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What to Watch in the Week Ahead and on Monday, August 15

(The Day Ahead is an email and PDF publication that includes the day's major stories and
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    ON MONDAY

Data on U.S. home builder sentiment is due, and the National Association of Home Builders/Wells
Fargo Housing Market Index is expected to remain unchanged at 55 in August, compared with July’s
reading. 

Federal Reserve Board Governor Christopher Waller gives opening remarks before the 2022 Summer
Workshop on Money, Banking, Payments and Finance hosted by the Federal Reserve Board of
Governors.

Canada's wholesale trade data for June is due for release. Wholesale trade in the country likely
increased by 0.5% in June, following a 1.6% rise in May. Manufacturing sales numbers for June
will also be released and are expected to have dropped 0.9% in June, after falling 2.0% in May. 
        
    REST OF THE WEEK
On the economic calendar, U.S. retail sales data is due on Wednesday and sales are expected to
have risen at a reduced pace of 0.1% in July, after rising 1.0% in June. On the same day, data
will likely show business inventories in June rose 1.4%, same rate at which increased in the
prior month. On Thursday, data is expected to show initial claims for state unemployment
benefits rose 3,000 to a seasonally adjusted 265,000 for the week ended August 13. Housing data
on the same day will likely show existing home sales fell to a seasonally adjusted annual rate
of 4.88 million units in July, after they fell to 5.12 million units in June, the lowest level
since June 2020. Industrial production data is due on Tuesday, and it is expected to have risen
0.3% in July, after falling 0.2% in June. Data on housing starts and building permits will also
be released on the same day. 
Walmart Inc, the world's largest retailer, is expected to report a drop in second-quarter
profits on Tuesday, as it struggles to clear out a surge in merchandise inventories and sees a
jump in purchases of lower-margin food items amid decades high-inflation. Investors will be keen
to hear if consumer spending patterns have changed over the past few weeks after an easing in
prices of gas and commodities and their progress on right-sizing inventory.
On Wednesday, the Federal Open Market Committee issues minutes from its meeting of July 26-27,
2022. On the same day, Federal Reserve Board Governor Michelle Bowman speaks on "Technology,
Innovation and Financial Services" before the VenCent Fintech Conference, in Little Rock, Ark.
Bowman will also speak on "COVID-19 and the Role of Women in the U.S. Economy" before the
Arkansas Women's Commission Meeting, in Russellville, Ark. On Thursday, Federal Reserve Bank of
Kansas City President Esther George speaks in person on the economic outlook before the Fairfax
Industrial Association of Kansas City, Kansas. Separately, Federal Reserve Bank of Minneapolis
President Neel Kashkari participates in Q&A session at Young Presidents Organization Gold Twin
Cities Chapter luncheon. On Friday, Federal Reserve Bank of Richmond President Thomas Barkin
participates in panel, "Riding the Wave: Maryland's Economic Forecast in Stormy Seas" before the
Maryland Association of Counties 2022 Summer Conference, in Ocean City, Md.

Target Corp's outlook for sales and earnings will be on top of investors' minds when it reports
second-quarter results on Wednesday, following earlier warnings from the company that inflation
was hurting consumer spending at stores and would dampen full-year profits. The company's
inventory levels will also provide on indication on how much more it needs to discount to shift
excess stock.

On Tuesday, Home Depot Inc is expected to show a rise in second-quarter revenue as steady demand
for tools, paint and building materials from professionals help the home improvement chain
offset a slowdown in its do-it-yourself (DIY) customer base. Investors will keep an eye out for
the company's comments on demand trends and the impact of inflation on business.

On Wednesday, Cisco Systems Inc is expected to report a decline in fourth-quarter revenue and
net profit as headwinds from lockdowns in China early this year and disruption in some European
markets from Ukraine war continue to weigh on the business. The company's outlook for the next
fiscal and commentary of the headwinds will be in focus.

On Wednesday, Lowe's Companies Inc is expected to post a slight increase in second-quarter
revenue, buoyed by pent-up demand for patio furniture and grills after a cooler April knocked
demand in the spring selling season last quarter. Investors will keep an eye out for the
company's comments on demand trends and the impact of inflation on business.

On Thursday, Estee Lauder Companies Inc is expected to post a decline in fourth-quarter revenue,
due to COVID-19 curbs in China hurting sales of its skincare and cosmetic brands as well as loss
of sales in Russia and Ukraine due to the War. Investors will lookout for comments on supply
chain disruptions and inflationary pressures on consumer spending.

Discount store operator TJX Companies Inc is likely to report a fall in second-quarter earnings
on Wednesday, hurt by higher freight and labor expenses amid a global supply chain disruption.
Investors will be looking out for the company's comments on supply, consumer spending trends and
cost inflation.

Tapestry Inc is expected to post an increase in fourth-quarter revenue on Thursday, driven by
higher prices and strong demand for luxury goods in United States and Europe. Comments from the
retailer on the impact of store closures in China due to a rise in COVID-19 infections would
also be of interest to investors.
Kohl's Corp, on Thursday, is expected to post a fall in second-quarter revenue, hurt by a
slowdown in demand for apparel and accessories as higher prices of food, gas and other
essentials knocked discretionary spending. Investors will be looking out for the department
store chain's forecast as well as comments on current demand trends, inventory levels, margins.

Canada's inflation data for July is due on Tuesday. Consumer prices likely increased 0.1% in
July after a 0.7% rise in June. The annual inflation rate likely rose to 7.6% in July, down from
8.1% in June. Data on July housing starts is scheduled on the same day. The country's retail
sales data for June will be released on Friday. Canadian retail sales likely rose 0.3% in June
after jumping 2.2% in May. Producer prices numbers will be released on Thursday. 

 (Compiled by Yoganand KN in Bengaluru; Editing by Krishna Chandra Eluri)
 ((Yoganand.KN@thomsonreuters.com;))

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