Tech Giants and Economic Indicators: A Crucial Week for Markets

Nvidia, Costco, and Fed minutes: What to watch in the stock market this week

With the bond-market selloff spooking investors across the board, stocks finished last week in the red. The Dow, Nasdaq, and S&P 500 all fell. Disappointing retail data kept piling up, too, with Target's earnings portraying a sharp drop in confidence among middle and high-income households, while Home Depot and Lowe's showed a slowdown in home renovations. New data released by the National Association of Realtors added to the drama, as existing-home sales fell to a seasonally adjusted annual rate of 4 million in April -- down 0.5% from March and 2.4% from a year ago. Now investors are set to return from Memorial Day barbecues to a shorter yet still jam-packed week. Here's what to watch: U.S. markets will be closed in observance of Memorial Day. Tuesday kicks off the shortened trading week with a batch of earnings that should offer fresh data into how American consumers are faring -- and feeling. BJ's Wholesale Club (BJ+0.59%) and Williams-Sonoma (WSM-0.29%) both report before the bell. Analysts will be watching BJ's for any signs of trading-down behavior or shrinking basket sizes, both windows into customers' confidence levels. Nvidia's report after the bell will surely be the most closely watched: The chipmaker has become a virtual stand-in for the AI wave and global chip war, and analysts are predicting as much as a 7% move in the price. Also after market close, Salesforce will offer updates on enterprise software spending amid growing economic uncertainty. Veeva will shed light on cloud-based trends in pharma and biotech. Dick's Sporting Goods (DKS-3.06%) is also set to report. The biggest macro flashpoint comes at 2:00 p.m. ET, when the Federal Reserve releases minutes from its May 6-7 meeting. No surprises are expected, but with investors speculating whether rate cuts might come in the second half of 2025, you can expect articles analyzing the log for any insight into inflation, the labor market, or internal dissent. Costco (COST-0.22%), Dell, Zscaler (ZS+0.24%), and Ulta Beauty (ULTA-0.04%) all report Thursday. Investors will be watching Costco for traffic trends, membership retention, and its food versus discretionary sales mix, especially given Walmart's (WMT+0.77%) recent gains in grocery. Ulta Beauty's report will portray the health of mascara and shampoo spending -- areas that often remain surprisingly strong even when consumers pull back in other categories. Gotta keep those highlights looking fresh, no matter the macro outlook. Dell Technologies (DELL-3.07%) and Zscaler round out the day's marquee tech names. Dell's outlook will be read for enterprise PC refresh cycles and demand for AI-capable hardware, while Zscaler's earnings will offer a look at corporate cybersecurity priorities in an atmosphere of belt-tightening. With no major economic releases or U.S.-listed heavyweights reporting, Friday may make for a quieter session -- a nice little reprieve after the flurry of earnings and macro headlines. Only Up Fintech (TIGR-0.42%), a large China-based brokerage firm, is scheduled to report.

What To Expect in the Markets This Week

Tech companies Salesforce (CRM), Marvell Technology (MRVL), Dell Technologies (DELL), and HP (HPQ) are expected to deliver earnings this week. Market watchers will also be looking for reports from retailers Costco Wholesale (COST), AutoZone (AZO), Dick's Sporting Goods (DKS), and Temu parent PDD Holdings (PDD). The reports are set to arrive after a down week for stocks, which was punctuated Friday by a revival of trade-related uncertainty. You can recap last week's trading here. In addition to Friday's personal consumption expenditures inflation report on Friday, investors will also be tuned into first-quarter gross domestic product (GDP) updates and the latest data on the U.S. trade balance and retail inventories. Consumer confidence and sentiment surveys also will be in focus. Several Fed officials are on the speaking calendar, including Federal Reserve Gov. Christopher Waller, New York Fed President John Williams, and Minneapolis Fed President Neel Kashkari. Minutes from the latest Federal Open Market Committee (FOMC) meeting are also expected on Wednesday. Nvidia is scheduled to report its quarterly earnings on Wednesday. The chipmaking giant recently returned to the $3 trillion market-capitalization level after its share price rallied by around 50% from its April low. The earnings report follows the company's announcement that it will supply semiconductors to Saudi Arabian AI startup Humain. Nvidia reported 78% year-over-year revenue growth in its prior earnings release. Semiconductor firm Marvell Technology is also scheduled to report this week. Salesforce's expected report on Wednesday comes after the cloud software provider reported 8% revenue growth in its prior quarter on the growth of its Agentforce custom AI platform. While the firm delivered a worse-than-expected outlook, analysts said the company had strong potential for growth. Thursday's scheduled report from Dell Technologies will show whether the computer maker continues to benefit from increased demand for AI infrastructure after it grew server and networking sales by 37% in the prior quarter. Morgan Stanley recently raised its price target for the company, citing growing server sales momentum on AI demand. Market watchers will also be following computer equipment maker HP's scheduled report on Wednesday. Costco Wholesale is on Thursday's corporate calendar, coming as the membership-based retailer reported that its April sales rose by 7%, which analysts attributed partly to customers rushing purchases ahead of U.S. tariffs. Costco reported a 9% revenue growth in its prior quarter on increased revenue from higher membership fees. AutoZone's scheduled report on Tuesday follows an upgrade from Bank of America Securities as analysts argued that higher auto costs from U.S. tariffs could lead to more vehicle repairs by cost-conscious drivers. Dick's Sporting Goods' expected report on Wednesday follows its recent deal to acquire sporting goods retailer Foot Locker (FL). Investors will be watching the scheduled Thursday report from Chinese EV Li Auto, which competes with Tesla (TSLA) sales in that nation. The Tuesday report from PDD Holdings comes as the parent of Chinese-based online retailer Temu faces pressure from U.S. tariffs. Friday's scheduled release of the Personal Consumption Expenditures Price Index will show how the Federal Reserve's preferred measure of inflation fared in April. A similar inflation reading showed that price increases cooled somewhat in April, and the Fed has said it is closely watching prices in the wake of Trump's tariffs. Wednesday's expected release of the minutes of the May meeting of the FOMC will provide more insight into Fed officials' deliberations over interest rates and the economy. Likewise, several Fed officials are scheduled to speak during the week, including Fed Gov. Waller, New York Fed President Williams, and San Francisco Fed President Daly. Revisions to first-quarter GDP are expected on Thursday after the initial report last month showed that the economy shrank in the first three months of 2025. The state of the consumer will also be in focus for investors, with reports on consumer confidence and consumer sentiment scheduled to be released this week. The reports come as recent surveys show that consumers' moods have soured over concerns that tariffs will drive prices higher. Friday's expected reports on the U.S. trade deficit, retail inventories, and wholesale inventories will provide more detail on how U.S. tariffs are affecting the economy.