U.S. Economic Indicators

The ISM Non-Manufacturing Index rose 2.1 points to 54.7 in October. The New Orders Index rose 1.9 points to 55.6, while the Employment Index rose 3.3 points to 53.7. ISM Report

The U.S. trade deficit decreased from $55.0 billion (revised) in August to $52.5 billion in September. The goods deficit fell by $2.7 billion while the services surplus fell by $0.1 billion. Census Bureau Report

The Job Openings and Labor Turnover Survey (“JOLTS”), a closely-watched measure of labor market health, indicated that the number of job opening edged down to 7.0 million in SeptemberThe number of hires was little changed at 5.9 million, while the quits rate was essentially unchanged at 2.3 percent. BLS Report

U.S. News

The Wall Street Journal reports that the U.S. federal government has less than three weeks to pass a new short-term funding extension to avert a government shutdown when current funding runs out on November 21. Despite the ongoing House impeachment process and disagreements over funding for a southern border wall, lawmakers are generally optimistic that a shutdown will be avoided with a new continuing resolution while the House and Senate continue to work to pass measures to fund the federal government for the full year 2020. WSJ

Bloomberg reports that independent nonbanks that originate and service risky home loans are more vulnerable than conventional banks in an economic downturn, because they depend on short-term bank credit lines that could be pulled quickly at times of financial stress. Independent mortgage companies currently originate around 70% of home mortgages supported by federal mortgage agencies, including about 90% of the riskier loans backed by Fannie Mae. Bloomberg