Why Home Depot Is Sinking Today
A closely watched government inflation gauge came in hotter than expected in January, fueled in part by an uptick in housing costs. If the trend continues, it could put a damper on housing sales and home improvements.Investors are reading the data as bad news for Home Depot (NYSE: HD), sending the home improvement giant's stock down 3% as of 10:30 a.m. ET.The housing sector is closely linked to interest rates. For most families, buying a house -- or doing a major remodeling project -- can be the largest single expense in their lifetime. So, when rates are higher, construction and renovation activity tends to decline.Continue reading
A closely watched government inflation gauge came in hotter than expected in January, fueled in part by an uptick in housing costs. If the trend continues, it could put a damper on housing sales and home improvements.
Investors are reading the data as bad news for Home Depot (NYSE: HD), sending the home improvement giant's stock down 3% as of 10:30 a.m. ET.
The housing sector is closely linked to interest rates. For most families, buying a house -- or doing a major remodeling project -- can be the largest single expense in their lifetime. So, when rates are higher, construction and renovation activity tends to decline.
