Stocks closed mixed on Monday. The Nasdaq was the biggest gainer with 0.97% (and making a new all-time high in the process), followed by the S&P 500 with 0.24% (also making a new all-time high in the process). Declines were seen in the mid-cap S&P 400, the Dow and the small-cap Russell 2000.

November was a stellar month. The S&P 500 was up 5.73%, the Nasdaq was up 6.21%, and the Dow was up 7.54%. The biggest monthly performances, however, came from the mid-cap S&P 400 with 8.66%, and the small-cap Russell 2000 with 10.8%!

Slightly uneven start to December. But it's been a banner year so far. And there's a bevy of reasons to expect the year to end on an even stronger note, not the least of which is it being Q4, which is the best quarter for stocks.

Yesterday's PMI Manufacturing report saw the index rise to 49.7 vs. last month's 48.5 and views for 48.8.

And Construction Spending rose 0.4% m/m vs. last month's 0.1% and estimates for 0.2%. The y/y rate slipped to 5.0% vs. last month's upwardly revised 5.3% (from 4.6%).

Today we'll get the Job Openings and Labor Turnover Survey report (or JOLTS for short). We'll also hear from Fed policymakers Adriana Kugler and Austan Goolsbee as they speak at their respective engagements throughout the day.

But the main event this week will be Friday's always important Employment Situation report by the Bureau of Labor Statistics (BLS).

A hotter than expected jobs report might give a bit of pause to those expecting a rate cut at the Fed's next FOMC announcement on 12/18. But I would assume it would be viewed favorably given the volatility the last few reports have shown. An overly weak report, however, would likely have people questioning the state of the economy, but would also underscore the need for additional rate cuts. So it's hard to imagine not getting another rate cut in December.

We'll get a hint at the strength of the labor market on Wednesday with the ADP Employment report. Although, the ADP report has a spotty track record at predicting what the BLS report will show a couple days later.

At the moment, Fed Fund traders see a 74.7% likelihood that the Fed cuts rates by 25 basis points later this month.

Federal Reserve Governor Christopher Waller yesterday said he was in favor of cutting rates again this month, saying "at present, I lean towards supporting a cut in the policy at our December meeting." Although, like other Fed officials, he cautioned that an unwanted surprise could always change his view. But for now, he is expecting another cut.

Stocks are in a good spot right now.

And there's plenty of optimism for a strong year-end rally to cap off another spectacular year in the markets.

See you tomorrow,