Major US stock indexes mostly fell, suffering from a fall in stocks of retailers such as Home Depot (HD) and Kohl's (KSS).

Home Depot (HD) reported quarterly earnings of $ 2.53 per share, as analysts had expected. However, the company's quarterly revenue was below market forecast. In addition, home improvement retailer showed disappointing comparable sales: the company said global comparable sales were up 3.6%, while analysts surveyed by Refinitiv had expected 4.7% growth. HD shares fell 5.39%.

Kohl's (KSS) reported quarterly earnings of $ 0.74 per share, which was below the average forecast of $ 0.86. The company's quarterly revenue exceeded market forecasts, but comparable sales, a key indicator for retailers, fell short of expectations. KSS shares fell 19.43%.

Both companies also released disappointing worsened forecasts for the whole of 2019, which put pressure on the entire sector.

Market participants also analyzed data from the Commerce Department, which indicated that US housing construction recovered in October. According to the data, housing construction increased by 3.8% to a seasonally adjusted annual rate of 1.314 million units, while single-family house construction has been growing for the fifth month in a row, and activity in the unstable multi-family sector is confidently recovering. September data was revised to 1.266 million units from 1.256 million units. Economists forecast housing construction to rise to 1.320 million units in October.

Most DOW components completed trading mixed (15 in the black, 15 in the black). Outsider were the shares of The Home Depot (HD; -5.39%). The biggest gainers were Visa Inc. (V; + 1.65%).

Most S&P sectors recorded an increase. The health sector grew the most (+ 0.8%). The largest decline was shown in the raw materials sector (-0.9%).

At the time of closing:

Dow 27,934.02 -102.20 -0.36%

S&P 500 3,120.18 -1.85 -0.06%

Nasdaq 100 8,570.66 +20.72 + 0.24%

U.S. stock-index futures rose on Tuesday as gains in Boeing’s stock (BA; +1.1%) helped offset steep declines in the shares of big retailers  such as Home Depot (HD; -3.3%) and Kohl’s (KSS; 14.3%), triggered by disappointing quarterly earnings reports..

Global Stocks:

(company / ticker / price / change ($/%) / volume)

AT&T (T) downgraded to Sell from Neutral at MoffettNathanson; target $30

Kohl's (KSS) reported Q3 FY 2019 earnings of $0.74 per share (versus $0.98 in Q3 FY 2018), missing analysts’ consensus estimate of $0.86.

The company’s quarterly revenues amounted to $4.625 bln (+5.9% y/y), beating analysts’ consensus estimate of $4.397 bln.

The company also issued downside guidance for FY 2019, projecting EPS of $4.75-4.95 vs. analysts’ consensus estimate of $5.19 and its prior guidance of $5.15-5.45.

KSS fell to $51.01 (-12.65%) in pre-market trading.

Home Depot (HD) reported Q3 FY 2019 earnings of $2.53 per share (versus $2.51 in Q3 FY 2018), in line with analysts’ consensus estimate.

The company’s quarterly revenues amounted to $27.223 bln (+3.5% y/y), missing analysts’ consensus estimate of $27.514 bln.

The company also issued guidance for FY 2019, projecting EPS of $10.03 vs. analysts’ consensus estimate of $10.13 and revenues of +1.8% yr/yr to ~$110.2 bln vs. analysts’ consensus estimate of $110.76 bln.

HD fell to $229.50 (-3.91%) in pre-market trading.