In The News...

A gauge of the services sector in the US unexpectedly expanded in August, as reported by the Institute of Supply Management (ISM). The ISM Services Index rose to 50.6 last month after July's showing of 49.5. A reading of 50 is the dividing line between growth and contraction. The non-manufacturing businesses makes up almost 90% of the economy.

Stocks are under pressure today after retailers reported sluggish back-to-school sales, initial claims that were reported higher than expected and lingering concerns about the financial sector. The closely watched Dow Jones Industrial Average has traded in a sideways range since July 17th when it closed at 11,446 - today it opened at the 11,500 level. Back in January of 2000, the Dow Jones was trading at 11,700.

There was a bright spot among retailers today as Wal-Mart Stores, the world's largest retailer, reported a solid sales gain that beat Wall Street forecasts as it benefits from consumers sticking to low-price operators. Sales from smaller apparel stores such as Wet Seal, Gap and Limited Brands remained weak as did the higher end stores like Saks and Nordstrom.

Brought to you, courtesy of The Mortgage Market Guide