The Morning View: August 20, 2019

  • August 20, 2019

BY: MARSHALL BARTLETT
Senior Vice President / Portfolio Manager

This morning, Home Depot announced quarterly earnings of 3.17 per share, higher than estimates, and comparable sales were up 3.0%. However, revenue of $30.8 billion in the quarter was slightly below estimates, driven primarily by a fall in lumber prices. While maintaining their earnings guidance for the year, the company adjusted their sales outlook a bit lower citing the lower lumber prices and potential impacts to the US consumer arising from the recently announced tariffs. These results highlight the strength of the US consumer, as comparable sales are increasing, and the uncertainty companies are facing with tariffs and ongoing discussions on trade. Later this week, Jerome Powell of the Federal Reserve will speak in Jackson Hole, where he could provide additional guidance on the mid-cycle lowering of interest rates given uncertainties with tariff’s and the global economy. In all, bond yields are slightly lower and equity futures, including Home Depot, are higher this morning heading into the market open.

This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Forward‐looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.