The Economic Week Ahead: December 2-6

We expect to see more animal spirits during the economic week ahead. It is chock-full of updates of labor market indicators, as well as soft data (i.e., surveys) on business in the manufacturing and services sectors. The grand finale will be November's employment report on Friday. We are expecting this week's indicators to beat expectations, boosting the Citigroup Economic Surprise Index and sending yields a bit higher (chart). While hurricanes and union strikes depressed October's readings, we believe analysts are underestimating the economy's positive reaction to Trump 2.0 and easier Fed policy.

Here's what we're watching: