“To the extent that Powell delivers, you know, some cold water on the market, small caps can be a little more interest rate sensitive.” – 06:57
Chris Versace, CIO of Tematica Research, joins Remy Blaire to discuss the latest developments in the U.S. retail sector and the broader economic landscape as we approach a pivotal week for earnings reports and Federal Reserve commentary.
The pair break down the recent rise in U.S. retail sales for July, which reflects a broad-based gain despite economists expressing caution due to a softening jobs market and weakening consumer sentiment. Chris highlights the acceleration of underlying inflation, particularly driven by services, and the modest rise in goods prices, which has eased some concerns about tariff-driven price spikes.
As Chris looks ahead, all eyes are on the upcoming earnings reports from major retailers, including Walmart, Home Depot, Target, TJX, and Ross Stores. Chris emphasizes Walmart’s impressive performance this year, outpacing not only its rivals but also some of the largest tech companies.