Stocks End Lower, Retail Earnings In Focus

Plus 5 Just-Added Strong Buys Stocks End Lower, Retail Earnings In Focus [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Lower, Retail Earnings In Focus [Stocks End Lower, Retail Earnings In Focus]Image: Bigstock Stocks closed lower yesterday after a disappointing miss from Home Depot, and rising concerns over the debt ceiling. Home Depot reported earnings yesterday morning and posted a 0.53% positive EPS surprise, but that was still a -6.6% decline from last year at this time. They also posted a -3.11% negative sales surprise. And that was a -4.2% decrease from last year at this time. They also lowered their full-year guidance for 2023. HD was down -2.15% yesterday. This morning we'll hear from retailer Target before the open, along with The TJX Companies (before the open), Boot Barn (after the close), and others. Stocks appeared to be hopeful for an announcement of progress on the debt ceiling negotiations yesterday afternoon. But when that didn't happen, stocks sold off into the close. Rumor has it that progress is indeed being made, but apparently not enough to make any special announcement. There's also hope that a short-term extension could be agreed upon that would give both parties a chance to work out a larger deal without the impending threat of a default looming just 2 weeks away. In other news, in spite of a disappointing report from Home Depot, the Retail Sales report showed a 0.4% m/m increase. Granted, that missed the consensus for a 0.7% increase, but it was an increase nonetheless. Ex-vehicles it was up 0.4%, in line with expectations. And ex-vehicles & gas it was up 0.6%, beating expectations for just 0.2%. The Housing Market Index increased to 50 from last month's 45 and views for the same. Business Inventories slipped -0.1% vs. last month's revised 0.0% reading, and views for a flat reading as well. And Industrial Production rose 0.5%, beating the consensus for 0.0%. Manufacturing output was up 1.0% vs. views for 0.1%. And the capacity utilization rate came in at 79.7%, beating last month's 79.4%, but just missing the estimate for 79.8%. Today we'll get MBA Mortgage Applications, and the Housing Starts and Permits report. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Get in on a Pre-IPO cybersecurity tech investment opportunity.]( You can harness the power of an industry-disrupting cybersecurity tech company ahead of its exit. Atakama is shaking up the $2B cybersecurity industry with patented data privacy and protection tech. Over 5,000 individual investors have already gotten in on this early investment round as the Company prepares for explosive growth. Time is limited to strike while the iron is hot, don't miss out! 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