Earnings next week from a handful of technology and retail stalwarts will give investors a better idea of the strength of the economic recovery.
Computer maker Hewlett-Packard (HPQ) reports on Tuesday and improvements in its consumer PC business are expected to improve the company’s quarterly numbers.
Retailer Target (TGT) will post results Tuesday, and competitors Gap (GPS) and Sears (SHLD) on Thursday. Revenues are expected to be down from a year ago as consumers keep a tight check on their wallets, waiting for the labor market to improve.
Home-improvement chain Home Depot (HD) will post second-quarter results Tuesday, a day after rival Lowe's (LOW). Both are expected to show lower profits and revenue as they continue to struggle with lower demand amid the recession and housing market downturn.
Also posting results next week are food companies H.J. Heinz (HNZ) and Hormel Foods (HRL), both Thursday, and J.M. Smucker (SJM) on Friday. Farm machinery maker Deere & Co. (DE) reports on Wednesday.
Several reports next week are expected to show an improving housing market, including data on July housing starts, out Tuesday, and information on July existing-home sales, to be released Friday. On Monday, the National Association of Home Builders will issue its August housing market index; the July reading was the highest since last September.
The July Producer Price Index, out Tuesday, is expected to slide 0.2% after a 1.8% jump in June on higher food and energy prices. Inflation has remained low this year, and the July Consumer Price Index, out this week, plunged 2.1% from a year earlier, the biggest drop since 1950.
The private Conference Board will release its July index of leading indicators Thursday, and reports on regional manufacturing activity are due Monday from New York and Thursday from Philadelphia.
Meanwhile, new rules requiring credit card issuers to give consumers 45 days of notice before raising their interest rate or making other significant changes to a card plan's terms become effective next week. Issuers also must begin sending bills 21 days before payment is due. The rules are the first of a number of new consumer protections to be implemented under a major credit card law enacted in May. Most of the law's changes won't take effect until February.
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