Home Depot Reported Disappointing Earnings and Ford Reacted to US Retail Sales
Home Depot is one of the oldest stocks in the market, and one of the biggest gainers since its IPO with its price increasing by more than a million percent since the 1980s. They are a home improvement retailer based in Atlanta, Georgia, and they have a market cap of $341.041 billion.
On Tuesday, Home Depot reported their second quarter earnings. Their sales rose 8.1% to $41.1 billion, and their net earnings followed it with an 11% increase to $4.8 billion. Home Depot’s stock buyback program was a key booster of their earnings per share, which increased to $4.53. However, investors focused on the sales trend, which seemed to get weaker as less people shopped at Home Depot as part of an industry-wide trend. As a result, Home Depot stock fell 4.27% to $320.75.
Ford is the automotive giant, with its founder Henry Ford revolutionizing the assembly line and turning Ford into one of the largest companies in the world. They are in Detroit, Michigan, a city that earned the name of the Motor City due to Ford itself, and they have a market cap of $51.892 billion dollars.
On Tuesday, the retail report was released, and Ford investors didn’t like it. Spending on new vehicles decreased due to concerns about the pandemic, which put a simmer on demand. This will lead to companies having to adjust their guidance and investors having to tone down their expectations. The news wasn’t well received as Ford fell 3.49% to $12.99, and similar stocks like General Motors moved similarly.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.