Walmart's Earnings Report, the Fed Minutes, and Business Activity: What Investors Can Expect This Week

After a week on Wall Street dominated by inflation and expectations regarding the Fed’s next move, investors can expect a calmer five-day period, according to Yahoo Finance.

The minutes from the Fed’s latest meeting may provide new clues regarding a rate hike as early as September. In Europe, preliminary business activity indices for August will show how the economy is coping with high energy prices and geopolitical uncertainty. In Asia, a large batch of Chinese economic data is expected, according to The Wall Street Journal.

Investors will also continue to monitor oil prices and the situation in the Middle East in the hope of an agreement between the U.S. and Iran that could lead to the reopening of the Strait of Hormuz, the WSJ notes.

This week, 12 S&P 500 companies will report earnings, and the retail sector will be the main corporate focus. Walmart, Target, and other major retailers, as well as Alibaba and Deere, will present their results. According to Yahoo Finance, investors will be focusing primarily on the performance of Chinese tech giant Baidu’s cloud AI business.

On Monday, August 17, China will release July data on industrial production, retail sales, fixed-asset investment, and housing prices—the first indicators of the economy’s performance in the third quarter. Economists expect weak results across most sectors: such data could reinforce expectations of new economic stimulus measures, according to the WSJ. Goldman Sachs believes that industrial production is likely to be affected by a slowdown in exports, weaker activity in the manufacturing sector, and a decline in steel output and demand.

On Tuesday, August 18, the U.S. Census Bureau will release data on new housing starts for July. According to Barron's, economists are forecasting an average of 1.35 million housing starts on an annualized basis—80,000 fewer than in June.

Baidu, Home Depot, Klarna, and Xiaomi will report their quarterly results.

On Wednesday, August 19, the U.S. Federal Reserve will release the minutes from its July meeting. At that meeting, the central bank voted 9–3 to keep the federal funds rate in the 3.5–3.75% range. “Wednesday’s FOMC meeting minutes will be closely scrutinized to gauge the extent of disagreement within the Fed,” said Daniela Hathern, senior market analyst at Capital.com (as quoted by the WSJ). Currently, the market puts the probability of a 25-basis-point rate hike in September at just 27%, fully pricing in such a move no earlier than the beginning of next year, the WSJ reports.

Analog Devices, Estee Lauder, Lowe’s, Target, and Viking Holdings will release their earnings reports.

On Thursday, August 20, the final data on the Harmonized Index of Consumer Prices (HICP) will be released in the eurozone.

China will announce the loan prime rates (LPRs), which banks use as a benchmark when setting interest rates for most loans to households and businesses.

Alibaba, Deere, Ross Stores, Walmart, and NetEase will report their quarterly results.

On Friday, August 21, S&P Global will release the August Purchasing Managers' Index (PMI) figures for the U.S. manufacturing and services sectors. Wall Street expects both figures to decline, according to Barron's.

Preliminary business activity indices for August will be released in the eurozone—the week’s key macroeconomic event for the currency bloc. Investec expects the composite PMI to decline: “The ongoing deadlock in U.S.-Iran negotiations over the Strait of Hormuz has once again led to a rise in oil and gas prices,” said analyst Lotti Gosling (as quoted by the WSJ).

The European Central Bank will also release its latest consumer expectations survey.

BJ’s Wholesale Club will present its financial results.

This article was AI-translated and verified by a human editor