The Week Ahead
August 17, 2026
Economic news
FOMC Minutes August 19th
The detailed records of the Federal Open Market Committee meetings provide key insights into the thought process of the Federal Reserve. Likely included in those minutes will be the rationales behind the 9-3 vote to maintain rates and the future direction in which the FOMC may take them. Knowing more details on the opinions of the FOMC will be key, especially as the latest CPI report showed inflation is still growing faster than the rate of wage growth1.
Pending Home Sales August 18th
The upcoming pending home sales report for July will provide an important look at housing demand as the index tracks signed contracts for existing homes that have not yet closed. A stronger-than-expected reading would suggest buyer activity is improving and could signal greater momentum for the housing market in the months ahead, while a weaker result would reinforce concerns about affordability and elevated mortgage rates weighing on demand. Investors will also watch the report for clues about the broader health of the U.S. consumer and interest-rate-sensitive sectors.
According to TradingEconomics.com, U.S. pending home sales declined month over month in June by 5.4%2. Given the high price of homes right now, it will be interesting to see if this continues, or if demand shifts things back into growth mode.
Earnings Related Market Movers
Home Depot August 18th
Home Depot’s first quarter results offered a steady, if slightly underwhelming, start to fiscal 2026. The home improvement retailer reported sales of $41.8 billion, up 4.8% from a year earlier, while comparable sales rose 0.6%3. Still, profitability came under pressure. Net earnings fell 4.2% to $3.3 billion and adjusted diluted earnings per share declined 3.7% to $3.43 per share. The results reflected a consumer environment that remained challenged by uncertainty and housing-affordability pressures, although CEO Ted Decker said underlying demand was broadly similar to levels seen throughout fiscal 2025.
Looking ahead, investors will be watching Home Depot’s upcoming earnings release for signs that demand is beginning to strengthen and whether the company remains on track to meet its full-year targets. The retailer reaffirmed its fiscal 2026 outlook, calling for total sales growth of roughly 2.5-4.5%, comparable-sales growth ranging from flat to 2%, and adjusted diluted EPS growth of approximately 0-4%. With the housing market, consumer spending and affordability are still key variables. The next earnings report should provide an important read on whether Home Depot can turn its relatively stable first-quarter performance into stronger momentum as the year progresses.
Target August 19th
For Target, the first quarter marked an encouraging start to a new phase of growth, with sales strength extending across merchandise categories and sales channels. Net sales rose 6.7% year over year to $25.4 billion, comparable sales increased 5.6%, and traffic climbed 4.4%. Digital comparable sales grew 8.9%, helped by more than 27% growth in same-day delivery, while non-merchandise revenue, including advertising, membership and marketplace activities rose nearly 25%. Diluted earnings per share came in at $1.71, a 24.5% decline from the previous year, but prior year results included non-recurring legal settlement gains. On an adjusted basis, earnings were 32% higher4.
The week ahead will bring Target’s second-quarter earnings release, with investors looking for evidence that the momentum seen in the first quarter is holding. Target has raised its 2026 sales outlook to growth of around 4% and expects full-year GAAP and adjusted EPS to land near the high end of its previous $7.50-$8.50 range. Attention will likely center on traffic, discretionary spending and the pace of Target’s strategic investments as the retailer seeks to build on its stronger start while navigating an uncertain consumer environment.
Walmart August 20th
Walmart heads into next week’s earnings spotlight with momentum from a strong first quarter. The retail giant reported revenue of $177.8 billion for the quarter ended May 1, up 7.3% year over year, while global e-commerce sales jumped 26%. The company’s press release noted that this strength in e-commerce was mainly from store-fulfilled pickup and delivery. Walmart U.S. comparable sales increased 4.1%. Operating income rose 5%, despite higher fuel costs weighing on distribution and fulfillment expenses. The company also saw particularly strong growth in advertising, up 37% globally, and membership fee revenue, which increased 17.4%5.
The key question will be whether the retailer is sustaining its sales and e-commerce momentum while managing costs and a potentially changing consumer environment. Walmart’s first quarter guidance called for second quarter net sales growth of 4-5% in constant currency, adjusted operating-income growth of 7-10% and adjusted EPS of $0.72-$0.74. For the full fiscal year, the company left its outlook unchanged, forecasting constant-currency sales growth of 3.5-4%, adjusted operating-income growth of 6-8% and adjusted EPS of $2.75-$2.85.
1 https://www.nbcnews.com/business/economy/cpi-inflation-july-2026-rcna591698
2 https://tradingeconomics.com/united-states/pending-home-sales-mom
3 https://ir.homedepot.com/news-releases/2026/05-19-2026-110111934
4 https://corporate.target.com/press/release/2026/05/target-corporation-reports-first-quarter-earnings
5 https://corporate.walmart.com/content/dam/corporate/documents/newsroom/2026/05/21/walmart-releases-q1-fy27-earnings/q1-fy27-earnings-release.pdf
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