TLDR
- Home Depot, Lowe’s, Target set to release quarterly earnings amid consumer spending concerns
- Multiple Federal Reserve officials scheduled to speak following Trump’s criticism of rate policy
- April housing data coming with both new and existing home sales reports
- Markets posted strong gains last week: S&P 500 up 5.3%, Nasdaq jumped 7.2%, Dow rose 3.5%
- Thursday’s PMI data and jobless claims will provide fresh economic insight for traders
This week brings a heavy calendar of retail earnings, Federal Reserve speeches, and economic data releases that could drive market sentiment after last week’s rally. The lineup features major retailers reporting quarterly results while several Fed officials take the stage amid growing pressure from President Trump on interest rate decisions.
Home Depot kicks off the retail earnings season Tuesday. The home improvement retailer previously set modest expectations for 2025, forecasting sales growth of 2.8%, below the 3.27% analyst consensus. Its projected comparable store sales growth came in below 1%, falling short of market expectations.
Competitor Lowe’s follows with its report Wednesday. The company also underwhelmed investors with its 2025 guidance in its previous earnings announcement, despite beating quarterly sales estimates.
Target reports Wednesday as well, following its March warning about potential tariff impacts on current-quarter earnings. This cautionary note came despite Target posting better-than-expected comparable store sales growth of 1.5%.
Tech Companies Report
The tech sector will also be in focus this week. Palo Alto Networks announces results Tuesday after its last quarter benefited from AI adoption trends. Snowflake reports Wednesday following strong previous results driven by AI product demand.
Other companies releasing earnings include TJX, Ross Stores, Ralph Lauren, Intuit, and travel firms Trip.com, Ryanair, and Viking. Chinese EV maker XPeng’s Wednesday report will offer a glimpse into Tesla’s competitive landscape in China.
Investors will closely follow comments from numerous Federal Reserve officials speaking throughout the week. These appearances follow recent criticism from President Trump regarding the Fed’s decision to maintain current interest rates.
Economic Data Points
Fed Vice Chair Philip Jefferson, Atlanta Fed President Raphael Bostic, Dallas Fed President Lorie Logan, and New York Fed President John Williams all speak Monday. The Fed speaking schedule continues through Thursday.
Housing market readings include existing home sales figures Thursday and new home sales Friday. These reports come as the housing market faces headwinds from high interest rates and inventory challenges.
U.S. stocks showed strong momentum last week, with the S&P 500 gaining 5.3%, the Nasdaq surging 7.2%, and the Dow climbing 3.5%. The market rally was fueled by a 90-day tariff rollback agreement between the U.S. and China, along with April inflation data showing easing price pressures.
The Nasdaq has now entered bull market territory, having risen more than 20% from its April low. Both the S&P 500 and Dow have reclaimed key technical levels, with the S&P closing at 5,958.38, above its 52-week moving average of 5,702.66.
Thursday’s flash Purchasing Managers Index will provide an early look at May business activity in both manufacturing and services sectors. The same day brings weekly jobless claims data, offering fresh insights into labor market conditions.
