Major Retailers Report July-Quarter Earnings as $4 Gas Tests U.S. Consumer Spending
Updated
Updated · CNBC · Aug 14
Major Retailers Report July-Quarter Earnings as $4 Gas Tests U.S. Consumer Spending
3 articles · Updated · CNBC · Aug 14
Summary
Walmart, Target, Home Depot, Lowe's and TJX report next week, with investors looking for July-quarter results to show whether consumer demand is weakening beyond lower-income households.
That scrutiny follows an unexpected drop in U.S. consumer spending last month and a July job loss report, adding to evidence that the economy may be softer than expected.
Gas prices climbed above $4 a gallon this week—about $1 higher than before the Iran war—while inflation stays stubborn, pressuring discretionary spending and budget-conscious shoppers.
Walmart is the key read-through after warning that higher fuel costs were hitting customers; its shares are up just 3% this year and down 13% over the last three months.
Even so, Wall Street's baseline is a still-K-shaped economy rather than a fresh downturn, with low-income consumers under strain while broader stock indexes continue to hit records.