Coming Week: Data Deluge

Investors expecting sluggish action during the final week of summer may be in for a surprise as a slew of heavy-duty economic data could unsettle a shaky market.

The S&P 500 has slipped 2.5% this month and the Nasdaq has spent four straight weeks in the red. But while returns are often taken with a grain of salt in this vacation-heavy month, some traders are beginning to wonder if there is more to the selloff than a mere case of the light-volume blues.

"People are starting to wonder if this late-summer decline is for real," says Brian Williamson, equity trader at Boston Company Asset Management.

Williamson says the downward trend could be exacerbated if we get worse-than-expected economic numbers next week, because volume is typically light prior to Labor Day.

On Tuesday, the market will receive consumer confidence data for August. Economists expect confidence to dip to 102 from 103.2 the prior month, mostly due to higher energy costs.

Also on Tuesday are July factory orders and the minutes from the August Federal Open Market Committee meeting. Most market and Fed-watchers, however, are not expecting too much of a change in the Fed's language.

The release of GDP data for the second quarter is scheduled for Wednesday, Aug. 31. Economists forecast growth of 3.4% for the nation's economy, on par with the prior period.

Traders trying to get a final week of relaxation in before the fall season may want to keep their cell phones handy on Thursday, as some potentially market-moving data will be reported leading up to Friday's all-important jobs number.

Auto and truck sales for August are on tap, with analysts expecting significant declines in both numbers on account of July's blowout sales. But construction spending for July is expected to rise by 0.4%, up from a 0.3% decline in June.

The August ISM Index and personal income and spending data will be released on Thursday, and some economists say this information is on par with the jobs report in offering clues to the Fed's next move. Economists have penciled in 57 for the ISM, up from 56.6 in July. Historically, the Fed has stopped raising rates when the ISM reading drops below 50.