At a Glance
- S&P 500 up 0.4%, Nasdaq up 0.6%, Dow down 0.6% last week
- Walmart, Alibaba, Ross Stores, Deere report Thursday
- Consumer sentiment sinks as inflation fears grow
- Fed rate hike odds for September drop to roughly 30%
A packed week of retail earnings could reveal just how strong or shaky the American consumer really is.
After a jittery week dominated by inflation worries and Fed speculation, markets are heading into a calmer stretch. But don’t get too comfortable – big box retailers are about to report, and their numbers could move the needle.
What’s happening
Baidu kicks off earnings Tuesday, but the real action lands Thursday, when Walmart, Alibaba, Ross Stores, and Deere & Company all post results, followed by BJ’s Wholesale Club on Friday. On the data side, watch industrial production, housing starts, and the Fed’s July meeting minutes, all landing midweek.
The mood is shifting
Consumer confidence took a hit in August, according to the University of Michigan’s latest survey, with older and lower-income shoppers feeling the squeeze hardest. Retail sales backed that up, falling 0.6% in July when economists expected growth. Inflation data came in only slightly better than feared, pushing traders to slash bets on a September rate hike to around 30%.
Why traders should care
Walmart’s results often act as a gut check for the entire consumer economy. If spending is cracking under pressure, this week’s earnings will show it first.
Keep an eye on Thursday’s retail results and Wednesday’s Fed minutes – both could reshape rate expectations fast.
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Source: Yahoo Finance
