The stock market delivered another solid week of gains as market participants continued to shake off earlier concerns about tariff impacts and economic uncertainty. With markets closed Monday for Memorial Day, the four-day trading session still managed to produce meaningful advances across major indices.

The S&P 500, tracked by SPY, gained approximately 1.78% for the week, while the tech-heavy NASDAQ 100, represented by QQQ, outperformed with a 1.94% advance. The Dow Jones Industrial Average, measured through DIA, posted a respectable 1.57% gain, demonstrating broad-based market strength.

Importantly, market breadth improved, though it remains fragile, with a broader range of stocks participating in the rally late in the week. Analysts noted increased involvement from sectors such as industrials and financials, indicating a more widespread market strength beyond the dominant megacap tech stocks.

Looking ahead to June 2-6, investors will focus intensely on the May employment report, which could provide crucial insights into consumer spending power amid ongoing tariff uncertainties. The jobs data will be particularly significant as markets attempt to gauge whether the economic recovery can sustain current valuations in an environment where earnings projections continue facing downward revisions.

📅 Monday, Jun 2nd

• ISM Manufacturing PMI: The upcoming ISM Manufacturing PMI report is forecasted to reach 49.3 for May 2025, representing a notable improvement from April’s reading of 48.7, though still indicating contraction in the manufacturing sector as readings below 50 signal economic decline. Market participants should closely monitor the New Orders Index, which contracted for three consecutive months through April at 47.2, the Production Index that fell to 44.0 in April, and the closely watched Prices Index that surged to 69.8 in April, indicating significant inflationary pressures in manufacturing inputs.

• Fed Chair Powell Speaks: Federal Reserve Chair Jerome Powell is scheduled to speak following the release of the ISM report, which will provide crucial context for his remarks on monetary policy. Market participants should focus primarily on Powell’s tone regarding inflation pressures and any signals about the Fed’s future interest rate trajectory, as market analysts expect him to address whether tight monetary policy remains necessary to combat persistent price pressures. Given the current economic uncertainty from trade policies and the Fed’s recent “wait and see” stance, market participants will scrutinize any shifts in Powell’s language that might indicate whether the central bank is leaning toward rate cuts, holds, or potential hikes in upcoming meetings.

📅 Tuesday, Jun 3rd

• JOLTS Job Openings: The upcoming JOLTS Job Openings report for April 2025 is expected to show continued labor market cooling with forecasts pointing to approximately 7.05 million job openings compared to March’s 7.19 million reading. Market participants should focus on whether the decline accelerates beyond the forecasted 2% month-over-month drop, as job openings have fallen for three consecutive months and reached a six-month low in March, signaling potential broader economic weakness. Key metrics to watch include the job openings rate (previously 4.3%), hiring rates, and quit rates, as these indicators will reveal whether the labor market is achieving a healthy rebalancing or heading toward more significant deterioration that could influence Federal Reserve policy decisions.

📅 Wednesday, Jun 4th

• ADP Non-Farm Employment Change: The upcoming ADP Non-Farm Employment Change report is forecasted to show 110,000 private sector jobs added in May, representing a significant rebound from April’s disappointing 62,000 figure that fell well short of the 115,000 market expectation. April’s 62,000 reading marked the softest job growth since July 2024 and was attributed to policy uncertainty and tariff impacts on business hiring decisions, with notable sectoral variations including gains in leisure and hospitality (+27,000) and financial activities (+20,000) offset by declines in education and health services (-23,000). Market participants should closely monitor whether the May reading meets the 110,000 consensus, watch for sectoral breakdowns particularly in service-providing industries, and assess how the report might influence expectations for the official Bureau of Labor Statistics employment data released two days later, as the ADP report serves as a key leading indicator for the more comprehensive government employment figures.

• ISM Services PMI: The upcoming ISM Services PMI report is forecast to rise to 52.0 from the previous reading of 51.6, indicating continued expansion in the U.S. services sector, which represents over two-thirds of the American economy. The expected increase suggests accelerating growth momentum in the services industry, as any reading above 50.0 signals expansion, while the services sector has now expanded for ten consecutive months. Market participants should closely monitor key subcomponents, including new orders, business activity, employment levels, and the prices paid index, which surged to 65.1 in April 2025 (the highest since January 2023), as these metrics will provide crucial insights into inflationary pressures, labor market conditions, and the overall economic trajectory.

📅 Thursday, Jun 5th

• Unemployment Claims: The upcoming US Initial Jobless Claims report is forecast to show 232,000 new unemployment applications, down from the previous week’s 240,000, which exceeded economists’ expectations. Market participants should assess whether the actual figure falls below forecasts, as this could signal labor market stabilization, while a higher print may amplify concerns about weakening employment conditions amid trade policy uncertainty and elevated continuing claims of 1.919 million (the highest since November 2021). Traders should monitor the four-week moving average (230,750) and median unemployment duration (10.4 weeks in April) for confirmation of sustained labor market softness.

📅 Friday, Jun 6th

• Average Hourly Earnings m/m: The upcoming Average Hourly Earnings month-over-month report is forecasted to show a 0.3% increase, representing an acceleration from the previous month’s 0.2% reading, and will provide crucial insights into wage inflation trends as businesses continue to compete for workers. This key economic indicator serves as a leading gauge of consumer inflation since higher labor costs are typically passed on to consumers, and with the current hourly earnings level at $36.06 and annual wage growth holding steady at 3.8%, any deviation from the 0.3% forecast could significantly impact Federal Reserve policy expectations.

