7/04/11 – theGrio and CNBC Market Update

Last week, investors had to digest global and domestic headlines. Greece decided on an austerity plan to prevent a debt default. Home prices showed some signs of stabilization in April and consumer confidence fell for the second month in a row — on continued concern about jobs and the overall economy. The markets are closed on Monday for Independence Day, but investors await reports on jobs, the services sector and consumer credit.

Where are the jobs? We’ll find out with the June employment report. In May, the unemployment rate rose slightly to 9.1 percent — as 54,000 jobs were added. Business services, health care and mining saw the biggest gains. African-American unemployment ticked up to 16.2 percent, while black teen unemployment declined to 40.7 percent, but remains by far the highest of any group.

We’ll get a read on the economy with the June service sector report from the Institute for Supply Management — which tracks construction, transportation and retail activity. In May, the service sector rebounded to a 54.6 reading. A number above 50 signals expansion.

We’ll gain insight on consumer finances with the May consumer credit report — which tracks credit card, auto and student loans. In April, consumer credit rose by more than $7 billion driven by an increase in student and auto loans, but Americans continue to cut back on credit card use due to higher gas prices and unemployment.