While the trading session is apparently treating the Dow Jones Industrial Average well, the NASDAQ is having its worst session in quite some time. Investors are continuing to remain cautious, especially with high beta stocks, ahead of a busy week of economic and market news. Most notably is a focus on interest rates, which is front and center this week due to markets anxiously awaiting the outcome of the Federal Reserve's two-day meeting that begins this Tuesday. In addition to the Federal Reserve, investors are anxious to watch Scotland's vote Thursday on independence, as well as the fate of Alibaba's (BABA) IPO which is set to happen later in the week. Technology stocks led to huge declines in the NASDAQ today by over -1.0% in the session. However, while technology suffers ahead of the Federal Reserve comments, the manufacturing sector is showing some signs of life.

While the headline numbers were quite positive for the Empire State Manufacturing Index released earlier this morning, but the details in the US Industrial Production report was not enough to boost the market today. In the month of August, industrial production declined by 0.1% after gaining 0.2% in July and economists had expected a 0.3% increase for the month. We note that the overall decline may actually be deceiving on auto assemblies on retooling schedules. In addition, overall manufacturing production fell 0.4% in August after gaining 0.7% in July. This weakness was primarily due to motor vehicle manufacturing, which dropped by a monthly 7.6%. On the other hand, motor vehicle sales were healthy as of late, which suggests that this is just a retooling-timing issue. When motor vehicles are excluded, manufacturing increased 0.1% for the month of August; the same amount as in July. In other industries, mining production made a comeback, increasing by 0.5% after declining 0.3% in July. Utilities also made a bounce at 1.0% after declining by 2.7% in July. Capacity utilization eased to 78.8% in August from 79.1% in July. All in all, the strength in manufacturing is continuing to oscillate this year, but the sector is continuing to make substantial progress.