The Strength of the Market is: Strong

The Strength of the Market is: Strong

Stocks were up during a volatile week, which included surging Treasury bond yields and optimism that the Straight of Hormuz could be reopened soon - the Dow Jones ended the week slightly higher, the S&P 500 rose 1% and the Nasdaq gained 2%. Reports that Iran asked to return to June's memorandum of understanding lowered the West Texas crude oil price to around $92 per barrel and Brent crude oil prices to about $104 per barrel. The 10-Year Treasury yields climbed to 5.2%, the highest since 2007. With increased Treasury bond yields, it is likely that the Federal Reserve increases interest rates again at their next meeting (October 28). In addition, investors are waiting on more information on Chinese President Xi Jinping's visit to America and any trade agreements between the U.S. and China.

Economic reports from last week came back mostly positive:

•Overall Economic Activity (August) - higher than expectation

•Manufacturing (Richmond) - lower than expectation

•Manufacturing (Kansas City) - higher than expectation

•New Home Sales - higher than expectation

•Consumer Sentiment - higher than expectation

•Jobless Claims - lower than expectation

This week, investors will look for guidance from economic reports like Manufacturing, Housing, Job Openings, Consumer Confidence, Employment, Gross Domestic Product, Personal Income, Construction Spending, Vehicle Sales and Jobless Claims.