Retail earnings — What you need to know for the week ahead

The streak is over.

After the S&P 500 and Dow each finished higher for eight consecutive weeks, this past week saw the indexes lose ground, even if only by a bit. When the dust settled, the Dow lost about 0.5% this week while the S&P and tech-heavy Nasdaq slipped 0.2%.

In the week ahead, the retail sector will be the key for investors with the October report on retail sales and major earnings in the space serving as catalysts.

Notable earnings this week will include Home Depot (HD), Walmart (WMT), TJ Maxx parent company TJX (TJX), Target (TGT), Victoria’s Secret parent company L Brands (LB), Cisco (CSCO), Tyson Foods (TSN), Viacom (VIAB), Best Buy (BBY), The Gap (GPS), and Foot Locker (FL).

Walmart earnings will be one of this week’s biggest highlights for investors.
Walmart earnings will be one of this week’s biggest highlights for investors.

Elsewhere on the economic calendar, Wednesday will bring investors the October reading on consumer prices alongside the latest data on retail sales, with Tuesday’s report on small business optimism from the NFIB also highlighting the schedule.

Investors will also keep an eye on progress in Washington, D.C. on tax reform, which this past week saw Senate Republicans unveil their own version of a plan to cut taxes for businesses and some Americans.

Economic calendar

  • Monday: No major economic data set for release.

  • Tuesday: NFIB small business optimism (104.5 expected; 103 previously); Producer price index, October (+0.1% expected; +0.4% previously)

  • Wednesday: Consumer price index, October (+0.1% expected; +0.5% previously); “Core” CPI, year-on-year, October (+1.7% expected; +1.7% previously); Empire State manufacturing, November (25 expected; 30.2 previously); Retail sales, October (+0% expected; +1.6% previously)

  • Thursday: Initial jobless claims (234,000 expected; 239,000 previously); Philly Fed manufacturing, November (24.1 expected; 27.9 previously); Import price index, October (+0.4% expected; +0.7% previously); Industrial production, October (+0.5% expected; +0.3% previously); Homebuilder sentiment, November (68 expected; 68 previously)

  • Friday: Housing starts, October (+5.6% expected; -4.7% previously); Building permits, October (+2% expected; -4.5% previously)

The sell-off that wasn’t

This past Thursday, the Dow was down over 200 points at its lows and the S&P 500 nearly broke its more than 40-day streak of no losses greater than 0.5% for a given session.

Through Thursday afternoon, stocks regained some of their losses and after an uneventful Friday, markets went into the weekend amid relative calm and only modest losses. But with markets having done seemingly nothing but go up all year, Thursday’s action prompted analysts at Bank of America Merrill Lynch to go so far as to assure clients that this sell-off was not “the big one,” Reuters reported.