What To Expect in the Markets This Week

The U.S. jobs report on Friday will highlight this week’s economic calendar, as Federal Reserve officials will study the information ahead of their June meeting. Fed officials are in a blackout period, but other economic data coming this week include manufacturing and services survey results that could provide insights into the direction of inflation and economic conditions.

Earnings from technology and retail firms will attract most investor attention this week. CrowdStrike (CRWD) earnings will show investors the strength in the cybersecurity sector, while software maker Samsara (IOT) is also set to report. Lululemon (LULU) leads a parade of retailers that also includes Dollar Tree (DLTR) and Five Below (FIVE). Market watchers will also be looking at Nio’s (NIO) earnings, which should provide a look at the Chinese electric vehicle sector.

Monday, June 3

• S&P flash U.S. manufacturing PMI (May)
• Construction spending (April)
• ISM manufacturing (May)
• GitLab (GTLB) and Science Applications International Corp. (SAIC) report earnings

Tuesday, June 4

• Factory orders (April)
• Job openings (April)
• CrowdStrike Holdings, Hewlett Packard Enterprise (HPE), and Bath & Body Works (BBWI) report earnings

Wednesday, June 5

• S&P flash U.S. services PMI (May)
• ADP private-sector employment (May)
• ISM services (May)
• U.S. productivity (Q1)
• U.S. trade deficit (April)
• Lululemon Athletica (LULU), Dollar Tree (DLTR), Campbell Soup (CPB), and Five Below report earnings

Thursday, June 6

• Initial jobless claims (Week ending June 1)
• U.S. productivity and costs
• Samsara (IOT), Docusign (DOCU), Nio, J.M. Smucker (SJM), and Vail Resorts (MTN) report earnings

Friday, June 7

• U.S. employment report (May)
• Consumer credit (May)
• Wholesale inventories (April)

Jobs Report Could Show Pressure on Fed’s ‘Dual Mandate’

The jobs report on Friday will be closely watched by investors seeking signals for interest rate cuts ahead of the following week’s Federal Open Market Committee (FOMC) meeting. 

May’s jobs numbers will come as several Fed officials have brought attention to the central bank’s “dual mandate,” which obligates the Fed to balance slow inflation with low unemployment.

April’s payroll report showed employers slowed their hiring, with the 175,000 positions added lower than economists expected, while the unemployment rate in that month edged up to 3.9%. The slowdown was encouraging to some market watchers who were looking for signs that inflation was cooling. 

In addition to showing if jobs remain available, the report also will provide details on wage growth, another key element that factors into the path of prices. 

Recent inflation reports have prompted several Fed officials to raise questions about the timing of interest rate cuts, after having projected in March that the Fed could make as many as three cuts this year. While the inflation outlook has made officials hesitant to forecast interest rate cuts, a weak labor report could make rate cuts appear necessary for the job market to some Fed officials. 

Investors will also be eyeing the Institute of Supply Management (ISM) and S&P flash U.S. manufacturing Purchasing Managers Index (PMI) on Monday, along with the service-sector PMI from those agencies on Wednesday, which could send signals on inflation and gross domestic product (GDP). 

Fed speakers are in the blackout period ahead of the June 11-12 FOMC meeting.

CrowdStrike, Lululemon Earnings Highlight Reports From Tech, Retail Firms

Tech firms and retailers will lead the earnings report calendar this week, with investors also likely to get a look at the electric vehicle market.

CrowdStrike earnings on Tuesday will give investors a view of the cybersecurity sector, coming after the company’s adjusted earnings of 95 cents last quarter beat analyst estimates, fueled by larger deal sizes for CrowdStrike. 

Other tech firms are set to report this week, with software maker Samsara reporting on Thursday after its earnings beat in the prior quarter, and GitLab and SAIC reporting on Monday.

The earnings report from Chinese electric vehicle (EV) maker Nio on Thursday will be studied by market watchers for indications of the strength of China’s EV market, where Tesla (TSLA) is also a competitor. 

Lululemon leads retail firms reporting this week, with Dollar Tree, Five Below, and Bath & Body Works also issuing financial updates. Earnings from J.M. Smucker and Campbell Soup will shine a light on consumer demand for groceries.