UBS said that to have a positive outlook on stocks, it needs to see progress on trade and better economic data.
"We expect trade tensions to persist and central banks to remain dovish in 4Q," UBS global chief investment officer Mark Haefele said in a note to clients.We'll get a gauge of U.S. manufacturing in September, a sector that contracted for the first time in three years inThe ISM U.S. manufacturing Purchasing Managers' Index fell to 49.1 in August; any reading below 50 signals a contraction. Economists are expecting a rebound to 50.
Economists are expecting manufacturing PMI to come in at 51, the same as August. Construction spending is also expected to rise 0.4%, after rising 0.1% in August.Several members of the Federal Reserve are slated to speak on Tuesday, including Fed Vice Chair Richard Clarida, St. Louis Fed President James Bullard and Chicago Fed President Charles Evans.
Earlier in September, the Federal Reserve lowered interest rates for the second time since the financial crisis. Hearing from the Fed members could give investors clues about future rate cuts.9:15 a.m. St. Louis Fed President James Bullard