Major indices are appearing to shake off Fed rate worries but are still struggling to remain in green territory. At the start of the session, yields caused some distress with the 10-year reaching multi-decade highs.

Let’s keep an eye to see if the S&P 500 holds key 4,300 level – it’s a key support point.

Energy is the best performing sector this afternoon as oil prices rallied this morning and remain steady near $90 a barrel.

Manufacturing Data

The Dallas Fed report was sharply less than expected, despite signs that manufacturing conditions continue to improve. Here are key highlghts of the release.

Growth in Texas factory activity resumed in September, according to business executives responding to the Texas Manufacturing Outlook Survey. The production index, a key measure of state manufacturing conditions, rebounded nearly 20 points to 7.9—its highest reading of the year.

The new orders index pushed up 11 points to -5.2, a reading still indicative of falling demand though not at the pace seen in the past several months. The capacity utilization index rebounded into positive territory, rising from -3.7 to 7.8, while the shipments index moved up to near zero after slipping to -15.8 in August.

Perceptions of broader business conditions continued to worsen in September. The general business activity and company outlook indexes remained largely unchanged at -18.1 and -17.5, respectively. Uncertainty regarding outlooks picked up notably, with the corresponding index pushing up 14 points to 27.0, its highest reading in nearly a year.

Labor market measures suggest stronger employment growth and longer workweeks in September. The employment index rebounded nine points to 13.6, a reading well above the series average of 7.9. Twenty-three percent of firms noted net hiring, while 9 percent noted net layoffs. The hours worked index climbed back into positive territory, coming in at 5.1.