Two Ways: Home Depot Building Momentum
Strengthen your portfolio in good times and bad.
Shares of Home Depot (HD) are trading higher this morning. The world's largest home improvement retailer reported second quarter earnings of $0.64 a share, beating analysts' estimates by 5 cents. Revenues fell 9.1% on a year-over-year basis to $19.07 bln which was slightly less than Wall Street estimates of $19.23 bln.
The company also said comparable store sales were negative 8.5% in the second quarter as a whole, and negative 6.9% for US stores. But looking forward, Home Depot lifted its guidance for the rest of 2009 and now expects earnings per share to be flat to 7% from last year.
Minyan Jeff Saut mentioned Home Depot in yesterday's Another Round of Chop-and-Flop?
From the Bull Pen: Can Home Depot regain its "Hot Dog" status of the late 90's? It may be a stretch but taking a hint from its recent action, it currently suggests accumulation of the stock. Those bullish can set a sell stop below yesterday's low or 2% below entry, depending on your risk profile.
From the Bear Cave: Retail bears can look to Harley Davidson (HOG). Failure near $22.50-$23 on high volume could confirm the beginnings of a downtrend. One can consider playing the downside if and when that happens.
Quick Check Around the World
Asian trading closed with the Nikkei +0.16%, India +1.69%, Hang Seng +0.84%, Shanghai +1.40%, and Taiwan -2.05%.
Across the pond, we see the FTSE -0.87%, CAC +0.54%, DAX +0.59%
As of 7:50 AM EST, S&P Futures are trading +5.50 to 983.50 and Nasdaq futures are +9.50 to 1575.75.
A Look at Commodities
Over in commodities, crude oil is trading +0.71 to 67.46 while gold is +2.50 at 938.30 this morning. Silver is +0.600 to 14.04 and copper +2.350 to 279.40.
The dollar index is -0.1200 to 79.2800.
On the Radar
08:30 Building Permits 567k (cons)
08:30 Core PPI 0.1% (cons)
08:30 Housing Starts 598k (cons)
08:30 PPI -0.2% (cons)
Click here for the full trading radar.
Good luck today!
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