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Yahoo
5 hours ago
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- Yahoo
Home Depot Cautious About Renovation Rush Despite Tax Cuts, Talk of Rate Cut
Key Takeaways Economic uncertainty has deterred homeowners from doing larger renovations, though the outlook may be getting clearer now that a tax policy is in place, Home Depot CEO Edward Decker said. Still, the home improvement supplier said its forecast assumes there won't be a resurgence in projects that require borrowing. Relatively high interest rates remain a hurdle, CFO Richard McPhail said. Homeowners may have reason to be more comfortable financing renovations, but Home Depot isn't counting on a shift in their mindset. Some of the economic uncertainty giving homeowners pause faded when the federal government enacted a tax policy, Home Depot (HD) CEO Edward 'Ted' Decker said while discussing second-quarter results on a conference call Tuesday. But in the year ahead, Home Depot assumes there won't be any change in the volume of homeowners undertaking the type of large renovations that require financing, CFO Richard McPhail said. 'Our customers still tell us that the rate environment is giving them pause on larger remodeling projects,' McFail added. Financial market participants expect that the Federal Reserve will soon start lowering interest rates, which could make borrowing more attractive for those waiting to remodel a home, or buy a house. Homeowners have put off an estimated $50 billion in home improvement spending amid high interest rates, Home Depot and Lowe's (LOW) have said. Home Depot reported $45.3 billion in sales—slightly more than analysts forecast—and earnings that narrowly missed expectations. Comparable sales grew 1% year-over-year for the period ended Aug. 3rd, while $1,000-plus transactions rose 2.6%, Decker said. 'Last time we were together, we didn't know what tax rates would be,' Decker said, according to the transcript. 'That's all been settled with even some more favorable lowering of taxes and increases in child tax credits and the like,' Decker said, adding: 'That should put some more discretionary spending in our consumers' wallets.' Home Depot shares were up 3% in late trading Tuesday, leading advancers in the Dow Jones Industrial Average, as investors welcomed news that the company had maintained its outlook for the remainder of 2025. The company reiterated its full-year outlook for sales rising about 2.8%, and comparable store sales growth of approximately 1.0%. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Business
- Yahoo
Home Depot's Q2 In Line With Expectations Amid Weather Disruptions and High Interest Rates, Truist Says
Home Depot's (HD) Q2 performance was in line with expectations, with total sales within 10 basis poi Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Business
- Yahoo
Home Depot Q2 Earnings Miss Estimates, Comparable Sales Rise Y/Y
The Home Depot Inc. HD has reported second-quarter fiscal 2025 results, wherein both the sales and earnings missed the Zacks Consensus Estimate. However, both metrics improved year over year. Also, comparable sales increased year over is confident about its initiatives to strengthen the business. Management highlighted continued momentum in smaller home-improvement projects and reiterated its focus on building the best interconnected experience for customers and growing share, while reaffirming fiscal 2025 guidance. The Home Depot, Inc. Price, Consensus and EPS Surprise The Home Depot, Inc. price-consensus-eps-surprise-chart | The Home Depot, Inc. Quote Detailed Picture of HD's Q2 Results Home Depot's adjusted earnings of $4.68 per share increased slightly by 0.2% from $4.67 in the year-ago quarter. However, the bottom line missed the Zacks Consensus Estimate of $4.71 per sales increased 4.9% to $45.3 billion from $43.2 billion in the year-ago quarter. However, sales lagged the Zacks Consensus Estimate of $45.5 Depot's comparable sales increased 1% in the reported quarter. The company's comparable sales in the United States improved 1.4% in the fiscal second quarter. However, unfavorable foreign exchange rates reduced total company comparable sales by about 40 basis points in the quarter. Customer transactions were 446.8 million, down 0.9% year over year. Average ticket improved 1.2% year over year in the quarter under review. HD's Costs & Margin Details In dollar terms, gross profit rose 4.9% year over year to $15.1 billion in the fiscal second quarter. The gross margin was approximately 33.4%, roughly flat year over year. Our model predicted a 10-bps year-over-year decline in the gross margin to 33.3% for the fiscal second expenses of $7.8 billion increased 8.7% from $7.1 billion in the year-ago quarter; as a percentage of sales, SG&A was about 17.1%, up roughly 60 bps year over income was $6.6 billion, up 0.3% year over year, while the operating margin of about 14.5% contracted by roughly 65 bps year over model predicted the SG&A expense rate to increase by 50 bps year over year to 17%. Consequently, we anticipated the operating