Retail sector performance in focus

The focus on earnings is shifting to the retail sector, with Wal-Mart (WMT) and Macy’s (M) set to report quarterly results this week. Early retail sector performance like Costco (COST), Advanced Auto Parts (AAP) and others was weaker. Therefore, the future performance of these retailers is likely to be poor.

Q3 estimates for companies in the Retail sector have been declining recently. While consumer spending trends remain favorable, these retailers are at the forefront of current trade issues, particularly regarding the next round of tariffs.

Outside of the retail sector, Q2 earnings season is approaching its end point, and the results of 454 S&P 500 members are already known. Total earnings for these index members increased by +0.7% compared to the same period last year on revenues +5.1% higher, with 75.6% beating EPS estimates and 57% beating revenue estimates.

For more details on the second quarter earnings season and the evolving picture for the current and upcoming quarters, read our weekly newsletter Earnings trends report.

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