ISM worse, pending sales better

Pending home sales snapped back in December -- up 4.9% month-over-month. I'm not surprised that pending existing home sales rose like new home sales. After all, pending sales are based on contract signings (like new home sales), whereas the traditional existing home sales figures are based on closings of contracts signed 30-60 days previously, on average. Pending sales are still down 7.6% on a year-over-year, unadjusted basis.

Meanwhile, the Institute for Supply Management's manufacturing index slumped to 49.3 in January from 51.4 in December. That was below the 51.7 forecast. Among the sub-indices, new orders dipped a bit (to 50.3 from 51.9)... production dipped a bit more (to 49.6 from 52.4) ... employment was stable (49.5 vs. 49.4) ... and prices paid were up a fair amount (to 53 from 47.5).

Early reaction: Bonds are giving up early gains on the housing bounce and the elevated prices paid index. Stocks are still up, but not as much as they were earlier. And the dollar has bounced.