Stocks: Back to the U.S.A.

NEW YORK (CNNMoney.com) -- With worries about the global economy having pushed stock markets into correction territory, investors return to work this week to face a bevy of reports on the health of the United States.

Key readings are due on housing, labor, individual income and spending trends, GDP and consumer sentiment. In Washington, hearings abound on the BP oil spill and its aftermath. Investors will also keep an eye on events happening across the Atlantic, with Europe's debt crisis and the flailing euro still very much in focus.

Meanwhile, the Dow, Nasdaq and S&P 500 all settled more than 10% below the bull market highs late last month. Although stocks managed some gains Friday, markets are still considered to be in a correction phase.

"Everyone's nervous right now," said Will Hepburn, chief investment officer at Hepburn Capital Management.

"We're seeing things unfold in Europe similar to the credit crisis we had here," he said. "Everyone's looking at this unfold and is deciding to stand on the sidelines until it settles."

He said an absence of buyers more than a glut of aggressive sellers has been dragging on the markets over the last month.

Since peaking at a 19-month high on April 26, the Dow has lost 9% as of Friday's close. Since peaking at a 19-month high on April 23, the S&P 500 has lost 10.6%. Since peaking at a more than 22-month high also on April 23, the Nasdaq has lost 11.9%.

Stocks rose Friday at the end of a choppy session, which was a positive, but the selling is probably not over yet, said Peter Tuz, president at Chase Investment Counsel.

"We've been given negative news about Europe and mixed signals about the U.S. economy and its been putting the market on edge," Tuz said.

"The market ended higher Friday and that could continue into early next week," he said, "but until we get clarity on the economy or signs that the first-quarter earnings growth is going to continue, this volatility is going to continue."

Monday: The National Association of Realtors is expected to report that existing home sales jumped in April, gaining for the second straight month.

Sales are expected to have risen to a seasonally-adjusted 5.65 million unit rate in April, according to a consensus of economists surveyed by Briefing.com, from a 5.4 million unit rate in March.

Tuesday: The S&P/Case-Shiller Home Price Index of 20 cities, due out in the morning, is expected to have risen 2.8% in March after rising 0.6% in February.

The Consumer Confidence index, from the Conference Board, is expected to have risen to 58.3 in May from 57.9 in April. The report is due out after the start of trading.

Both the Senate and the House of Representatives hold hearings regarding the BP oil spill in the Gulf.

Wednesday: April durable goods orders, from the Commerce Department, are expected to have risen 1.4% after falling 0.3% in March. Orders excluding transportation are expected to have risen 0.5% after rising 3.5% in March.

April new home sales are expected to have risen to a seasonally-adjusted 425,000 unit annual rate from a 411,000 unit rate in March. The Commerce Department report is due out shortly after the start of trading.

The weekly oil inventories report is due from the Energy Information Association.

Also, the president's fiscal responsibility commission meets.

Thursday: The government's revised reading on first-quarter Gross Domestic Product (GDP) growth is due in the morning. GDP is expected to have grown at a 3.3% annualized rate versus the initially reported 3.2% rate.

The weekly jobless claims report from the Department of Labor is due before the start of trading. Claims are expected to have fallen to 455,000 from 471,000 the previous week. Continuing claims, a measure of Americans who have been receiving benefits for a week or more, is expected to have fallen to 4,600,000 from 4,625,000 in the previous week.

The House Oversight Committee holds a hearing on the Tylenol recall with Johnson & Johnson (JNJ, Fortune 500) CEO William Weldon and FDA chief Margaret Hamburg both due to testify.

Friday: Personal income and spending reports for April are due for release from the Commerce Department in the early morning. Income likely rose 0.4% after rising 0.3% in the previous month. Spending likely rose 0.3% after rising 0.6% in the previous month. The Core PCE - the spending report's closely-watched inflation component - is expected to have risen 0.1% after rising 0.1% in the previous month.

The May consumer sentiment index from the University of Michigan is due shortly after the start of trading. The index is expected to have risen to 73.7 from 73.3 in early May.