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Two consecutive months of disappointing employment data bears watching, but its likely a result of the delta covid wave in the U.S.. That particular wave has now clearly peaked and rolled over.

The title notwithstanding, what might have contributed to the September weakness in markets? In this era of heightened U.S. political disfunction, certainly debt ceiling negotiations played a role.

This revealing chart shows why.

Here are a handful of less commonly cited reasons as to "why" this is the case.

A huge miss in U.S. hiring was concentrated in the leisure and hospitality industries. Offsetting the employment miss was continued strength in the ISM Manufacturing and Services Indices.

Recession is nowhere in sight. Economic indicators of all stripes show this to be the case. A $1.2 trillion infrastructure plan passed with bi-partisan support by the U.S. Senate, and seemingly destined to become law, will further fuel the expansion.

Major economic indicators are, collectively, as strong as I've seen in my career. Corporate profits are now 24% higher than the pre-covid comparable peak in 2019.

Meanwhile, Canada is now among the top handful of countries in terms of total vaccine distribution.

Yes, the economic rebound has been strong. But stronger still have been the corporate results and forward guidance.