Last week, reported second quarter earnings continued to outperform projections, and the major market indexes responded by pushing the rally through its fifth month.

Next week, that momentum will be a factor as the S&P 500 tries to surpass the 1,000 level, a much-anticipated mark, which could function as a buy signal and push the rally even further. But investors are still looking to U.S. economic data and corporate earnings for indications of economic stabilization. Two-thirds of the S&P 500 companies have already released their quarterly earnings reports, and 74 percent of those have beaten analysts’ expectations. Those results became the driving force behind July’s market gains. If, however, the coming week’s news is not as encouraging, the S&P 500 could be facing a pullback.

On Monday, U.S. Auto Sales for July will disclose that consumers purchased enough autos to reverse the four-year slump in sales. Much of this was attributed to the “Cash for Clunkers” program, which has already exhausted government funding of $1 billion. Congress is already in the process of adding $2 billion to this program. Procter & Gamble (PG) is among those companies set to release second quarter earnings next week. Investors are hoping to find indications of renewed consumer spending vital to sustainable economic recovery.

Also on Monday, the Commerce Department’s construction spending data for June is projected to show a smaller decline than the figures for May. The Institute for Supply Management Index for July, also due Monday, is forecast at 46.5, an improvement over June, but still below the 50 needed to demonstrate economic growth.

On Tuesday, the Pending Home Sales for June should show a slight increase. The report on Personal Income, also on Tuesday, is expected to show a decline of one percent in income, compared to May’s gain of 1.4 percent.

On Thursday and Friday, unemployment data is expected to reveal that the economy eliminated fewer jobs than the month before. The Labor Department's non-farm payrolls report for July is expected to show a loss of 320,000 jobs, a substantial decrease compared to June’s figure of 467,000. Initial unemployment claims, however, are expected to remain at last week’s level of 580,000, and the unemployment rate is anticipated to rise to 9.6 percent.

13 Stocks to Watch

We have 13 stocks this week at daily resistance looking to break to new highs. Those 13 stocks to watch are Capital One Financial Corp. (COF), C.H. Robinson Worldwide, Inc. (CHRW), PepsiCo, Inc. (PEP), Bank of America Corporation (BAC), Costco Wholesale Corporation (COST), Freeport-McMoRan Copper & Gold Inc. (FCX), Harley-Davidson, Inc. (HOG), Jabil Circuit, Inc. (JBL), Massey Energy Company (MEE), Robert Half International Inc. (RHI), Stanley Works (SWK), Target Corporation (TGT), and Total System Services, Inc. (TSS).

Dave Mecklenburg is the Editor-in-Chief of TigerSharkTrading.com.