Was this email forwarded to you? Sign up here. (Today's Smart Brevity count: 1,223 words, 5 minutes.)
Illustration: Aïda Amer/Axios
The market's ebullient mood has soured as September comes to a close and stock traders seem to have lost the risk appetite that had been pushing equities back toward all-time highs.
Why it matters: This week will likely provide an inflection point that will drive the market through the Q3 earnings season, which picks up in mid-October, and could last through the Fed's meeting on Oct. 30.
Between the lines: After 2 weeks of strong inflows to stocks, high yield bonds and other risky assets, investors sold both this past week, rotating back into safe-haven government bonds and money market funds, Bank of America Securities chief investment strategist Michael Hartnett pointed out in a note to clients.
The intrigue: This year has been what analysts at Bank of America Merrill Lynch called "The Miracle on Wall Street" in a recent note. (I called it "The Twilight Zone.")
What to watch: The all-important U.S. nonfarm payrolls report will be released on Friday, but investors also will get key data on manufacturing from the U.S., China and the eurozone before the end of the week.
The big picture: With good news on politics in short supply and earnings expected to be negative for the second straight quarter, continued solid readings on jobs and consumer spending will be paramount.
The gap between those at the top and everyone else in the U.S. grew last year to its highest level in more than 50 years, according to U.S. Census Bureau figures released Thursday.
Why it matters: The issue is beginning to generate greater concern among Americans, data shows, and could become a more prominent issue for politicians as well as companies.
China appeared unbothered by news the Trump administration is considering limiting U.S. investors’ portfolio flows into the country.
What's happening: China has been opening its capital markets to foreign investment, and over the past 8 years money flowing into China's stocks and bonds has grown 6-fold to nearly $1.3 trillion, per Wind Information data shared by Seafarer Funds.
Yes, but: China has opened up the markets largely as a show of good faith to U.S. and European investors and index makers who want access to its high-yielding bonds and fast-growing companies.
What's next: China says it will continue to open its financial markets and encourage foreign investment, according to a summary from the eighth meeting of the Financial Stability and Development Committee posted on its website Sunday, Bloomberg reported.
Axios' Courtenay Brown writes that jobless African Americans are picking up full-time work at a faster rate than unemployed white Americans, according to recent data.
Why it matters: A strong economy does not undo racism, and the same hurdles that make it difficult to find work have not disappeared. But a tighter labor market forces employers to look outside their usual pool of candidates to find workers.
Though the gap has narrowed in recent months, pay for black Americans is still significantly less than other races.
Illustration: Sarah Grillo/Axios
Axios' Jennifer Kingson and Kia Kokalitcheva write: A landmark privacy law in California, which kicks in Jan. 1, will give Golden State residents the right to find out what a company knows about them and get it deleted — and to stop the company from selling it.
Why it matters: It could effectively become a national privacy law, since companies that are racing to comply with it may give these privileges to non-Californians, too.
The California Consumer Privacy Act will apply to companies with at least $25 million in annual revenue, have personal information on at least 50,000 people, or earn at least half their money by selling consumers' personal information.
Where it stands: Companies are racing to get their computer systems ready, spending as much as $100 million, according to a PricewaterhouseCoopers estimate quoted in the Wall Street Journal and confirmed by Axios.
Computer architecture is the big sticking point. Consumer information can reside in lots of databases, and the same consumer can be listed under different names, addresses or nicknames.
Between the lines: While efforts to pass a federal privacy law have failed, companies think it's certain that something like the California law will hold sway nationally — and that other states will follow California's lead — so they're planning accordingly.
Editor's note: The byline in story no. 4 was corrected to show it was written by Courtenay Brown. The image credit on the top image was corrected to show it was designed by Aïda Amer.