By James Langton

(July 28) – The week ahead is expected to be as choppy as the one that just ended, with economic reports and the last wave of big earnings adding further concerns to the jittery markets.

Data out this past week indicates the economic landing may not be as soft as some thought in the U.S. Economists are getting a little edgy on rates as a consequence and the beginning of August will do nothing to settle their nerves.

Monday brings GDP in Canada and the Chicago purchasing index in the U.S. Tuesday’s NAPM report and personal income and spending releases will be watched closely in the U.S.

Wednesday is quiet, while Thursday brings rate decisions in Europe and the U.K.

On Friday, employment reports will come out in both Canada and the U.S. The only saving grace to traders is that Federal Reserve chairman Alan Greenspan is not scheduled to be out and about.

BMO Nesbitt Burns Inc. does not expect much reaction to the Canadian jobs report, but a hot U.S. report could be a negative. BMO is calling for average hourly earnings increases of just 0.3%, with the jobless rate moving back below 4%. BMO says there’s a small rate risk in Europe, and a central bank meeting in Australia is more likely to produce a hike.

CIBC World Markets expects to see strong, possibly scary, data in the NAPM on Tuesday, but it agrees the job report is likely more important. It expects to see strong private hiring but figures the job reports likely won’t rock the markets. “Neither report will be much of a surprise to markets, with equities still focused on earnings, and bonds likely to take their cue from U.S. Treasuries.”

Merrill Lynch analysts suggest that markets, particularly the TSE, are tapped out for now. Nortel has been singlehandedly responsible for 90% of the TSE’s latest run, it says. “The earnings landscape is certainly fabulous,although we believe much of the good news is already priced in.” It suggests that markets will languish in the short-term, but that monetary policy will be on hold for some time, and that low rates combined with good earnings will revive markets over the next year.

First Call Corp. says the earnings reporting season is almost over, since 81% of the S&P 500 and all but four of the DJIA companies have now reported.

The big one next week is Procter & Gamble on Tuesday, followed by Royal Dutch on Thursday, and Unilever on Friday. Also on Thursday Morgan Stanley Dean Witter hosts a conference on the Internet and financial services. The meeting features Merrill Lynch, CheckFree, S1 and TD Waterhouse.