US Stock Market Overview – Stock Close Mixed, Led Higher by Nasdaq; Home Depot Misses and Weighs on Dow

Kohl’s misses weighing on retailers
David Becker

US stock prices were mixed on Tuesday as weaker than expected earnings from retailer Home Depot, weighed on the Dow Industrials. Technology shares, on the other hand, continued to rally, helping to buoy the tech-heavy Nasdaq. Retailers were under pressure for most of the trading session with Kohls also posting worse than expected financial results. Housing starts and building permits were better than expected. US yields continued to ease, and the dollar sold off. Sectors were mixed, led higher by Healthcare, Energy was the worst-performing sector-led down by a 3% drop in crude oil prices.

Home Depot Misses

Home Depot shares tumbled about 5.4% on very heavy volume after the company reported worse than expected financial results. Home Depot reported same-store sales well below estimates. Although earnings came in a penny better than expected, the company said revenue, which also missed analysts’ targets. Earnings per share came in at $2.53, versus expectations of $2.52. Revenue came in at $27.22 billion versus $27.53 billion expected. Same-store sales growth, global came in at 3.6% versus 4.7% expected.

Kohl’s Gets Hammered

Kohl’s shares tumbled more than 19%, on very heavy volume after the retailer slashed its profit outlook for the year. The retailer said the shortfall came in a promotional environment and warmer weather at the start of the fall season. Earnings per share came in at $0.74 versus $0.86 expected. Revenue came in at $4.36 billion versus $4.40 billion expected. Same-store sales came in up 0.4% versus growth of 0.8% expected.

Housing Permits Surge

Future home construction jumped to a 12-year high in October. Housing starts increased by 3.8% to an annual rate of 1.314 million units last month, with single-family construction rising for a fifth straight month. Data for September was revised to show homebuilding declining to a pace of 1.266 million units, Expectations were for housing starts to increase to a pace of 1.320 million units in October. Housing starts advanced 8.5% on a year-on-year basis in October. Building permits surged 5.0% to a rate of 1.461 million units in October, the highest level since May 2007. Permits were driven by the single-family housing segment, which increased 3.2% to the highest level in 11-years

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