income to increase 1.1% year over year and the operating margin to contract 60 bps to 14.5% for the fiscal second quarter. HD Stock's Past 3-Month Performance Image Source: Zacks Investment Research HD's Other Financial Updates Home Depot ended second-quarter fiscal 2025 with cash and cash equivalents of $2.8 billion, long-term debt (excluding current installments) of $45.9 billion and stockholders' equity of $10.7 billion. For the first six months of fiscal 2025, the company generated $9.0 billion of net cash from operating activities. What Does HD Plan for FY25? Management reiterated its sales and earnings per share view for fiscal 2025. Home Depot anticipates sales to increase 2.8% year over year. The company expects comparable sales to increase 1% for the 52 estimates the gross margin for fiscal 2025 to be 33.4%, with an operating margin of 13%. It expects an adjusted operating margin of 13.4%. HD plans to open 13 stores for fiscal Depot anticipates earnings per share to decline 3% year over year for fiscal 2025. It expects adjusted earnings per share to fall 2% year over year. The company anticipates capital expenditures to be 2.5% of total Zacks Rank #3 (Hold) company's shares have gained 4.7% in the past three months compared with the industry's 6.5% growth. Stocks to Consider Some better-ranked stocks are Somnigroup International Inc. SGI, Williams-Sonoma, Inc. WSM and Torrid Holdings Inc. is a bedding company that designs, manufactures, distributes and retails sleep solutions. It carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Zacks Consensus Estimate for Somnigroup's current financial-year sales and earnings indicates growth of 50.7% and a decline of 0.4%, respectively, from the previous year's figures. SGI has a trailing four-quarter average earnings surprise of 3.7%.Williams-Sonoma is a multi-channel specialty retailer of premium-quality home products. It currently carries a Zacks Rank #2. WSM has a trailing four-quarter earnings surprise of 8.8%, on Zacks Consensus Estimate for Williams-Sonoma's current fiscal-year sales and earnings indicates growth of 0.1% and a decline of 3%, respectively, from the year-ago Holdings is a direct-to-consumer brand of apparel, intimates and accessories. It currently carries a Zacks Rank of Zacks Consensus Estimate for Torrid Holdings' current fiscal-year sales and earnings indicates a decline of 5.6% and 6.7%, respectively, from the year-ago numbers. CURV has a negative trailing four-quarter earnings surprise of 10.5%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Home Depot, Inc. (HD) : Free Stock Analysis Report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report Somnigroup International Inc. (SGI) : Free Stock Analysis Report Torrid Holdings Inc. (CURV) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
10 hours ago
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Stock market today: Dow, S&P 500, Nasdaq mixed as Home Depot leads out big retail earnings
US stocks traded mixed on Tuesday as Home Depot (HD) led out this week's results from retail giants, watched for signs of tariff-induced stress as Wall Street weighs the odds of interest rate cuts. The Dow Jones Industrial Average (^DJI) gained 0.5%, while the S&P 500 (^GSPC) edged up 0.1%. The tech-heavy Nasdaq Composite (^IXIC) declined 0.3%, continuing a muted start to the week for the major gauges. A steady march of earnings reports from retail giants began with Home Depot's (HD) second quarter results before the bell, slightly missing Wall Street's estimates. But shares of the company jumped as Tuesday's report marked its return to consistent same-store sales growth in the US amid signs that a prolonged slump in the US housing market is starting to thaw. Target (TGT) will post its earnings results on Wednesday, followed by Walmart (WMT) on Thursday. Taken together, the group's results will provide insight into how companies and consumers are faring as Trump's tariffs kick in. Read more: The latest on Trump's tariffs In the tech world, Intel (INTC) stock got a boost after SoftBank said it will take a $2 billion stake in the chipmaker, which is in the middle of a turnaround bid. That lifeline followed a Bloomberg report that the Trump administration is looking to take a 10% stake in the struggling company. In the broader markets, investors are counting down to Friday, when Federal Reserve Chair Jerome Powell will deliver remarks at the Jackson Hole symposium in Wyoming. The event often signals the latest in central bank policymakers' views on interest rates, and Powell's speech could be his last as Fed chair. Clues as to what may come next at the Fed's September policy meeting will be in focus as stubborn inflation and a faltering job market make officials' next move a particularly tricky one. Meanwhile, President Trump continued to press for further Ukraine talks, reportedly asking Russian President Vladimir Putin to meet with Volodymyr Zelensky. European leaders rallied around the Ukrainian president at his meeting with Trump on Monday, but markets hit pause as uncertainty loomed over his country's