By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- The retail sector will be front and center this week with earnings reports from high-profile retailers due, including Home Depot, Walmart, TJ Maxx, and Target. Home Depot is up first and the home improvement retailer missed earnings for the first quarter and lowered its outlook for the year.
- On the economic front, July retail sales will be released on Tuesday and are expected to show a slight acceleration from the previous month. Other data out this week includes housing starts, industrial production, and the leading index, which is expected to be down for the 16th consecutive month, a development last seen during the Global Financial Crisis.
- The Fed will release the Beige Book and the Federal Reserve Bank of New York will release its consumer inflation expectations, which have been showing consumers expect inflation to run hot for several more years.
Three Things to Know
- This year’s valuation expansion accounted for 86% of the S&P 500’s year-to-date return through July, with the rest of the market’s boost coming from positive changes to earnings estimates. The S&P 500 and Nasdaq were up 20.65% and 37.07%,respectively through the end of July. (Source: Reuters, Credit Suisse)
- Mexico is now the No. 1 trading partner with the U.S., followed by Canada. China, which held the top spot from 2015-2018 and again in 2020, has dropped to third place. (Source: Charlie Bilello)
- On Aug.13, 1961, East Berlin closed the border with West Berlin before constructing the wall that divided the two until late 1989. (Source: Bespoke Investment Group)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.