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The sector has been fueled this year by expectations that the Federal Reserve is nearing the end of its interest rate increases. Futures traders expect the Fed will hit pause in September at its next policy meeting, and there continues to be debate about whether July’s rate increase would be the final one.
Better than expected data on consumer prices helped encourage this view. July’s consumer price index came in cooler than expected, meaning the Fed’s actions so far are setting in to push interest rates back toward its 2% target.
Retail sales data are expected on Tuesday. So far the consumer has been resilient even in the face of rising rates. Earnings reports from retailers this week could firm up expectations on consumer spending trends heading into the crucial holiday sales months this fall.
Here are three things that could affect markets tomorrow:
1. Retail sales
The retail sales report for July is expected out at 8:30 ET (12:30 GMT). Analysts expect an increase of 1.5% from the same time last year and 0.4% from the prior month.
2. Home Depot
The home improvement retailer Home Depot Inc (NYSE:HD) is expected to report earnings per share of $4.46 on revenue of $42.2 billion, and analysts will be watching to see how same store sales fared and what executives say about spending by do-it-yourself homeowners.
3. Cava Group
Restaurant chain CAVA Group Inc (NYSE:CAVA) is reporting after its highly watched initial public offering. Analysts expect a loss per share of 2 cents on revenue of $163.2 million.
