The tone in risk markets is improved this morning in response to news that the Senate was able to reach a 2-year budget agreement. Asian equity markets were mostly higher, and S&P 500 futures are currently up 18 points. European equities are lower today on hawkish comments from both British and Eurozone central bankers. Treasuries are selling off again this morning, with the 10-year yield up to 2.87%, and the yield curve (2yr/10yr spread) is 3 basis points steeper to 0.74%.  On the data front, initial jobless claims fell to 221,000 in the week ended February 3. This is the second lowest reading since 1973 (lowest was four weeks ago), and this is just one of several metrics that point to a relatively tight labor market.

Jason Haley
Managing Director, Investment Management Group

02/05Markit US Services PMI53.353.353.3
02/05Markit US Composite PMI53.853.8
02/05ISM Non-Manf. Composite56.759.955.956
02/06Trade Balance-$52.1b-$53.1b-$50.5b-$50.4b
02/06JOLTS Job Openings5961581158795978
02/07MBA Mortgage Applications0.70%-2.60%
02/07Consumer Credit$20.000b$18.447b$27.951b$31.019b
02/07Revisions: Consumer Price Index
02/08Initial Jobless Claims232k221k230k
02/08Continuing Claims1940k1923k1953k1956k
02/08Bloomberg Feb. United States Economic Survey (Table)    
02/08Bloomberg Consumer Comfort54.6
02/08Mortgage Delinquencies4.88%
02/08MBA Mortgage Foreclosures1.23%
02/09Wholesale Inventories MoM0.20%0.20%
02/09Wholesale Trade Sales MoM0.40%1.50%