Shares of Home Depot (HD) closed Friday's session at $385.15, marking a 0.7% gain. The stock traded within a range of $379.10 to $386.37 during the day.
Investors Await Postponed Economic Indicators
Market attention is shifting toward two delayed economic reports: the U.S. jobs data now expected Wednesday and the Consumer Price Index scheduled for Friday. Both releases were postponed following a brief government shutdown. These figures are particularly significant for housing-sensitive stocks like Home Depot, which often react swiftly to changes in interest rate expectations driven by labor and inflation surprises.
Federal Reserve Vice Chair Philip Jefferson recently characterized the economic outlook as "cautious," noting the central bank is not yet prepared to adjust policy from the current 3.50%-3.75% target range. He emphasized that future decisions will be contingent on incoming economic data.
Earnings Report Looms as Key Catalyst
Home Depot is scheduled to report its fourth-quarter financial results on February 24. Analysts and traders will scrutinize key metrics, including comparable store sales, which measure demand at locations open for at least one year. Momentum in large-scale professional remodeling projects will also be a focal point.
During its December investor day, Home Depot provided guidance for fiscal 2026, projecting flat to 2% same-store sales growth and adjusted earnings per share ranging from flat to a 4% increase. Chief Financial Officer Richard McPhail noted the company has not yet identified a clear catalyst or inflection point in the housing market, citing "consumer uncertainty" and "continued pressure in housing" as headwinds for home-improvement spending.
The broader market context includes the Dow Jones Industrial Average closing above the 50,000 level for the first time on Friday. Some market observers, including Horizon Investment Services CEO Chuck Carlson, have pointed to signs of market broadening beyond the typical technology and artificial intelligence sectors.
Rival Lowe's (LOW) also advanced Friday, rising 1.27% to $278.38, demonstrating that home-improvement stocks can move with the broader market even in the absence of company-specific news. The primary risk for the sector remains elevated borrowing costs, which could deter homeowners from undertaking major renovation projects.