Retailers Face Test as US Stocks Near Records Amid Inflation Worries
US stocks are trading near record highs ahead of a crucial week for retailers as they face pressure from high inflation and a slowing job market.
The S&P 500 slipped 0.1% on Monday, but remains close to its all-time high set on Thursday. The Dow Jones Industrial Average was down 163 points, or 0.3%, while the Nasdaq composite was virtually unchanged.
Big US companies have been delivering strong profits, with those in the S&P 500 index expected to report a 50% increase in earnings per share for the spring quarter compared to last year. This would be the best growth since 2017, when the economy was recovering from the COVID-19 pandemic.
However, retailers such as Home Depot, Target, and Walmart are facing challenges due to rising customer bills and potentially declining incomes after US employers cut more jobs than they added in June.