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Summary: What to Expect in the Week Ahead
1. Corporate Earnings:
Quantum Corp (QMCO) is expected to report continued financial struggles.
Forecasted net loss: $6.785 million.
Loss per share: $1.17, with flat revenue around $65.85 million.
Investors should watch for management’s plans to stabilize the business.
2. Key Economic Data:
ISM Manufacturing PMI may tick up to 50, but broader surveys suggest weaker labor demand and tariff-related consumer cost pressures.
Labor Market Focus:
JOLTS job openings projected to drop to 7.1 million.
Non-farm payrolls for June likely to show slower job growth, especially in leisure and hospitality.
Unemployment rate and jobless claims will be closely watched as indicators of labor market softness.
Other data points:
May trade deficit, likely skewed by tariffs.
Ongoing Republican fiscal negotiations could affect sentiment.
3. Market Conditions:
Shortened trading week: Thursday is a half-day, and markets are closed Friday for Independence Day, increasing volatility risk.
Investors will weigh economic softness against the high valuation of the S&P 500, which may require either strong earnings growth (30%) or Fed rate cuts to justify current levels.
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