Retailers Face Pressure Amid High Inflation and Slow Job Market

Wall Street has continued to hover near record highs as investors await key reports from major retailers. The S&P 500 slipped 0.1% on Monday but remains close to its all-time high set just a day earlier, while the Dow Jones Industrial Average and Nasdaq composite were down 174 points and virtually unchanged, respectively.

The surge in profits for big U.S. companies has been a major driver of Wall Street's recent run. According to FactSet, those in the S&P 500 index are on track to deliver growth of roughly 50% for earnings per share in the spring from a year earlier, which would be the best since five years ago.

The upcoming week will bring profit reports from Home Depot, Target, and Walmart, but these retailers face pressure as their customers' incomes may be turning iffier. A recent report showed that shoppers spent less at U.S. retailers last month than in June, and CEOs for retailers could provide insight into what they're seeing.