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 According to the median estimate of economists surveyed Friday by Thomson Financial, June personal income is expected to rise 0.5 percent, up from a 0.4 percent gain in May, while spending is expected to edge up 0.2 percent, less than May's increase of 0.5 percent.
Tuesday's report will also include the government's reading on core personal consumption expenditures, one of the Federal Reserve's preferred gauges of inflation. June's core PCE is projected to show a 2.0 percent year-over-year rise
-- up from 1.9 percent a month earlier, and at the very top of the Fed's comfort zone of 1 percent to 2 percent. Wall Street's inflation worries have taken a back seat to concerns about credit but could re-emerge if the PCE figure is higher than expected.
Wall Street, uncertain if the rise in subprime mortgage defaults is a trend that's leaching into other types of loans, could find some solace in solid employment figures, because people with steady paychecks are less likely to shirk debt.
On Friday, the Labor Department releases its widely watched monthly employment data. Economists forecast that July nonfarm payrolls rose by 133,000, a bit more than in June, but that the unemployment rate edged up to 4.6 percent in July compared with 4.5 percent in June.
The Dow tumbled 4.23 percent last week, the Standard & Poor's 500 index dropped 4.66 percent, and the Nasdaq composite index fell 4.90 percent. The Russell 2000 index fell 7.01 percent and is now down 1.25 percent for the year.
Another slew of earnings...
On Monday, Verizon is expected to report a profit of 58 cents a share. The company closed at $42 Friday, near the upper end of its 52-week range of $31.41 to $43.99.
On Tuesday, analysts project a profit of $1.13 a share from General Motors. The automaker closed at $31.10 Friday, in the lower half of its 52-week range of $28.49 to $38.66.
Time Warner Inc. on Wednesday is expected to report earnings of 20 cents per share. The company closed at $19.42 Friday, in the middle of its 52-week range of $15.77 to $23.15.
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 Walt Disney Co. also releases its quarterly earnings Wednesday. The company, expected to report a profit of 55 cents a share, closed at $33.74 Friday, at the upper end of its 52-week range of $28.53 to $36.79.
Friday, analysts anticipate Procter & Gamble will post a profit of 66 cents per share. The company closed at $62.82 Friday, in the upper half of its 52-week range of $55.70 to $66.30.
...Amid an onslaught of economic data
On Tuesday, Chicago purchasing manager's index -- a precursor to the Institute for Supply Management's national manufacturing index
-- is expected to indicate slightly weaker growth in July than in June.
Also Tuesday, along with snapshots of personal income and spending, the Commerce Department will release data on construction spending, and the Conference Board will report on consumer confidence. Economists predict that construction spending was essentially flat in June compared with May, and that consumer confidence rose in July compared with June.
On Wednesday, the ISM releases its manufacturing index, which is anticipated to show that growth in July was marginally weaker than in June.
Also Wednesday, the National Association of Realtors reports on June pending sales of existing homes
-- which have fallen for three straight months -- while the nation's big automakers release their July sales figures.
Thursday will bring the Commerce Department's June factory orders report, and on Friday the ISM releases its service sector index, which is expected to show slightly slower expansion in July than in June.
[Associated Press; by Madlen Read]
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