We're rounding out the end of the earnings season and it's retail's turn to step up to the plate and show us what it's got. Prepare for some pain, though, as the sector struggles with store closures, weak traffic, and consumers reluctant to part with their cash.
"It's been  years since Amazon (AMZN) started and the bricks-and-mortars have been hanging on but there's this creeping Armageddon," Dan North, chief economist at Euler Hermes North America, said in a phone call. "I think you'll surely see that in the earnings reports next week."
Investors have reason to worry. Retail sales fell in two of the first three months of the year even as consumer confidence hit multi-year highs. Total retail sales increased 0.9% over the first quarter with the largest gains seen in building and DIY materials, health and personal care stores, and gas stations.
Investors will get a reading from the U.S. government on retail sales in April, the beginning of the second quarter, on Friday. Analysts anticipate a rebound after declining sales in March and February. Consensus is for 0.6% growth to the headline number.
The U.S. economy has seen pockets of weakness in recent months even as the labor market charges toward full employment, noted James "Rev Shark" Deporre over on our premium site Real Money. Get a free trial subscription to Real Money.
But back to earnings. The week begins with four-fifths of S&P 500 companies already having reported earnings. Of those that have released quarterly earnings, just more than 75% have beat profit estimates, while 63.4% have topped sales forecasts.
Consumer earnings out this week include Hertz (HTZ) , Newell Brands (NWL) Sysco (SYY) , and Tyson Foods (TSN) on Monday; Dean Foods (DF) , SeaWorld (SEAS) , Noodles & Co. (NDLS) , TripAdvisor (TRIP) and Priceline (PCLN) on Tuesday; and Sotheby's (BID) , Wendy's (WEN) , Sodastream (SODA) , Vitamin Shoppe (VSI) and Whole Foods Market (WFM) on Wednesday.
In tech earnings, Pandora (P) will report on Monday; Electronic Arts (EA) , Nuance Communications (NUAN) , Yelp (YELP) and Nvidia (NVDA) on Tuesday; Snap (SNAP) on Wednesday; and Himax Technologies (HIMX) on Thursday.
The race for the French presidency concludes on Sunday with voters heading to the polls to choose between centrist Emmanuel Macron and far-right leader Marine Le Pen. Macron is expected to receive about 62% of the vote, well ahead of the 38% for anti-EU and far-right rival Le Pen, according to a poll released Friday by Elabe. A Macron win would all but secure France's position in the European Union, an exit Le Pen had championed.