Last week saw the US Syrian showdown taken off the table and a bevy of positive market reports. Although Friday's Retail Sales came in at .2% vs expected .4%, PPI rose to .3% vs expected .2% and Mich Sentiment came in at 76.8 missing expectations of 81.5 it was still a good week for equities. The S&P ended up 1.98%, NASDAQ 1.44% and DJ Index 3.04% for the week. Not such a good week for the commodities, Gold closed down 5.61% and Oct WTI down 2.1% on the week. -It was a tough week to be in the fear business. The reports were good enough but not too good for Big Daddy Fed. All in all, it looks like the US economy is on a slow and sustained growth path.To that end markets have started looking for a "taper lite" scenario where Big Daddy starts to back off but not too quickly. The Fed will make it's monetary policy statement at 2:00PM ET on Wednesday. On a side note: Traders were acquiring GOOG puts and AAPL calls in large volume Friday. GOOG put activity was up nearly 500% and AAPL call activity was up 543%.
7:30 AM CT
Empire Manufacturing Forecast 8.0 Prior 8.6
Industrial Production Forecast 0.3% Prior 0.0%
Capacity Utilization Forecast 77.8% Prior 77.6%
Today we'll be watching for the first glimpse of September's manufacturing data from the NY Fed. The markets also want to see the IP and Cap U numbers after the August ISM survey showed the strongest continued growth since the spring of 2009. We're into the last few days of Fed speculation and these numbers could make for some movement as the 'powers that be' consult their crystal balls. Trade wisely and look forward to a great week.