Dow Rises as Home Depot Kicks off Big Retail Earnings

Stock were mixed Tuesday as new earnings from major retailers began to roll in, while traders looked ahead to a key speech from Federal Reserve Chair Jerome Powell later in the week.

Home Depot shares edged higher after the home improvement giant reported weaker-than-expected second-quarter earnings but maintained its full-year outlook. Lowe’s, Walmart and Target are on deck for later this week.

Investors have awaited these reports as they search for clues on how the consumer is faring amid a mixed inflation outlook and evolving U.S. trade policy.

Wall Street is also awaiting clues from Powell as to what will happen at the central bank’s remaining policy meetings this year. Central bank officials from around the globe will convene this week in Jackson Hole, Wyo. for the Fed’s annual economic symposium.

“We expect the Federal Reserve to use Jackson Hole as an opportunity to prepare the markets and signal towards a 25 basis point cut in September and a potentially accommodating stance through year-end,” said Richard Saperstein, chief investment officer at Treasury Partners. “Since this will be Powell’s last Jackson Hole conference as Fed Chair, he’ll likely reinforce the need for Fed independence from the Executive Branch.”

The fed funds futures market is indicating an 83% chance for a quarter-point rate cut at the Fed’s next policy meeting in September, according to CME’s FedWatch tool.

Tuesday’s moves come after a mostly quiet session. The S&P 500 closed less than 1 point lower Monday, sitting inches below a record high reached last week.