Inflation above 3% and Iran-driven oil surge coincide with retail earnings
Home Depot is scheduled to report quarterly results on Tuesday, followed by Target and Lowe’s on Wednesday and Walmart on Thursday, according to a weekly preview from The Associated Press. The slate of major retail earnings coincides with the release of minutes from the Federal Reserve’s most recent policy meeting. Together, the retailers’ results and the Fed minutes will help give investors a more detailed picture of how businesses and consumers are absorbing inflation that remains solidly above 3%, alongside an ongoing U.S. war with Iran that has driven oil and gasoline prices higher.
The minutes from the Federal Reserve’s most recent meeting are scheduled for release during the same week. The AP report said the U.S. war with Iran prompted a surge in oil prices, which in turn jolted gasoline prices. Higher prices on gasoline, groceries, and any goods that are shipped could prompt consumers to shift or cut spending, according to the preview.
Results from Home Depot and Lowe’s are positioned to provide more insight into the housing market and whether households are spending more or less on home improvements. Results and forecasts from Target and Walmart could illuminate how households are budgeting and what they are choosing to buy or skip, according to the AP preview.
The AP preview said the combined slate of retail earnings and Fed minutes will help give investors a more detailed picture of how businesses and consumers are absorbing inflation and energy costs.