Factory activity in Chicago area jumps unexpectedly in October

Santelli: Chicago PMI 65.9

The Chicago purchasing managers' index unexpectedly jumped in October.

The Institute for Supply Management-Chicago business barometer came in at 65.9, up from 55.7 a month earlier and compared with expectations of about 55.0. (A reading above 50 suggests expansion in the manufacturing sector.)

Markets reacted sharply to the data, with the dollar rising in response and Treasurys paring early gains. Stocks moved higher on the number, but immediately pulled back as traders questioned the veracity of the numbers.