The Week Ahead...

This week's highlight is Friday's employment situation for October. September beat expectations for payroll jobs and recent initial jobless claims have been trending down. Going into the December FOMC meeting, the Fed will be comparing the two parts of its dual mandate, focusing on employment and inflation. Markets will be evaluating the employment report not just in terms of the strength of the economy but likely Fed moves on the next policy rate hike. Average hourly earnings have been soft and the Fed will be watching to see if wages firm or continue to ease. Manufacturing has softened and national surveys from Markit and ISM will get attention on the possible direction for manufacturing in October. Slowing global growth has raised concerns about strength in this sector.