U.S. retail sales saw a strong rebound in July, following a decline in June, fueled by easing inflation and increased consumer spending. This positive trend has raised hopes that the Federal Reserve might soon begin cutting interest rates, which could further benefit the retail sector and overall economy.
Lowe’s Companies (LOW) is set to report its second-quarter earnings on Tuesday, providing investors with insights into consumer spending on home repairs and its impact on the housing market. Analysts expect a revenue decline and earnings per share to drop compared to last year’s second quarter, with concerns about weather-related challenges and a lagging do-it-yourself market. Key areas to watch include comparable sales performance, customer transactions, average ticket size, and updates on Lowe’s new loyalty program and delivery options.
U.S. retail sales unexpectedly rebounded in July, demonstrating robust consumer spending despite economic challenges. The surge, driven by strong demand for big-ticket items, provides a boost to overall economic growth and suggests resilience in the face of higher interest rates.
Analysts predict that Target and Ross Stores will report strong second-quarter earnings, driven by continued consumer spending despite macroeconomic uncertainties. Target is expected to benefit from its value-focused offerings, while Ross Stores’ strong performance across the past five quarters indicates its ability to navigate challenges.
While retail giants like Walmart and Home Depot are reporting mixed results, economic indicators paint a complex picture of consumer spending. Retail sales are up, but credit card delinquencies and commodity prices are falling, suggesting a potential slowdown in consumer health.
Retail sales in the United States saw a significant 1% increase in July 2024, marking the largest jump since January 2023. This positive trend was driven by strong performances in electronics & appliances, healthcare & personal care, and food & beverage stores. This report highlights specific sectors and related ETFs & stocks that are poised to benefit from this retail growth.
Walmart exceeded expectations in its second quarter, reporting strong earnings and sales growth. The company also raised its full-year guidance, boosting investor confidence. Shares surged over 6% on the news, defying concerns about a potential economic slowdown.
Amazon.com Inc’s (AMZN) stock surged on Thursday, fueled by robust consumer spending data and an optimistic outlook from retail giant Walmart Inc (WMT). Retail sales jumped significantly in July, exceeding expectations, and jobless claims fell to their lowest levels in weeks, indicating a resilient labor market. Walmart’s strong second-quarter results, exceeding revenue and earnings forecasts, further boosted market sentiment.
Walmart’s second-quarter earnings report, expected today, is anticipated to offer valuable insights into consumer spending trends amidst a backdrop of slowing economic growth. Analysts expect Walmart to report strong results, reflecting a stable consumer environment despite concerns around declining consumer demand from other major retailers like Amazon and Airbnb.
China’s government has unveiled a comprehensive strategy aimed at stimulating consumer spending and revitalizing its economy. The plan includes expanding basic consumption in key sectors like catering, home services, and elder care, enhancing financing for small businesses, and easing restrictions on household registrations in major cities.
