Treasury prices are little changed with balanced two-way trading in the overnight session, and S&P 500 futures are currently up 11 points. All major global equity indices are in the green today, led by the Nikkei (+1.8%) and Hang Seng (+2.1%). The positive trend overnight in equities was a follow-through to activity in U.S. markets yesterday, where reports of the White House moderating its stance on tariffs bolstering sentiment. Also making headlines this morning is a report that North Korea is willing to denuclearize if the safety of Kim Jong Un’s regime is guaranteed, according to South Korean delegates meeting with North Korean leaders this week. Three Fed leaders are scheduled to speak today, including New York Fed President Bill Dudley. Vice Chair Quarles spoke yesterday on bank regulation, and he indicated that policymakers are working on material changes to the Volcker rule, and he expects a proposal to be announced in the near future.

Jason Haley
Managing Director, Investment Management Group

03/05Markit US Services PMI55.955.955.9
03/05Markit US Composite PMI55.855.9
03/05ISM Non-Manf. Composite5959.559.9
03/06Factory Orders-1.40%1.70%
03/06Factory Orders Ex Trans0.70%
03/06Durable Goods Orders-3.60%-3.70%
03/06Durables Ex Transportation-0.30%
03/06Cap Goods Orders Nondef Ex Air-0.20%
03/06Cap Goods Ship Nondef Ex Air0.10%
03/07MBA Mortgage Applications2.70%
03/07ADP Employment Change200k234k
03/07Nonfarm Productivity-0.10%-0.10%
03/07Unit Labor Costs2.10%2.00%
03/07Trade Balance-$55.1b-$53.1b
03/07U.S. Federal Reserve Releases Beige Book
03/07Consumer Credit$17.650b$18.447b
03/08Challenger Job Cuts YoY-2.80%
03/08Initial Jobless Claims220k210k
03/08Continuing Claims1919k1931k
03/08Bloomberg Consumer Comfort56.2
03/08Household Change in Net Worth$1742b
03/09Change in Nonfarm Payrolls200k200k
03/09Two-Month Payroll Net Revision
03/09Change in Private Payrolls198k196k
03/09Change in Manufact. Payrolls15k15k
03/09Unemployment Rate4.00%4.10%
03/09Underemployment Rate8.20%
03/09Average Hourly Earnings MoM0.20%0.30%
03/09Average Hourly Earnings YoY2.80%2.90%
03/09Average Weekly Hours All Employees34.434.3
03/09Labor Force Participation Rate62.70%62.70%
03/09Wholesale Trade Sales MoM1.20%
03/09Wholesale Inventories MoM0.70%0.70%