Consumer spending will be investors’ focus

Though investors’ thoughts might drift to turkey and football in the coming week, such diversions are unlikely to crowd out questions about the sustainability of the recent run-up in stocks -- and whether Wall Street is likely to enjoy its usual year-end rally.

Not surprisingly, the week is expected to be light on economic and earnings data. However, some investors will be looking for signs of how well consumer spending might hold up as the holiday season has its official start.

Last week the Dow rose 1.93%, while the S&P; gained 1.47% and the Nasdaq added 2.35%, as concerns about inflation eased.

The coming week brings the so-called Black Friday, the day after Thanksgiving, when discount-seeking shoppers pour into stores at what seems like an earlier hour each year.

Investors and retailers closely examine the day’s receipts in hopes of determining the strength of consumer spending, which accounts for two-thirds of economic growth.

Some of the notable earnings reports in the coming week are from retailers, including Lowe’s and Nordstrom.

From the Associated Press

The week ahead

Today

* Treasury bill auction.

* Quarterly earnings reports expected from Campbell Soup, Lowe’s and Nordstrom.

Tuesday

* Quarterly earnings report expected from Borders Group.

Wednesday

* Labor Department reports on weekly jobless claims.

* Freddie Mac reports on mortgage rates.

* President Bush scheduled to sign a free-trade agreement between the U.S. and Colombia.

Thursday

* U.S. financial markets are closed in observance of Thanksgiving.

Friday

* U.S. stock markets close early, at 10 a.m. PST.

* Bond markets close 11 a.m.

* Traditional start of the holiday shopping season.