"...So, here's how the week ahead shapes up.
The jobs/unemployment report dominates the week
The jobs report for January is the key. Most economists are looking for the unemployment rate to hold at 8.5%, the same as in December. Payroll employment is expected to rise by another 150,000 jobs if all goes well.
A few suggest the rate may bump higher and the payroll gains will be smaller than expected. Seasonal employment for the holidays has ended, including temporary jobs at FedEx (FDX +0.23%) and UPS.
Watch to see how much government payrolls fall back, particularly at the state and local levels. The declines in the sector are emerging as a significant drag on the economy.
The rest of the week: home prices, ISM and auto sales
Personal income and spending. Due Monday, from the Commerce Department. Look for small gains.
S&P/Case-Shiller Home-Price Index for November, due Tuesday. This measures price trends in 20 markets. Prices have stopped falling precipitously. But they haven't stopped falling and won't in this report. The consensus is a 3.3% decline from a year earlier.
Chicago Purchasing Managers Index, due Tuesday. This measures the business outlook for purchasing managers working in the Chicago area. It is widely watched. Nomura Securities expects the index to move higher.
Consumer confidence, due Tuesday from The Conference Board. Good news in December on jobs and that nice December rally will give this a boost.
Auto sales from major automakers, due Wednesday. Look for continued strength. There's talk auto sales could hit 14 million this year. Ford Motor (F -4.16%) is looking for 13.5 million units. Look for January sales to hit an annualized rate of 13.5 million units.
Institute for Supply Manufacturing Index for January. This is the biggest report of the week after the jobs report. Hours worked have been increasing. Look for a small gain.
Construction spending, due Wednesday from the Commerce Department. Residential spending should help this number.
ISM Non-Manufacturing Index, due Friday. Most economists see a small gain.
Factory orders, due Friday from the Commerce Department. Look for continued gains.
Another heavy week for earnings
The fourth-quarter earnings season has frustrated many analysts. Some 59% of S&P 500 companies that have reported so far have beaten estimates. That's the lowest rate since the fourth quarter of 2001, Thomson Reuters says.
The earnings growth rate so far is 4.7%. Take out Apple's huge profit gain, and the growth rate drops to 4.7%.
Here's the lineup.
Monday: Honda Motor (HMC -0.54%), Rent-a-Center (RCTI), Wendy's (WEN -0.95%).
Tuesday: Exxon Mobil, Amazon.com, Eli Lilly (LLY -0.61%), Mattel (MAT -0.68%), Pfizer (PFE -0.69%) and UPS. Exxon will be closely watched to see if its refining and marketing businesses are having the same kinds of problems that Chevron acknowledged in its report on Friday. With Amazon.com, the question isn't revenue. It will be profitability.
Wednesday: Aetna (AET +1.92%), Chipotle Mexican Grill (CMG +0.26%), Northrop Grumman (NOC -1.03%), Qualcomm (QCOM -0.03%) and Whirlpool (WHR +0.33%). Northrop Grumman's outlook depends on how it sees defense spending. Whirlpool should help investors understand the housing market.
Thursday: Cameron International (CAM +0.94%), Cummins (CMI -0.70%), Kellogg (K -0.52%), Master Card (MA +0.28%) and Merck. Cummins will be watched most closely because it supplies diesel engines to the trucking industry. A slowing economy will slow diesel sales. One other to watch: Royal Caribbean (RCL -0.75%). The question is if the Costa Concordia disaster off the coast of Italy is affecting cruise-line reservations.
Friday: Beam (BEAM +0.55%), Estee Lauder (EL -0.02%), Simon Property Group (SPG +0.12%), Clorox (CLX -0.41%) and Weyerhaeuser (WEY). All will help investors understand consumer spending and confidence. Beam used to be known as Fortune Brands and is best
as the maker of Jim Beam and Makers Mark bourbon."
msn.money.com
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