By Chelsey Dulaney and Jack Pitcher
Home Depot, the first in a series of big U.S. retailers to report earnings this week, shifted its stance on tariffs, saying some modest price rises were now likely to follow.
The warning from Home Depot's finance chief came after the home-improvement chain posted disappointing quarterly results but backed its annual outlook. Lowe's and Target will follow Wednesday, with Walmart earnings due Thursday.
The economy has been unexpectedly resilient to President Trump's tariffs, but the job market has slowed and some measures of inflation are edging higher. New data Tuesday pointed to a stronger-than-expected home-building industry, with a jump in housing starts last month.
The Dow edged higher at the open as the stock market's late-summer lull continued. U.S. indexes are near all-time highs, but have notched only minor moves in recent days, with trading volumes depressed.
Intel shares rallied on the news that SoftBank would invest $2 billion in the chip maker. The boost from the Japanese technology investor comes as the Trump administration discusses taking a 10% stake in Intel.
Late Monday, S&P Global Ratings held the U.S.'s credit rating at AA+, the second-highest notch on its scale, with a stable outlook. The ratings company said revenue from new tariffs would offset the Trump administration's tax cuts and higher spending.
Separately, broader steel and aluminum levies came into effect, in a significant escalation in Trump's metals tariff regime. Knives, electrical transformers and hundreds of other finished goods are now subject to the 50% import duties.
In recent trading:
Stock indexes were mixed. The Dow industrials edged higher after moving less than 0.1% for a third-straight session Monday. The S&P 500 and Nasdaq were down modestly.
Treasury yields wavered. Ten-year yields stood at around 4.32%, after three sessions of gains.
The U.S. dollar weakened a tad, including against the euro and the Swiss franc.
European defense stocks and international oil prices fell as investors assessed the possibility of a cease-fire in Ukraine. Trump is pushing for a three-way meeting with Ukraine's president and Russia's Vladimir Putin.
Bitcoin prices held below $116,000. The cryptocurrency has weakened since Treasury Secretary Scott Bessent said last week the U.S. doesn't plan to buy more assets for its bitcoin reserve.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com and Jack Pitcher at jack.pitcher@wsj.com
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(END) Dow Jones Newswires
August 19, 2025 09:40 ET (13:40 GMT)
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