fate. Opendoor stock climbs as CEO search continues Opendoor Technologies (OPEN) stock rallied 6% at the market open before paring gains on Tuesday morning as the company continues its executive search following CEO Carrie Wheeler's departure, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. Nexstar to acquire Tegna in $6.2 billion deal, creating largest US local TV station group Nexstar Media Group (NXST) is set to expand its dominance in US broadcasting with a $6.2 billion acquisition of Tegna Inc. (TGNA), a deal that will create the nation's largest local TV station group. The transaction, which includes Tegna's net debt and fees, is expected to close in the second half of 2026 pending regulatory approvals. The Wall Street Journal first reported earlier this month that Nexstar was in advanced talks to acquire Tegna. Shares of Nexstar jumped over 6% shortly after the opening bell on Tuesday, while Tegna shares rose around 4% on the news. According to the release, the combination will create a leading local media company with 265 full-power television stations in 44 states and Washington, D.C., covering 132 of the nation's 210 television markets and reaching about 80% of US TV households. The new entity will hold stations in nine of the top 10 designated market areas (DMAs) and 41 of the top 50. Nexstar Chairman and CEO Perry Sook said the merger reflects both companies' commitment to local broadcasting and builds on Nexstar's "record of growth" through acquisitions, which includes its 2019 purchase of Tribune Media and its majority stake in The CW network in 2022. Sook added that deregulatory initiatives from the Trump administration have created an opportunity for broadcasters "to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies." The companies expect about $300 million in annual net synergies and project the transaction will be more than 40% accretive to Nexstar's free cash flow in the first 12 months post-closing. Citi analyst Jason Bazinet said the transaction adds about $25 per share of M&A value to Nexstar's outlook. He raised his price target on the stock to $218 from $186 as a result, while maintaining a Neutral rating. Stocks mixed at the open US stocks were mixed on Tuesday. The Dow Jones Industrial Average (^DJI) edged up 0.1%, while the S&P 500 (^GSPC) fell about 0.2%. The tech-heavy Nasdaq Composite (^IXIC) declined 0.4%, continuing Wall Street stocks' muted start to the week. Home Depot (HD) led out this week's results from retail giants, with its earnings report on Tuesday showing a return to consistent same-store sales growth in the US amid signs that the housing market could begin to recover. In the tech world, Intel (INTC) shares jumped after SoftBank said it's taking a $2 billion stake, and the Trump administration reportedly weighed taking its own stake worth up to 10% of the troubled chipmaker. Wall Street is looking ahead to Fed Chair Jerome Powell's highly anticipated speech in Jackson Hole on Friday, signaling the central bank's latest views on interest rates. Intel stock jumps 5% as SoftBank takes $2 billion stake in ailing chip company Yahoo Finance's Daniel Howley reports: Read more here. Viking Therapeutics stock plunges on high dropout rate in weight-loss pill trial Viking Therapeutics (VKTX) stock tumbled 35% in premarket trading after a phase 2 trial of its weight-loss pill showed a high patient dropout rate. The GLP-1 obesity treatment showed some promising results: Patients lost 12.2% of body weight after 13 weeks. However, 28% of patients dropped out of the trial before it was completed. Viking's oral obesity drug, VK2735, aims to compete with Eli Lilly's drug, orforglipron, which saw a 12% weight-loss rate after 72 weeks. Eli Lilly shares rose 1.5% in premarket trading. "Data look inferior to LLY on almost all metrics and the thing to consider here is that patients discontinued at such a high rate over 13-weeks vs. LLY in the mid 20% range — but over 72-weeks," Mizuho analyst Jared Holz wrote in a note. "A much longer trial, and [therefore] LLY looks far better head-to-head." S&P affirms US credit rating US stock futures were muted after the S&P reiterated its credit rating for the US. The 10-year Treasury yield (^TNX) and 30-year yield (^TYX) fell by about 2 basis points to 4.32% and 4.92%, respectively. Bloomberg reports: Read more here. A suite of retail data is set to decode the resilient consumer American shoppers have kept the engine of the nation's GDP humming along. But it's worth pinpointing where all that resilience is coming from, as Yahoo Finance's Hamza Shaban lays out in today's Morning Brief. Read more here. Medtronic appoints 2 new board members after Elliott takes a stake Shares of medical device maker Medtronic (MDT) fell 3% premarket after the company announced it would add two new independent directors to its board. Veteran med-tech executives John Groetelaars and Bill Jellison were appointed, the company said. The change comes as activist investor Elliott Investment Management has become one of its largest shareholders. Additionally, the board formed two new