Major indices are relatively flat today. Notably, the Russell 2000 and Dow Jones rose from their morning lows, while the S&P 500 and Nasdaq Composite pulled back from their morning highs to near the flat line.

The Ten-Year Treasury Yield (TNX) rose 3.5 basis points and moved above 4.2% again.

Five out of eleven sectors are in the green, with Communication Services (XLC) taking the lead after Alphabet’s (GOOGL) quantum computer breakthrough. Meanwhile, the largest laggard is Real Estate (XLRE) and followed by Technology (XLK).

On the economic front, labor productivity rose across all three sectors QoQ and YoY. Nonfarm Business grew the most while Manufacturing grew the least.

Another notable point, Manufacturing experienced declines in output and hours worked both YoY and QoQ, showing some weakness in the sector. Furthermore, while real hourly compensation came up 1.4% QoQ, it is still down 0.2% YoY.

Meanwhile, Nonfarm unit labor costs for Q3 were revised down to 0.8% from 1.9% and below estimates of 1.3%. This was primarily driven by a downward revision in Nonfarm hourly compensation to 3.1% QoQ. Manufacturing unit costs were also revised lower to 1.7% in Q3 from 5.3%, primarily due to a 3.8 percentage-point lower revision to Manufacturing hourly compensation.

These revisions suggest improving cost efficiency in both sectors, driven largely by lower compensation growth.

Neither buyers nor sellers are showing much conviction ahead of tomorrow’s CPI report.