This is a sign of bad assimilation. Both the immigrants and the natives have to work harder to assimilate the newcomers: the immigrants by accepting English and American customs; the natives by accepting that nonEuropean immigrants can be every bit as much American as any immigrant or native, and by encouraging the immigrants to act more American, and give them nudges in the right direction.
Not necessarily. A lot of completely-assimilated groups celebrate ties with the old country/ethnicity, like Columbus Day, St. Patrick's day, etc. I don't know if that's what's at work here, since I don't know much about their celebration, but I wouldn't automatically condemn it as a sign of them not assimilating.