Shares of home-improvement store Lowe's initially fell more than 1% after the company cut its annual forecast but have since rebounded and are trading higher by 1%.
Lowe's daily
Shares of Home Depot reacted similarly this month after cutting guidance.
The company now sees a 3.5-4% drop in comp sales this year compared to 2-3% previously. It's part of a broad trend of lower spending on housing and renovations due to higher US interest rates. That sector has been hit hard with Wayfair comparing the drop in sales to the 2008 financial crisis.
However the market reaction shows this is no longer a surprise and that the market is looking forward to lower rates and the cycle turning.
Yesterday I asked: Is housing the trade on a Kamala Harris government?