Earnings from Walmart and Target Will Be Key Measures of U.S. Consumer Health

Group 1: Earnings Reports and Consumer Sentiment - Big-box retailers Walmart and Target are set to report earnings next week, providing insights into consumer health and sentiment as retail data shows increased spending in October ahead of the holiday season [1] - Walmart and Target together accounted for approximately $140 billion in U.S. sales in their latest quarters, with expectations of over$470 billion in holiday-quarter revenue according to Visible Alpha estimates [1] - Walmart serves around 255 million customers weekly, with a noted increase in high-income consumers utilizing its Walmart+ membership and delivery services [1] Group 2: Retail Sales Trends - October retail sales increased by 0.4% from September, with core spending rising at the fastest monthly rate since January 2023, indicating a potential momentum for retailers as the holiday season approaches [1][5] - Eight out of thirteen retail categories reported gains in spending, with consumers directing more funds towards electronics and discretionary items as price increases slow down [5] - The National Retail Federation noted that lower energy prices have contributed to healthier retail sales, despite ongoing inflation concerns [5] Group 3: Holiday Sales Forecast - Wells Fargo economists predict a 3.3% growth in holiday retail sales, excluding cars, gas, and restaurant bills, indicating consumers are in "pretty average shape" for the gift-giving season [6] - Despite robust overall spending, the pace of sales growth for included retailers is expected to be the slowest since before the pandemic [6]