committees, helmed by CEO Geoff Martha. The Growth Committee will evaluate M&A opportunities, R&D investments, and potential divestitures. The Operating Committee will focus on margin expansion and operational efficiency. Home Depot slightly misses Wall Street's mark in Q2 earnings, reiterates guidance Home Depot (HD) released its second-quarter earnings on Tuesday. The retailer's stock fell about 2% premarket before recovering. Yahoo Finance's senior reporter Brooke DiPalma looks at the latest from the home improvement retailer and how the US housing slump has impacted its bottom line. Read more here. Wall Street sees stock market rotation charting 'healthiest path' to new highs The stock market's record rally is showing early signs of broadening beyond Big Tech as investors rotate into lagging sectors, but strategists warn its durability hinges on earnings and Fed policy. Yahoo Finance's Allie Canal reports: Read more here. Premarket trending tickers: Palo Alto, Nu holdings and Intel Here's a look at some of the top stocks trending in premarket trading: Palo Alto Networks (PANW) shares rose 5% in premarket trading on Tuesday after the Santa Clara cybersecurity firm forecast fiscal 2026 revenue and profit above analysts' estimates, citing growing demand for its AI powered cybersecurity solutions. Digital banking group Nu holdings (NU) stock rose 2% before the bell after Morgan Stanley (MS) analyst Jorge Kuri reiterated a Buy rating on the company and set a price target of $18.00. Intel (INTC) stock rose premarket more than 6% after Softbank Group (9984.T) announced a $2 billion capital injection into the US chipmaker that is currently in the middle of a turnaround effort. Good morning. Here's what's happening today. Economic data: Housing starts (July); Building permits (July) Earnings: Home Depot (HD), XPeng (XPEV), Medtronic (MDT), Amer Sports (AS), Toll Brothers (TOL), La-Z-Boy (LZB) Here are some of the biggest stories you may have missed overnight and early this morning: Signs of a healthier path to new records emerge for stocks Nvidia is working on an H20-beating AI chip for China Trump tariffs get S&P seal of approval Why stocks are looking ripe for a regime shift Intel gets a $2 billion lifeline from SoftBank Trump pushes Putin-Zelensky meeting after talks with both Home Depot to report earnings as Wall Street eyes US sales growth Why Google just boosted its stake in a bitcoin miner Intel gets one new investor... for now With chatter today that the government is nearing taking a 10% stake in Intel, I guess I shouldn't be shocked that the bruised tech giant is hoping to gain some Street cred on its future product roadmap by tapping SoftBank and Masa for cash. Embattled Intel CEO Lip-Bu Tan also gains a Trump friend in Masa. SoftBank will invest $2 billion in Intel at $23 a share. 'Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role," SoftBank chair and CEO Masayoshi Son said in a statement. Intel CEO Lip-Bu Tan added, "We are very pleased to deepen our relationship with SoftBank, a company that's at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.' It's still something to see this unfolding at Intel, which has billions in cash and is by no means in a financial death spiral. Given Masa's close ties to the Trump administration, I suspect the government stake announcement could come next. None of this is a good signal on Intel's turnaround, bottom line. A Trump administration spokesperson didn't return my request for comment. Opendoor stock climbs as CEO search continues Opendoor Technologies (OPEN) stock rallied 6% at the market open before paring gains on Tuesday morning as the company continues its executive search following CEO Carrie Wheeler's departure, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. Opendoor Technologies (OPEN) stock rallied 6% at the market open before paring gains on Tuesday morning as the company continues its executive search following CEO Carrie Wheeler's departure, Yahoo Finance's Jake Conley reports. Conley writes: Read the full story here. Nexstar to acquire Tegna in $6.2 billion deal, creating largest US local TV station group Nexstar Media Group (NXST) is set to expand its dominance in US broadcasting with a $6.2 billion acquisition of Tegna Inc. (TGNA), a deal that will create the nation's largest local TV station group. The transaction, which includes Tegna's net debt and fees, is expected to close in the second half of 2026 pending regulatory approvals. The Wall Street Journal first reported earlier this month that Nexstar was in advanced talks to acquire Tegna. Shares of Nexstar jumped over 6% shortly after the opening bell on Tuesday, while Tegna shares rose around 4% on the news. According to the release, the combination will create a leading local media company with 265 full-power television stations in 44 states and Washington, D.C., covering 132 of the nation's 210 television markets and reaching about 80% of US TV households. The new entity will hold stations in nine of the top 10 designated market areas (DMAs) and 41 of the top 50. Nexstar Chairman and CEO Perry Sook