Target and Lowe's Earnings Reports

This week, key business events and economic indicators are set to shape market expectations, starting with Lowe’s earnings report on Tuesday. Analysts predict that the North Carolina-based hardware store chain will report earnings of $3.96 per share on $23.9 billion in sales for its second quarter. The ongoing slump in the housing market, exacerbated by elevated mortgage rates, has led to a decline in home renovations, impacting Lowe’s performance. On Wednesday, Minneapolis-based retailer Target will release its second-quarter earnings. Following a trend of declining revenue, Target is expected to report a profit of $2.19 per share on sales of $25.2 billion. The retailer has faced challenges as rising prices on essential goods have resulted in reduced consumer spending, marking its fourth consecutive quarter of declines in comparable sales. Additionally, the Census Bureau will publish its July count of new home sales on Friday. The housing market has shown signs of weakness, with new home sales dropping 7.4% year-over-year in June, following a significant 16% decline in May. This downturn contrasts with last year’s growth, where sales increased for the first time in two years. Despite a slight retreat in interest rates, hovering around 7%, many potential homebuyers remain hesitant. Overall, these reports will provide critical insights into the current state of the economy, particularly in the retail and housing sectors, as businesses navigate ongoing challenges.