Q2 Earnings Season Wraps Up With Retailers Helping Shun Recession Fears

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Stocks Analysis by Christine Short covering: S&P 500, Dow Jones Industrial Average, Citigroup Inc, JPMorgan Chase & Co. Read Christine Short's latest article on Investing.com

The Q2 earnings season wraps up with some final reports from retail and enterprise tech companies; S&P 500® EPS growth ends at 10.9%.report on Tuesday morning, which showed that wholesale inflation rose 2.2% YoY in July, down markedly from the 2.7% gain in June.

Despite all of these encouraging figures on the inflation front, there were still some questions out there about whether the Fed had waited too long, is a recession in the cards? Is the softening consumer and cooling labor market indicative of a broader slowdown? Conversely, Walmart noted a consumer that is still intact. The discount retailer raised their guidance for FY 2025, with sales now expected to increase by 3.75% - 4.75% vs. the prior guidance for 3% - 4%. Earnings per share expectations have also been adjusted to $2.35 - $2.43 vs. initial full-year guidance of $2.23 - $2.37. CEO Doug McMillon shared on the call “so far, we aren’t experiencing a weaker consumer overall.

“And while we have not seen any additional fraying of consumer health in our business, other economic data out there, as well as the state of affairs globally, would suggest that it's prudent to remain appropriately cautious with our outlook. He also noted in a CNBC interview that the back-to-school season “is off to a pretty good start.”, this week we’ll get reports from many of the retailers that are hoping to grab market share as students stock up for the fall.

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