Overview
- Following Friday's 0.6% drop in July retail sales, investors are watching this week's earnings from major chains to judge if the weakness is temporary or the start of a broader consumer pullback.
- Walmart's report on Thursday is a focal point because management has said shoppers showed signs of financial distress and the company has cut prices to try to retain customers.
- Target, which raised full-year guidance last quarter, will be monitored for shifts in discretionary spending since its mix leans heavily on apparel and home goods that shoppers trim first.
- Home Depot and other home-improvement retailers will reveal whether weak housing affordability and higher borrowing costs are continuing to suppress big-ticket renovation demand.
- Minutes from the July Federal Open Market Committee meeting due midweek, together with aggregated retailer guidance, could change market expectations for future rate moves and influence hiring and wage plans.