Monday
Economic Reports: ISM Index

The ISM Index is released this morning and if expectations hold true, there will be at least some encouraging news this week. The report is expected to show a reading of 42, slightly higher than the April reading. While this would still be below 50 – indicating contraction in the manufacturing sector – it is at least moving closer to 50. Even small victories matter in this economy.

Tuesday
Economic Reports: Pending Home Sales

At the time this is written, expectations for the April Pending Home Sales weren’t available. However, my educated guess is that analysts are expecting are a slight increase versus last month. The housing market still has a lot of excess inventory to work through. Couple that with prices coming down due to foreclosures, and buyers are starting to wade back into the market.

Earnings Calendar: Daktronics (DAKT)

Wednesday
Economic Reports: Factory Orders, ISM Services

Much like Monday’s ISM Index report, if expectations hold true, there could be a few more small victories in the manufacturing sector. Both reports today are expected to show improvements versus the previous month. Factory Orders are expected to increase by 0.30 percent, and ISM Services is anticipated to show a reading of 45, moving closer to the 50 threshold that indicates expansion.

Friday
Economic Reports: Non-Farm Payrolls

This will be the most important report for the week. Unfortunately, it won’t bring good news. This will mark the 17th straight month of job losses, equaling the longest streak in history. I wrote more about the employment situation a little over a week ago, and you can read about it here.