Rowe Michael F. sold $239K of HD

The Federal Reserve raised interest rates to 3.75%-4%, the first hike in three years, with unanimous FOMC support. Most members expect one more hike this year, with no cuts until 2028. Higher rates may negatively impact housing and home improvement stocks, as mortgage applications fell 19% year-over-year. Fed Chair Kevin Warsh emphasized inflation concerns, noting it remains elevated. Some stocks, like Rocket Companies and Home Depot, may benefit if rates drop and housing activity increases.

Home Depot reported strong professional sales and delivery capabilities, with 65% of parcel shipments delivered same or next day, and 55% of big-and-bulky products within two days. The company maintained full-year guidance, emphasizing everyday low pricing and expanding its share in the $700 billion professional market. AI is being used to improve customer tools and internal processes, with plans to invest in productivity improvements and return to a 2x debt-to-EBITDA ratio by mid-2027. Accordin

RH, Floor & Decor, Lowe's, Home Depot, and Williams-Sonoma reported Q2 earnings. RH revenue grew 2.6% YoY, beating estimates. Floor & Decor revenue rose 3% YoY, outperforming expectations. Lowe's revenue increased 8.3% YoY but missed EPS and revenue guidance. Home Depot revenue grew 5.7% YoY, beating estimates. Williams-Sonoma revenue rose 6.7% YoY, surpassing expectations. Shares of these companies have declined since earnings reports.

Walmart (WMT) expects $2.9B in tariff refunds, using them to lower prices, while Home Depot (HD) received $730M, applying $685M to reduce costs. Lowe's (LOW) plans to use its refund for shareholder returns. Walmart's CFO noted a 1.6% gross profit boost, and Home Depot's CFO reported a 0.3% margin increase.

Home Depot (HD) reported fiscal Q2 results with 1.7% same-store sales growth and 5.1% adjusted EPS growth. Management expects flat to 2% comps growth for the year, citing high interest rates as a factor in delayed home projects. The company's large market share and dividend yield of 2.9% were highlighted as positives.

Mortgage rates hit a 1-year high at 6.71%, driven by Treasury bond sell-offs and rising yields. Lowe's (LOW) cut its 2026 sales and margin forecasts, citing macro pressures. Home Depot (HD) reaffirmed its outlook but noted housing market pressures. Both companies' stocks could benefit from lower interest rates.