The Home Depot, Inc. (HD) released its third quarter results on Tuesday, November 12. The company’s shares fell about 1% following the release, despite reporting better-than-expected revenue and earnings.

The company reported revenue of $40.22 billion, up 6.6% from $37.71 billion during the same quarter last year. Revenue was higher than analysts’ expectations of $39.32 billion.

“While macroeconomic uncertainty remains, our third quarter performance exceeded our expectations," said Home Depot CEO, Ted Decker. “As weather normalized, we saw better engagement across seasonal goods and certain outdoor projects as well as incremental sales related to hurricane demand.”

Home Depot reported quarterly net earnings of $3.65 billion or $3.67 per diluted share. This is down from net earnings of $3.81 billion or $3.81 per diluted share during the same quarter last year.

The Atlanta, Georgia-based home improvement retailer reported a year-over-year decrease of 1.3% in overall comparable store sales and a decrease of 1.2% in U.S. comparable store sales. The company reported that customer transactions remained relatively steady during the quarter. Average consumer spending per ticket dropped less than 1% to $88.65. Home Depot updated its fiscal 2024 outlook following the results and is expecting a 4% increase in sales and a decline of approximately 2.5% in comparable sales.

The Home Depot, Inc. (HD) shares ended the week at $408.18, relatively unchanged for the week.

Tyson Posts Quarterly and Full Year Earnings

Tyson Foods, Inc. (TSN) released its fourth and full year earnings report on Tuesday, November 12. The company beat analysts’ estimates, causing the food company’s stock to rise nearly 9% following the release of the report.

Tyson posted revenue of $13.57 billion for the quarter. This is up 1.6% from $13.35 billion reported in the same quarter last year and more than the $13.39 billion in revenue that analysts expected. For the full year, Tyson reported $53.31 billion in revenue, an increase from last year’s revenue of $52.88 billion.

"We delivered significant improvement in profitability for the fourth quarter and full year. We also strengthened our financial position, with solid cash flow generation and a substantial reduction of our net leverage ratio," stated Donnie King, President & CEO of Tyson Foods. "Looking ahead, we are optimistic about our outlook and our ability to deliver long-term value to our shareholders. Our multi-protein, multi-channel portfolio, combined with our best-in-class team, iconic brands and focus on operational excellence positions us well for Fiscal 2025 and beyond."

For the fourth quarter, the company posted net income of $357 million or $1.00 per adjusted share. This is an increase from a net loss of $450 million or $1.31 per adjusted share this time last year. For the full year, the company’s net income was $800 million.

The Arkansas-based food company includes brands such as Jimmy Dean, Hillshire Farm and Ball Park. The company experienced a sales volume increase in some segments: 3.7% in Beef, 3.2% in Pork and 1.3% in International sales. The company, however, had a slight decline of 0.7% and 1.4% in sales of Chicken and Prepared Foods respectively. Operating income increased 9.6% in Chicken and 8.2% in Prepared Food while decreasing 1.3% in Beef and 1.1% in Pork. For fiscal 2024, Tyson expects the total company adjusted operating income to be between $1.8 billion to $2.2 billion and revenue to be down 1% to flat compared to 2024.

Tyson Foods, Inc. (TSN) shares ended the week at $61.32, up 8% for the week.

Cisco Announces Earnings Report

Cisco Systems (CSCO) announced its first quarter results on Wednesday, November 13. The international technology company reported a decline in revenue causing the company’s stock to decrease over 2% following the release.

The company’s net sales for the first quarter totaled $13.84 billion. This was down 6% from sales of $14.67 billion during the same quarter last year but above analysts’ estimates of $13.77 billion.

“Cisco is off to a strong start to fiscal 2025,” said Cisco CEO, Chuck Robbins. “Our customers are investing in critical infrastructure to prepare for AI, and with the breadth of our portfolio, we are uniquely positioned to capitalize on this opportunity.”

Cisco reported net income of $2.71 billion or $0.68 per diluted share for the quarter. This was down from earnings during the same quarter last year of $3.64 billion or $0.89 per diluted share.

Cisco reported a decline in revenue across most of its geographic segments. The company’s America segment reported a 9% decrease to $8.25 billion for the quarter, and its Europe, Middle East, and Africa segment returned a decrease of 2% to $3.59 billion. Sales in the Asia, Pacific, Japan and China segment increased 1% to $2.00 billion. Product revenue in Security and Observability increased 100% and 36%, respectively. Cisco’s board of directors declared a quarterly dividend of $0.40 per common share payable on January 22, 2025, to stockholders of record at the close of business on January 3, 2025. For the second quarter of fiscal year 2025, the company expects revenue to be between $13.75 billion to $13.95 billion.

Cisco Systems (CSCO) shares ended the week at $57.46, down 3% for the week.

The Dow started the week of 11/11 at 44,058 and closed at 43,588 on 11/15. The S&P 500 started the week at 6,009 and ended at 5,871. The NASDAQ started the week at 19,355 and finished at 18,680.

U.S. Treasury yields varied throughout the week as markets reacted to the latest inflation readings for October. Yields edged lower at the end of the week as the latest employment numbers fell to their lowest level in six months.

On Wednesday, the U.S. Department of Labor announced that the consumer price index (CPI), which measures the cost of dozens of everyday consumer goods, rose 0.2% in October, in line with economists’ expectations. The CPI year-over-year increased to 2.6% from 2.4% the prior month also in line with economists’ expectations.

“No surprises from the CPI, so for now the Fed should be on course to cut rates again in December,” said chief economic strategist at Morgan Stanley Wealth Management, Ellen Zentner. “The markets are already weighing the possibility that the Fed will cut fewer times in 2025 than previously thought, and that they may hit the pause button as early as January."

The benchmark 10-year Treasury note yield opened the week of November 12 at 4.31% and traded as high as 4.47% on Wednesday. The 30-year Treasury bond opened the week at 4.48% and traded as high as 4.65% on Wednesday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment decreased by 4,000 to 217,000 for the week ending November 9. Continuing unemployment claims fell by 19,000 to 1.87 million.

“While many employment-related indicators point to a significant softening in labor market conditions this year, that change has not carried over to the unemployment insurance data thus far," said chief economist at Wrightson ICAP, Lou Crandall.

The 10-year Treasury note yield finished the week of 11/12 at 4.44%, while the 30-year Treasury note yield finished the week at 4.62%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, November 14. The survey showed mortgage rates leveled off after six weeks of climbing.

This week, the 30-year fixed rate mortgage averaged 6.78%, down from last week’s average of 6.79%. Last year at this time, the 30-year fixed rate mortgage averaged 7.44%.

The 15-year fixed rate mortgage averaged 5.99% this week, down from last week’s 6.0%. During the same week last year, the 15-year fixed rate mortgage averaged 6.76%.

“After a six-week climb, rates have leveled off, but overall affordability continues to be an issue for potential homebuyers,” said Freddie Mac’s Chief Economist, Sam Khater. “Our latest research shows that mortgage payments compared to rents on the same homes are elevated relative to most of the last three decades.”

Based on published national averages, the savings rate was 0.45% as of 10/21. The one-year CD averaged 1.81%.

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