DC Lite #217

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1. NFP (I). "Jobs gains were more diffuse with 58% of private sector industries seeing job gains in September. Highest diffusion index since January 2024 (rebound from lowest since 2016)."

2. NFP (II). "Last month’s so-called seasonal factor, which is calculated by dividing the total seasonally adjusted payrolls count by the unadjusted figures, was the largest for any September in records back to 2002."

3. Private client flows. Clients continue buying rate-sensitive areas (REITs, Financials, Utilities) and selling defensive (Low-vol, Staples).

4. SPX outlook. "The S&P 500 continues to rise along with its reported earnings per share (EPS). It could get to 8000 by the end of the decade if EPS doubles to $400 with a price-to-earnings ratio of 20."

5. Big Tech vs. Dotcom. And finally, “given current valuations in the tech sector, any 'bubble' could have further to inflate before it bursts.”