Transcript for Home Depot’s Strong Earnings Hint at Housing Rebound
I'm Dan Cutler -- new York and as a financial markets on lost critical support today Tuesday August 19. This -- story stock and today a look at the fortunes of Home Depot which reports strong second quarter numbers. Of course that is music to the ears of investors and perhaps an indicator of an improving economy. -- to break on the numbers look. Finance on this Tuesday afternoon mr. send toll how happy are the folks at Home Depot. Well they're pretty happy things really did come back for them in the spring -- obviously had that tough time in the winter with a bad weather. Nobody really putting up the deck of renovating a house so they really -- great numbers across the board this quarter earnings came in about a dollar 52 a share is better than 145 forecast. And if you look underneath that sales were up. More than 5% while worldwide in. In the US same store sales of more than 6% which for a company this size is really doing well considering the consumer has been. Little bit you know hesitant to spend aggressively and other areas solicit the consumers and the builders have been doing -- -- -- Wall Street react and take -- service to date chart. -- the stock actually carried higher by -- close to 5% for most of the day. Popped right before the open and in fact that's now an all time high for Home Depot so it is a member of the Dow Jones industrials it's a big piece. Of why the Dow itself is up strongly today so basically it you know that in the stock -- sort of been marking time for most of the last twelve months and have been very strong performer. Coming out of the recession and the kind of stalled out flat line. As people kind of figured out whether the housing market in general. Was definitely still on a recovery path it does seem as if at least for home -- purposes there's enough renovation going on and enough building. That business seems pretty good. Well and I'm gonna talk to about it because I know there's a couple of different angles of -- home Depot's business there's a consumer side has the commercial side of things. Can we even read into it that as far as it being a recovery on the economy and housing sector specifically. We can at least we can talk about it. Jobs are good for home Depot's growth and jobs are good. The low financing cost the availability of of kind of you know mortgage. Or a second mortgage or -- home equity line is good for home renovations which really does drive Home Depot more than new construction. But I wouldn't say it's it's only that it's not strictly about. The housing market it's really about people buying durables appliances. A lot of these things that have been selling well things that have been selling well. Things like clothing. Things like kind of consumables like you know us consumer staples types Oklahoma but doesn't sell that stuff also won adjusting elements home -- actually done a really good business selling online. So clearly people are shopping across the board for these kind of durables not really -- building products but other types of appliances and things like that and Home Depot is getting at least its share of that kind of business. What has long term investments I guess you could -- tears to your biggest investment likely for a lot of people their homes. So it was a future holding anatomy in the honchos at Home Depot other expect the hammer -- -- -- -- -- to continue. That's what they're saying so in in addition to reporting -- good quarter they said that for the full year for the remainder of this year there were lifting. They're guidance for what -- to going to be above what Wall Street was expecting and that really to I think it's what's been giving the stock a lift they're basically saying look it wasn't just snapped back in the spring. After we had a lot of jobs not being done because of bad weather it seems like it's going to carry through so. You know that's a great story for Home Depot I will -- home -- considered to be. Really one of the best managed retailers out there so it's not as if you can extrapolate that -- -- across the board consumers are going to be spending heavily. Because Home Depot is really doing a good job for itself but it does seem as if you know the ingredients are there. For opted in that sector of the economy the durables and a little bit of that home renovations to remain relatively strong compared to other parts of retail. All those tool belts being held up in unison and victory might -- -- -- who finance on this Tuesday afternoon Mike thanks so much appreciate it thank you -- -- -- -- stock stay with abcnews.com for latest headlines -- Cutler and New York.
This transcript has been automatically generated and may not be 100% accurate.