U.S. Markets open in 1 hr 8 mins

Retail sales — What to know in markets Wednesday

Heidi Chung

Key consumer spending data will take center stage on Wednesday.

The Commerce Department will be releasing retail sales data for April ahead of the market open, and investors will get a peek into the health of the American consumer. After advancing 1.6% in March from the prior month, economists are predicting a more modest jump of 0.2% in April, according to data compiled by Bloomberg.

“Consumer confidence also rose more than expected in April, providing some momentum for the consumer going into the second quarter. Consumers were able to regain some lost confidence after some positive developments in equity markets,” Wells Fargo wrote in a note on Friday. “Despite the strong data in March, it was not enough to prevent real consumption growth from slowing in the first quarter—PCE grew at an annualized pace of 1.2%. We look for a 0.2% increase in April retail sales.”

UBS also expects strength in April’s data. “We forecast a solid retail sales report for April, extending the March rebound in consumer spending. Auto sales fell, but we expect strength elsewhere in the report.”

Meanwhile, some of the big corporate earnings reports scheduled for Wednesday include Alibaba (BABA) and Macy’s (M) before market open, and Cisco (CSCO) after market close.

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.

More from Heidi:

Early Uber investor sees 'the same kind of situation' as Tesla

Shake Shack shares jump on better-than-expected sales, raises outlook

The next test for Apple’s iPhone will come with 5G

Yum Brands reports strong sales led by KFC

McDonald's sales beat expectations