Retailers' Earnings and Fed Minutes in Focus as Inflation Concerns Linger

Wall Street will be closely watching several key economic indicators this week as retailers Home Depot and Walmart report their latest earnings. Home Depot's results are due out on Tuesday, followed by Target and Lowe's on Wednesday, with Walmart's figures released on Thursday.

The Federal Reserve's minutes from its July meeting will also be made public on Wednesday, providing insight into the central bank's interest rate policy. The Fed held rates steady in July amid concerns over inflation, but three officials dissented in favor of higher rates.

With inflation remaining above 3%, investors are closely watching consumer spending habits as prices for goods and services continue to rise. Home Depot and Lowe's results may offer a glimpse into the housing market and whether consumers are cutting back on home improvements due to increased costs.

The Fed's rate policy is also under scrutiny, with Wall Street expecting at least one rate hike before the end of 2026. As Chairman Kevin Warsh described it, 'it was a good family fight' during the July meeting.