The PMI services sample continues to report flat conditions, ending October at an index of 50.6, down 3 tenths from the mid-month flash but up 5 tenths from September. New orders remained in contraction for a third straight month leading to reports of discounting and customer concessions. Inflation readings in October's report, both for selling prices as well as input costs, posted their lowest rates of growth in three years.

Yet the sample is hopeful that demand will pick up in the future, sentiment behind continued employment growth. Watch for the ISM services index at the top of the hour where Econoday's consensus is pointing to slight slowing to 53.0.

US Services Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys collected from over 400 U.S. companies which provide a leading indication of what is happening in the private sector services economy. It is seasonally adjusted and is calculated from seven components, including New Business, Employment and Business Expectations.

Investors need to keep their fingers on the pulse of the economy because it indicates how various types of investments will perform. The Markit Services PMI provides advance insight into the services sector, which gives investors a better understanding of business conditions and valuable information about the economic backdrop of various markets. The stock market likes to see healthy economic growth which generally translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures. The PMI data are also used by many Central Banks to help make interest rate decisions.

The IHS Markit Services Flash data give a detailed look at the services sector, the pace of growth and the direction of this sector. Since the service sector accounts for more than three-quarters of U.S. GDP, this report has a significant influence on the markets. In addition, its sub-indexes provide a picture of new business, employment, business expectations and prices.