As the wheel is new, I think the movement is unlikely to be due to a bearing failure, and I would say it is due to a less than perfect fit between either the inner races of the bearings and the axle or the outer races of the bearings and the machined recesses inside the cast side housings.
Bearings are usually manufactured to pretty exact sizes, but the machined sizes of the axle and side covers are probably not quite as good as they could be.
Ideally the bearings should be nice a nice snug sliding fit onto the axle and inside the casing, this is sometimes referred to as a transition fit. If there is more of a gap between the bearing and the axle
(or side casing) it produces a clearance fit which will inevitably allow some unwanted movement.
Due to the large size of the wheel and the close spacing of the bearings, a small amount of clearance on the bearings will result in a much larger amount of movement at the rim.
For example; if the axle was machined just 0.1mm
(0.004") too small and the bearing recess in the side casings were machined 0.1mm (0.004") too large, this would combine to give a total amount of 0.4mm
(0.016") movement at the hub, which would probably produce around 1.6mm
(0.064") of sideways movement at the rim. Any play within the bearings themselves would obviously add to the total amount of movement.
These hubs are not manufactured to aircraft standards, and are bound to have a certain amount of play when they are fully assembled.
To eliminate the movement completely would require the axle and housings to be machined to within a very fine tolerance, resulting in an interference fit, which would then require the use of an hydraulic or mechanical press to assemble the hubs. Disassembling the hubs would then be virtually impossible without the use of purpose made pullers for removing the side covers from the bearings and for extracting the bearings from the axle.
Manmark, I would suggest that you carry on and fit the wheel to your bike and try it out, as the movement you have noted is unlikely to have any major affect upon the operation of the wheel, especially when you have some weight pushing down on the axle as well.
Alan