It’s a relatively quiet session, albeit down.  There is very little action thus far, and perhaps investors are contemplating the prospects of the Phase One deal being signed before the so-called December 15 deadline.  At midday, average volume is mixed, while new highs still outpace new lows.

NYSE

• Advancing 1,606
• Declining 1,241
• New Highs 85
• New Lows 11

Nasdaq

• Advancing 1,523
• Declining 1,525
• New Highs 102
• New Lows 40

The strength of the consumer is being displayed in shares of Macy’s (M), which is up over 2% despite a downgrade from Neutral to Sell at Goldman.  Volume is heavy, and in the first two hours of trading, there was more volume than M’s average daily volume.  Macy’s is also helping lead Consumer Discretionary (XLY) to the best performing sector on the day. 

There was no economic data out today.  Tomorrow, we will get a gauge on how small business is feeling about the economy with the release of the NFIB Small Business Optimism Index.  We will also get Non- Farm Productivity and Unit Labor cost.  Then on Wednesday,  CPI data will be out as well as EIA Crude Oil Inventories.  All these data points will provide inputs for the release of the FOMC rate decision at 2pm.  Most of the members however have already telegraphed their belief that the “current stance of momentary policy is appropriate.”

As we said on Friday, the market could meander at these levels for a while, but the underlying fundamentals continue to improve.