Lowe's Rebound Safe at Home

Updated from 8:09 a.m. EDT

Lowe's(LOW Quote) delivered nearly 18% earnings growth in its second quarter and said the swelling ranks of U.S. homeowners aren't acting like the country is on the doorstep of recession. The news sparked a 6% gain in the retail chain's shares and helped underpin a broader market rally.

"The housing market remains strong and vibrant," a company executive said at a post-earnings conference call with analysts. "Mortgage rates, while not as widely noticed, have actually declined and are hovering around 6%, a very attractive rate for buying a home."

The company also noted that consumer confidence is approaching a three-year high, that employment continues to improve and that U.S. home ownership rates are above 69% for the first time. "These are great signs for improved strength in the home improvement market and give us increased confidence." ...