Rally Expected to Carry Over as Economy Slows

Some on Wall Street say the late summer rally is likely to remain intact this week, with the market poised for a near-term upswing in the holiday-shortened trading week starting Tuesday. The reason: Recent economic data have shown the economy slowing enough for the Federal Reserve to most likely stay put on interest rates, but not so much as to hurt corporate America’s profits. Traders will look for more signs of moderate economic growth in Wednesday’s retail sales for the previous week, and the revised productivity figures for the second quarter. Also on the table Wednesday is the National Assn. of Purchasing Management nonfarm manufacturing index for August. Other reports this week include the Commerce Department’s report Thursday on wholesale inventories for July and the Fed’s report Friday on July consumer borrowing.