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 Here is what you need to know. Chinese stocks get rocked. The Shanghai Composite (-2.18%) tumbled Monday after the Chinese government said industrial profits rose 4.1% year-over-year in September, making for the fifth straight month of slowing growth. Elsewhere, Germany's DAX (+1.83%) leads the advance in Europe while the Nasdaq (+1.3%) is set for strong gains at the US open. Angela Merkel is reportedly standing down as leader of her party. Merkel won't run for the leadership of the Christian Democratic Union party after it suffered a string of losses in regional elections, according to multiple reports. A far-right leader who's garnered comparisons to Trump has won Brazil's presidential election. Jair Bolsonaro won 55.2% of the votes in a run-off election against the former São Paulo mayor and left-wing challenger Fernando Haddad, according to Brazil's electoral authority. The world has a 'zombie firm' problem. Low interest rates and demand for leveraged loans have created a huge market keeping afloat companies that can barely pay the interest on their debts, according to the Bank of International Settlements. One key indicator suggests investors needs to get more nervous before stocks can bottom. The Arms index, known as "TRIN," which compares advancing and declining stock issues and trading volume as an indicator of market sentiment, has yet to cross the threshold that shows true investor panic. Bank of America is on 'crash watch.' Michael Hartnett, the firm's chief investment strategist, says the three P's (positioning, profits, and policy) suggest it's still too early to flip from bearish to bullish and gives some investment ideas for people who share his view. IBM is acquiring the software company Red Hat for $34 billion. The deal will pay Red Hat shareholders $190 a share in cash — a premium of more than 60% from Friday's closing price. Elon Musk criticized federal regulators on Twitter. The Tesla CEO called the Justice Department's investigation into the electric-car maker "total bs" and said his tweet that led to Security and Exchange Commission charges against him was "worth" the $20 million fine he had to pay. Earnings reporting is light. Mondelez and Wingstop report after the closing bell. US economic data keeps coming. Personal income and spending and PCE core prices will all be released at 8:30 a.m. ET before Dallas Fed manufacturing crosses the wires at 10:30 a.m. ET. The US 10-year yield is up 1 basis point at 3.08%. | 
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