New York, Jan 22, 2026, 12:14 EST — Regular session
- Home Depot shares slipped 0.2% by midday, falling behind a broader market rally
- New U.S. jobless-claims figures and a dip in housing contracts pushed rate discussions back into focus
- Investors are eyeing the Fed’s January meeting ahead, followed by Home Depot’s earnings release on Feb. 24
Shares of Home Depot dipped Thursday, bucking the broader market’s upward push, as investors grappled with conflicting housing data and uncertainty over interest rate moves. By 12:14 p.m. EST, Home Depot NYSE:HD had slipped 0.2% to $383.98.
The home-improvement chain often serves as a quick gauge of U.S. housing turnover and renovation spending. The key question currently: are high borrowing costs freezing major projects, or simply shifting demand toward smaller jobs?
Thursday’s data failed to clear the air. Initial jobless claims nudged up by 1,000 to 200,000 last week, while continuing claims dipped to 1.849 million. The figures hint layoffs remain contained, even as hiring cools. Heather Long, chief economist at Navy Federal Credit Union, described it as a “jobless boom” in the U.S., fueled by AI-driven growth and spending among wealthier consumers. Reuters
Contracts to buy previously owned homes dropped 9.3% in December, hitting a five-month low, the Realtors group said Wednesday. These pending home sales are signed deals that usually close within a month or two. “Roughly 80% of mortgage holders still have a rate below 6%,” noted Hannah Jones, senior economic researcher at Realtor.com. That low rate lock-in tends to discourage moves and dampens the typical boost in spending that follows. Reuters
Home Depot’s rivals barely moved. Lowe’s dipped 0.1% and Masco lost 0.2%, with the SPDR S&P Homebuilders ETF ticking up 0.1%.
Home Depot has flagged that the housing market reset is dragging on. Back in December, the company forecast fiscal 2026 comparable sales to be flat to up 2%, with adjusted earnings per share expected to hold steady or rise up to 4%. This outlook was conservative compared to what analysts were expecting then.
Rates remain the key swing factor. The Federal Reserve’s January meeting takes place Jan. 27-28, with the policy statement and Chair’s press conference set for Wednesday afternoon.
The next major company event is just weeks away. Home Depot plans to report its fourth-quarter results on Feb. 24. Investors will be watching closely for insights on demand for big-ticket items, the health of its professional contractor segment, and any signs that housing activity might be picking up.
The downside is clear-cut. If mortgage rates tick up again, expect fewer relocations and remodels, which could dampen foot traffic and force heavier reliance on promotions to maintain sales.
Investors will keep an eye on the housing market before Home Depot’s earnings come out, with the National Association of Realtors scheduled to release its latest existing-home sales data on Feb. 12.
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