Home Depot reports solid results as customers spend more on their homes, encouraged by the improving housing market in the United States. Bobbi Rebell reports.
The latest winner from the growing housing market: Home Depot. The retailer beating third-quarter profit and sales estimates, and raising its outlook. The improving housing market giving Americans the green light to spend more money on their homes, including sometimes delayed renovations. And while rates may rise, they remain low keeping higher home prices within reach of many Americans. President-elect Trump has also talked about boosting infrastructure investments, and that would benefit Home Depot. Also helping: wages are going up, giving Americans a little more wiggle room in their budgets. The broader picture for housing is getting better as well. Data from the U.S. Commerce Department on Tuesday showed a spike in October retail sales. Part of that was tied to demand for building materials after Hurricane Matthew. Recent data on single family homes also suggested that residential construction is on track to rise again in the current quarter. Home Depot not alone in benefitting from the trend. Smaller rival, Lowe's is also seeing improvement.