Equities markets tried to come out of the gates strong this week with the S&P 500 up on Monday. The move is driven by anticipation of better-than-expected earnings as the peak of Q3 reporting gets underway. This week is the busiest week of the reporting cycle and should bring well over 125 reports from S&P 500 companies. The takeaway is that by the end of the week there will be little doubt as to the health of the S&P 500s earnings power.

Also on tap this week? The PCE price index will be released on Friday and it is expected to cool considerably from the previous month. The risk is that another round of hot data will force the FOMC into another 75 basis point interest rate hike and push the US closer to recession.