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US Retail Data, Walmart and Target Earnings -How to Trade it?

US Retail Data, Walmart and Target Earnings -How to Trade it?

HI trader, did you know that consumerism and shopping make up 2/3 of the global economy? That’s why it’s so important. 

It can help us understand whether the so-called recession is impacting the consumer market.

This week we have earnings from retail heavyweights Walmart (on Tuesday) and Target (on Wednesday), two major US retailers that are often considered a strong gauge for this sector. We also have US retail sales data on Wednesday at 12.30pm GMT. If this data (which is expected to come out strong) beats expectations this could calm recession fears. However, on the other side of the coin, if the data comes out strong this could push the Fed to continue with its aggressive rate hike policy. This could lead to investors moving away from riskier assets like stocks in the short term, in turn causing stocks to move lower.

Take a look at the economic calendar for this event. Here’s what you can learn.

July retail sales data is projected to rise 8.1% on a year-over-year basis, and by 0.2% month over month. In  the last reading for June, 12-month retail sales rose 8.4% yearly and 1% monthly.

June’s report also included higher gas sales with average gas prices running above $5 a gallon.

According to the Bank of America

“After a very strong July jobs report, a sharp rise in retail sales would all but confirm that the US is not in a recession.”

SO be sure to watch the Walmart earnings on Tuesday, as a forerunner to understand how Wednesday’s retail sales data might come. If it comes out strong, stocks could move lower and it could send the USD even higher!

Have your platform open on Wednesday at 12.30pm GMT.