Stocks making the biggest moves premarket: Home Depot, Tesla, Fabrinet, Duolingo & more

Home Depot's sales surged in the second quarter due to customers focusing on smaller projects this summer, according to the Atlanta-based company's financial report. The retailer reported revenue of $47.86 billion, surpassing the $47.24 billion Wall Street had anticipated. The Atlanta company also exceeded expectations with its global sales at stores open for at least a year climbing 1.7%.

In the U.S., comparable store sales grew by 1.3%. Home Depot's Chief Financial Officer, Richard McPhail, expressed satisfaction, stating that their second quarter results surpassed expectations as customers continued to engage in smaller projects. Despite a slight dip in customer transactions by 1%, the average spend per shopper rose to $92.50 per receipt, up from $90.01 a year earlier.

The company reported earnings of $4.77 billion, or $4.79 per share, for the three months ending August 2. This marks a significant improvement over the $4.55 billion, or $4.58 per share, earned in the same period last year. Excluding one-time items, earnings were even higher at $4.92 per share, exceeding Wall Street's predicted $4.73 per share.

The strong performance comes amidst a challenging housing market, which has been putting pressure on retailers since 2022. The housing market has been in decline since the start of this decade when mortgage rates, which had been at historic lows, began to rise. However, recent relief in mortgage rates has helped alleviate some of the retail pressure.