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.” Reuters
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%.
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.” HomePage News
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. Reuters
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.
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.
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.
