Equities markets went on a wild ride Tuesday first falling more than 1.0% to set a new low and then later rebounding to hit the +1% market at the high of the day and then close with a loss. The move was driven in part by the rising fear of the FOMC and recession and in part by bottom-seekers and value-hunters who stepped in to take advantage of the low prices. The move may indicate a bottom in the market but it is a near-term bottom at best and one that may not last long. The PPI is due out today and the CPI tomorrow and both figures could be hot. The real takeaway from the reports, however, will be the impact on the Fed outlook and that will be minimal without a major slowdown in consumer inflation which is not expected.

This week also marks the start of the peak Q3 earnings reporting season. Reports from most of the US ten largest financial institutions are due out by the end of the week and they could move the market. The banks are expected to post revenue gains but the outlook for earnings is mixed. If the bank's margins shrink or are forced to hold back more in capital reserves than is expected it could send the market lower.