Stronger-than-expected retail sales, along with earnings reports from retail giants like Walmart (WMT), have suggested a more robust American consumer. But is this really the case? Are consumers genuinely regaining their strength?

D.A. Davidson senior analyst Michael Baker and Retail Cities managing director Bryan Gildenberg joins Morning Brief to share their perspectives on the consumer outlook.

Baker believes the consumer is slowing down, forecasting that "most retailers will guide down for the back half" of 2024. However, he points out that Walmart is "one big exception," emphasizing that its performance reflects its continued ability to take market share, "not necessarily the strength of the consumer."

"It's definitely a slowing environment, despite those data points from last week," Baker states.

Gildenberg highlights inflation in the US, particularly in shelter costs, as a factor contributing to stretched consumer wallets.

"I think it will be interesting to see over time as the Fed [Federal Reserve] lowers interest rates... the impact of that has on liquidity in the housing market, the impact that that has on unplugging the logjam at the top of the rental market, and I think that'll help retailers that are selling to renters that are trying to make ends meet," he tells Yahoo Finance.

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This post was written by Angel Smith