NEW YORK, Jan 22, 2026, 18:27 EST — After-hours
- Home Depot shares slipped roughly 1% in after-hours trading, with Lowe’s also posting losses.
- New U.S. spending figures and jobless claims data continued to influence rate expectations
- Upcoming key dates: Fed meeting on Jan. 27-28; Home Depot reports earnings Feb. 24
Home Depot shares dipped 0.9% to $381.03 in after-hours on Thursday. The stock fluctuated between an intraday high of $390.42 and a low of $380.57, with about 4.8 million shares changing hands. Lowe’s also dropped, slipping 0.8%.
The pullback followed U.S. data revealing that consumers kept spending despite subdued hiring. Consumer spending ticked up 0.5% in November, matching October’s rise, while weekly jobless claims inched to 200,000. The Commerce Department also revised third-quarter GDP growth higher to a 4.4% annual rate. “Yet this impressive strength masks a more troubling reality,” noted Lydia Boussour, senior economist at EY-Parthenon. Morgan Stanley’s chief economist Michael Gapen added, “The Fed will postpone cuts until it sees evidence of easing inflationary pressures.” 1
Home-improvement retailers usually serve as a gauge for housing activity and borrowing trends, since major renovations often come after changes in home sales and loans. Home Depot climbed 2.54% Wednesday but dipped on Thursday, despite the S&P 500 gaining 0.55% and the Dow rising 0.63%. 2
Rate talk is just one piece of the puzzle. Investors are also keen on spotting whether the market for tools and DIY essentials, particularly online, is becoming more crowded.
China-based Vevor is making its move into physical retail. The company will launch its first U.S. brick-and-mortar home improvement store on Feb. 9 in Houston, with plans to expand to other cities, according to HomePage News. Brand director Gavin Wu highlighted that customers want to “see, test, and understand tools before buying.” 3
Home Depot is setting expectations low for 2026, calling it more of a slog than a swift recovery. At its December investor day, the company forecast fiscal 2026 comparable sales — a key metric tracking stores open at least a year — to grow anywhere from flat to 2%. Adjusted EPS is expected to be flat to up 4%. CFO Richard McPhail noted that “pressures in housing will correct” but only gradually. 4
There’s a clear risk here. Should inflation hold steady and the Fed maintain a tight stance, homeowners might delay non-essential remodels. That could hit contractor demand, putting pressure on both volumes and margins simultaneously.
The Federal Reserve’s next policy meeting is set for Jan. 27-28. Investors are focused on whether officials will firmly challenge bets on rate cuts in the near term. 5
Housing figures are next up: the National Association of Realtors will publish January existing-home sales on Feb. 12. This metric is crucial for gauging turnover and often influences spending on repairs and upgrades. 6
Home Depot’s next major event is earnings day. The company will release its Q4 results on Feb. 24 at 9:00 a.m. ET. Investors will be focused on updates about professional demand, promotions, and the sales forecast for 2026. 7
