Home Depot forecasts steeper drop in annual profit as Americans delay big projects

Lowe's Cos. reported profits exceeding expectations, driven by increased online sales and demand from professional contractors. This positive outcome contrasts with competitor Home Depot, which recently lowered its full-year profit forecast due to decreased consumer spending on larger purchases. Meanwhile, TJX Cos. raised its sales outlook, indicating a shift towards budget-friendly shopping options as economic pressures mount.

The S&P 500 index closed down for the fourth consecutive day, reflecting ongoing concerns about market valuations. Home Depot's stock also experienced a decline, contributing to the negative sentiment in the market. Investors are increasingly worried about the implications of rising inflation and potential interest rate adjustments by the Federal Reserve, which are affecting overall market confidence.

DA Davidson has reduced its price target for Home Depot's stock to $430, reflecting concerns about the ongoing housing cycle. This adjustment comes amid a broader trend of declining stock prices for the company, which has faced challenges in meeting financial expectations. The negative sentiment surrounding Home Depot's performance is indicative of a sluggish housing market and rising inflation, impacting consumer spending and home improvement projects.

Bank of America (BofA) has lowered its stock price target for Home Depot to $430, citing softness in the professional backlog. This adjustment reflects ongoing challenges the company faces in a sluggish housing market and rising inflation, which have negatively impacted consumer demand. The sentiment surrounding Home Depot's stock remains negative as it grapples with these economic pressures.

Jefferies has lowered its stock price target for Home Depot from $474 to $438. This adjustment reflects the firm's response to ongoing market conditions and the company's performance. The downgrade indicates a cautious outlook as Home Depot navigates challenges in the housing market and consumer spending.

Home Depot reported a decline in third-quarter profits and has lowered its full-year outlook, indicating a prolonged downturn in home improvement activities. The company is facing challenges due to reduced customer demand, influenced by rising prices and a sluggish housing market. This trend shows little sign of reversing, raising concerns about the company's future performance in a competitive market.

Home Depot's stock has declined following Evercore ISI's decision to maintain its rating despite the company lowering its financial guidance. The negative sentiment surrounding the stock reflects ongoing concerns about the company's performance amid a challenging economic environment. Investors are wary as Home Depot faces reduced customer demand influenced by rising prices and a sluggish housing market.

The Labor Department has reported that 232,000 Americans filed new unemployment claims in the week ending October 18. This figure appears as a one-off data point on the department's website, reflecting ongoing trends in the labor market. The data provides insights into the economic conditions affecting employment in the United States.