By Liz Moyer
Investing.com -- Stocks rallied on Monday as investors tried to put last week’s decline in the rearview mirror.
Positive comments from JPMorgan Chase&Co (NYSE:JPM) executives helped lift financials and the broader markets. But retail earnings are also on tap this week, and that could bring stocks back to Earth.
Retailers have reported weaker outlooks affected by rising freight costs and shrinking margins, not to mention consumers becoming choosier about their discretionary purchases in the face of rising costs for food, fuel and other household basics.
This week presents another smattering of reports, especially from discounters and department stores. Investors will be watching to see how the next group of retailers fares and what they have to say about the shifting habits of American households, which have been holding off on household goods in favor of spending on travel and entertainment since the pandemic eased.
Later this week comes spending and income data from the government as well as the personal consumption expenditures index, which is the Federal Reserve’s preferred measure of inflation.
The data come as Americans prepare to leave town for the holiday weekend, facing gas prices that average $4.59 a gallon nationally as of Monday.
Here are three things that could affect markets tomorrow:
1. Best Buy earnings
Best Buy Co Inc (NYSE:BBY) is one of the retailers on deck this week. The electronics seller is expected to report earnings of $1.60 on revenue of $10.5 billion.
2. Nordstrom outlook
Department store chain Nordstrom Inc (NYSE:JWN) is expected to report a five cent loss per share on revenue of $3.3 billion.
3. Toll Brothers results
Toll Brothers Inc (NYSE:TOL) is expected to report earnings of $1.50 a share on revenue of $2 billion. Analysts will be listening for the home builder’s views on the sector amid record-high prices.