THIS IS A RUSH TRANSCRIPT.  THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED. DEBORAH MARCHINI, CNN ANCHOR: On the economic front, all eyes will be focused on the July jobs report due to be released by the Labor Department at 8:30 a.m. Eastern time. The unemployment rate is expected to tick up to 4.6, maybe 4.7 percent from 4.5 percent in June. Non-farm payrolls are expected to show a decline of 50,000 jobs, that's less than half what was lost in June. Average hourly earnings are expected to be up 3 tenths of one percent in line with the previous month's figures. My guest this morning is chief U.S. economist at SG Cowen, Stephen Gallagher. And I wanted to ask you what you expect these numbers to show in terms of the state of the overall economy?</s>STEPHEN GALLAGHER, CHIEF U.S. ECONOMIST, SG COWEN: Well, I think the employment numbers are going to be pretty dismal overall, but I think flat. I don't think it's going to be not the worst we've seen. We saw the worst, I think, in April. Manufacturing is a special category in the employment report itself. That's where it's going to look the absolutely most terrible, looking for about 80,000 to 100,000 job losses in the manufacturing sector alone.</s>MARCHINI: All right. We'll talk a little bit more about what's likely to be contained in that report...</s>GALLAGHER: OK.</s>MARCHINI: ... and how it could affect the markets and Federal Reserve policy in just a few moments time. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Stephen Gallagher on July Jobs Report