U.S. Data to Battle European Debt: Coming Week

NEW YORK (TheStreet) -- Investors anticipate another round of strong U.S. economic data in the coming week, but any positive sentiment is likely to be tempered by continued fears related to the European debt crisis.

This week, stocks had three down days in a row before spiking at the market close Thursday on promising economic reports, including a 19,000 drop in weekly jobless claims to 366,000, the lowest level since 2008.

Next week, says Planned Financial Services president Frank Fantozzi, the markets are going to have "good numbers. The durable goods numbers should be decent." However, nothing will suggest that "we're busting out and turning the corner," he said. "We are still in a slow growth economy."

Despite continued uncertainties in the eurozone, U.S. economic data is likely to command attention. The National Association of Home Builders will kick off the week on Monday with the release of the housing market index. The measure of builder confidence in the market for new homes is expected to hold steady for December at 20 after unexpectedly rising by three points in November, according to Thomson Reuters.

Housing starts and building permit data are due out Tuesday. Housing starts are estimated to rise to 630,000 in November after falling 0.3% to 628,000 in October, while building permits are expected to fall to 635,000 after surging 10.9% to 653,000 in October, according to Thomson Reuters.

"The building permits are the key," says Ralph Fogel, an investment strategist at Fogel Neale Wealth Management. "They'll tell you what's going to be foretold for the foreseeable future. If it's up, that's a very good sign."

Meanwhile, investors will watch for existing home sales data for November from the National Association of Realtors on Wednesday. Economists forecast a 2.6% gain in existing home sales to a seasonally adjusted annual rate of 5 million after advancing 1.4% in October.

"What happens in a recession, and how you get out of it, has so much to do with big ticket spending," said Fogel. "Housing is 41% of what the inflation gauge is. So [the market will] have their eyes switched on housing."