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Stock impact report

Wells Fargo sees further rally in home improvement stocks if Fed sets measured guidance [Seeking Alpha]

Lowe's Companies, Inc. (LOW) 
Last lowe's companies, inc. earnings: 2/26 06:00 am Check Earnings Report
Company Research Source: Seeking Alpha
Fed funds futures heading much lower in the first half of 2025 and a clearer outlook from the Fed are positive for consumers, levered firms, and mortgage rates, Wells Fargo Equity Analyst Christopher Harvey said in a note Wednesday, ahead of the Fed's September policy announcement Home improvement stocks such as Home Depot ( NYSE: HD ) and Lowe's ( NYSE: LOW ) are beginning to rally, and “we think this is the start of a bigger move for the group,” he said. “We think [the Fed] communicating a measured pace would be more helpful for planning and volatility, a key for mortgage spreads,” he said. “Rate vol is beginning to decay, and as the Fed's path is better understood it should reduce uncertainty and ultimately spreads,” which is a “big plus” for housing and consumers, Harvey said. Since the S&P 500 ( SP500 SPY IVV ) on Sept. 11 staged a dramatic intraday turnaround to surge, Home Lowe's ( LOW ) has risen ~3.8% and Depot ( HD ) has picked up 3%. Harvey said rate volatility has Show less Read more
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