The Retailers Return – News for the American Consumer 🛍

The Retailers Return – News for the American Consumer

With the abundance of news regarding inflation, interest rates, and the banking crisis, this upcoming week will be targeting the core of the U.S. economy: the consumer. In the next few days, the patterns of the American consumer will be able to be projected through April’s retail sales data and several retailers’ earnings reports. After the holiday-induced rises in January, retail sales steadily declined in both February and March, however, it is forecasted for April’s sales to rise 0.7% month-over-month. With inflation well below last year’s high, economists believe that average lower prices have allowed room for sales to grow slightly this year. The National Retail Federation has projected an annual retail sales growth between 4% and 6% for 2023, below 2022’s surprisingly higher 8.2% increase. With weaker credit conditions and uncertainty over the strength of the banking industry, it is assumed that demand may dwindle as the economy potentially heads toward a recessionary period.

Following the retail sales release on Tuesday, popular national retailers such as Target, Walmart, and Home Depot will be announcing their quarterly earnings. The previously combined weak guidance from several of these staple retailers depicts how cost cuts may not be enough to satisfy weakening demand. These earnings, when coupled with April’s retail sales data, will hopefully add to cohesive consumer spending trends, helping investors make calculated decisions when entering the markets. Anticipated weaker top-line revenues may signal the fiscally tight conditions of the American consumer, however, the opposite can depict how disinflation has positively decreased prices for staple goods. Nonetheless, the large retail figures will be followed by a new speech by Federal Reserve Chair Jerome Powell on Friday, optimistically providing more input on the behaviors of American consumers.

Want to learn how to invest? Download the Invstr app, where you can play Fantasy Finance and manage a virtual investment portfolio or open a brokerage account and invest for real. Take our interactive investing course on Invstr Academy and become a better investor today!

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

Share:
More Posts
Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.