Equities wobbled at the start of the week as traders prepare for a round of important data and earnings reports. Data in the form of Retail Sales will dominate the news on Tuesday and is expected to show the impacts of inflation. The economists are expecting retail sales to accelerate on a sequential basis but at a tepid 1.1% rate. At this pace, the volume of sales is falling quickly on a YOY basis and price increases are only barely keeping up. Eventually, the balance will tip and retail activity will enter a recession.

On the earnings front, reports from a number of retailers like Walmart, Target, Home Depot, and Lowes are on deck and could alter the market outlook. These are the four horsemen of pandemic spending and have been market leaders up to now. If their results show weakness or a weakened outlook the broader market is likely to fall along with them.