1. Retail review: Several retailers are reporting earnings this week after Macy’s( kicked things off on Tuesday with better-than-expected results. )
Macy’s offered a healthy outlook for this year, suggesting there is still room in the market for traditional stores even though online companies like Amazon( are encroaching on their territory. )
L Brands(, )Crocs( and )TJX( are set to publish their results on Wednesday, alongside )Lowe’s(, which has mostly avoided the troubles plaguing the rest of the industry. )
Kohl’s(, )Nordstrom(, )Best Buy( and )Gap( are set to report Thursday. And )Foot Locker( and )JCPenney( report Friday. )
2. Economic update: The US Bureau of Economic Analysis is releasing its updated report on fourth quarter GDP at 8:30 a.m. ET. The original GDP estimate showed the economy grew at an annual rate of 2.6% in the fourth quarter.
Paul Donovan, global chief economist at UBS Wealth Management, said investors shouldn’t get too “worked up” over any potential revisions.
“The broad picture is of a US economy performing at or above trend,” he said.
India is also due to publish its GDP figures at 7 a.m. ET. A Reuters poll estimates the economy grew by 6.9% in the October-December quarter.
3. Global market overview: There’s a fair bit of negativity in global stock markets right now.
A worse-than-expected Chinesemanufacturing report for February is blamed for hitting market sentiment in Asia.
This comes after the Dow Jones industrial average, S&P 500 and Nasdaq all dropped by more than 1% on Tuesday. The selling was blamed on concerns about more interest rate hikesafter Federal Reserve chair Jerome Powell publicly expressed confidence about growth prospects for the American economy.
4. Coming this week:
Wednesday — Second estimate of US Q4 GDP; Earnings from Lowe’s(, )TJX(, )Salesforce(, )L Brands(, )Monster Beverage( and )Mylan()
Thursday — Earnings from Best Buy(, )Kohl’s(, )Nordstrom(, )Gap( and )Barnes & Noble(; Federal Reserve chairman Jerome Powell testifies before the Senate Banking Committee )
Friday — Foot Locker( and )JCPenney( earnings )