The Week Ahead: Retail Reports and PMI Data to Test Recent Gains

TLDR

Table of Contents

Retailers including Home Depot, Lowe’s, and Target report earnings this week amid tariff concerns
Federal Reserve officials scheduled to speak following Trump’s criticism of unchanged interest rates
Housing data for April (new and existing home sales) to be released this week
U.S. markets rallied last week with S&P 500 gaining 5.3%, Nasdaq up 7.2%, and Dow rising 3.5%
Thursday’s PMI data and jobless claims could influence market direction and rate expectations

The coming days will bring a packed calendar of retail earnings reports, Federal Reserve speeches, and housing data that could shape market sentiment following last week’s strong rally. Several large retailers are scheduled to report quarterly results while investors await fresh insights from Fed officials amid growing pressure from President Trump regarding interest rate policies.

Is Trump hinting at a rate cut?? 🤔 pic.twitter.com/fVdbzsBnws
— Trader Edge (@Pro_Trader_Edge) May 17, 2025

Home Depot leads the retail earnings parade on Tuesday. The home improvement giant previously warned of modest growth expectations for 2025, projecting sales growth of just 2.8%, below analyst estimates of 3.27%. Its comparable store sales growth forecast came in under 1%, disappointing market watchers.

Rival Lowe’s follows with its report on Wednesday. The company also provided lower-than-expected 2025 guidance in its previous earnings release, despite beating quarterly sales estimates.

Target’s Wednesday report will be closely watched after the retailer warned in March that tariff uncertainty could impact current-quarter earnings. This caution came even as Target posted comparable store sales growth of 1.5%, exceeding projections.

Tech Sector Reporting

Several technology companies will also share results. Palo Alto Networks reports Tuesday after seeing its previous quarter boosted by AI adoption. Snowflake’s Wednesday report follows strong prior results driven by demand for AI products.

Other companies reporting include TJX, Ross Stores, Ralph Lauren, Intuit, and travel companies Trip.com, Ryanair, and Viking. Chinese electric vehicle maker XPeng’s Wednesday report will provide insights into Tesla’s competition in China.

Markets will pay close attention to a series of Federal Reserve officials speaking throughout the week. These appearances come shortly after President Trump criticized the central bank for keeping interest rates unchanged.

Market and Economic Data

Fed Vice Chair Philip Jefferson, Atlanta Fed President Raphael Bostic, Dallas Fed President Lorie Logan, and New York Fed President John Williams are among those scheduled to speak on Monday. The speaking calendar remains packed through Thursday.

Housing market data will include existing home sales figures on Thursday and new home sales on Friday. These reports come as high interest rates and inventory challenges have kept home sales sluggish.

U.S. equities extended their rebound last week, with the S&P 500 gaining 5.3%, the Nasdaq surging 7.2%, and the Dow rising 3.5%. Markets responded positively to a 90-day tariff rollback agreement between the U.S. and China, along with April inflation data showing moderating price pressures.

The Nasdaq has now officially entered bull market territory after climbing more than 20% from its April low. The S&P 500 and Dow have reclaimed key trend levels, with the S&P closing at 5,958.38, above its 52-week moving average of 5,702.66.

Thursday’s flash Purchasing Managers Index reports will provide an early look at how manufacturing and services sectors are performing in May. Weekly jobless claims data will also be released that day, offering fresh insights into labor market conditions.

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