Monday's Market Minute: A Busy Week to Begin the Month & 4Q

Let's begin with a quick look back at how stocks closed out 3Q with a loss, the third consecutive quarterly loss for the first time since 2009. The weakness comes with interest rates at 10-year highs – the TNX rose last week to 4% – and comments from the Fed suggesting that when it comes to rates, higher for longer is here to stay. 

This week, the focus for investors and traders will be on economic data, with most of the attention on the monthly jobs report: non-farm payrolls are due out Friday. But between now and then, keep an eye on the ISM Manufacturing figures due out today, JOLTS on Tuesday, the ADP employment numbers and the ISM Non-Manufacturing figures. Friday’s expectations are for 250K jobs to have been added last month, and unemployment is expected to come in at 3.7%, in line with last month’s number.

In terms of earnings, we have Lamb Weston (LW), Constellation Brands (STZ), McCormick (MKC), Conagra Brands (CAG), Levi Strauss (LEVI), and Tilray (TLRY). It'll be a couple weeks of before we start to see some of the big names in banks and tech reporting, so a bit of a breather on that front. The upcoming quarterly results will be closely watched with markets on extremes. 

Lastly, it will be key to see how much attention the strong U.S. dollar gets. We ended 3Q with futures to just shy of 114.75, a new record high against the British pound. While sterling has stabilized some in reaction to U.K. lawmakers dialing back some of the previously announced tax cuts and after the Bank of England took drastic steps to ensure stability, it’s still extremely volatile and should also be watched closely.

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