Earnings reports, the Fed will test the market rally in the week ahead

 Earnings reports, the Fed will test the market rally in the week ahead

A Wall Street sign is seen near the New York Stock Exchange (NYSE) in New York City, May 4, 2021.

Brendan McDermid | Reuters

Investors will see whether stocks carry their newfound momentum into the week ahead, as major retailers, including Walmart and Home Depot, report earnings and housing data dominates the calendar.

The Federal Reserve may also play a role. Minutes from its last meeting will be released Wednesday, and after April’s hotter than expected consumer and producer inflation, market pros will watch it closely.

Central bank officials are also scheduled to make comments, including Fed Vice Chairman Richard Clarida who speaks next Monday.

Stocks have been volatile. The rally on Thursday and Friday was unable to reverse the week’s heavy losses. The defensive consumer staples, financials and materials were on track for a positive week among major sectors. The worst performers were consumer discretionary, off about 3.7% for the…

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