Americans are still buying up a storm

Both retailers have benefited from the fact that there are plenty of do-it-yourselfers looking to redecorate their home before selling it, as well as new homeowners who need to do renovations. The two companies also sell wood and other supplies to professional builders.

Analysts predict Home Depot’s earnings per share will rise more than 20% this fiscal year, which ends Jan. 31. Wall Street expects an even bigger gain – nearly 30% – for Lowe’s.

Can it be sustained?

“Retail sales are expected to rise this holiday season as a result of high consumer confidence and rising personal incomes,” Louis Navellier, president of Navellier & Associates, said in a report last week. “The shortage of some important goods should not derail holiday spending because if consumers have money in their pockets, they will spend it.”

A summit among the world’s best economies

Up the agenda: The talks come at a time of heightened tensions over Taiwan, trade and human rights. At the same time, the United States and China have just unveiled a surprise climate pact, highlighting a number of areas of cooperation.

For investors, discussions between the world’s two largest economies are always worth watching. It is Biden’s first meeting with Xi since he took office in January.

There will be plenty to discuss. Although the Biden administration recently reached an agreement with the European Union to relax Trump-era sanctions on aluminum and steel, criticism of China’s trade practices and subsidies to domestic companies persist.

The global energy crisis and supply chain disruptions could also be addressed in the discussions. Then there’s the weakness in China’s real estate sector, which rocked US investors earlier this fall.

Next one

Tuesday: US retail sales; US industrial production; Eurozone GDP; Walmart, Home Depot Revenue