New York, Jan 9, 2026, 17:25 ET — After-hours
Shares of Home Depot (HD) climbed 4.2% on Friday, closing at $374.64, boosted by strength in housing-related stocks following weaker U.S. jobs data and news on declining mortgage rates. The stock fluctuated between $360.58 and $375.43, with about 7.0 million shares changing hands. Lowe’s, its rival, also jumped 4.3%.
This move is significant because Home Depot’s sales closely follow housing turnover and large remodel projects, both slowed down by high borrowing costs. In December, CFO Richard McPhail said on an investor call that the company had “not yet seen a catalyst or an inflection in housing activity.” It also projected fiscal 2026 comparable sales — at stores open at least a year — to grow between flat and 2%. (Reuters)
A Labor Department report released Friday showed nonfarm payrolls increased by 50,000 in December, falling short of the 60,000 predicted by economists. The unemployment rate ticked down to 4.4%. “It gives the Fed the ability to cut rates,” said Adam Sarhan, CEO of 50 Park Investments. Lindsay Rosner at Goldman Sachs Asset Management added, “We expect the Fed to remain on hold for now, but still pencil in two cuts for the rest of 2026.” (Reuters)
Traders also weighed Trump’s proposal for $200 billion in mortgage bond purchases — those backed by home loans — designed to lower mortgage rates and monthly payments. Bill Pulte, head of the Federal Housing Finance Agency, said Fannie Mae and Freddie Mac, both government-controlled, would handle the transactions. TD Cowen analysts noted the plan might tighten the spread between 30-year mortgage rates and benchmark Treasury yields. Brian Jacobsen, chief economic strategist at Annex Wealth Management, cautioned it could “increase demand for housing” without addressing supply issues. Meanwhile, Jefferies suggested that rates may have to drop from roughly 6.2% down to the mid- to high-5% area to lure buyers back. (Reuters)
The broader market gave a boost. The S&P 500 hit a fresh record close, while the Dow added 0.48% as money shifted into sectors that lagged behind last year’s tech storm. The Philadelphia Housing index, tracking homebuilders and related stocks, jumped 5.7% to its highest level since October. Mortgage lenders also climbed, riding the housing momentum. Meanwhile, the U.S. Supreme Court declined to rule Friday on the legality of Trump’s broad tariffs, leaving investors on edge about a decision that could shake import-heavy retailers. (Reuters)
Next on the docket: inflation. The December Consumer Price Index, a crucial measure of price trends, comes out Jan. 13 — one of the final major data points before the Fed’s late-January meeting. Plus, major banks kick off fourth-quarter earnings next week, a key indicator of consumer spending and credit strain. “All the inflation numbers are going to be critical,” said Nanette Abuhoff Jacobson, global investment strategist at Hartford Funds. (Reuters)
A jump in rate-sensitive stocks won’t solve the core issue for do-it-yourself demand. Without a significant decline in mortgage rates to boost home sales, and with tariffs plus labor costs continuing to weigh on prices, Home Depot may still encounter hesitant buyers and a sluggish spring selling season.
Home Depot will release its fourth-quarter results on Feb. 24 at 9:00 a.m. ET. Investors are focused on any updates to guidance on comparable sales and margins, plus whether management believes the “catalyst” in housing it’s been anticipating is finally materializing. (Homedepot)
