December 5, 2017
October's trade data won't be boosting fourth-quarter GDP as the deficit deepened sharply on flat exports and on rising imports especially for consumer products. Advance service-sector indications for November are strong but a little less so than October in what does, along with similar indications from recent manufacturing reports, hint at slight slowing for the economy.
The stock market took a pause from its record run as the Dow slipped 0.5 percent to 24,180. Offering a counter signal to the strength of the stock market, the yield curve in the bond market continues to flatten and hint at economic slowing ahead. The 2-year Treasury yield, reflecting lower demand in the face of rising Fed rates, rose another 2 basis points to 1.83 percent while the yield on the 10-year, boosted by demand for safety, fell 3 basis points to 2.36 percent.