Highlights
The pace of the nation's non-manufacturing sector picked back up in October, according to the Institute For Supply Management's business activity index which jumped to 57.1 from 52.9. The gain reflects strength in the prior's month new orders index, which jumped nearly five points in September though it edged back just slightly in October to a still solid 56.5. Backlog orders also edged lower but still showed growth with a plus-50 reading of 51.5 vs. 53.0 in September.

Employment, a big topic today following this morning's rattling strength in the jobs report, showed softness, to 51.0 vs. 53.6. The reading compares closely with Wednesday's ISM manufacturing report that showed a similar job reading of 50.8.

Inventories, strength of which was one of the big headlines in the manufacturing report, showed rising levels, at 53.0 vs. 50.5. Inventory sentiment continued its upward climb, up 1 percentage point to 64.5 to indicate that more respondents are concerned that their inventories are too high.

The rise in inventories, given strength in orders, may or may not indicate slowing conditions, an uncertain reading similar to prices paid which fell to 51.9 from 56.7. Prices also fell sharply in the manufacturing report and appeared to clearly reflect slowing conditions. The non-manufacturing's prices index may more clearly reflect lower energy prices.

Bonds weakened further and the dollar firmed in reaction to the report. The data may prove a plus for the stock market, which has been edging back in recent sessions on concern of fourth-quarter slowness.

2006 Release Schedule

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