Friday’s non-farm payroll data for the month of July showed the fewest job losses in almost one year, and, for the first time in 15 months, the unemployment rate declined slightly. Wall Street interpreted that data as the clearest indication to date that the economy is turning around. The three major stock market indexes responded by continuing to rise last week, and the S & P 500 pushed through the 1000 mark.

In the coming week, investor confidence is expected to work in Wall Street’s favor, but that confidence will rely on positive figures concerning consumer spending, which accounts for about two-thirds of GDP. The quarterly earnings reports from some of the nation’s largest retailers, including Wal-Mart, Kohl’s, Macy’s and J. C. Penney, will be of particular interest, as will Thursday’s U.S. Commerce Department data on retail sales for July, expected to rise .7 percent, compared to June’s .6 percent increase.

Additional consumer data will be announced on Friday. The U.S. Consumer Price Index for July is anticipated to remain at the June level, and the University of Michigan’s preliminary consumer sentiment index for August is expected to advance two points over July’s figure. Also on Friday, the Fed reports on July industrial production.

Investors will also be keeping an eye on the Federal Reserve, which will hold its two-day interest rate-setting meeting next Tuesday and Wednesday. Expectations are that benchmark interest rates will remain near zero. But investors will be looking for hints that the government can finance its stimulus plan at reasonable rates, and that it is considering the possibility of ending some federal financial assistance.

9 Stocks to Watch

We have nine stocks this week at daily resistance looking to break to new highs. Those nine stocks to watch are Hudson City Bancorp, Inc. (HCBK), FirstEnergy Corp. (FE), CF Industries Holdings, Inc. (CF), Cintas Corporation (CTAS), Consolidated Edison, Inc. (ED), Honeywell International Inc. (HON), M&T Bank Corporation (MTB), Morgan Stanley (MS), and Nucor Corporation (NUE).

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