Stock Market Update

[BRIEFING.COM] The S&P 500 (-0.2%), Nasdaq Composite (-0.9%), and DJIA (+0.4%) continue to trade in a mixed fashion amid weakness in mega-cap names despite relatively broad-based advances elsewhere. 

Home Depot's (HD 410.51, +15.81, +4.01%) earnings release this morning kicked off a week that will see several big box retailers report earnings. Shares of Home Depot trade higher despite missing EPS expectations by $0.04.

The Q2 earnings report marked a second consecutive quarter of missing EPS expectations, ending a streak of over five years of consistent upside surprises, alongside a slight sales miss. CFO Richard McPhail attributed the shortfall to persistent macroeconomic uncertainty and elevated interest rates, which continue to suppress demand for larger, discretionary home improvement projects, keeping them on hold as consumers remain cautious.

Despite the modest downside in Q2, HD reaffirmed its FY26 guidance, projecting an EPS decline of approximately 2%, revenue growth of about 2.8%, and comparable sales growth of roughly 1%. This reaffirmation has helped mitigate investor disappointment over the sluggish Q2 performance, particularly as market sentiment is buoyed by the prospect of a Federal Reserve interest rate cut in September 2025, which could alleviate pressure on big-ticket spending and stimulate demand in the home improvement sector.

Shares of Lowe's (LOW 257.38, +6.50, +2.59%) trade higher following Home Depot's advance and ahead of its own earnings report tomorrow morning.