said the merger reflects both companies' commitment to local broadcasting and builds on Nexstar's "record of growth" through acquisitions, which includes its 2019 purchase of Tribune Media and its majority stake in The CW network in 2022. Sook added that deregulatory initiatives from the Trump administration have created an opportunity for broadcasters "to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies." The companies expect about $300 million in annual net synergies and project the transaction will be more than 40% accretive to Nexstar's free cash flow in the first 12 months post-closing. Citi analyst Jason Bazinet said the transaction adds about $25 per share of M&A value to Nexstar's outlook. He raised his price target on the stock to $218 from $186 as a result, while maintaining a Neutral rating. Nexstar Media Group (NXST) is set to expand its dominance in US broadcasting with a $6.2 billion acquisition of Tegna Inc. (TGNA), a deal that will create the nation's largest local TV station group. The transaction, which includes Tegna's net debt and fees, is expected to close in the second half of 2026 pending regulatory approvals. The Wall Street Journal first reported earlier this month that Nexstar was in advanced talks to acquire Tegna. Shares of Nexstar jumped over 6% shortly after the opening bell on Tuesday, while Tegna shares rose around 4% on the news. According to the release, the combination will create a leading local media company with 265 full-power television stations in 44 states and Washington, D.C., covering 132 of the nation's 210 television markets and reaching about 80% of US TV households. The new entity will hold stations in nine of the top 10 designated market areas (DMAs) and 41 of the top 50. Nexstar Chairman and CEO Perry Sook said the merger reflects both companies' commitment to local broadcasting and builds on Nexstar's "record of growth" through acquisitions, which includes its 2019 purchase of Tribune Media and its majority stake in The CW network in 2022. Sook added that deregulatory initiatives from the Trump administration have created an opportunity for broadcasters "to expand reach, level the playing field, and compete more effectively with the Big Tech and legacy Big Media companies." The companies expect about $300 million in annual net synergies and project the transaction will be more than 40% accretive to Nexstar's free cash flow in the first 12 months post-closing. Citi analyst Jason Bazinet said the transaction adds about $25 per share of M&A value to Nexstar's outlook. He raised his price target on the stock to $218 from $186 as a result, while maintaining a Neutral rating. Stocks mixed at the open US stocks were mixed on Tuesday. The Dow Jones Industrial Average (^DJI) edged up 0.1%, while the S&P 500 (^GSPC) fell about 0.2%. The tech-heavy Nasdaq Composite (^IXIC) declined 0.4%, continuing Wall Street stocks' muted start to the week. Home Depot (HD) led out this week's results from retail giants, with its earnings report on Tuesday showing a return to consistent same-store sales growth in the US amid signs that the housing market could begin to recover. In the tech world, Intel (INTC) shares jumped after SoftBank said it's taking a $2 billion stake, and the Trump administration reportedly weighed taking its own stake worth up to 10% of the troubled chipmaker. Wall Street is looking ahead to Fed Chair Jerome Powell's highly anticipated speech in Jackson Hole on Friday, signaling the central bank's latest views on interest rates. US stocks were mixed on Tuesday. The Dow Jones Industrial Average (^DJI) edged up 0.1%, while the S&P 500 (^GSPC) fell about 0.2%. The tech-heavy Nasdaq Composite (^IXIC) declined 0.4%, continuing Wall Street stocks' muted start to the week. Home Depot (HD) led out this week's results from retail giants, with its earnings report on Tuesday showing a return to consistent same-store sales growth in the US amid signs that the housing market could begin to recover. In the tech world, Intel (INTC) shares jumped after SoftBank said it's taking a $2 billion stake, and the Trump administration reportedly weighed taking its own stake worth up to 10% of the troubled chipmaker. Wall Street is looking ahead to Fed Chair Jerome Powell's highly anticipated speech in Jackson Hole on Friday, signaling the central bank's latest views on interest rates. Intel stock jumps 5% as SoftBank takes $2 billion stake in ailing chip company Yahoo Finance's Daniel Howley reports: Read more here. Yahoo Finance's Daniel Howley reports: Read more here. Viking Therapeutics stock plunges on high dropout rate in weight-loss pill trial Viking Therapeutics (VKTX) stock tumbled 35% in premarket trading after a phase 2 trial of its weight-loss pill showed a high patient dropout rate. The GLP-1 obesity treatment showed some promising results: Patients lost 12.2% of body weight after 13 weeks. However, 28% of patients dropped out of the trial before it was completed. Viking's oral obesity drug, VK2735, aims to compete with Eli Lilly's drug, orforglipron, which saw a 12% weight-loss rate after 