Stock Market Update

[BRIEFING.COM] The early excitement has died down, yet the indices continue to have life left in them thanks to broad-based participation that is rooted in economic optimism.

Today's economic data, combined with China teasing more stimulus to jumpstart its economy, has contributed to the market's embrace of the soft landing/no landing outlook and more accommodative policy settings to make that happen.

The industrials sector (+0.7%) is exhibiting relative strength, bolstered by a hefty gain in Southwest Airlines (LUV 31.27, +2.88, +10.1%), which raised its Q3 revenue per available seat mile ("RASM") guidance and announced a new $2.5 billion share repurchase program. The materials sector (+2.1%), though, is at the head of today's leadership pack.

Notwithstanding today's good economic news -- and particularly the low initial jobless claims reading -- the fed funds futures market still sees a 55.5% probability of a 50-basis points rate cut at the November FOMC meeting versus 57.4% yesterday, according to the CME FedWatch Tool.