What to Watch in the Week Ahead and on Monday, August 18

ON MONDAY

Palo Alto Networks is expected to report higher fourth-quarter revenue, driven by growing demand for its integrated cybersecurity solutions.

The National Association of Home Builders' (NAHB) housing market index, a gauge of U.S. homebuilder sentiment, is forecast to rise to 34.0 in August, compared with 33.0 in July.

Canada’s housing starts likely fell to a seasonally adjusted annual rate of 265,000 units in July compared to a rise of 283,700 units in the prior month.

Across Latin America, Brazil’s June IBC-BR Economic Activity Index, which previously fell 0.7%, is due for release. In Chile, official second-quarter gross domestic product data is on tap.

REST OF THE WEEK

Walmart will give a glimpse into the impact of tariffs on spending of American consumers and its expectations for the holiday season when the retail bellwether reports earnings on Thursday.

Global central bankers will gather at the 2025 Jackson Hole symposium held between August 21 and August 23. This year’s theme is “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy." Federal Reserve Chair Jerome Powell is scheduled to speak on the economy on Friday. Separately, on Wednesday, the Federal Open Market Committee will release minutes from its latest policy meeting. Also on Wednesday, Atlanta Fed President Raphael Bostic is scheduled to discuss the economic outlook in a moderated conversation at the Fintech South 2025 event in Atlanta. On Thursday, Bostic will speak on the economic outlook before the Metro Atlanta Chamber executive committee meeting.

A slew of key U.S. economic data is scheduled for release in the coming week. Thursday’s S&P Global's flash manufacturing PMI for August is expected to ease to 49.5, down from 49.8 in July, while the flash services PMI is projected to slip to 53.7 from 55.7 the previous month. The flash composite PMI for August will also be released. On Tuesday, a Commerce Department report is set to show overall housing starts for July likely declined to a rate of 1.295 million units from 1.321 million units the previous month. Existing home sales figures for July are expected on Thursday, with sales likely declining to a seasonally adjusted annual rate of 3.91 million units from 3.93 million units in June. On Thursday, the Labor Department will release its weekly jobless claims report. Initial claims for unemployment benefits are expected to rise by 2,000 to 226,000 for the week ending August 16. Continued Jobless claims probably rose to 1.960 million for the week ended August 9, from 1.953 million previously.

And on Tuesday, the home improvement chain Home Depot is expected to post a rise in quarterly sales, likely helped by its professional customer base of contractors and builders. Investors will look out for comments on tariff impact, housing market sentiment and demand outlook for home repair and renovation.

Moving to Wednesday, the home improvement chain Lowe's is expected to post a rise in quarterly revenue. Investors will look for comments on demand from professional customers, demand outlook for home renovation and consumer shopping patterns in the face of tariff-related uncertainty.

Wall Street expects Target to deliver a sharp year-over-year decline in earnings on lower revenues when it reports results on Wednesday. Investors are also looking to hear Target's plans around leadership succession after its longtime CEO Brian Cornell retires later this year.

Meanwhile, cosmetics giant Estee Lauder is expected to post a decline in fourth-quarter revenue on Wednesday, hurt by persistent declines in the luxury sector. Investors will look for comments on impact from tariffs on consumer sentiment, supply chain challenges, turnaround plans as well as annual forecasts.

TJX, also due on Wednesday, is expected to report a rise in second-quarter revenue, helped by strong demand for its off-price apparel and footwear as consumers increasingly look for deals. Investors will look for comments on annual forecasts, consumer spending, pricing and sourcing strategies amid tariffs.

Discount apparel retailer Ross Stores is expected to report a rise in second-quarter revenue on Thursday due to strong demand, despite consumer spending remaining under pressure. Investors will look out for comments on annual forecasts, consumer demand and strategies for mitigating tariffs.

Macy's is expected to post a fall in second-quarter same-store sales on Wednesday as consumer spending slows in the United States amid tariff-fueled uncertainty. Investors will look for comments on forecasts, demand, pricing and sourcing strategies.

Analog Devices on Wednesday is expected to post a rise in revenue, signaling continued recovery in analog demand and restocking across end markets. However, analysts keep an eye on the softening automotive sales, especially after last quarter’s tariff-driven pull-ins boosted results.

Medtronic is set to report its first-quarter results on Tuesday. Investor focus will be on any changes to its fiscal 2026 outlook, the demand for its medical devices and its comments on the impact of tariffs.

Workday is expected to post a jump in second-quarter revenue on Thursday, benefiting from strong demand for its cloud-based software services.

Intuit is expected to report higher fourth quarter revenue on Thursday, helped by growing demand for its financial management tools, including the tax filing software TurboTax.

Zoom Communications is expected to post an increase in second-quarter revenue on Thursday, as it sees steady demand for its product portfolio, integrated with artificial intelligence technology.

On the Canadian economic calendar, Tuesday’s consumer price index (CPI) inflation likely rose 0.3% in July, compared with a 0.1% increase in June. Annually, CPI inflation is forecast to come in at 1.7%, after 1.9% in the previous month. Later in the week, on Thursday, closely watched is the business barometer for August, following a prior reading of 50.92 in July. Producer prices for July are also expected on Thursday. On Friday, retail sales figures for June are anticipated to show a 1.5% monthly increase, rebounding from a 1.1% drop in May.

In Latin America, on Wednesday, Argentina is scheduled to publish June economic activity, as well as July trade balance figures. Mexico's statistics agency is expected to release June retail sales data on Thursday. Argentina will also report June supermarket retail sales, which surged 40.7% year-on-year in the prior month. On Friday, Mexico will unveil final second-quarter GDP figures, with year-on-year growth previously at 0.1% and quarter-on-quarter expansion at 0.7%. The country's June economic activity index will also be published.