What to expect at the markets this week

Coming soon: Remarks from Fed Chair Powell, Democratic Convention speakers, and earnings from Lowe’s, Target and Snowflake

Key Points

• Investors are expecting comments from Federal Reserve Chairman Jerome Powell and other central bank officials following positive economic news on inflation and retail sales.

• Presidential candidate Kamala Harris will speak at the Democratic National Convention on Thursday.

• Earnings reports are published from Lowe’s, Target, Palo Alto Networks and Snowflake.

Investors are expecting comments from Federal Reserve Chairman Jerome Powell and other central bank officials following last week’s positive economic data.

Presidential candidate Kamala Harris will speak at the Democratic National Convention on Thursday.

Retailers Lowe’s (LOW) and Purpose (TGT) is set to report earnings this week, while tech companies Palo Alto Networks (PANW) and Snowflake (SNOW) are also expected to publish financial updates.

Monday August 19

• Democratic National Convention Begins

• US Leading Indicators (July)

• Federal Reserve Governor Christopher Waller delivers a speech

• Palo Alto Networks and Estee Lauder (EL) report profit

Tuesday August 20

• Democratic National Convention Continues

• Fed Vice Chairman Michael Barr and Atlanta Fed President Raphael Bostic deliver a speech

• Lowe’s reports profit

Wednesday August 21st

• Democratic National Convention Continues

• Minutes of the July 30-31 Federal Open Market Committee (FOMC) Meeting

• TJX Cos (TJX), Target, Snowflake, Zoom Video (ZM), Toll Brothers (TOLL), and Macy’s (M) report profit

Thursday August 22nd

• First Applications for Unemployment Benefits (Week Ending August 17)

• Existing Home Sales (July)

• S&P Global flash US services and manufacturing PMI (August)

• Democratic National Convention ends with speeches from presidential candidate Kamala Harris

• Jackson Hole Economic Symposium Begins

• Intuitive (INTU), TD Bank (TD), Working Day (WEEKDAY), and Ross Stores (ROOSTER) report profit

Friday August 23

Investors await Powell’s comment

Market analysts will be focused on comments from Federal Reserve officials this week.

After economists analyzed inflation and retail data last week, many predicted the Federal Reserve would begin cutting rates in September. But few Fed officials have echoed that sentiment so far, with speakers last week offering vague details about the path of rates.

Fed Chair Powell is expected to provide some clarity in remarks Friday at the Jackson Hole Economic Symposium. The comments are expected to be his first since the consumer price index (CPI) for July showed inflation fell to its lowest level since March 2021, giving officials more evidence that price pressures have eased.

The story continues

Earlier in the week, Fed Gov. Wallace, Fed Vice Chair Barr and Atlanta Fed President Bostic will speak. On Wednesday, the release of minutes from the July Federal Open Market Committee (FOMC) meeting will provide details of members’ discussions about economic conditions during their July meeting.

Investors await reports from retailers and cybersecurity companies

Several major retailers are set to update investors on earnings this week, after higher retail sales in July surprised market watchers. A handful of tech companies are also set to report earnings.

Hardware retailer Lowe’s reports Tuesday after May earnings showed consumers buying fewer high-end items.

On Wednesday, Target hopes to turn around disappointing first-quarter sales figures. Major rival Walmart reported strong profits a week earlier. Macy’s comes on the same day after the company last month ended talks with activist investment groups that wanted to buy the struggling retailer.

Discount chains TJX Cos, the parent company of TJ Maxx, and Ross Stores are also reporting this week.

Palo Alto Networks’ Monday report is expected to give investors insight into the strength of the cybersecurity industry, as the company is expected to post quarterly growth in both revenue and net income. On Wednesday, cloud data company Snowflake hopes to rebound after missing last quarter’s profit estimates despite growing demand for its artificial intelligence (AI) products.

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