Home Depot beats Street 3Q forecasts on sales boost

The stock has increased 23 percent in the last 12 months.

The two reports on inflation and output supported the view that the Federal Reserve will raise rates sooner than later and may make the first move at a policy meeting next month. Consumer staples stocks were among the biggest gainers, while energy stocks declined as a slide in oil prices resumed.

ROUGH QUARTER: Urban Outfitters plunged 8.3 percent after the retailer’s latest quarterly sales fell short.

Last week, the huge inventory buildup and slow moving sales caused concerns and ignited a sell-off in retail stocks at the wider market. Meanwhile, housing starts rose 6.5 per cent in September, according to the Commerce Department. HD soared to a new 52-week high of $126.34 yesterday, before closing trade a notch lower at $126.18. Declining issues outnumbered advancing ones on the NYSE by 1,629 to 1,038.

BETTER SALES: Wal-Mart Stores rose 3.8 percent after the company reported improved customer traffic and an increase in a key sales figure for the third quarter, even as a stronger dollar pressured its performance overseas. The home improvement titan said that sales growth accelerated to a 7.3% pace from the prior quarter’s 5.7% gain. The home improvement retailer reported $1.36 EPS for the quarter, topping analysts’ consensus estimates of $1.32 by $0.04, Marketbeat.com reports.

The company also said it expected profit and same-store sales for the year ending January to come in at the top end of its forecasts, helping to send its shares up 2.5 percent in premarket trading on Tuesday.

Revenue rose 6.4% to $21.82 billion, just below Wall Street’s $21.83 billion target, though CEO Craig Menear noted broad-based growth across geographies and product categories. Cantor Fitzgerald reissued a hold rating and set a $106.00 target price on shares of Home Depot in a research note on Monday, August 17th.

Comparable store sales in the quarter rose 5%.

European shares rose sharply today, helped by encouraging updates from companies such as Germany’s United Internet and Dutch-based Randstad, the world’s second-biggest staffing company.

The broader Topix rose 0.9 percent to end the day at 1,586.11 with all but one of its 33 subindexes in positive territory.

In Paris, CAC 40 index soared 114.21 or 2.4% to 4,918.52.

The S&P 500 declined 2.75 points, or 0.1%, to 2050.44. Earlier, the company had projected earnings per share growth of 13-14% and earnings of $5.31-$5.36 per share.

The company also doesnt expect any lasting impact on its business following the recent terrorist attacks. Like few others, HD stock has enjoyed steady growth, starting 2015 at $100.00 and trading more than 20% higher, outperforming the S&P 500 by 28.27% with 45 days more to go before the start of 2016.

The acquisition is part of the companys efforts to expand its reach in the Latin America and the Caribbean. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link.