What To Expect in Markets This Week: Fed Chair Remarks, Home Sales, Walmart and Home Depot Earnings

Introduction to This Week’s Market

Get ready to hear a lot about Jerome Powell, the Federal Reserve chair, as investors seek clarity over the central bank’s next interest-rate moves. Powell has been under pressure to produce rate cuts, but recent economic data has put officials in a tough position. This week, traders will be following earnings expected from major retailers, including Walmart, Target, Home Depot, Lowe’s, and Ross Stores, to watch for signs of tariff-driven inflation and fading consumer sentiment.

Investors Look to Powell Remarks for Clarity on Interest-Rate Path

Attention will turn toward the American West this week at the annual Jackson Hole Economic Policy Symposium, where Powell is expected to lead a lineup of speakers that includes central bankers, economists, and top officials. Economists are seeing more likelihood that the Fed will cut interest rates at its next meeting as the central bank faces relentless pressure from President Donald Trump and other administration officials to lower borrowing costs when it next meets in September.

The Fed hasn’t lowered rates since last December and now finds itself in a tough position, with inflation ticking higher while the job market looks weaker than thought. The minutes for the July meeting of the Federal Open Market Committee will provide a look into the Fed’s view of interest rates and the economy and could add insight about the actions of two committee members who split from their colleagues to vote in favor of a rate cut last month.

Walmart, Target Earnings Due as Tariff Pressures Loom

As Trump’s tariffs begin to show some impact on inflation, earnings reports from large retailers will show if the import taxes are hitting their sales. Walmart’s scheduled report on Thursday comes after the retailer said it would look to price increases to help balance the costs of tariffs. Home Depot has said it was attempting to maintain its pricing structure, with investors getting more details on the hardware retailer with its report set for Tuesday.

Target’s expected Wednesday report follows warnings in the prior quarter that sales may move lower than originally projected. Sales also are seen softening for T.J. Maxx parent TJX, which said in the prior quarter that tariffs are expected to impact revenue figures. Other noteworthy retailers scheduled to report this week include home improvement chain Lowe’s and discount retailer Ross Stores.

This Week’s Calendar

Here is a breakdown of the key events happening this week:

• Monday, Aug. 18: Homebuilder confidence and key earnings from Palo Alto Networks.
• Tuesday, Aug. 19: Housing starts and key earnings from Home Depot, Medtronic, and Keysight Technologies.
• Wednesday, Aug. 20: FOMC minutes for July meeting, Fed Officials Speaking, and key earnings from TJX Cos., Lowe’s, Analog Devices, and Target.
• Thursday, Aug. 21: Existing home sales, Fed Officials Speaking, key earnings from Walmart, Intuit, Workday, and Ross Stores, and data to watch including initial jobless claims and the Philadelphia Fed manufacturing survey.
• Friday, Aug. 22: Expected remarks from Fed Chair Jerome Powell at Jackson Hole symposium and key earnings from BJ’s Wholesale Club.

One More Thing

Social Security celebrates its 90th anniversary this month, but fewer Americans are confident in the program’s long-term financial stability. The program faces potential benefit reductions, and it’s essential to understand the implications of these changes.

Conclusion

In conclusion, this week is packed with significant events that will shape the market and provide insights into the economy. From Powell’s remarks to the earnings reports of major retailers, investors will be watching closely for signs of what’s to come. With the ongoing tariff pressures and the Fed’s decision on interest rates, it’s a critical time for the economy, and understanding these factors is crucial for making informed decisions.