The Economic Week Ahead: January 6-10

The economic week ahead is chockful of labor market indicators for November and December. We're expecting them to beat expectations. As long as corporate earnings continue to reach new record highs, companies are likely to hire more workers and increase real wages (chart). Ultimately, that supports consumer spending and stock prices.

Still, there are a number of potential headwinds for stocks, not the least of which is rising bond yields. Better-than-expected economic data could put further upward pressure on the 10-year Treasury yield, which is already at 4.60%. On balance, we still expect good economic news to be good news for the stock market. Here's more on what we're expecting this week: