Equities experienced some volatility in the prior week as hopeful traders and investors cling to the good news while the pessimistic ones cling to the bad. The good news is that Q3 earnings season is a little bit better than expected, the bad news is the outlook for the future continues to deteriorate and that is weighing on the market.

This week, the market faces an onslaught of earnings reports as well as economic data. Among the earnings reports are several FAANG names which are foundational to the market. Better-than-expected reports from them could provide some relief for investors but the outlook remains dim. On the economic front, the PCE price index tops the list and is expected to come in hot once again. The takeaway will be that the FOMC is on track to continue hiking rates to the 5.0% level regardless of the pace, which is bad news for consumers and businesses alike.