Quincy Krosby: Tax reform, employment situation report, Fed speakers may move markets

This week Republicans will move on passing a budget, which is necessary in order to begin the legislative process to pass their tax reform plan. 'Criticism is mounting from the other side of the aisle that this is a plan to help the wealthy at the expense of the middle class,' Krosby said. 'On the Republican side, there are already those asking how we are going to pay for this. They do not want this to add to the deficit.'

In addition, this week is important in terms of data releases: manufacturing and service sector reports, vehicle sales, factory orders and the non-farm payroll report. Because of the hurricanes, the monthly employment situation report, which is typically the most anticipated event for markets, will be skewed, not allowing for the customary analysis that follows the Friday morning release.

Federal Reserve speakers are out in full force this week, but Chair Yellen's comments on Wednesday at the Community Banking in the 21st Century Conference in St. Louis will be monitored closely to see if she mentions the need to raise rates again this year.

The president has begun to interview potential candidates to replace Chair Yellen when her tenure ends in February 2018. He said he will name someone over the next couple of weeks. Speculation is mounting on who might replace her, or if she may be nominated for a second term. Federal Reserve Governor Jerome Powell has been interviewed by the president and he will be speaking on Thursday morning in New York. No doubt his comments will garner more attention than usual.

Lastly, Saudi Arabia announced that they are giving women the right to drive motor vehicles, part of the move toward modernizing the kingdom. 'Nine million women potentially could be buying vehicles,' Krosby said.

To talk to Quincy Krosby about her views of the market, contact Lisa M. Bennett or Dara Scerbo.

Read Quincy Krosby's full Q3 Market Commentary: Third Quarter Checkup.