This week, while the Dow and S&P 500 fluctuate, the focus will be on the health of the American consumer as retail titans report profits.

Overview
In a nervous start to August, Wall Street’s primary indexes, the S&P 500 and Nasdaq Composite, were down 0.7% and 0.11%, respectively, on Monday, while the Dow Jones Industrial Average fell modestly by roughly 0.08%. A series of noteworthy changes in individual equities have made headlines:

Hawaiian Electric fell 2.2% after Wells Fargo cut its target price due to wildfire concerns.

Keysight Technologies and Urban Outfitters both fell (2.2% and 2.5%, respectively) as a result of major financial institution downgrades.

In the real estate sector, EPR Properties fell 1.3% following a Bank of America downgrade, indicating pressure from the Hollywood strikes.

Only a few stocks defy the trend.
Parsons Corporation and Nikola presented opposing stories. While Parsons increased 2.5% following a double-upgrade by Bank of America, Nikola fell 15% following a recall announcement for 209 electric trucks.

Forecast for the Short Term,
This week’s focus will most likely be on the health of the American consumer, with earnings reports from retail behemoths like Home Depot, Target, and Walmart coming. In addition, retail sales data for July are expected on Tuesday. Market sentiment appears to be aligning with past estimates of short-term market stagnation, despite inflation reports that continue to surpass the Federal Reserve’s 2% target. Investors are recalibrating their strategy, moving away from a soft landing, and re-evaluating market possibilities as we enter the quieter days of August.

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