Coming Week: Shaky Ground

On Tuesday, factory orders for October will be released. Economists expect a drop of 2%, compared with a rise of 2.1% in September.

"After the dismal October durable goods number last week, it would not be surprising to see a very sour factory orders figure on Tuesday," says Jason Schenker, economist at Wachovia. "This would be another bearish indicator signaling slower growth ahead, and potentially a first-quarter rate cut."

The Institute for Supply Management services index for November also arrives on Tuesday. The market expects a reading of 56.5, down from 57.1 last month.

On Thursday, October consumer credit will be in the spotlight. According to Thomson First Call, economists expect credit to rise by $4.5 billion, compared with a $1.2 billion drop in September.

The all-important November non-farm payroll data should dominate early trading on Friday. Economists project that 125,000 jobs were added during the month, up from 92,000 in October.

The unemployment rate is expected to remain steady at 4.4% and the average work week is predicted to stay at 33.9 hours. Hourly earnings are forecast to rise 0.3%, compared with growth of 0.4% in October.

"While employment trends tend to lag the economy, a stronger reading and upward revision will act as a counterbalance to the recent concerns that the economy is slowing too quickly, likely allowing the market to move higher," says Robert Pavlik, chief investment officer at Oaktree Asset Management. "Conversely, a number, which is below the consensus estimate, will cause the markets additional concern and will likely weight on stock prices."