News from the UK this morning reports a court in the UK ruled that the government cannot begin the process to leave the European Union without a vote from Parliament, and the Bank of England surprised investors with new guidance that suggests that further rate cuts are less likely….

This morning, election related news and events in the UK have overshadowed the U.S. economic data. Headlines about the candidates for President have caused some volatility. A court in the UK ruled that the government cannot begin the process to leave the European Union without a vote from Parliament, adding to the uncertainty surrounding Brexit. Perhaps most influential this morning, the Bank of England surprised investors with new guidance that suggests that further rate cuts are less likely, which pushed global bond yields higher. In the U.S., weekly Jobless Claims were a little higher than expected, and third quarter Productivity growth was stronger than expected.

MBS Par @ 102.295

10 Yr Treasury -1/32 @ 1.806

DOW +33 @ 17,993

 

ISM Services:

The Institute for Supply Management said its non-manufacturing index fell to 54.8% last month from 57.1% in September, which marked an 11-month high. Any reading over 50% signals that more businesses are expanding instead of contracting.

 

Factory Orders:

Factory orders rose for the third month in a row during September, the government said Thursday.Factory orders rose by a seasonally adjusted 0.3%, and August’s orders were revised to show 0.4% growth instead of a previously reported 0.2% gain, the Commerce Department reported. September’s gain came despite a 0.3% fall in durable goods orders during the month. Nondurable goods industries, however, saw a 0.9% gain.The gains in orders suggest the struggling manufacturing sector has been stabilizing.