Stock market today: Dow, S&P 500, Nasdaq trade mixed as Home Depot leads out retail earnings

US equities traded mixed, with the Dow and S&P 500 gaining while Nasdaq declined, as retail earnings began. Home Depot's Q2, despite slightly missing estimates, saw shares rally on a return to consistent US same-store sales growth, signaling a potential housing market thaw, with upcoming Target and Walmart results to further gauge consumer resilience amid tariffs. Separately, Intel gained on SoftBank's $2 billion investment. All eyes are now on Fed Chair Jerome Powell's Jackson Hole remarks Friday for critical insights into future interest rate policy amidst stubborn inflation and a faltering job market.

Analysis

US equity markets displayed a mixed performance, with the Dow Jones Industrial Average gaining 0.5% while the tech-heavy Nasdaq Composite declined 0.3%, reflecting underlying sector-specific drivers and broad macro uncertainty. The retail sector is in focus, with Home Depot (HD) setting a positive tone despite slightly missing Q2 earnings estimates. The company's shares rallied on a return to consistent same-store sales growth in the US, a key metric that suggests a potential recovery in the slumping housing market. The upcoming results from Target (TGT) and Walmart (WMT) will be critical in providing a more comprehensive view of consumer health and the impact of trade tariffs. In the technology space, Intel (INTC) received a significant boost from SoftBank's announced $2 billion investment, a major vote of confidence for the chipmaker's ongoing turnaround efforts. This market activity is set against a cautious backdrop as investors await Federal Reserve Chair Jerome Powell's remarks at the Jackson Hole symposium, which are expected to provide crucial guidance on monetary policy amid conflicting signals from stubborn inflation and a faltering job market.

Key Decisions for Investors

• Investors should closely watch upcoming earnings from Target and Walmart for commentary on consumer spending and tariff impacts, as Home Depot's results suggest the market is prioritizing underlying demand trends over headline figures.
• The $2 billion investment by SoftBank in Intel serves as a significant positive catalyst and a de-risking event for the company's turnaround strategy, warranting a potential re-evaluation of the stock's risk-reward profile.
• Given the high anticipation for the Federal Reserve's Jackson Hole symposium, it is prudent to adopt a cautious stance, as any signals from Chair Powell regarding inflation and interest rates could induce significant market volatility.