US jobs data and earnings reports latest test for equities

Wall Street needs a boost from monthly jobs figures and consumer company earnings the US stock market is to have a better week.

Wall Street is unlikely to go beyond a key technical level this week unless monthly jobs figures and consumer company earnings boost confidence about the recovery.

Procter & Gamble and Clorox are among companies that will declare results this week giving another glimpse into the strength or weakness of consumer spending.

Investors also await the US’ nonfarm payrolls report, due Friday. Another key economic data lined up for this week is the Institute for Supply Management's manufacturing report, due today, which is expected to show growth for a 12th straight month.

US equities dropped last week after economic data and outlook from technology companies disappointed traders.

The S&P 500 declined 0.1% to 1,101.60, restricting its July advance to 6.9%. The Dow Jones Industrial Average rose 41.32 points, or 0.4%, to 10,465.94. The Dow has registered a 0.4% gain for the year, reversing a loss of as much as 7.1% on July 2.

European shares also fell last week as slower-than-expected US economic growth overshadowed a rally in banks. The Stoxx Europe 600 Index dipped 0.2% to 255.35, trimming the gain in July to 4.9%. Germany’s DAX shed 0.3%, while and the FTSE 100 retreated 1%.

Meanwhile, Asian stocks climbed for the fourth consecutive week as company earnings reports boosted confidence in the strength of the global economy.

The MSCI Asia Pacific Index rose 1.4% last week to 119.11 and climbed 5.6% in July.

Japan’s Nikkei 225 Stock Average gained 1.1% last week, with Hong Kong’s Hang Seng Index rising 1%. China’s Shanghai Composite Index advanced 2.6% after the central bank said it will keep a “moderately loose” monetary policy.

According to Reuters, Nikkei average is likely to edge lower on Monday amid growing concern about the US economic recovery following GDP data and worries about a stronger yen after the Japanese currency hit an eight-month high.

However, robust domestic corporate results from the likes of Honda Motor Co are expected to check falls.