Looking Ahead: Week of July 9 through 13

The bottom line Clearly, stronger jobs growth is needed to bolster to the recovery and the economy’s rate of growth. Nonetheless, there has been some improvement recently in housing and manufacturing may not be as sluggish as feared. Consumers are still spending (at least those with jobs). So, the economy is muddling along at a modest growth rate and could pick up strength—especially if the fiscal cliff issue is addressed. However, that issue likely will not be resolved until the last minute. Looking Ahead: Week of July 9 through 13 After Friday’s soft employment report, this week’s highlight may be the Fed’s FOMC minutes (Wednesday) as traders look for any inclination of QE3. Earlier that morning, the trade deficit will add detail to foreign and domestic demand. Lower oil prices may show up in import prices (Thursday) and in the PPI (Friday). Friday’s consumer sentiment reading will indicate whether lower gasoline prices are offsetting weak job growth.