This week will bring fresh data on inflation, the housing market, and retail sales after a volatile week for markets amid worries about the health of the economy. A handful of Federal Reserve speakers will also give remarks during the week, potentially offering more insights. Investors could get more updates on the health of consumer spending as well, when major retailers including Walmart (WMT) and Home Depot (HD) report earnings.
Fresh Data on Inflation, Housing, and Retail Sales
Tuesday’s Producer Price Index (PPI) will offer an update on wholesale inflation, while Wednesday’s release of the July Consumer Price Index (CPI) will show whether consumer inflation will continue its downward trend after dropping to an annual rate of 3% in the prior month. The latest inflation data could influence the Federal Reserve’s stance on interest rates. While easing price pressures could raise expectations of an interest rate cut, a higher reading would raise worries that rates will remain elevated.
Atlanta Fed President Raphael Bostic, St. Louis Fed President Alberto Musalem, Philadelphia Fed President Patrick Harker, and Chicago Fed President Austan Goolsbee are all scheduled to deliver remarks this week, potentially offering more insights.
Market watchers will also get sentiment surveys from home builders on Wednesday and consumers on Friday. Retail sales numbers on Thursday will follow a surprisingly strong July report that showed consumers still had an appetite for spending, and housing starts data on Friday will show whether builders are able to follow up on June’s increase in construction, potentially providing relief to a housing market struggling to build up inventory.
Investors will likely be watching to see if Thursday’s weekly initial jobless claims data will continue to show resilience in the labor market as well, after last week’s report helped ease concerns about the economy.
Retailers Report Earnings, Including Walmart
Along with retail sales data, Thursday will bring a quarterly update from the nation’s largest retailer, Walmart. The big box chain surprised analysts with 6% year-over-year revenue growth in the first quarter, and the company raised its full-year guidance. Meanwhile, Home Depot is expected to post slight declines in sales and profits from the same time last year, as inflation-weary consumers have pulled back on big-ticket spending for home improvement projects. Investors could also get a look at international retail trends this week with reports from Chinese e-commerce giants Alibaba and JD.com. Cisco earnings on Tuesday could highlight tech infrastructure spending, while financial firms SunLife Financial and UBS are also scheduled to report.