Coming Week: More Stimulus, Fewer Jobs

If the stock market is anything like me, it's sick and tired of hearing about the stimulus plan floating its way through both chambers of Congress right now.

But during the coming week, which will already be flooded with earnings reports and economic data, the American Recovery and Reinvestment Plan will once again take the spotlight, with the Senate set to debate its own version of a rescue package in the next few days.

Last week, the U.S. House of Representatives voted for the passage of an $819-billion proposal, much to the dismay of Wall Street. Current estimates put the Senate's own economic recovery plan at a staggering $888 billion, which doesn't bode well for the stock market in the coming week.

Steven Sheldon, CFA and principal with SMS Capital Management, argues that even if there is a passage by the Senate, the market probably won't see an immediate sustained upward move.

"We keep coming back to the reality that the economy is still in deceleration mode," said Sheldon. "If you like the plan, passing it is a positive step. But you're not going to have the market stabilize. That won't come until you see the real impact of all the things they're hoping to accomplish with this plan."

"No one would dispute that there are long lag times between these policies and their ultimate impact on the economy," said James Paulsen, chief investment strategist with Wells Capital Management. "We're talking about an $800 billion to $1 trillion package. The continual, almost panicky approach is doing more damage through fear than it's doing good to the fundamental problems that ail us. It makes them look like they're scared to death and that they don't really know what to do."