The Strength of the Market is: Strong

Last week was a losing week for stocks. Investor concerns are growing about the government shutdown and the strength of the economy. The most recent survey from the University of Michigan showed that consumer sentiment is very low. Last week, the Nasdaq was down more than 3%, its worst 5-day performance since April, and the S&P 500 and the Dow Jones each lost more than 1%. Over the weekend, the Senate advanced a tentative deal to end the government shutdown, the longest-ever federal funding lapse - if approved, the bill would need to pass the House of Representatives and get the President's signature before becoming law and reopening the government.

Economic reports from last week came back mixed:

•Vehicle Sales - lower than expectation

•Employment (Private) - higher than expectation

•Consumer Sentiment - lower than expectation

•Consumer Credit - higher than expectation

•Construction Spending - unreported*

•Employment (Total) - unreported*

•Labor Productivity - unreported*

•Job Openings - unreported*

•Jobless Claims - unreported*

*unreported due to government shutdown

This week, investors will look for guidance from economic reports like Small Business Optimism, Inflation, Retail Sales and Jobless Claims.