The service component of our economy continues to edge higher with today’s ISM Non-Manufacturing Index announcement of 57.6, the highest level since October 2015.   Key components:

• Business Activity 63.6 from 60.3
• New Orders 61.2 from 58.6
• Employment 55.2 from 54.7
• Prices 57.7 from 59.0

I found the decline in prices to be interesting, as it could be the ammunition for the doves on the FOMC that would rather wait before the hiking this month.

Feb NMI

The session could go either way with Yellen scheduled to speak in an hour.  The greater surprise would be if there are hints that the Fed will not hike rates this month, even as conventional thinking is a 25 basis point hike is now baked in the cake.