Home Depot (HD) investors are eyeing the Feds interest rate cut in September, otherwise they would have been selling the shares today.
Home Depot shares lost 2% in early trading after the company reported their quarterly earnings results this morning. The report showed that consumer discretionary spending is still losing steam.
Earnings results showed a slowdown of 3.3% in top line revenue, which missed analysts’ expectations. Home Depot management also revised earnings per shares guidance lower as they expect challenges to continue for their shoppers to affect their bottom line.
The stock closed 2% higher for the day thanks to the monthly Producers Price Index released this morning.
That inflation data showed that prices at the producer’s level continue to slow more than economists had expected. The slower inflation growth suggests that the Fed will lower interest rates, which may fuel more confidence among consumers again.
Tomorrow’s release of the Consumer Price Index will confirm or challenge that outlook for interest rates.
Home Depot’s price chart remains neutral-to-bullish.
The stock’s 50-day moving average is in a slightly bullish trend, although recent activity has been challenging that support.
The stock’s 200-day moving average is poised at $340 as potential support.
Investors should maintain a cautious eye on that price support as well as comments from Lowes’s (LOW) earnings call Wednesday morning.
Tesla (TSLA) shares outpaced five of the magnificent stocks today after shares jumped 5.25%. The only magnificent stock that outperformed Tesla was NVIDIA, which returned 6.5% for the day.
The catalyst behind Tesla's move was an increase of 21% in global EV sales for the month of July. The strong growth in global EV sales was driven by China’s strongest month of demand in 2024. That growth helped to offset declining demand in Europe.
Tesla stock has now moved above its 200-day moving average, which is just above the $200.00 price level. Shares have spent the last eight days of trading bouncing along the $200.00 level as a psychological round Number support has kicked in for the stock.
Shares of Tesla traded as high as $270 in July ahead of the company's earnings announcement. After the earnings report, Tesla sold off to the $200.00 level and has been there since.
The stock’s 50 day moving average is currently in a bullish trend. The 50-day moving average is just above current prices at $210. A break above that important trend line is likely to be the catalyst for another move to the $240 price as investors continue to view Tesla as a long-term opportunity after its lows of $140 in April.
Shares of Dell Technologies (DELL) rose by 5% today, closing the day’s trading at the psychologically significant $100 price.
Doctors benefited from an upgrade at Barclays that hit the headlines this morning. Barclay's analysts take the view that the technology company is undervalued, especially when compared to peers in their group.
Dell shares traded as high as $170 ahead of its May 30th earnings announcement. The May earnings results were in line with expectations for earnings per share while beating revenue estimates. Despite that, investors didn't like the mixed guidance provided by Dell’s management during the earnings call.
The company guided earnings per share lower than the consensus estimates while guiding the company’s revenue target higher than the Street’s expectations.
Dell shares have lost 50% of their value since that earnings call and are currently trading just below the stock’s 200-day moving average.
Dell is set to announce their next earnings results August 29th after the market close.
Investors should keep a keen eye on the $100 price target as his psychological level may hold the stock back Until after that August 29th earnings call.
Long term, Dell Shares hold a bullish outlook with the price target of $150.00.
