'Zombie Economy' May Give Markets a Scare in Oct

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'Zombie Economy' May Give Markets a Scare in October



Traders expect October to give the markets a scare, starting with news on the economy and jobs in the week ahead.

After a surprisingly good performance in the third quarter, the thinking is the stock market is ready to pull back, especially after a few choppy sessions and a new batch of data that should continue to show a slow-moving, ‘zombie like’ economy. (Read More: September Bad for Stocks? Why It's Different This Time)

Stocks logged the best third quarter performance since 2010. For the quarter, the Dow [.DJI 13437.13 -48.84 (-0.36%) ] surged 4.32 percent and the S&P 500 [.SPX 1440.67 -6.48 (-0.45%) ] soared 5.76 percent.

The coming week could provide plenty of excuses to take profits, beginning with Monday’s ISM manufacturing data, again expected to show weakness in the sector.
 
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