UK Jobs Data and Home Depot Earnings Take Center Stage

UK jobs data and Home Depot earnings are set to take center stage on Tuesday. The UK's average earnings and unemployment numbers for June will be closely watched, with analysts expecting pay growth to slow further.

AJ Bell analysts Russ Mould and Danni Hewson note that Home Depot reaffirmed its full-year guidance in May after posting better-than-expected first-quarter results. They believe the retailer's professional customer-heavy business model will allow it to outperform peers, despite housing affordability and elevated mortgage rates being headwinds.

Home Depot's shares have underperformed the S&P 500 by around a third over the past year, so investors will be looking for signs of continued resilience. As for the UK jobs data, Patrick Munnelly at Tickmill Group expects pay growth to slow further, but notes that base effects may limit the pace of deceleration.