Diamonds and Dogs


Home Depot (HD) continues to impress. The big box home improvement retailer is up 4%, it's best day of the year, not far from a 52-week high following earnings. Home Depot beat by 9 cents as revenue rose 1.2% to $30.84 billion. Home Depot cut full-year comparable-store sales, which was expected amid lumber price deflation and tariffs. Investors seem pleased that U.S. comparable store sales were as good as they were, and the company was able to maintain its annual earnings target. Home Depot plans to spend $2.5 billion on buybacks in the second half of the year. Morgan Stanley maintained an overweight with a price target of $210.

TJX (TJX) at a discount. The discount retailer is down 3% to a three-month low following earnings. Earnings were in line as sales rose 4.8% to $9.78 billion, but the company lowered guidance for the third quarter.  The 2% comparable-sales gain was below the 3.1% consensus and TJX's top line also failed to meet analysts' expectations. The tepid guidance is giving investors a reason to sell. TJX was up over 15% year to date through Monday, slightly trailing the S&P 500 's 16.6% gain but easily ahead of its peers tracked by the SPDR S&P Retail ETF.

Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.