• Non-Farm Employment Change: The upcoming Non-Farm Payrolls report is expected to show 130,000 jobs added in May, marking a notable slowdown from April’s figure of 177,000 as labor market tailwinds fade amid economic headwinds. Market participants should prioritize the unemployment rate (consensus 4.2%), average hourly earnings growth (prior 3.8% YoY), and potential revisions to prior months’ data, given April’s report included cumulative downward revisions of 58,000 jobs across February and March. With markets pricing only a 2.2% odds of a June Fed rate cut from CME FedWatch, traders must assess whether the employment slowdown aligns with recent GDP contraction and tariff impacts to gauge policy implications, as deviations from the 130K consensus could drive outsized volatility in risk assets.

• Unemployment Rate: The U.S. Bureau of Labor Statistics will release the unemployment data, with economists forecasting the unemployment rate to remain steady at 4.2%, unchanged from April’s 4.2% reading. Market participants should closely monitor whether the jobless rate breaks above this level, as recent weekly unemployment claims have risen to 240,000 and continuing claims increased to 1.919 million, suggesting potential softening in labor market conditions.

Here are some of the companies set to report earnings this week:

📅 Tuesday, Jun 3rd

• Dollar General Corporation (DG): Dollar General is set to report first quarter 2025 earnings with analysts expecting earnings per share of $1.49, representing a 9.6% decline from $1.65 in the prior year, while revenue is projected to grow 3.8% to approximately $10.29 billion. Market participants should closely monitor same-store sales growth, as well as margin recovery efforts following the company’s recent closure of 96 underperforming stores and ongoing shrink reduction initiatives. Key metrics to watch include gross margin performance, which has been under pressure from increased markdowns and inventory issues, and management commentary on consumer spending trends given CEO Todd Vasos’s previous warning that customers “only have enough money for basic essentials.”

• CrowdStrike Holdings, Inc. (CRWD): CrowdStrike is scheduled to report its earnings, with analysts expecting revenue of approximately $1.1 billion (representing 20% year-over-year growth) and earnings per share of $0.66 (a 29% decline from the prior year). Market participants should closely monitor the company’s Annual Recurring Revenue (ARR) growth, subscription revenue trends, and any updates on customer retention following the significant IT outage incident from 2024 that has impacted profitability guidance. Key focus areas include the company’s recovery trajectory from outage-related costs (expected to total $73 million in Q1), progress on the $10 billion ARR target, and management’s commentary on competitive positioning amid concerns that current guidance significantly trails analyst expectations for both operating income and full-year EPS.

• Hewlett-Packard Enterprise Company (HPE): Hewlett-Packard is scheduled to report its earnings, with analysts expecting EPS of approximately $0.33, representing a significant 21.4% decline from the prior year despite projected revenue growth of 3.4% to around $7.45 billion. Market participants should closely monitor the company’s guidance on margin pressures and tariff-related costs that have been weighing on profitability, as well as any updates on the pending $14 billion Juniper Networks acquisition, which faces a critical antitrust trial scheduled for July 9, 2025. Key metrics to watch include free cash flow performance, which turned negative at $877 million in Q1, operating margins in the server and AI infrastructure segments, and management’s commentary on cost mitigation strategies to offset trade-related headwinds.

📅 Wednesday, Jun 4th

• MongoDB, Inc. (MDB): MongoDB is set to report its earnings with management guiding for revenue of $524-529 million and adjusted EPS of $0.63-$0.67, closely aligned with analyst consensus. Market participants should closely monitor Atlas cloud database revenue growth, which decelerated to 24% year-over-year in Q4 2025 from higher growth rates in previous quarters, as well as consumption patterns and new workload acquisition metrics. Key focus areas include customer growth beyond the 54,500 reported in Q4 2025, any updates to the conservative fiscal 2026 full-year guidance of $2.24-2.28 billion revenue (implying just 12.7% growth), and management commentary on the competitive positioning in the AI-driven application development market.

📅 Thursday, Jun 5th

• Broadcom (AVGO): Broadcom is set to report earnings with analysts expecting EPS of $1.57 (representing 43% year-over-year growth) and revenue of approximately $14.9 billion (up 19% from the prior year). Market participants should closely monitor AI-related revenue, which is projected to reach $4.4 billion in Q2 compared to $4.1 billion in Q1, as this segment has been driving the company’s exceptional growth with a 77% year-over-year increase last quarter. Key areas to watch include management’s commentary on AI demand trends from hyperscale customers, infrastructure software performance following the VMware acquisition, and forward guidance given the company’s strong track record of beating consensus estimates in recent quarters.

• Lululemon Athletica Inc. (LULU): Lululemon is set to report its earnings, with analysts expecting earnings per share of $2.58 (up 1.6% from $2.54 last year) and revenue of $2.36 billion (representing 6.7% year-over-year growth). Market participants should closely watch the Americas segment performance, which has struggled with flat comparable sales growth, while monitoring international revenue growth that has been driving overall performance with strong momentum in China and other global markets. Key metrics to focus on include gross margin trends (expected to be flat year-over-year), operating margin compression (guided down 120 basis points), and any updates on the company’s recovery efforts in the women’s category and U.S. market where management previously cited “missed opportunities” in product assortment and inventory management.

We hope this helps and happy trading!

– Trade and Travel Team