THE BASIS POINT

Fundamentals 12/5: ISM Services & Factory Orders Down

ISM Non-Manufacturing Sector Index (November 2011)
-Non-Manufacturing index 52.0, down from previous 52.9
-This measures services sector activity
-50 is dividing line between expansion/contraction
-This is the lowest reading since January 2010, when index was 50.7
-Largest factor bring this index down was employment

Factory Orders (October)
Factory Orders, Month/Month -0.4%

Equity and Treasury prices in the short term will continue to be moved not by fundamentals but by the perception of some sort of solution to the EU debt problem.