Market Snapshot: Wal-Mart, Target earnings on tap following strong consumer data
Financial results from large U.S. retailers including Wal-Mart Stores Inc. and Target this week will likely give a truer sense of recent consumer spending trends.
Stocks finished last week on an up note following a series of volatile sessions after China moved to devalue its currency. For the week, the Dow Jones Industrial Average DJIA, +0.40% advanced 0.6%, the S&P 500 Index SPX, +0.39% rose 0.7%, and the Nasdaq Composite Index COMP, +0.29% finished up 0.1%.
Recent retail sales data is showing firmer consumer strength with July sales growth falling short of estimates by a fraction, and May and June figures revised upwards. Earnings reports from retailers last week were mixed with Kohl’s Corp. and Macy’s Inc. coming up short, and Nordstrom Inc. and J.C. Penney Co. topping estimates.
This week, Dow components Wal-Mart Stores Inc. WMT, +0.37% and Home Depot Inc. HD, +0.61% report earnings on Tuesday. Target Corp. TGT, +0.46% reports on Wednesday, and of the 16 other S&P 500 companies reporting this week, about half will be retailers.
Additionally, investors are sure to be sifting through the text of July’s Federal Open Market Committee meeting minutes like tea leaves to divine when the Fed will seek to begin raising interest rates.
“China is still going to be an issue but the focus is going to be on the FOMC minutes,” said Paul Nolte, portfolio manager at Kingsview Asset Management, in an interview.
“It’ll be instructive to see how everyone is lining up [with regards to timing on the rate hike],” he said. “This has become the big game in town: Handicapping the Fed.”
Notable earnings reports this week
|Report date||Company/ticker (FactSet EPS / revenue estimate)|
|Mon., Aug. 17||
|Tues., Aug. 18||
|Weds., Aug. 19||
|Thurs., Aug. 20||
|Fri., Aug. 21||