This week a raft of retailers, including Costco, Macy’s, Nordstrom and Best Buy, will report earnings, as investors worry about the possibility of further losses after the market reached into Bear Market levels on Friday, after missed earnings from Target and Walmart last week. Ulta Beauty, Macy’s, Dick’s Sporting Goods, and discounters Dollar Tree and Dollar General will also report earnings, and are seen as a key indicator of whether a full recession is forthcoming or not.

Julian Emanuel, head of equity, derivatives and quantitative strategy at Evercore ISI noted, “The whole thing comes down to whether or not there’s going to be a recession. In the last three bear markets, where there was no recession, the decline was 21.3% and we’re basically there. In the last three bear markets when there as a recession, the average decline was 47.9%.” Those bear markets were in 2000, 2008 and 2020.

Although the Dow ended slightly positive on Friday, investors worry further bad news from the retail sector this week could trigger an already jittery market. Others suspect any dips might be seen a buying opportunities, ameliorating any real risk of a serious downturn.

Personal Consumption Expenditures data, which includes data on spending, income and inflation. is also coming, and is seen as an important marker for investors trying to determine which way the markets will head.