Dow Jones and S&P500: Caterpillar, Home Depot Lift Blue Chips as Retail Earnings Continue

Home Depot shares dropped nearly 2% premarket after reporting weaker-than-expected Q2 earnings, but are now expected to open about 1.09% higher at $394.70.

The company posted adjusted earnings of $4.68 per share on revenue of $45.28 billion, falling short of analysts’ $4.71 EPS and $45.36 billion revenue estimates. Despite the miss, it reaffirmed full-year guidance.

Investors are parsing these numbers to gauge consumer strength, especially in discretionary areas. Upcoming earnings from Walmart and Target will further clarify the retail arena, as traders assess how rising import tariffs and a softening labor market are weighing on spending.

Is the Fed About to Cut Rates Again?

Markets are pricing in an 83% chance of a 25-basis-point rate cut in September, according to the CME FedWatch tool. Powell’s speech on Friday could cement that expectation. Analysts believe this will be his final Jackson Hole appearance as Fed Chair, which may prompt a message reinforcing central bank independence and easing bias.

Traders are betting that slowing inflation, signs of a cooling job market, and financial conditions that remain tight will drive the Fed toward easing. The 10-year Treasury yield rose slightly to 4.347%, while the two-year yield ticked up to 3.777%, showing cautious movement ahead of the speech.

Intel, Caterpillar and Palo Alto Networks Move on Stock-Specific News

Intel shares surged over 5% in extended trading after SoftBank committed to a $2 billion investment at $23 per share. The move marks a notable vote of confidence following a year of underperformance versus the broader semiconductor sector.