Fed Minutes, Earnings Reports to Test US Consumer Resilience

The upcoming week in financial markets will be dominated by key data releases and corporate earnings. The Federal Reserve's minutes from its July monetary policy meeting, scheduled for release on August 19, are a closely watched event.

Recent inflation data has eased concerns about an immediate Fed rate hike. However, the July CPI rose only 3.4% year-over-year, down from 3.5% in June, and core CPI increased 2.5% year-over-year. The probability of a September rate hike fell to 32.4%, according to interest rate futures.

On August 18, Home Depot will lead off by reporting its second-quarter financial results. Investors will closely watch same-store sales, professional customer demand, and full-year guidance, as the company's results are highly correlated with the US housing market.