Use these 4 private indicators to monitor the economy as the government shutdown stretches on

Economic Indicators - The health of the consumer is crucial for Federal Reserve decision-making regarding rate cuts, particularly with ongoing inflation concerns [1] - Investors should monitor the labor market, which has been identified as a weak area by Fed Chair Jerome Powell [1] Market Sentiment - The market is currently in a precarious position, where the prospect of near-term rate cuts could be bullish for stocks, but economic deterioration could quickly change this sentiment [2] - Recent focus on AI deal-making and a strong earnings season has overshadowed economic data, which has been affected by a government shutdown [3] Earnings and Stock Performance - Morgan Stanley highlights positive revenue surprises and EPS growth as factors that could continue to lift stocks into 2026 [11] - Palantir reported a record quarter but saw its stock fall in premarket trading, indicating market volatility despite strong earnings [5] Labor Market Data - Investors should pay attention to ADP figures and ISM non-manufacturing data as indicators of labor market health, with better-than-expected data potentially dampening rate cut prospects [6][7] - Challenger, Gray & Christmas's monthly report on job cuts is also significant, as better-than-expected data could negatively impact stock performance [7] Sector Analysis - Healthcare stocks have underperformed despite strong earnings growth, but analysts believe the sector is poised for a turnaround due to various factors including regulatory clarity and defensive nature in a weak job market [13][14][15] - The healthcare sector has consistently added the most employees over the past year, indicating investment in future growth [16] Portfolio Adjustments - The First Trade index has been adjusted, swapping Microsoft for Palantir, reflecting a focus on AI-driven companies [17][18]