Home Depot's Stellar Results Spur the Dow's Rally
Stock markets havereturned to their winning ways today after two Federal Reserve officials said the central bank's bond-buying program has been effective and will continue. The continued flow of easy money should push stocks up, and as of 3:15 p.m. EDT the Dow Jones Industrial Average is up 0.48%, while the S&P500 has gained 0.33%.
Home Depot has enjoyed a 3% bump today. The company just reported first-quarter earnings. Revenue was up 7% to $19.2 billion, and earnings jumped 18% to $1.2 billion, or $0.83 per share -- both well ahead of expectations. The home improvement retailer posted 4.3% same-store sales growth. The housing recovery will drive our economic recovery, and Home Depot's numbers show plenty of progress for the time being.
JPMorgan has jumped 1.4% after investors learned that Jamie Dimon will keep his role as both chairman of the board and CEO. Preliminary numbers show that only 32.2% of investors voted to separate the two roles, so Dimon beat shareholder advocates in this round. Chalk this up as a loss to shareholder rights everywhere, because this could have been a major win for investors who think the game has been stacked against them.
Investors have had a more tepid response to Microsoft's Xbox One announcement. The new console is the next generation in gaming technology and is the company's effort at becoming the center of the living room. Only time will tell whether Xbox One is a hit, but Microsoft appears to be making solid efforts to integrate its devices into a compatible ecosystem. That's probably the greatest opportunity for Microsoft, and if it is successful it could build a network effect, drawing customers into its ecosystem with Xbox One, Windows Phone, and Windows 8.
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The article Home Depot's Stellar Results Spur the Dow's Rally originally appeared on Fool.com.Fool contributor Travis Hoium owns shares of Apple and Microsoft. The Motley Fool recommends Apple and Home Depot. The Motley Fool owns shares of Apple, JPMorgan Chase, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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