Health of US Consumer Is the Focus as Retailers Prepare Earnings

Wall Street will get a close look at how American consumers are faring in the early days of President Donald Trump’s tariff regime when the biggest US retailers like Walmart Inc. and Target Corp. report earnings next week.

Consumer spending accounts for roughly two-thirds of America’s gross domestic product. Over the past few years, its resilience has also helped power the S&P 500 Index to record after record. And that appears to be continuing, with retail sales rising in July after posting upwardly revised gains in June.

What investors need to know is how long consumers can hold on ...