ISM Non-Manufacturing Numbers Leaked - 41.9 v. 53 Expected

Getting ready for the trading day I noticed the futures dropping heavily, over 100 points, within the span of a few minutes. CNBC reported that rumors of the ISM Non-Manufacturing index, a gauge of business in the non-manufacturing industries, was leaked. As a result, the official ISM numbers were released an hour early, normally released at 10:00 EST. Consensus was around 53, or still in the expansion phase. Official numbers came in at 41.9, or under the 50 level required to maintain expansion. In other words, according to the ISM released today, the US may be entering a period of contraction. As a result, European markets are heading south anywhere from 1-2% as they close for the evening while futures continue to fall in the US. The leaked rumors must have been bad enough to warrant the early release of the ISM index. Looks like we’re in for a rough day folks!

Jorge 5 February 2008 Market Pulse