All will be mostly quiet in the tech world this week.
The Fourth of July holiday in the United States has compelled many businesses to defer their earnings announcements and events to a later date, as many people will be busy kicking back before earnings season heats up in mid-July.
In fact, some companies, such as Compaq Computer, Adobe Systems, Xilinx and Applied Materials, have basically asked their employees to take a week vacation.
But the slow week does not rule out the possibility of financial fireworks disturbing Wall Street's holiday bliss in the form of an earnings warning or two. The second quarter closes June 30, and companies will be combing their books to close the quarter, which may reveal some telling financial news requiring investor attention.
Economists may be the only group working this week since important data will come out that may offer some clues on whether the economy can escape from a looming recession.
The Commerce Department reported last Friday that first-quarter U.S. Gross Domestic Product, the total output of all goods and services, rose 1.2 percent. That compares with a rise of 1 percent in the fourth quarter and growth of 5 percent for all of last year.
Wall Street received a positive jolt last week from the Fed's decision to cut interest rates even more and a court ruling in Microsoft's favor. But people will be watching for June employment data from the government and purchasing information from the National Association of Purchasing Managers.
Other events scheduled this week:
Monday, July 2
- The World Technology Summit will take place at the Imperial College of Science, Technology and Medicine in London, July 1-2. This invitation-only event gives attendees the chance to discuss trends effecting the information, communications, materials, energy, biotechnology and medicine, and space industries.
Also this week
- Chip giant Intel will launch a faster version of its Pentium 4 chip sometime this week. The company will introduce chips that run at speeds of 1.6GHz and 1.8GHz, joining the Pentium 4 line containing 1.3GHz, 1.4GHz, 1.5GHz and 1.7GHz speeds.
- The Gramm-Leach-Bliley Act goes into effect July 1. The law passed by Congress requires banks, mortgage companies, insurance companies, credit card issuers, financial planners, tax preparers and other financial institutions to "protect against hazards or unauthorized access." Companies must also notify their customers by July 1 of their privacy policies.
Monday, July 2
- Personal income shows the monthly percentage change in household income from the Commerce Department. This number is expected to rise 0.3 percent for May.
- Construction spending tabulates the dollar amount of newly completed building structures in a month as reported by the Commerce Department. Economists expect no increase in spending for May compared with the previous month's increase of 0.3 percent.
- The National Association of Purchasing Managers index tracks how many hard goods were bought by purchasing managers. The June NAPM index is expected to rise to 42 percent from the previous month's 42.1 percent. Index values above 50 indicate an expanding economy, while values below 50 are indicative of contraction.
- The Non-manufacturing NAPM index tracks how many hard goods were bought monthly by purchasing managers in the services industry. Wall Street expects the index to slip to 46.5 percent in June from 46.6 in May.
- Initial Claims refers to the number of people who filed for unemployment benefits each week as reported by the Department of Labor. Claims will be reported for the week of June 30.
- Hourly earnings are the percentage change in hourly earnings in the private sector as estimated monthly by the Labor Department. This number is expected to rise 0.3 percent for the month of June from May's figures.
- Average workweek for June is the average amount of hours worked per week in the private sector, as estimated monthly by the Labor Department. Wall Street expects workweek hours to stay flat at 34.3 hours in June, the same as in May.
- Nonfarm Payrolls represents the change in total nonfarm employment from the Department of Labor. This number is expected to drop 50,000 in June compared with May's decrease of 19,000.
- Unemployment rate is the percentage of unemployed adults, as estimated monthly by the Labor Department. This number is expected to inch up to 4.6 percent for June compared with 4.4 percent in May.