The markets have quite a bit of data to digest this week, headlined by the July employment report that is due to be released on Friday.  Early numbers indicate that we can expect a decrease of 87,000 jobs mainly census related and the annual auto manufacturing layoffs caused by the changing of model years.  The unemployment rate is estimated to be at 9.6% up a modest tenth of a percent over June.  The employment report tends to have a major impact on interest rates although many believe it is actually a lagging indicator and the rate typically does not improve until the economy is well into a recovery.

Housing continues to show very little improvement and there is an increasing recent concern that deflation is looming.  June pending home sales were expected to be up 5% but actually declined 2.6% from May levels and year over year sales are down 20.1%.

On the brighter side, earnings reports have been positive recently and are possibly indicating that the economy may be improving after all.  Although nobody really knows who is buying the products that manufacturers are producing.

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