Home Depot Inc. shares closed Friday's session with a modest gain of 0.2%, finishing at $391.05. Trading activity was subdued ahead of the Presidents Day market holiday on Monday.
U.S. equity markets will reopen Tuesday, condensing a typically busy economic calendar into four trading days. This compression can often amplify market movements once activity resumes.
Key Macro Events on Deck
Investor focus this week centers on the release of the Federal Reserve's January meeting minutes on Wednesday. Market participants will scrutinize the details for any clues on the potential timing of future interest rate adjustments.
The economic spotlight intensifies on Friday with the release of the advance estimate for fourth-quarter Gross Domestic Product (GDP). Simultaneously, the Personal Consumption Expenditures (PCE) price index—the Fed's preferred inflation gauge—will be published, offering a crucial read on price pressures.
Retail Sector in Focus
The retail sector remains under the microscope as earnings season continues. Home Depot is scheduled to report its fourth-quarter and full-year results on February 24. Analysts will pay close attention to management commentary regarding demand from professional contractors and larger renovation projects, which are significant drivers of sales.
The broader retail landscape saw movement Friday, with competitor Lowe's Companies announcing plans to cut approximately 600 corporate and support positions as part of a strategic shift to refocus resources on its store operations.
Market sentiment has been volatile recently, with investors attempting to assess the profit implications of emerging artificial intelligence tools across various industries. The path for Home Depot's stock leading into its earnings report may be influenced by the tone of the Fed minutes and the strength of Friday's economic data, which could shift expectations for interest rates and consumer spending.
