Fed minutes, retail earnings to drive Wall Street week ahead

Wall Street investors will focus on the minutes of the Federal Reserve's latest policy meeting and quarterly results from major US retailers in the coming week. The minutes, due on Wednesday, may offer clues on the central bank's thinking on interest rates, including whether a rate increase remains possible in September. Expectations for a hike have weakened after softer-than-expected US employment data and a modest easing in inflation, with money markets pricing just a 27% probability of a 25-basis-point increase at the next meeting, according to LSEG data.

Quarterly results from retailers including Walmart, Target, Home Depot, Costco, Kroger and Albertsons will provide insights into consumer spending and the health of the US economy. Several economic reports are also due, including preliminary US purchasing managers' data for August, the Empire State and Philadelphia Fed manufacturing surveys, and July data on industrial production and housing starts. The Treasury will auction $16 billion of 20-year bonds on Wednesday and $8 billion of 30-year TIPS on Thursday.

Last week, US stocks retreated from all-time highs on Friday after weak retail sales data and higher crude oil prices. The S&P 500 fell 0.2% to 7,785.76, the Dow lost 0.2% to 53,732.41, and the Nasdaq dropped 0.3% to 26,729.16. For the week, the S&P 500 rose 0.4%, the Dow fell 0.6%, and the Nasdaq gained 0.1%.