72 weeks. Eli Lilly shares rose 1.5% in premarket trading. "Data look inferior to LLY on almost all metrics and the thing to consider here is that patients discontinued at such a high rate over 13-weeks vs. LLY in the mid 20% range — but over 72-weeks," Mizuho analyst Jared Holz wrote in a note. "A much longer trial, and [therefore] LLY looks far better head-to-head." Viking Therapeutics (VKTX) stock tumbled 35% in premarket trading after a phase 2 trial of its weight-loss pill showed a high patient dropout rate. The GLP-1 obesity treatment showed some promising results: Patients lost 12.2% of body weight after 13 weeks. However, 28% of patients dropped out of the trial before it was completed. Viking's oral obesity drug, VK2735, aims to compete with Eli Lilly's drug, orforglipron, which saw a 12% weight-loss rate after 72 weeks. Eli Lilly shares rose 1.5% in premarket trading. "Data look inferior to LLY on almost all metrics and the thing to consider here is that patients discontinued at such a high rate over 13-weeks vs. LLY in the mid 20% range — but over 72-weeks," Mizuho analyst Jared Holz wrote in a note. "A much longer trial, and [therefore] LLY looks far better head-to-head." S&P affirms US credit rating US stock futures were muted after the S&P reiterated its credit rating for the US. The 10-year Treasury yield (^TNX) and 30-year yield (^TYX) fell by about 2 basis points to 4.32% and 4.92%, respectively. Bloomberg reports: Read more here. US stock futures were muted after the S&P reiterated its credit rating for the US. The 10-year Treasury yield (^TNX) and 30-year yield (^TYX) fell by about 2 basis points to 4.32% and 4.92%, respectively. Bloomberg reports: Read more here. A suite of retail data is set to decode the resilient consumer American shoppers have kept the engine of the nation's GDP humming along. But it's worth pinpointing where all that resilience is coming from, as Yahoo Finance's Hamza Shaban lays out in today's Morning Brief. Read more here. American shoppers have kept the engine of the nation's GDP humming along. But it's worth pinpointing where all that resilience is coming from, as Yahoo Finance's Hamza Shaban lays out in today's Morning Brief. Read more here. Medtronic appoints 2 new board members after Elliott takes a stake Shares of medical device maker Medtronic (MDT) fell 3% premarket after the company announced it would add two new independent directors to its board. Veteran med-tech executives John Groetelaars and Bill Jellison were appointed, the company said. The change comes as activist investor Elliott Investment Management has become one of its largest shareholders. Additionally, the board formed two new committees, helmed by CEO Geoff Martha. The Growth Committee will evaluate M&A opportunities, R&D investments, and potential divestitures. The Operating Committee will focus on margin expansion and operational efficiency. Shares of medical device maker Medtronic (MDT) fell 3% premarket after the company announced it would add two new independent directors to its board. Veteran med-tech executives John Groetelaars and Bill Jellison were appointed, the company said. The change comes as activist investor Elliott Investment Management has become one of its largest shareholders. Additionally, the board formed two new committees, helmed by CEO Geoff Martha. The Growth Committee will evaluate M&A opportunities, R&D investments, and potential divestitures. The Operating Committee will focus on margin expansion and operational efficiency. Home Depot slightly misses Wall Street's mark in Q2 earnings, reiterates guidance Home Depot (HD) released its second-quarter earnings on Tuesday. The retailer's stock fell about 2% premarket before recovering. Yahoo Finance's senior reporter Brooke DiPalma looks at the latest from the home improvement retailer and how the US housing slump has impacted its bottom line. Read more here. Home Depot (HD) released its second-quarter earnings on Tuesday. The retailer's stock fell about 2% premarket before recovering. Yahoo Finance's senior reporter Brooke DiPalma looks at the latest from the home improvement retailer and how the US housing slump has impacted its bottom line. Read more here. Wall Street sees stock market rotation charting 'healthiest path' to new highs The stock market's record rally is showing early signs of broadening beyond Big Tech as investors rotate into lagging sectors, but strategists warn its durability hinges on earnings and Fed policy. Yahoo Finance's Allie Canal reports: Read more here. The stock market's record rally is showing early signs of broadening beyond Big Tech as investors rotate into lagging sectors, but strategists warn its durability hinges on earnings and Fed policy. Yahoo Finance's Allie Canal reports: Read more here. Premarket trending tickers: Palo Alto, Nu holdings and Intel Here's a look at some of the top stocks trending in premarket trading: Palo Alto Networks (PANW) shares rose 5% in premarket trading on Tuesday after the Santa Clara cybersecurity firm forecast fiscal 2026 revenue and profit above analysts' estimates, citing