😌 Consumer confidence plummets

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Good morning investors! Sell-off continued yesterday as Bitcoin fell to a 3-month low and some top names are now down 10% from recent highs.

Today we cover:

• Consumer confidence plummets

• Home Depot bounces back

• Saving money

📊 Economy and News 

Consumer Confidence Plummets as Economic Uncertainty Grows

The Conference Board’s Consumer Confidence Index for February dropped to 98.3, marking its third consecutive monthly decline and the largest drop since August 2021. The decline comes as inflation expectations for the year ahead continue to rise, a trend that aligns with findings from the University of Michigan’s consumer survey for February.

Concerns are also mounting within the housing sector. The National Association of Home Builders reports increasing unease among homebuilders, while small businesses—despite some optimism regarding deregulation and tax cuts—are expressing doubts about the economy's future. The National Federation of Independent Business’ Uncertainty Index climbed in January to its third-highest level on record.

This growing economic pessimism marks a stark shift from the brief surge of optimism following President Donald Trump’s election in November. Rising fears over his aggressive stance on tariffs have contributed to a more uncertain outlook, reversing earlier confidence in economic prospects.

Global hits:

• DeepSeek rushes to launch new AI model as China goes all in.

• Fed seen resuming rate cuts in June as consumer confidence takes a dive.

• Global debt marches to record high, raising risk of bond vigilantes, IIF says.

Check this: Sempra lowered its 2025 profit forecast amid regulatory challenges and high costs, sending the utility's shares down 20%. Elsewhere, Workday’s fiscal fourth quarter exceeded expectations, with 15% revenue growth.

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📈 Stocks

S&P 500 5,955.25 (-0.47%)
DJIA 43,621.16 (+0.37%)
NASDAQ 19,026.39 (-1.35%)
BRENT CRUDE 73.02 (-2.33%)
* Prices as of Feb 26th, 12:20 AM UTC

Home Depot Beats Sales Expectations Despite Housing Market Challenges

Home Depot surpassed Wall Street’s quarterly sales forecasts, even as high interest rates and elevated housing prices continued to curb consumer demand for major renovations and high-cost projects.

Looking ahead, the company expects total sales to grow by 2.8% in the coming year, with comparable sales—adjusted for store openings and calendar differences—rising about 1%. However, Home Depot anticipates a 2% decline in adjusted earnings per share compared to the previous year.

The retailer remains optimistic that consumers will gradually resume home improvement projects as they adjust to higher borrowing costs, rather than waiting for interest rates to decline.

• Earnings per share: $3.02 vs. $3.01 expected

• Revenue: $39.70 billion vs. $39.16 billion expected

Home Depot shares closed at $393.29 on Tuesday, gaining nearly 3% after a long losing streak.

Looking further ahead, Home Depot provided a positive outlook for 2025, projecting a 1% growth in sales at stores open for at least a year. The upbeat report contrasts with Walmart’s more cautious stance, as the nation’s largest retailer recently warned of a more challenging year ahead.

Above is what analysts think of Home Depot. You can use this free tool to find out about other stocks as well. Simply write the name and find if others are bullish or bearish on the company.

Exciting: Super Micro shares jumped +23% in extended trading after the company reported its financials for the latest fiscal year. Also, the bulls continue to outnumber the bears among traders 51% to 34%, according to Schwab’s survey.

💵 Personal Finance

Struggling to save money?

Here’s a list of ways to make it easier:

• Set savings goals. What are you saving for? A down payment on a house? A new car? Retirement? Having a specific goal in mind will help you stay motivated to save.

• Create a budget. Track your income and expenses so you can see where your money is going. This will help you identify areas where you can cut back.

• Automate your savings. Set up a direct deposit from your paycheck into your savings account. This way, you won't even see the money and you'll be less likely to spend it.

• Cut back on unnecessary expenses. Do you really need that expensive cable package? Could you cook more meals at home instead of eating out? There are probably a few things you can cut back on without sacrificing your quality of life.

• Look for discounts and coupons. There are many ways to save money on everyday purchases. Check for coupons online or in the Sunday paper. You can also sign up for loyalty programs to earn rewards.

• Shop around for the best deals. Don't just assume that the first place you see something is the cheapest. Do some research to find the best price.

• Buy used items. There are many great deals to be found on used items. You can find used clothes, furniture, appliances, and more.

• Get creative with gifts. Instead of buying expensive gifts, give homemade gifts or experiences. This could be anything from a batch of cookies to tickets to a concert.

• Pay off debt. If you have high-interest debt, focus on paying it off as quickly as possible. This will free up more money in your budget so you can save more.

• Use a budgeting app. There are many great budgeting apps available that can help you track your income and expenses. This can be a helpful way to stay on track with your savings goals.

• Find a savings buddy. Having someone to work with on your savings goals can be helpful. You can motivate each other and stay on track.

Need more? Watch my video “20 ways to save $20,000.”

💰 Be a Better Investor

Resources:

• Calculators

• Retirement Resources

• Dividends

• Make Money in Retirement

• Side Hustle Ideas

• Stock Deep Dives

• Investing 101 videos

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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