The release of the July jobs report capped off a very good week for the U.S. economy, as financial markets continue to price in recovery in the second half of 2009 (2H) and beyond. This week, markets will endure another heavy dose of economic data for June, July and early August, and react to the Federal Reserve’s latest Federal Open Market Committee (FOMC) meeting, which concludes on Wednesday, August 12. Although there were a few disappointing data points last week—including the ADP employment report for July and the Institute for Supply Management’s report on the service sector in July—on balance, the vast majority of the data released last week reaffi rms our long held view that the U.S. economy remains on track to post positive GDP growth in Q3 and Q4 2009.

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