Stock Market Update

[BRIEFING.COM] The major averages remain little changed from previous levels. 

Home Depot (HD 343.88, +6.00, +1.78%) holds a nice gain after reporting a solid Q2 beat, with adjusted earnings, revenue, total comparable sales, and U.S. comps all exceeding expectations.The company decied to reaffirm FY27 guidance despite the stronger quarter, as management cited frozen housing conditions, consumer uncertainty, rising input costs, and persistent weakness in larger discretionary projects. Still the quarter provides better evidence that Home Depot can gain share and generate positive comps without help from a housing recovery, but the composition of growth remains important. Higher ticket, acquisitions, digital expansion, and Pro initiatives are carrying more of the load while customer transactions and financing-dependent remodeling activity remain soft.

That dynamic is particularly relevant following another weak batch of housing data this morning, as July housing starts fell sharply and pending home sales declined more than expected.