The September New York Empire manufacturing index was -10.4, down from -5.9 in August.  Last week, overallEarnings U.S. industrial production was reported to have fallen 1.2% in August.

So far, Fed and ECB easing action trumps weakening economic data.  This week, we will see reports on housing starts, building permits and existing home sales on Wednesday.

On Thursday, leading economic indicators will be released along with initial jobless claims.  Housing is an area of strength.  The leading indicators are expected to be flat and jobless claims should continue to languish.

This week, Bed Bath & Beyond (BBY), Carnival (CCL), General Mills (GIS), FedEx (FDX) and Oracle (ORCL) report earnings.  This small sampling should provide some indication of what to expect when earnings season is in full swing.

Last week, we saw strong bullish flow in Ralcorp (RAH).  There was an opening buyer of 1500 Oct 75 calls which was 18x normal volume.

In the technology sector, there was an opening buyer of 2500 Jan 40 calls in Xilinx (XLNX).

 

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