ISM services index surged 3.8 points to a higher-than-expected 56.0 for July. The U.S. trade deficit unexpectedly narrowed $9.9 billion to $34.2 billion in June. Consumer credit increased a slower $13.8 billion (0.5%) to $2.848 trillion in June. Initial jobless claims rose 5,000 to 333,000 for the week ended 8/3.

• ISM services index surged 3.8 points to a higher-than-expected 56.0 for July.

• The U.S. trade deficit unexpectedly narrowed $9.9 billion to $34.2 billion in June. This is the lowest trade gap in more than 4 years. Export increased by $4.1 billion to a monthly amount of $191.2 billion. Imports declined $5.8 billion to $225.4 billion. Roughly two-thirds of the improvement comes from non-petroleum goods, but as exports have soared, import of consumer goods shows a steep drop.

• Consumer credit increased a slower $13.8 billion (0.5%) to $2.848 trillion in June. Revolving credit (i.e., credit cards) declined $2.7 billion (-0.3%) while non-revolving credit (i.e., auto loans) rose $16.5 billion (0.8%).

• Initial jobless claims rose 5,000 to a level of 333,000 for the week ended August 3rd.