Here's a look at next week's market-moving events:
1. Monday’s ISM Manufacturing Report will get extra attention after last week's poor durable-goods orders and Chicago PMI figures. Also, keep an eye on shipping data, which has been declining.
2. Thursday’s FOMC minutes release will provide early insights into whether Fed officials believe more easing (past QE Infinity) will be required.
3. Over the weekend, the PBoC and Chinese officials could announce another round of stimulus. Look for a strong kick-off to Q4 if these measures are announced.
4. Third-quarter earnings for the S&P 500
(INDEXSP:.INX) are now expected to be negative (revised to -0.1% from + 1.7% at the beginning of the quarter). Key earnings reports next week include Monsanto
(NYSE:MON), which is expected to record a loss of $.44.
5. Friday’s jobs report will come two days after the first presidential debate. Consensus is for the unemployment rate to remain unchanged. Look to labor participation data for more insights.
On balance, I expect Monday to be a tough day for the market, unless we get an announcement of more stimulus from China. Buy pharmaceutical and utility stocks on dips, as market technicals and the impact of QE 3 are likely to drive risk prices higher through the end of October.
Follow Oliver Pursche on Twitter: @opursche.
No positions in stocks mentioned.