The major U.S. stock indices closed higher Tuesday. Investors continue to bid up the stocks they believe will perform well under Trump's proposed policies and sell those that could be affected negatively by what he said during the campaign. But regardless of what the market does the next few days or months there are select stocks you can own and still make money.
Now let's look at three components of the Dow Jones Industrial Average
Shares of The Home Depot (HD) closed $3.27, or 2.6%, lower at $127.67 after the company reported quarterly results that beat Wall Street's expectations for revenue and earnings per share.
Revenue came in at $23.2 billion, above the $23.05 billion expected and up 6.1% compared with the same quarter last year. Adjusted earnings per share came in at $1.60, two cents higher than Wall Street anticipated and well above the $1.36 reported a year earlier.
Same-store-sales in the U.S. rose 5.9% from last year, but the company is facing a tough comparison in the fourth quarter after same-store-sales rose 8.9% in the fourth quarter of 2015. Management also increased its full-year earnings forecast by two cents to $6.33, matching analysts' estimates. So why is the stock down? Mainly because investors fear rising interest rates will hurt the housing and remodeling market. But don't expect that to happen. Home Depot remains a solid growth investment for the long haul.
Flipping through the channels on your television at any time of the day, you will see a handful of remodeling shows, indicating that Americans like fixing up their homes. Furthermore, if housing costs go higher, people will be more likely to remodel a home instead of purchasing a new one. On the flip side, if prices fall, fixing up your house before you sell it can help set it apart from others. Regardless of what happens with housing, Home Depot is an appealing value play.