Americans are spending like crazy. Can the not bad times last?

The truth about the retail apocalypse

1. Shop until you drop: The economy is usually booming because unemployment is usually low in addition to people are spending more of their paychecks at Walmart, Macy’s, Home Depot in addition to a bunch of various other retailers which report earnings This particular week.

Consumer spending accounts for more than two-thirds of the American economy, in addition to there’s no better indicator for how much people are shopping than the financial health of stores.

On Wednesday, the US government will report retail sales for July. The Commerce Department said consumer spending grew at a 4% pace from the second quarter, in addition to May in addition to June were particularly strong. Wall Street analysts expect retail sales remained solid in July, even though consumer sentiment dipped a bit.

Investors will pay particularly close attention to retailers’ outlooks for the rest of the year to gauge how robustly consumers are supposed to spend through the holidays. Higher inflation is usually beginning to eat into people’s paychecks. Wage growth has remained tepid, yet gas prices are rising, in addition to tariffs have boosted prices on everything by cars to soda.

Here’s a rundown on who’ll be reporting next week.

Macy’s (M) is usually staging an epic comeback thanks to a focus on e-commerce. Shares of Macy’s are up 60% This particular year, generating This particular the second-best-performing retailer from the S&P 500 — trailing only Amazon (AMZN).

Macy’s will report its results before the opening bell Wednesday. Investors will be looking for more evidence which sales growth is usually picking up in addition to which store closures in addition to cost cuts are boosting profits.

Walmart, which has emerged as a formidable player in online in addition to mobile retail thanks to a series of acquisitions, reports its results Thursday. There are concerns which Walmart’s digital momentum may be fading a bit, though, in addition to which the company still carries a long way to go to catch Amazon. The stock is usually down nearly 10% This particular year as a result.

How Walmart is usually taking on Amazon

nevertheless Walmart (WMT) could benefit by its partnership with Chinese online retailer JD.com. Walmart carries a 12% stake from the Alibaba rival. JD (JD) will report its latest results on Thursday.

Home Depot (HD) will report its earnings on Tuesday. The company, along with rival Lowe’s (LOW), has proved to be somewhat Amazon-proof.

Many DIY consumers in addition to professional builders still prefer to buy plywood, faucets in addition to various other big-ticket housing items at stores as opposed to on their phones. nevertheless Home Depot’s stock has slumped lately on worries which the housing market may be peaking.

Struggling retailer JCPenney (JCP), department store chain Nordstrom (JWN) in addition to Coach owner Tapestry (TPR) will also report their latest earnings. Tapestry also owns the Kate Spade brand, in addition to This particular will be once the company reports results since Kate Spade’s death in June.

Strong retail sales could be not bad news for the stock market in addition to could help lift This particular to a fresh record. The S&P 500 is usually about 1% below the record This particular hit in late January.

“The fundamental strength of the consumer in addition to retail sales doesn’t appear to be fully baked in to the stocks,” said Lindsey Bell, investment strategist with CFRA, in a report. “Retail sales by clothing stores, department stores in addition to online have been strong from the past three months in addition to will be key from the success of retailers This particular quarter.”

2. Tesla’s big meeting? Elon Musk’s proposal to take the electric car company private could stay from the headlines This particular week. The Tesla (TSLA) board of directors is usually reportedly meeting with financial advisers to formalize a plan.

Musk tweeted last week which he wants to take Tesla private. In a note to employees, he cited the “enormous pressure” of Wall Street’s expectations.

3. Tracking tech: They may not be as sexy as FANG, nevertheless some various other major tech companies report earnings This particular week.

Tencent (TCEHY) will report earnings on Wednesday. The Chinese tech conglomerate, which owns the chat app WeChat, reported massive earnings last quarter, nevertheless analysts don’t expect which This particular time. The stock is usually down 6% since This particular last reported earnings in May over fears of slowing growth in addition to an overall weakness from the tech sector.

Cisco (CSCO) also reports on Wednesday, with investors eying its comeback. On Thursday, the red-hot chip-maker Nvidia (NVDA) reports earnings. The stock is usually up 30% year-to-date.

4. Tractors in addition to tariffs: John Deere (DE) reports earnings Friday. This particular had a disappointing second quarter because of increasing costs of materials, in addition to This particular could face another rough quarter because of the Trump administration’s tariffs in addition to trade wars which could cause farmers to delay purchases of fresh equipment.

5. Equifax meeting: The embattled company is usually holding an investor meeting in fresh York City on Monday. The company is usually still reeling by a massive security hack which exposed the private information, like tax IDs in addition to driver’s license details, of 145.5 million customers.

6. Coming This particular week:

Monday — Equifax (EFX) investor meeting

Tuesday — Home Depot (HD) earnings

Wednesday — Macy’s (M), Cisco (CSCO) in addition to Tencent earnings

Thursday — JCPenney (JCP), Nordstrom (JWN), Walmart (WMT) in addition to Nvidia earnings

Friday — Deere (DE) earnings, consumer sentiment

sy88pgw (fresh York) First published August 12, 2018: 7:06 AM ET

Americans are spending like crazy. Can the not bad times last?

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