Fed rate cut, jobs data may lift stocks

While Wall Street will have a heavy load of economic numbers to consider next week, one that stands out is the report on January nonfarm payrolls, due on Friday.

"If it shows that the December report was an aberration, then the market could derive some real strength from that," Joy said.

In a Reuters poll of economists, the median forecast is for January payroll growth of 63,000 jobs, and an unemployment rate of 5.0 percent.

The December report showed a meager 18,000 new jobs and the jobless rate rising to 5.0 percent from 4.7 percent, the biggest increase in the rate since 2001.

Friday's agenda of economic data includes the Institute for Supply Management's report on factory activity in January.

The ISM's December report was another shocker, with the manufacturing index falling to 47.7, the weakest reading since April 2003. The drop put the index below 50, a zone that indicates contraction rather than growth.

In the Reuters survey, the index is seen slipping to 47.3.

If the ISM figures and the payroll data together show improvement from December, a big boost in confidence is likely. But if the numbers turn out disappointing, it could be unsettling.

While Friday's economic reports are major hurdles for the stock market, the week's data includes new home sales on Monday, durable goods orders and housing prices on Tuesday, and the first look at the economy's pace, as measured by gross domestic product, in the fourth quarter, due on Wednesday.

The poll shows economists anticipating that the economy grew at an annual pace of 1.2 percent in the fourth quarter -- much slower than in the third quarter.

A report on personal income and spending is due on Thursday, and several polls on consumer attitudes' are also on the economic calendar for the week.

For a complete list of the week's U.S. economic releases and forecasts, see .