🪛 Home Depot's screwed

Home Depot had a foundation-shaking quarter | China lost momentum | [TOGETHER WITH]( Hi {NAME}, here's what you need to know for May 17th in 3:14 minutes. 🏠Real estate investing can be a game-changer – but knowing when and how to dive in is key. So join Witz Ventures’ Austin Hankwitz for [Is It A Good Time To Invest In Real Estate?]( this Wednesday, and time your real estate investing journey with confidence. [Get your free ticket]( Today's big stories - Home Depot took a hammering - These two technical tools might help you make better portfolio decisions – [Read Now]( - China’s recovery looks like it needs another booster shot Hammered Hopes [Hammered Hopes] What’s going on here? Home Depot didn’t quite [nail]( its results update on Tuesday. What does this mean? Home Depot had a wild ride during the pandemic, but all parties – even outdoor ones – must eventually come to an end. As inflation and interest rate hikes nibble away at household budgets, it seems folk are trading their hammers for plane tickets and beachside mojitos. And sure, building materials and plumbing are still holding the homeware fort, but big-ticket items like patio sets and grills are feeling the cold shoulder (along with the actual cold, wet weather last quarter). Add plummeting lumber prices to the mix, and you get Home Depot’s most underwhelming revenue performance in over 20 years. And the company isn’t bursting with optimism about its future either, slashing its yearly sales target and bracing for an even steeper profit dive. Shares, predictably, dropped 5% at first. Why should I care? For markets: Spring hasn’t sprung. Spring usually brings a home improvement bonanza, with DIY amateurs and pros alike itching to kick off projects in the warmer weather. But Home Depot’s outlook suggests it hasn’t spotted any silver linings this quarter. That doesn’t bode well for its smaller rival, Lowe’s, which saw its share price wobble after the news. And this hiccup might be even bigger than the home improvement sector too: Home Depot’s results are casting a shadow over the entire US retail sector just as heavyweights like Target and Walmart gear up to share their own results. The bigger picture: Receipts aren’t looking like phone numbers. Fresh data [revealed]( that retail sales inched up 0.4% last month, marking the first growth spurt in three months. But this modest comeback is more of a two-step than a whole tango, falling short of economists’ predictions. And it could be hard to maintain too: credit card balances saw one of the biggest spikes on record in March, hinting that consumers may be nearing their spending limits. You might also like: [Get ready for a hard landing: why a recession may be all but unavoidable now.]( Copy to share story: [/hammered-hopes]( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Hammered Hopes&utm_campaign=daily-global-17-05-2023&utm_source=email) Analyst Take How To Improve Your US Stock Returns, Using Two Top-Performing Tools [How To Improve Your US Stock Returns, Using Two Top-Performing Tools]( By Russell Burns, Analyst When the S&P 500 is in a state of flux (like, say, right now), savvy investors take a look at the [technical indicators](. And luckily, Bloomberg [monitors the performance]( of 23 of them. Now, of those 23, only nine [have been profitable]( in the past year. So let’s [zero in on two of them]( – the one that’s done the best so far, and the one that I prefer – and I’ll tell you how to get the most out of these tools. That’s today’s Insight: [two technical tools to pay attention to now.]( [Read or listen to the Insight here]( SPONSORED BY THE TRADING PIT Your free guide to becoming a professional trader If you’re exploring [trading careers](, you’ve probably heard a little about [prop trading](. That’s [a special type of trading](, where the financial firm trades for its own profit rather than selling services to clients for a commission. That does, however, mean the firm holds all of the risk. But that risk can lead to [big rewards]( if you get it right. That’s why firms look for traders with unbeatable [market knowledge](, razor-sharp [investing instincts](, and rock-solid [analytical skills](. Now, that might not sound exactly like you – yet. But with [The Trading Pit’s free Prop Trading ebook](, you can develop [plenty of the skills you need]( to be a viable candidate and skilled trader. So if you want to [work toward becoming a professional trader](, or simply [develop your skills for personal use](, you can [download the ebook for free here](. [Find Out More]( When you support our sponsors, you support us. Thanks for that. Chin Up, China [Chin Up, China] What’s going on here? Data out on Tuesday [showed]( China's chipper recovery is starting to lose its oomph. What does this mean? You’re not the only one whose New Year resolutions haven’t survived the spring: after a burst of activity at the beginning of 2023, China's economic rebound is losing steam. Sure, retail sales in April jumped 18.4% from the same time last year, the biggest increase in over two years. But that surge was partly due to last year's lockdown in Shanghai – and the numbers still fell short of economists’ hopes. Industrial output didn't hit the target either, which isn't surprising considering the weak global economy. And while the overall jobless rate did ease up from March, youth unemployment set a record high – suggesting that cautious businesses aren't going on any hiring sprees. Why should I care? Zooming in: Recovery isn't a piece of cake. Experts across the board were expecting a smoother rebound from China – and while there’s not much the country can do about the weak global economy, it can do more to get its own house in order. See, right now, consumers and businesses are feeling less than confident, with flagging investments, shrinking imports, and feeble demand for loans. But economists think more stimulus could tap into the economy’s potential: after all, there's still plenty of promise, with households, for example, [sitting]( on trillions in savings right now. So watch this space: just this week the central bank hinted that it’s poised to keep supporting the economy… The bigger picture: Ironing out problems. Any moves by China's government won't just make a splash at home: they’ll ripple across the globe. After all, China’s a heavyweight in the world economy, and its fortunes have a big influence on markets like metals. Case in point: nickel and iron ore prices took a hit when the news broke, while copper’s languishing around a months-long low. You might also like: [Copper's price hit its lowest level in more than five months.]( Copy to share story: [/chin-china]( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Chin Up, China&utm_campaign=daily-global-17-05-2023&utm_source=email) 💬 Quote of the day “They say such nice things about people at their funerals that it makes me sad to realize that I'm going to miss mine by just a few days.” – Garrison Keillor (an American radio entertainer and writer) [Tweet this]( Calling fintechs, founders, and fed-up execs You probably know that content can be a game-changing way to [keep customers engaged](. But you might not know that the Finimize API can bring a world of [expert writing and audio]( to your platform right away – for a fraction of what producing it in-house would cost. With access to our [entire content library](, we've made sharing our world-class analysis, news, and educational content with your customers a total breeze. Millions of [engaged investors]( already get smarter with Finimize every day: now your customers – and your [engagement rates]( – can level up too. 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