Those of us who believe there is a correlation between economic fundamentals and valuations in financial markets continue to be lost. The true economic condition is unknown since the data being released is affected by hurricanes and fires in the west. For example, nonfarm payrolls were reported as having declined by 33,000 in September, but are expected to jump by more than 300,000 for October. Average hourly earnings were reported as having risen by 0.5% in September, but are only expected to be up 0.2% for October. It is difficult to determine the true condition of the labor market with this much monthly volatility. The condition of the labor market is a key determinate of any changes in Fed monetary policy.

The Advance Report of the third quarter Real GDP was released at a +3.0%, which was well above consensus forecasts…

ProBank Austin Advisor – October 30, 2017