The closely watched ISM Services Index came in lighter than expected for December at 52.6. The consensus had been looking for 53.3. Still, this is up from November’s reading of 52 which was the lowest since Jan 2010.
The employment index rose 0.5 to 49.4 and new orders climbed 0.2 to 53.2.
While any reading over 50 signals expansion, investors expected a much better number today given the optimism from the recent ISM Manufacturing Index and other data which was showing stronger improvement in the U.S. economy.
Despite a stellar ADP report this morning, stocks are momentarily selling off on this disappointing ISM number and some weak reports from the retailers about holiday sales.
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