marshal cohen and melissa repko. and as we mentioned we'll have more on the consumer we're going to stay focused this time from the balance sheet point of view, looking at their savings, looking at their debt levels are we seeing any cracks emerging you can see the bank stocks down about 2% today we'll talk more about it with valley bank ceo ira robbins after this stay with us wp. what if you were a major transit system with billions of passengers taking millions of trips every year? you aren't about to let any cyberattacks slow you down. so you partner with ibm to build a security architecture to keep your data, network, and applications protected. now you can tackle threats so they don't bring you to a grinding halt. and everyone's going places, including you. let's create cybersecurity that keeps your business on track. ibm. let's create >>> welcome back to "power lunch. higher rates starting to put pressure on consumer balance sheets as walmart's ceo john david rainey told cnbc today, "the consumer is still very

front and center a number of names are set on report chief among them is target cnbc reporter melissa repkoyou said, target is one ofof the retailers reporting this week. the company's outlook is at risk the sales soared in the early years of pandemic, but missed wall street earnings expectations three quarters in a row. profit margin has been hit by markdowns as it cleared through the unsold goods that piled up and people bought less inflation changes and people pull back on purchases for target, that led to the change in the market the stock has fallen 40% from the all-time closing high which it hit in november of 2021 investors eager to see if target can break the streak or meet or beat expectations. the company is expected to report $1.40 in adjusted earnings per share and $30.7 billion for the quarter. what target will project for the quarters ahead and expected to report full guidance tomorrow morning. >> a lot to watch with target. certainly target is not the only company reporting. a number of retailers reporting. including kohl's what are you looking for >> kohl's and macy's report

next week the list like walmart, and home depot and small players like overstock and etsy and melissa repkos? >> the message from sara is that investors expect more cautious tone they expect that retails will set the barlower and that we'll also have a lot of cautious expectations when it comes to capex and things like hiring that they're going to be careful about the way that they plan for the year ahead and they thought that they'll have healthier margins in the year ahead. over the last six months, a lot of them have been hammered by excess inventory and higher freight. so as that proceeds, perhaps even as rates slow, still they'll have healthier margins so that could be the good news for investors. >> is it still, melissa, a case of covid disrupting this retail business like if you're in electronics or apparel or home goods and furniture, you're hurting right now? versus those that are more tied to the consumer staples, the groceries an the services? >> i think the story is more about inflation and less about covid. so people are thinking differently about how their spending money becau

let's dig deeper into the inflation report that's moving the market today cnbc.com retail reporter melissa repko joins us now what did this piece tell us about the consumer >> hey, kelly. inflation came in hotter than expected today, and it signaled that consumers are still facing sticker shock. food prices continue to be one of the most inflated categories with prices up 11% year over year in january. it's worth noting the pakistan metric adjusts for consumer changes swapping out expensive brands for cheaper ones. many shoppers are doing that from walmart's cfo who said customers are buying more cheaper private label items and lower priced protein like peanut butter or hot dogs rising prices one of the top risk factors for retailers reporting including target, macy's and best buy. those companies sell more discretionary items like clothing, home goods and electronics. >> we're also going to have more retail reports next week we got some this week. they were decidedly i guess you would say mixed or walmart certainly and home depot next week several more what should we look for? >> so next week r

cnbc.com retail and consumer reporter melissa repko with a look at what to expect >> they will kick off earnings season tuesday and will be followed by macy's and best buy and gap. so far the xrt and i buy are outperforming. a mix of factors weighing on retailers' minds inflation, of course, is taking a bite out of household budgets, spending on dining out and traveling has roared back, and higher interest rates could shake up consumers' decisions about buying a house that could bring a more cautious tone to comments and outlooks when they hear about smaller inventory or no hiring yet for investors there could be a silver lining. the markdowns prompted by a lot of unsold goods may finally be receding that can mean healthier profit margins even if consumers aren't spending as freely >> so great stuff there, melissa. weiss, i didn't leave you out, i saved you for this one i thought this might be up your alley. melissa is saying there might be a reality check for retail companies and people who bet on the consumer what was your take on what she had to say >> i think it would be a reality c

melissa repko has the numbers. melissa, i'm sorry that preceded you. >> joe, home depot numbers are out and beat on earnings and missed on revenue. on earnings, it beat by 2 cents. it reported $3.30 against the $3.28 expected on revenue reported $35.8 billion. we are seeing the stock down this morning in part because of the outlook. it talked about comparable sales being flat in the year ahead i spoke to the cfo and he mentioned that they are seeing more price sensitivity than the months before. they are seeing that with inflation remaining high he noted home depot consumers are resilient and homeowners who see an advantage in staying in place. that is helping with a fixed income he talked about how there is a fundamental assumption that home depot is factors into the forecast that flat sales forecast that economists are right which consumer spending is flat and that means flat sales for home depot >> that's the first thing i saw. flat results, but i looked at the earnings per share number. very similar to what the