Investing.com -- Stocks were falling on Thursday, extending losses in late afternoon trading, as investors took in reports from big retailers such as Walmart (NYSE:WMT).
While beating expectations for the recent quarter and raising its outlook, Walmart sounded a bit cautious on the macro economic environment. Its sales were boosted in the recent quarter by groceries, a category some other retailers don't offer. Households that are holding back on making discretionary purchases such as home furnishings and clothing, are still spending on food.
Heading into the holiday season, investors will be watching shopping trends closely. If households, particularly on the lower-income end of the scale, continue to feel pressured by higher prices, the year-end sales season might be a soft one.
Meanwhile Treasury yields are climbing, which could also be weighing on stocks. The 10-Year is near its highest point since October last year after the Federal Reserve's meeting minutes showed officials are still worried about any upside inflation risks.
Still futures traders are expecting the Fed to pause on another rate increase when it meets next month on interest rate policy. Fed officials are meeting next week in Jackson Hole, Wyo., and could give hints about their thinking heading into that next policy meeting.
Here are three things that could affect markets tomorrow:
1. Deere earnings
The agricultural equipment maker Deere & Company (NYSE:DE) is expected to report earnings per share of $8.20 on revenue of $14.1 billion.
2. Estee Lauder
Cosmetics giant Estee Lauder Companies Inc (NYSE:EL) is expected to report a loss per share of about 3 cents on revenue of $3.5B.
3. Palo Alto Networks
Palo Alto Networks Inc (NASDAQ:PANW) is expected to report earnings per share of $1.28 on revenue of $1.96B.