Wall Street Stalls as Home Depot Gains on Earnings

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Wall Street Stalls as Home Depot Gains on Earnings/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street remained mostly flat on Tuesday as summer trading activity slowed, with the S&P 500 slipping slightly. Home Depot led the Dow Jones higher after posting mixed quarterly results but reaffirming its annual outlook. All eyes now turn to Fed Chair Jerome Powell’s upcoming Jackson Hole speech.

Trader Michael Capolino left, works on the floor of the New York Stock Exchange, Monday, Aug. 18, 2025. (AP Photo/Richard Drew)

Wall Street Summer Trading Quick Looks

S&P 500 dipped 0.2%, while the Dow rose 68 points, or 0.2%.
Nasdaq fell 0.4% in morning trading.
Home Depot jumped 3.1% despite slightly missing quarterly estimates.
Homeowners are focusing on smaller, affordable home projects amid inflation concerns.
Lowe’s, Target, Walmart, and Ross Stores to report earnings later this week.
Fed Chair Jerome Powell to speak Friday in Jackson Hole — potentially signaling rate cuts.
Fed cautious due to Trump-era tariffs and inflation risks, but weak job data may influence direction.
10-year Treasury yield dropped to 4.31% from 4.34% as rate cut bets increase.
Bank of America warns Powell may sound less dovish than expected.
Palo Alto Networks soared 6.5% after strong earnings and optimistic guidance.
Tegna rose 4.8% on $6.2B buyout deal with Nexstar Media.
Nexstar added 7.2%, aims to compete more effectively with Big Tech.
Viking Therapeutics plunged 39.7% after disappointing obesity drug trial results.
Intel climbed 7.5% after SoftBank took $2B stake amid U.S. ownership rumors.
Tokyo’s Nikkei slipped 0.4%, SoftBank fell on Intel deal.

Trader Michael Milano left, works on the floor of the New York Stock Exchange, Monday, Aug. 18, 2025. (AP Photo/Richard Drew)

Deep Look: Home Depot Climbs as Wall Street Treads Water During Quiet Summer Session

NEW YORK — Wall Street remained largely quiet on Tuesday as investors took a cautious approach amid light trading and anticipation of a major Federal Reserve speech later in the week. While the broader market saw little movement, Home Depot led the charge on the Dow Jones Industrial Average, rising 3.1% after posting quarterly results that, though slightly below expectations, reassured investors with a steady full-year outlook.

The S&P 500 dipped by 0.2%, maintaining its position just under the all-time high it reached last week. The Nasdaq Composite lost 0.4%, reflecting weakness in tech stocks, while the Dow Jones rose modestly by 68 points in early trading.

Home Depot Provides Boost Amid Quiet Market

Home Depot’s quarterly earnings report was slightly under analysts’ expectations, but its reaffirmation of full-year revenue and profit guidance helped boost investor confidence. The company pointed to a shift in consumer behavior, noting that many homeowners are focusing on lower-cost, essential home repairs over large renovation projects — a response to persistently high interest rates and inflation.

The retail giant’s results come ahead of several important earnings reports from other major U.S. retailers. Lowe’s and Target are scheduled to release their financial updates on Wednesday, followed by Walmart and Ross Stores on Thursday.

All Eyes on Powell’s Jackson Hole Speech

The market’s quiet tone may not last long. The main event on investors’ radars is Federal Reserve Chair Jerome Powell’s speech Friday at the Jackson Hole Economic Symposium — a location often used by the Fed to signal policy changes. Wall Street is hoping Powell will hint at upcoming interest rate cuts, particularly in light of recent signs of economic cooling.

The Fed has kept rates unchanged so far in 2025, largely due to fears that President Trump’s reinstated tariffs could stoke inflation. However, last month’s weak job growth data and rising recession concerns have shifted market sentiment toward expecting a rate cut at the Fed’s next meeting in September.

Supporting that outlook, the yield on the 10-year Treasury slipped to 4.31% from 4.34% on Monday, reflecting investor confidence that rates may be reduced soon.

Still, Bank of America strategists caution that Powell may strike a more cautious tone than expected. They warn he could raise concerns about stagflation — a scenario where inflation remains high while economic growth stagnates, a situation that the Fed has limited tools to address.

Corporate Movers and Deals

Beyond Home Depot, several companies made notable moves on Tuesday:

Palo Alto Networks surged 6.5% after beating Wall Street’s earnings estimates and issuing strong forward guidance for revenue and profit. The cybersecurity firm is benefiting from increased demand amid global concerns over digital security.
Tegna jumped 4.8% after Nexstar Media Group announced a $6.2 billion acquisition deal, including debt. Nexstar, which owns the CW Network and various local broadcasters, rose 7.2% on the news. The companies cited the deal as a way to compete more effectively with Big Tech and traditional media giants.
Viking Therapeutics shares plummeted nearly 40% after a clinical trial for its oral obesity drug failed to meet expectations. The setback puts pressure on the company’s future in the competitive metabolic treatment space.
Intel shares rallied 7.5% after Japan’s SoftBank Group revealed a $2 billion stake in the U.S. chipmaker. The move comes amid speculation that the Trump administration may seek to acquire a stake in Intel as part of a broader plan to bolster domestic semiconductor production.

International Market Overview

Markets in Europe saw moderate gains, recovering from earlier dips, while Asian indexes mostly declined. Tokyo’s Nikkei 225 fell 0.4%, led lower by a 4% drop in SoftBank, which was weighed down by investor reaction to the Intel investment.

With low volume and few catalysts early in the week, Wall Street may continue to drift until Powell’s remarks potentially reset expectations for the remainder of the year.