The week ahead will be dominated by the jobs report on Friday. We will also get ISM data and consumer sentiment. Oil is down after reports that Trump wants to try diplomacy again with the Iranians.
The midterm elections are on Tuesday and could potentially impact markets, but that is unlikely. The most likely scenario is that Democrats win the House and possibly the Senate, which means gridlock. Democrats in the House will spend the next two years investigating and impeaching Trump which will foreclose any possibility of bipartisan legislation.
A lot of tech bellwethers got slammed on disappointing earnings last week. We are in the heart of earnings season, with companies like Apple, Champion Homes, LGI Homes, Redwood Trust, Lending Tree, Loan Depot, Angel Oak, Finance of America, Equity Residential, American Homes 4 Rent, Zillow, Radian, MFA Financial, and UWM.
Employment costs increased 0.8% for the third quarter, according to BLS. Salaries rose by 0.7% while benefit costs rose 0.9%. For the full year, salaries rose 3.1% while benefits rose 3.9%. The ECI for the full year ending 9/30 rose 3.4%. Health benefit costs rose 6.4%.
Dallas Fed President Lorie Logan advocated for two mor...