New York, Jan 15, 2026, 12:21 EST — Regular session underway.
- Shares of Home Depot inched higher midday after a broker raised its price target on the stock.
- New U.S. figures on retail sales and jobless claims kept attention fixed on consumer demand.
- Friday’s housing sentiment report might shake up home-improvement stocks.
Shares of Home Depot (HD) ticked up 0.5% to $377.75 midday Thursday after Morgan Stanley boosted its price target for the home-improvement giant. The firm raised its 12-month target to $412 from $395, maintaining an “Overweight” rating, indicating it expects HD to outperform its peers. Meanwhile, Lowe’s shares crept up 0.4%, and Sherwin-Williams saw little movement. 1
This move is significant since Home Depot stands at the crossroads of housing trends, interest rates, and consumer sentiment. Investors have been eager to see if homeowners will kick off larger, financed projects rather than sticking to minor repairs.
U.S. retail sales data out Wednesday painted a mixed picture. Sales at building material and garden equipment stores climbed 1.3% in November. Still, economists caution the strength mainly reflects spending by higher-income households. “Heading into tax refund season, the new tax law will boost refunds the most for higher-income groups,” noted Michael Pearce, chief U.S. economist at Oxford Economics. 2
Weekly jobless claims dropped to 198,000 on Thursday, defying expectations, though economists warned that seasonal adjustments can skew the figures this time of year. Nancy Vanden Houten, lead U.S. economist at Oxford Economics, described the labor market as “at least stable.” The Federal Reserve is widely expected to keep its benchmark interest rate steady between 3.50% and 3.75% at the Jan. 27-28 meeting. 3
The broader market lent support. Wall Street’s major indexes bounced back from a two-day slump, fueled by a chip-driven rally after Taiwan Semiconductor’s earnings beat. Big banks also stirred following their results, as investors monitored the pace of potential Fed rate cuts later this year. 4
Home Depot has cast 2026 as a holding pattern for the housing market. At its Dec. 9 investor day, the company projected fiscal 2026 same-store sales growth between flat and 2%, with adjusted earnings per share expected to rise anywhere from flat to 4%. Same-store sales reflect revenue at outlets open at least a year. Finance chief Richard McPhail noted the company still hasn’t identified “a catalyst or an inflection in housing activity.” 5
The company is also doubling down on tools designed to tighten execution on the floor. On Tuesday, Rilla announced it would roll out its AI-driven coaching platform to Home Depot’s service and sales staff nationwide. The platform aims to identify patterns in customer interactions and speed up feedback cycles. “The Home Depot is a company known for its service excellence and operational scale,” said Sebastian Jimenez, Rilla’s CEO. 6
Still, the upside hinges on factors beyond Home Depot’s control. If borrowing costs hold firm or shoppers keep cutting back, the lucrative, higher-ticket remodel projects might lag. Plus, price wars and heavy promotions could take a toll.
Friday at 10:00 a.m. ET brings the latest NAHB/Wells Fargo Housing Market Index for January, a key gauge of builder sentiment and a snapshot of where the housing market might be headed next. 7
