Home Depot Leads Dow Higher Amid Mixed U.S. Retail Earnings

U.S. stocks remained mostly steady amid a summer lull as investors awaited Federal Reserve Chair Jerome Powell's upcoming speech in Jackson Hole, where the market hopes for signals on potential interest rate cuts. The S&P 500 edged down slightly while the Dow Jones gained modestly, led by Home Depot's 3.1% rise after it reported quarterly results slightly below expectations but reaffirmed its full-year outlook. Home Depot noted that customers are favoring smaller home repairs over larger projects due to high interest rates and inflation concerns, with U.S. store sales accelerating to their fastest growth in nearly three years, suggesting the home improvement slump may be easing. Other major retailers like Lowe’s, Target, Walmart, and Ross Stores are expected to report earnings later this week. Despite missing profit expectations, Home Depot's adjusted earnings per share and revenue growth reflect cautious consumer spending patterns, and analysts maintain an outperform rating with a moderate upside potential. Meanwhile, Treasury yields fell slightly amid growing expectations of a Fed rate cut, though strategists caution Powell may remain cautious given inflation risks associated with President Donald Trump’s tariffs.