Retail earnings and Fed minutes to test markets this week
Major retailers report quarterly earnings this week, while the Fed releases minutes from its July policy meeting.
Wall Street is bracing for a data-heavy week as some of the country's largest retailers publish their latest quarterly results, offering a fresh read on consumer behaviour amid persistent inflation.
Home Depot will kick off the earnings cycle on Tuesday, followed by Target and Lowe's on Wednesday, with Walmart closing out the week on Thursday. Together, these reports are expected to shed light on how businesses and households are navigating price pressures that remain stubbornly above 3%.
The inflation picture has been complicated by rising oil prices, which have pushed up gasoline costs and, in turn, the price of shipped goods. Economists will be watching whether consumers are shifting or trimming spending on everything from groceries to home improvement projects.
Home Depot and Lowe's results, in particular, could offer clues about the housing market and demand for renovations. Meanwhile, forecasts from Target and Walmart may reveal how families are budgeting and prioritising discretionary purchases.
Investors will also be parsing the Federal Reserve's minutes from its July meeting, due Wednesday. The central bank held interest rates steady at that gathering, though three officials dissented in favour of an increase. Fed Chair Kevin Warsh described the internal debate as a "good family fight," and markets are pricing in at least one rate hike before the end of 2026.