Retail earnings in focus
Wall Street will get financial updates from some of America’s biggest retailers this week, along with more details from the Federal Reserve’s most recent meeting.
Home Depot reports its latest results on Tuesday, followed by Target and Lowes on Wednesday, and then Walmart on Thursday. The results will help give investors a more detailed picture of how businesses and consumers are handling stubbornly high inflation.
The rate of inflation remains solidly above 3%. The ongoing US war with Iran prompted a surge in oil prices, which jolted petrol prices. Higher prices on everything from petrol to groceries and any goods that are shipped could prompt people to shift or cut spending.
Housing and household budgets
Results from Home Depot and Lowes could provide more insight into the housing market and whether people are spending more or less on home improvements. Results and forecasts from retail giants Target and Walmart could provide more insight into how households are budgeting and spending.
Fed minutes due
Wall Street and economists will get more details about the Fed’s interest rate policy when the central bank releases minutes from the July meeting on Wednesday.
The Fed once again held its interest rate steady in July amid worries about stubborn inflation, the jobs market and the direction of the economy. But three officials dissented in favour of higher rates during the meeting. Fed Chair Kevin Warsh described the policy discussion to reporters as a "good family fight."
Wall Street expects at least one rate hike before the end of 2026.
The Associated Press
