Retail Earnings Week Kicks Off with Key Insights on Consumer Spending

Wall Street investors will be closely watching retail earnings this week as Walmart, Target, and Home Depot report their quarterly results. The trio of retailers will provide insight into consumer spending habits, particularly in discretionary categories.

Home Depot kicks off the reporting season on Tuesday, followed by Target on Wednesday and Walmart on Thursday. Investors will be looking for signs of strength in demand for home improvement products and an update on the retailers' outlook for the second half of the year.

Analysts expect strong grocery momentum to continue at Walmart, but may see a moderation in General Merchandise and Health & Wellness categories. Oppenheimer recently downgraded Walmart to Perform from Outperform, warning that U.S. comparable sales could fall short of expectations.

The Federal Reserve's minutes from the last meeting are also due on Wednesday, which may shed more light on the path for interest rates. Wells Fargo economists expect the minutes to reflect a willingness by policymakers to be patient on further progress on inflation, but with a low bar for future rate hikes if inflation does not slow further.

In other news, AI startup Anthropic is forecasting its 2028 revenue to reach roughly $190B to $200B, which will help determine its IPO valuation. Meanwhile, Jane Street reportedly posted a $15B loss last month after taking a hit on its investment in Situational Awareness.