It's Tuesday, August 20th.

Welcome to Market Foolery.

I'm Chris Hale joining me in studio, Emily Flippin.

Thanks for being here.

Thanks again for having me, Chris.

We've got some stocks in China that are making headlines and we will get to those in a

minute but we're going to start here in the United States with Home Depot. Second quarter

profits for Home Depot were higher than expected but they lowered sales guidance for the full

fiscal year.

Shares of Home Depot are up about 4% this morning, and I got to say, I'm a little surprised

at that. Are you at all surprised that the stock is up?

Well I feel like Home Depot's earnings are just proof that fear is really starting to

drive the market so they missed on revenue, they beat on the bottom line

but they also missed on same store sales, and they

lowered guidance for the rest of the year.

So it seems like investors just responded positively because the news simply wasn't worse,

with new projections, I guess guess for a waking housing market alongside

concerns about impact of the trade war. The lowered projections for 2019 I

think sales growth was 2.3%. That just wasn't bad enough to get the stock down low.

So it's interesting to me, a little bit surprising to the stocks up on the news,

but it just goes to show how much people were expecting in terms of

the market that we're seeing today. I think it's probably also a little bit of

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