Hello friends and Fortune readers.
We have a short week coming up, and the financial markets (and most workplaces) will be closed on Friday to observe Independence Day. The week’s early culmination means that the market won’t have to wait until Friday to react to the latest monthly jobs numbers. Meanwhile, the crisis in Greece is moving toward a dangerous new level as the country moves closer to a potential exit from the euro zone. Also, the world’s top tennis tournament kicks off this week and a handful of food and beverage companies report quarterly earnings.
Here’s what you need to know to start your week.
1. Greek crisis deepens
Anxiety about Greece may keep Wall Street on edge early this week, as the country moves toward what was once thought unthinkable: a default and a full exit from the euro zone. While European markets are braced for a wave of contagion from Greece on Monday, as a result of a possible “Grexit” that most had still assumed was unlikely as late as Friday afternoon, the effect on U.S. markets is expected to be bumpy, but not as dramatic as in Europe. Athens is due to miss a 1.6 billion euro ($1.8 billion) repayment to the International Monetary Fund on Tuesday. With its creditors unwilling to extend the country’s bailout, Greece will introduce capital controls and keep its banks closed on Monday.
2. June jobs report
The Labor Department’s monthly employment report will go in the books on Thursday morning with the government due to close for business on Friday for the July 4 holiday. A decent showing is expected for the month of June, with the forecast calling for roughly 230,000 new jobs to send the unemployment rate to 5.4% from 5.5%. Investors will be watching the jobs report closely, as a particularly strong showing could be seen as a signal that the Federal Reserve may look to implement its planned interest rate hike as soon as September, rather than closer to the end of the year.
3. Food and drink earnings
Consumer foods giant General Mills (GIS) will report fourth-quarter results on Wednesday. The company, which makes everything from cereals to Betty Crocker products, recently unveiled a new restructuring plan that includes as many as 725 layoffs as it looks to cut costs and spur growth. Meanwhile, another large food company will report fourth-quarter results on Tuesday: ConAgra Foods (CAG), the maker of Slim Jim beef jerky, which is currently engaged in a battle with activist investor Jana Partners. Other companies reporting quarterly earnings this week include alcoholic beverage company Constellation Brands (STZ) and spices and seasonings company McCormick & Company (MKC).
4. Independence Day
Markets may be closed on Friday, but the real celebrating will take place on Saturday, July 4. Meanwhile, holiday travel will stretch from Wednesday through the weekend — a period that AAA projects will see 41.9 million Americans hitting the road to travel at least 50 miles. That figure represents a 0.7% increase from last summer and it would be the highest number of Independence Day holiday travelers since 2007. Roughly 80% of those travelers will be driving and will be able to take advantage of the lowest 4th of July holiday gas prices in five years, with the national average for a gallon of regular gas coming in at $2.78 — or, 88 cents less than in 2014.
The world’s most prestigious tennis tournament kicks off this week and the winner will get more than just a fancy trophy and a bowl of strawberries and cream. Earlier this year, the tournament announced an increase in the prize money pool for this year’s field of players, to more than $40 million. From that total, the men’s and women’s singles champions will each earn $2.8 million, which represents a raise of nearly $190,000 each over last year’s purse. Of course, it’s not just the players earning good money. Wimbledon’s host, the private All England Lawn Tennis Club, can expect to clear a profit of more than $60 million from ticket sales and sponsorships over the course of the two-week tennis tournament.
—Reuters contributed to this report.