Home Depot earnings beat estimates, but shares fall
Home Depot reported better-than-expected earnings and revenue for the fourth quarter despite consumers taking on smaller projects at home.
The company earned $2.82 per share on revenue of $34.79 billion. Analysts polled by LSEG expected a profit of $2.77 per share on revenue of $34.64 billion.
CFO Richard McPhail said demand for home improvement dipped throughout 2023 but noted that, “Our market is on its way back to normal demand conditions.”
Shares were down 2% in the premarket.
Capital One to acquire Discover in $35.3 billion all-stock deal
Capital One Financial is set to acquire Discover Financial Services in a $35.3 billion all-stock deal, the companies announced late Monday.
The companies said they expect the deal to close in late 2024 or early 2025, after which Capital One shareholders would hold 60% and Discover shareholders would own 40% of the combined company.
The merger of the two companies, which are among the largest credit card issuers in the U.S., would expand Capital One’s credit card offerings and its deposit base.
Stocks come off losing week
Traders have to look beyond a negative week that snapped a winning streak.
The technology-heavy Nasdaq Composite dropped more than 1.3% last week, while the broad S&P 500 lost about 0.4%. The 30-stock Dow shed just 0.1%, pointing to mitigated losses among blue-chip names.
With those moves, the three indexes all snapped five-week winning streaks.
Tuesday marks the beginning of the holiday-shortened trading week, with U.S. markets dark on Monday in observance of George Washington’s birthday.
S&P 500 and Dow futures are near flat
Futures connected to the S&P 500 and Dow were both little changed shortly after 6 p.m. ET Monday night. Nasdaq 100 futures inched higher by 0.2%.
