ISM Non-Manufacturing Data

The ISM service sector data came in weaker than expected at 44.4 versus street consensus of 47.0. The headlines were not as bad as some had feared given some market participants were expecting a 3 handle. But, perhaps more worrisome, is the weak Employment component of the composite index. Employment registered 41.5 down from 44.2 in September. This is a notable month over month erosion in the employment component of the ISM and could weigh on sentiment ahead of the Friday payroll data. The street consensus for Friday payrolls is a loss of 200,000 jobs.