. U.S. equity futures were initially lower with investors anxious given the recent slump in tech stocks, but both S&P 500 and Nasdaq futures have bounced are now positive on the day. On the tax reform front, the reconciliation process kicked off yesterday with the House and Senate forming committees to spearhead the combination of the two bills. Despite some large differences to overcome, some insiders are suggesting that reconciled legislation could reach President Trump’s desk by the end of next week. At the same time, GOP leaders are working with the White House to discuss new short-term budget extensions (continuing resolutions) to keep the government funded into early 2018 (and through the tax reform process).

Jason Haley
Managing Director, Investment Management Group

12/04Factory Orders-0.40%-0.10%1.40%1.70%
12/04Factory Orders Ex Trans0.80%0.70%1.10%
12/04Durable Goods Orders-1.10%-0.80%-1.20%
12/04Durables Ex Transportation0.90%0.40%
12/04Cap Goods Orders Nondef Ex Air0.30%-0.50%
12/04Cap Goods Ship Nondef Ex Air1.10%0.40%
12/05Trade Balance-$47.5b-$48.7b-$43.5b-$44.9b
12/05Markit US Services PMI55.254.554.7
12/05Markit US Composite PMI54.554.6
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 Claims1915k1957k
12/07Bloomberg Consumer Comfort51.6
12/07Household Change in Net Worth$1698b
12/07Consumer Credit$17.000b$20.830b
12/08Change in Nonfarm Payrolls197k261k
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%