Retail Companies’ Earnings Expected To Depict Inflation Real Status

When Walmart and Target report their quarterly earnings this week, investors will gain some insight into how big retail is handling inflation—and stocks across the sector will likely feel the aftershocks.

The two companies are important bellwethers for the retail industry and consumer spending. And in recent months, both Walmart and Target have issued preliminary announcements lowering their guidance for the quarter and the rest of the year.

Analysts expect about $151 billion in second-quarter sales for Walmart and $26 billion for Target. Investors received a foretaste of what is to come when retail giant Walmart preannounced second-quarter and full-year shortfall, citing food and fuel inflation.