There is a dearth of noteworthy events this coming Monday that carry market-moving potential. Accordingly, we'll open things up a little bit and call attention to a gaggle of earnings reports next week from some noteworthy retailers.
Retail Earnings Reports (week of August 13-17)
- Why it's important
- Earnings results from the retailers provide some important insight on the pace of consumer spending and how that spending is allocated between discretionary and non-discretionary items.
- Investors have festering concerns about the ability of brick-and-mortar retailers to compete against Amazon.com and other online competitors. These reports will demonstrate how brick-and-mortar retailers are doing with ongoing efforts to compete online.
- Many retail stocks have had a big run, bolstered by the favorable economic backdrop and prior earnings reports suggesting they have ample operating life left in them despite Amazon's influential presence in the retail space. Disappointing earnings news/guidance at this juncture could drive some material declines in stock prices.
- Sales results shared by the retailers will be viewed as a proxy of sorts on the impact individual tax cuts have had on individual spending activity.
- The guidance shared by the retailers will create perceptions about what role consumer spending activity is going to play in driving Q3 GDP growth.
- A closer look
- What's in play?
- Consumer Discretionary Select Sector SPDR (XLY)
- Consumer Staples Select Sector SPDR (XLP)
- Retailers scheduled to report:
- Advance Auto Parts (AAP)
- Home Depot (HD)
- Tapestry (TPR)
- Macy's (M)
- J.C. Penney (JCP)
- Walmart (WMT)
- Nordstrom (JWN)