The US economic reports released were largely mixed with the calendar consisting of the S&P/Case-Shiller home price index, the August Chicago PMI and the August Conference Board's consumer confidence survey. The S&P/Case-Shiller home price index edged up higher than forecast, rising by 0.28% in June from 0.53% a month earlier. On an annualized basis, the home price index printed at 3.6% in Q2, versus an upwardly revised 2.3% in the previous quarter. The Chicago PMI fell to its lowest level since November 2009 at 56.7 in August, a larger than expected decline from 62.3 a month earlier. Rounding out today's reports was the Conference Board's consumer confidence survey, which bested forecasts for a minor increase to 50.7, instead edging up to 53.5 from 51.0.

Traders will turn to key jobs reports that kick off in the Wednesday session, including the Challenger job-cuts and the ADP private sector payrolls. Consensus estimates are looking for the August ADP employment change to add 15k jobs, following 42k jobs added from July. Also scheduled for release will be the August manufacturing ISM report, estimated to decline to its lowest level since September 2009 at 52.7 and down from 55.5 from July. The ISM prices paid component is seen slipping to 55.3 from 57.5 previously.

The key point of focus this week will be Friday's key non-farm payrolls report, which is estimated to reveal a loss of 100k jobs in August from 131k jobs shed in July. The unemployment rate is also forecast to creep up higher to 9.6% in August from 9.5% a month earlier.