Coming into the week the S&P 500 index had seen YTD returns of 5.88% and the MSCI EAFE had YTD returns of 0.11%.

There are several indicators of an uptick in global growth and inflation on the horizon, including flash estimates of around 3% annualized growth rate in global manufacturing.

The first estimate of 3Q16 GDP is for an expansion to 2.9% q/q saar (quarter over quarter seasonally adjusted annualized rate) from 1.4% in 2Q. Nonresidential fixed investment on structures grew by 10%, and general economic growth appears to be accelerating in the second half of 2016.

The September US jobs report was below expectations, adding 156,000 jobs, and increasing the unemployment rate up to 5%.

Third quarter earnings season is underway with over 60% of S&P 500 companies already reporting. Earnings per share looks to grow by 14.5%.

The Fed continues to use rhetoric implying a rate hike in December.