growing demand for its AI powered cybersecurity solutions. Digital banking group Nu holdings (NU) stock rose 2% before the bell after Morgan Stanley (MS) analyst Jorge Kuri reiterated a Buy rating on the company and set a price target of $18.00. Intel (INTC) stock rose premarket more than 6% after Softbank Group (9984.T) announced a $2 billion capital injection into the US chipmaker that is currently in the middle of a turnaround effort. Here's a look at some of the top stocks trending in premarket trading: Palo Alto Networks (PANW) shares rose 5% in premarket trading on Tuesday after the Santa Clara cybersecurity firm forecast fiscal 2026 revenue and profit above analysts' estimates, citing growing demand for its AI powered cybersecurity solutions. Digital banking group Nu holdings (NU) stock rose 2% before the bell after Morgan Stanley (MS) analyst Jorge Kuri reiterated a Buy rating on the company and set a price target of $18.00. Intel (INTC) stock rose premarket more than 6% after Softbank Group (9984.T) announced a $2 billion capital injection into the US chipmaker that is currently in the middle of a turnaround effort. Good morning. Here's what's happening today. Economic data: Housing starts (July); Building permits (July) Earnings: Home Depot (HD), XPeng (XPEV), Medtronic (MDT), Amer Sports (AS), Toll Brothers (TOL), La-Z-Boy (LZB) Here are some of the biggest stories you may have missed overnight and early this morning: Signs of a healthier path to new records emerge for stocks Nvidia is working on an H20-beating AI chip for China Trump tariffs get S&P seal of approval Why stocks are looking ripe for a regime shift Intel gets a $2 billion lifeline from SoftBank Trump pushes Putin-Zelensky meeting after talks with both Home Depot to report earnings as Wall Street eyes US sales growth Why Google just boosted its stake in a bitcoin miner Economic data: Housing starts (July); Building permits (July) Earnings: Home Depot (HD), XPeng (XPEV), Medtronic (MDT), Amer Sports (AS), Toll Brothers (TOL), La-Z-Boy (LZB) Here are some of the biggest stories you may have missed overnight and early this morning: Signs of a healthier path to new records emerge for stocks Nvidia is working on an H20-beating AI chip for China Trump tariffs get S&P seal of approval Why stocks are looking ripe for a regime shift Intel gets a $2 billion lifeline from SoftBank Trump pushes Putin-Zelensky meeting after talks with both Home Depot to report earnings as Wall Street eyes US sales growth Why Google just boosted its stake in a bitcoin miner Intel gets one new investor... for now With chatter today that the government is nearing taking a 10% stake in Intel, I guess I shouldn't be shocked that the bruised tech giant is hoping to gain some Street cred on its future product roadmap by tapping SoftBank and Masa for cash. Embattled Intel CEO Lip-Bu Tan also gains a Trump friend in Masa. SoftBank will invest $2 billion in Intel at $23 a share. 'Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role," SoftBank chair and CEO Masayoshi Son said in a statement. Intel CEO Lip-Bu Tan added, "We are very pleased to deepen our relationship with SoftBank, a company that's at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.' It's still something to see this unfolding at Intel, which has billions in cash and is by no means in a financial death spiral. Given Masa's close ties to the Trump administration, I suspect the government stake announcement could come next. None of this is a good signal on Intel's turnaround, bottom line. A Trump administration spokesperson didn't return my request for comment. With chatter today that the government is nearing taking a 10% stake in Intel, I guess I shouldn't be shocked that the bruised tech giant is hoping to gain some Street cred on its future product roadmap by tapping SoftBank and Masa for cash. Embattled Intel CEO Lip-Bu Tan also gains a Trump friend in Masa. SoftBank will invest $2 billion in Intel at $23 a share. 'Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role," SoftBank chair and CEO Masayoshi Son said in a statement. Intel CEO Lip-Bu Tan added, "We are very pleased to deepen our relationship with SoftBank, a company that's at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.' It's still something to see this unfolding at Intel, which has billions in cash and is by no means in a financial death spiral. Given Masa's close ties to the Trump administration, I suspect the government stake announcement could come next. None of this is a good signal on Intel's turnaround, bottom line. A Trump administration spokesperson didn't return my request for comment. Sign in to access your portfolio
Economic Times
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- Economic Times
HD stock surges 5% today as Wall Street shrugs off Home Depot's earnings miss, but tariff warning raises alarm over higher consumer costs
