Despite the Fed's cumulative rate cuts of 400 basis points this year, the economy remains sluggish at best, recessionary at worst. September payrolls declined more than expected with drops registered across the various industries, not concentrated in just manufacturing. This means that the bulk of the September data are likely to show weakness since a lot of indicators move in tandem with the employment situation.

Although there is no question that the economy is anemic, it is hard to make sense of the data knowing that the terrorist attacks clearly affected some activity during the month. Many market participants are ignoring pre-attack data and placing a lot more emphasis on figures since the terrorist attacks on September 11. Interpretations will be more difficult, but remember Fed Chairman Alan Greenspan has urged caution at painting too gloomy of a picture.

Monetary and fiscal stimulus will work together to get the economy rolling again. We're not likely to see very friendly economic data during the month of October (which generally will cover September figures), but could start seeing better news as early as November.