Not surprisingly, in a week dominated by the first full week of the Q3 earnings reporting season, the economic data took a back seat to all the headlines on earnings. On balance, the week’s economic data was mixed, with a few reports beating expectations, a few in line, and a few disappointments. Importantly, none of the data changed our view that the U.S. economy will experience 2.0 to 3.0% GDP growth in the second half of 2009, and that the consensus forecast for 2010, at 2.4%, is still too low.

This week, there are even more Q3 earnings reports (150+) than last week (137), but the market seems almost immune to all the good news there. Thus, we expect there to be more focus on the week’s full slate of economic data which include reports on:

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