Reuters HD stock surged 5% today after Home Depot's latest earnings report. Wall Street brushed aside the profit miss, but the company's warning that tariffs could push up prices for consumers has raised fresh concerns. HD stock surged 5% today after Home Depot reported quarterly sales of $45.28 billion, slightly below Wall Street forecasts, and earnings per share of $4.68 versus the expected $4.71. While investors shrugged off the miss, the retailer warned that tariffs could soon raise consumer prices. Adjusted earnings per share came in at $4.68 versus the $4.71 forecast, weighed down by softer foot traffic and a consumer pivot toward smaller projects. Despite the earnings miss, HD stock surged more than 4% to $410.50 as investors focused on the company's steady full-year guidance, resilient contractor demand, and optimism that lower interest rates ahead could reenergize the home improvement market. Home Depot (NYSE: HD) reported second-quarter fiscal 2025 results on Tuesday, delivering sales growth and solid U.S. store performance, but missing Wall Street's profit expectations. ALSO READ: VKTX stock tumbles 29% today — Viking Therapeutics weight-loss trial results fuel massive investor sell-off and market jitters Shares of the retailer defied the headline miss, climbing 4% to $410.50, as investors focused instead on resilient demand, steady guidance, and optimism over future rate cuts. Net sales: $45.28 billion, up 4.9% year-over-year, but narrowly below analyst consensus of $45.36–$45.41 billion. $45.28 billion, up 4.9% year-over-year, but narrowly below analyst consensus of $45.36–$45.41 billion. Adjusted EPS: $4.68, slightly under the $4.71–$4.72 forecast. $4.68, slightly under the $4.71–$4.72 forecast. Comparable store sales: +1.0% overall, with U.S. comps up 1.4%—marking the strongest performance since late 2022. +1.0% overall, with U.S. comps up 1.4%—marking the strongest performance since late 2022. Foot traffic: Down 2.2%, reflecting consumer caution, but offset by higher spending per trip. Down 2.2%, reflecting consumer caution, but offset by higher spending per trip. Guidance: Maintained outlook for the full fiscal year—~2.8% sales growth, ~1% comp. sales increase, and ~2% decline in adjusted EPS. The market's reaction underscores a familiar theme on Wall Street: expectations matter more than absolute numbers. While EPS came in a touch light, investors had braced for a tougher quarter amid weak housing turnover, higher mortgage rates, and softer discretionary spending. Instead, Home Depot showed steady U.S. demand and reaffirmed its full-year outlook—an important signal of resilience. Analysts at Barron's and noted that the stock is benefiting from long-term tailwinds, including potential Fed rate cuts and ongoing growth in Home Depot's Pro contractor segment, which tends to be less cyclical than DIY sales. Stock Price (Today Close): $410.50 $410.50 Daily Change: +$15.80 (+4.0%) +$15.80 (+4.0%) Opening Price: $401.02 $401.02 Day's Range: $375.00 – $410.50 $375.00 – $410.50 52-Week Range: $326.31 – $439.37 $326.31 – $439.37 Volume: 1.4 million shares Earnings (Q2 Fiscal 2025): Net Sales: $45.28 billion (+4.9% YoY) $45.28 billion (+4.9% YoY) Adjusted EPS: $4.68 (slightly below estimates) $4.68 (slightly below estimates) Comparable Store Sales: +1.0% overall, +1.4% in U.S. +1.0% overall, +1.4% in U.S. Foot Traffic: –2.2% –2.2% Full-Year Guidance: Reaffirmed (~2.8% sales growth, ~1% comp growth, ~2% EPS decline) One of the most telling datapoints was the 2.2% drop in foot traffic, captured by Reuters. Shoppers are visiting stores less often, but when they do, they're spending more—often on smaller, manageable projects instead of major remodels. Economic uncertainty and high borrowing costs have cooled appetite for big-ticket renovations. Yet the company has managed to balance this shift, highlighting the resilience of the home improvement market even in a choppy macro environment. Reports suggesting Home Depot could raise prices in response to tariffs sent ripples through investor discussions earlier this week. The company, however, reiterated that tariffs will not trigger broad consumer price hikes, citing its diversified sourcing strategy and long-standing supplier relationships. In other words, Home Depot is positioning itself as a stabilizer in an inflationary environment—absorbing pressures where possible rather than passing them onto shoppers already squeezed by higher housing and financing costs. Home Depot shares now trade near $410, not far from their 52-week high of $439.37. With several analysts maintaining Buy ratings and price targets in the $432–$450 range, sentiment remains constructive despite modest earnings pressure. The near-term risks include slowing consumer demand, housing market stagnation, and ongoing inflationary headwinds. But for investors betting on a Fed-driven rate cut cycle in 2026 and Home Depot's ability to capture professional contractor growth, the Q2 update offered reassurance. Q1: Why did Home Depot stock rise after Q2 earnings? Because investors focused on strong U.S. sales growth and steady guidance despite a small profit miss. Q2: What were the key highlights from Home Depot's Q2 results? Sales rose nearly 5%, EPS missed slightly, U.S. comps grew 1.4%, and HD stock jumped 4%.
