What to expect in the week ahead (WMT, NVDA, CSCO, BILI)

Investors digested mixed economic data last week and robust company earnings backed stock prices.

Perhaps the most notable reading was Wednesday's softer-than-expected inflation report, which showed consumer prices minus energy and food rose less than expected in July. Meanwhile, the Labor Department said Thursday that weekly jobless claims came in at 375,000 last week, matching estimates and declining for a third straight week.

The University of Michigan's sentiment read for August printed at just 70.2 , the weakest since December 2011, and producer prices came in hotter than expected.

Eighty-seven percent of S&P 500 companies have reported positive earnings per share surprises for the second calendar quarter. If 87% is the final percentage, it will mark the highest percentage of S&P 500 companies reporting positive EPS surprises since FactSet began tracking this metric in 2008.

Here's a look at the returns of S&P 500 sectors.

Upcoming economic data includes an update on retail sales on Tuesday, as well as housing starts and the release of the Federal Reserve's latest meeting minutes on Wednesday.

The Federal Reserve Bank of New York releases its Empire State Manufacturing Survey for August. The consensus estimate is for a 26.5 reading. That compares with a record high of 43.0 in July, when the general business conditions index rose 26 points.

The Federal Reserve releases capacity utilization in the industrial sector for July. Consensus calls for a 75.7% reading, little changed from June's 75.4% reading. Industrial production is seen rising 0.5% from June's 0.4% seasonally adjusted increase.

The National Association of Home Builders releases its NAHB/Wells Fargo Housing Market Index for August. Economists forecast an 80 reading, the same as in July. The index is down from its all-time high of 90 set in November.

Federal Reserve Board Chairman Jay Powell will host a virtual town hall with educators and students.

The Census Bureau reports retail sales data for July. Expectations are for a 0.3% seasonally adjusted month-over-month decrease, following a 0.6% rise in June. Excluding autos, spending is seen rising 0.2%, compared with a 1.3% rise in the previous month.

The Federal Open Market Committee releases the minutes from its late-July monetary-policy meeting.

The Census Bureau's new residential construction report for July is expected to show the seasonally adjusted annual rate of housing starts at 1.610 million, down from June's 1.643 million. Housing starts hit a postpandemic peak of 1.73 million in March.

The Conference Board releases its Leading Economic Index for July. The LEI is expected to increase 0.7% month over month, after gaining 0.7% in June.