T-minus 25 hours until we learn what Jay Powell and his band of merry men and women have decided for our economy.  They are fighting a foe that could be compared to the sun – a giant flaming ball that will eventually burn out on its own.  Perhaps because the Fed played such an important role breathing life into this burning ball of hot plasma, Powell and Co have vowed to destroy it at any cost.

Today’ session began with some oomph on scuttlebutt China is poised to ditch its Zero Covid19 policy.  Chinese stocks soared, US futures popped and bond yields came down quickly.   The velocity of the moves underscores the size of pent up buyers for stocks and bonds.

But that early enthusiasm was tempered when the JOLTs report saw job openings rebound in September.  It’s more rearview mirror than most economic data points but still good enough fodder for hawks at the Fed – which these days means every FOMC voter- to keep swinging the mallet to rip down the economy.

JOLTS

Lower

• Manufacturing 806,000 from 846,000 m/m and 945,000 y/y
• Retail 795,000 from 792,000 m/m and 941,000 y/y

Higher

• Leisure 1.631,000 from 1,397,000 m/m and 1,538,000 y/y
• Construction 422,000 from 386,000 m/m and 348,000 y/y
• Transportation 553,000 from 442,000 m/m and 582,000 y/y

Still, there is an anticipation the Fed may offer a vague olive branch that could spark a relief rally. But if that doesn’t happen – yikes.

Meanwhile, ISM Manufacturing data also out this morning, and while it came in ahead of consensus, there are nuggets in there for the Fed to consider.

• Prices paid -5.1 points
• Backlogs -5.6 points
• Supplier deliveries -5.6 points

And respondent comments don’t speak to a strong economy.

All things considered, the market is holding up, and even hints at moving higher into the close.