The Week Ahead...

Manufacturing and housing will be the features of the week including a key update on inflation. Empire State, a key report that back in August decisively signaled the subsequent break lower for the factory sector, kicks off the week with the first indication on November's activity followed on Thursday by the Philadelphia Fed report which has also been weak. Industrial production on Tuesday will offer the first definitive indications on October's factory activity and a badly needed bounce for the manufacturing component is expected. Consumer prices will also be posted on Tuesday and some pressure is expected. But whatever the results, the CPI is capable of affecting December FOMC expectations.