U.S. equities continue to drift higher with the S&P 500 and Dow Jones Industrial Average edging up to set new all-time highs on Tuesday. The move was driven by earnings as much as anything else but consumer confidence figures played a role. Consumer Confidence rose unexpectedly by 400 basis points in October despite mounting headwinds for the economy. What this means for businesses is that price-pass-throughs are being accepted and the consumer is still asking for more. In terms of S&P 500 earnings, this is very good news indeed.

Action will heat up later in the week with reports from many of the big tech names that have been driving the market for the past few years. In addition, Friday?s PCE price index promised to add a bit of volatility as well. The consensus is calling for consumer-level inflation to subside but anecdotal evidence suggests inflation accelerated in October and will continue to accelerate into the end of the year.