Markets are still focused overseas.
The major U.S. indexes on Monday lost ground with the Dow and S&P 500 declining for the fourth straight day as a currency crisis in Turkey and stresses in Argentina weighed on markets to start the week.
And while President Donald Trump’s recent decision to slap tariffs on Turkey, Yahoo Finance’s Lianna Brinded noted Monday that tensions between the U.S. and Turkey have been building since 2003. A tidy resolution seems unlikely.
In a note to clients, Oliver Jones at Capital Economics said that though the decline in emerging market currencies due to fears over Turkey could abate in due time, the outlook for the space remains poor given the firm’s view that China’s economy could slow further this year with the U.S. economy potentially losing momentum next year.
Investors will be closely watching results from Home Depot for comments on the health of the U.S. housing markets and a view of general consumer confidence in the economy. Wall Street expects Home Depot to report adjusted earnings per share of $2.84 on revenue of $30 billion, according to estimates from Bloomberg. Comparable-store sales are expected to rise 6.5% during the quarter.
The economic calendar will also bring investors a reading on import prices in July and the latest data from the NFIB on small business optimism. Small business optimism has been one of the strongest economic indicators since Trump’s election.
Myles Udland is a writer at Yahoo Finance. Follow him on Twitter @MylesUdland