Core Viewpoint - Home Depot has forecast a larger decline in full-year profit after missing Wall Street estimates for quarterly earnings, attributing this to tariff-driven economic uncertainty affecting demand for renovations and DIY projects [1][4]. Group 1: Financial Performance - Home Depot's shares fell approximately 4%, while rival Lowe's shares declined by 2% [3]. - The company projected annual adjusted earnings per share to decline by 5%, a revision from the previous target of a 2% drop year-on-year [7]. - Comparable sales were largely flat in the third quarter, with comparable transactions falling by 1.6% as customers delayed projects [8][10]. - Sales reached $41.35 billion, surpassing expectations of $41.10 billion, but adjusted profit per share was $3.74, missing analysts' expectations of $3.84 for the third consecutive quarter [9]. Group 2: Market Conditions - The housing market has stalled, with high mortgage rates causing homeowners to focus on essential repairs rather than big-ticket remodeling [4]. - CEO Ted Decker indicated that consumer uncertainty and ongoing pressure in the housing market are disproportionately impacting home improvement demand [4][7]. - The anticipated increase in demand due to easing US interest and mortgage rates has not materialized, raising concerns about a slowing economy [1]. Group 3: Industry Context - Home Depot's performance sets the stage for a week of earnings reports from major retailers, including Walmart and Target, as investors monitor consumer spending ahead of the holiday season amid tariff-driven cost pressures [2]. - Increased operating expenses, tariffs on imported goods, rising wages, and logistics costs have contributed to soft margin performance for the company [3].

Despite stock indexes hitting new records, investors are pulling back from sectors that are more sensitive to a slowing economy https://t.co/fBVWMP4fFM ...

Core Viewpoint - The analyst upgraded the outlook on The Utilities Select Sector SPDR® Fund ETF (NYSEARCA: XLU) in March, highlighting the bullish fundamentals of utility stocks amid a slowing economy and rising inflation [1]. Group 1: Analyst Background - The analyst, Harrison, has been writing on Seeking Alpha since 2018 and has over a decade of market experience [1]. - Harrison possesses professional experience in private equity, real estate, and economic research [1]. - The analyst has an academic background in financial econometrics, economic forecasting, and global monetary economics [1].