Retailers' Earnings Reports to Test Consumer Resilience Amid Inflation

US stocks are near record highs on Monday as investors await key earnings reports from top retailers. The S&P 500 slipped 0.1% while the Dow Jones Industrial Average fell 209 points, or 0.4%, and the Nasdaq composite rose 0.2%. Retailers such as Home Depot, Target, and Walmart are set to release their quarterly results this week.

The companies face pressure from customers who may be struggling with higher bills due to inflation, which remains above desired levels. A recent report showed that shoppers spent less at US retailers last month compared to June. The CEOs of these retailers will provide insight into the current state of consumer spending.

Meanwhile, oil prices remain volatile as tensions between the United States and Iran continue. Brent crude rose 0.7% to $89.13 on Monday, but this is a relatively modest move compared to recent swings.