Retailers and Rate Hikes Dominate Market Focus This Week

The S&P 500 and Dow Jones indices have been on a tear this year, reaching record highs driven by ongoing risk-on sentiment among investors and strong corporate earnings. The indices are up 23% and 20%, respectively, from their lowest levels of the year.

This week will see top retailers Home Depot (NYSE:HD), TJX Companies (NYSE:TJX), Lowe’s (NYSE:LOW), Target (NYSE:TGT), Walmart (NASDAQ:WMT), Williams-Sonoma (NYSE:WSM), and BJ's Wholesale Club (NYSE:BJ) release their earnings. These results will provide more color on the state of American retailers and consumers as inflation remains at an elevated level.

The Federal Reserve minutes, scheduled for Wednesday, will also be closely watched. The latest data has led to lower odds that the bank will hike interest rates later this year, after officials decided to leave rates unchanged between 3.50% and 3.75% in their last meeting.