Coming Week: New Year, Same Problems?

The first full trading week of 2009 could mostly be a quiet one as traders return from the holiday season still licking their wounds from the previous year, but that may all change following the December nonfarm payrolls data.

The report, due Friday, is expected to show that the U.S. economy saw 475,000 jobs disappear last month, which would mark the 12th straight month of declines. When combined with the 533,000 jobs that were lost in November, the worst single-month decrease in 34 years, the expected December losses would mean the U.S. economy shed more than a million jobs over the course of only two months.

"That is a staggering number," said Chip Hanlon, president of Delta Global Advisors. "It's hard to guess if we'll get a surprise either way, but it still seems that this is still deepening. There's a better chance that the number surprises to the downside." ...