August begins with jobs data and earnings as market momentum improves

Investors head into the first week of August watching whether the recent rebound in market momentum can continue. After a strong lateJuly recovery, traders are looking at whether stocks can hold their gains as the market faces a busy stretch of economic data and corporate earnings. The main focus will be Friday’s U.S. jobs report, which is expected to show slower hiring than in June but still steady labormarket growth. Economists surveyed by FactSet expect 87,500 nonfarm payrolls added in July and the unemployment rate to rise slightly to 4.3%. Earnings season will also remain in focus, with results due from companies including McDonald’s, Costco, Disney, AMD, Palantir, and several other largecap names across consumer, technology, and industrial sectors. So far, most S&P 500 companies that have reported have beaten expectations, helping support a more optimistic view of corporate profits. Analysts say the week could be important for gauging whether the recent rally has more room to run, especially with seasonal weakness often appearing in August and September. Other scheduled data releases include manufacturing and services surveys, job openings, ADP payrolls, productivity, and weekly jobless claims.