Wall Street Awaits Key Employment Report

Stocks are set to churn sideways to higher this week as Wall Street digests a pile of key economic data. But increasing tensions between India and Pakistan could throw a wrench in the works.

The Street will pick apart reports on the giant U.S. manufacturing sector, the services sector, car sales and the crucial monthly jobs data, all covering the month of May, plus April construction spending.

For the next five trading sessions, investors have slim pickings from the earnings basket.

Of special interest this week will be chip maker Intel Corp., which will give its mid-quarter update Thursday after the close.

Before trading opens today, the Institute of Supply Management’s report on U.S. manufacturing activity during May probably will be stronger than originally expected.

The May employment report, due before Friday’s open, is expected to show creation of 58,000 jobs, up from April’s 43,000 jobs, according to economists polled by Reuters. The unemployment rate is expected to rise to 6.1% in May from 6.0% in April.

Other reports this week:

* Today, the Commerce Department will report on construction spending in April.

* Friday, the Commerce Department will report on April inventories at wholesalers.

The Federal Reserve will report on consumer borrowing in April.