Home Depot Doubts Could Ding Funds
Nearly 800 funds could feel the shock of big box retailer's warning.
As if you needed more clues that the economy has slowed, retailing bellwether Home Depot (HD) said on Thursday it’s third quarter will be a fixer-upper and that the fourth quarter may need some work, too. Hundreds of funds could feel the knocks if the market punishes the home-improvement chain for the news. The stock was down nearly 25% in early trading.
Home Depot's warning, however, doesn't change the long-term prospects for the stock, said Morningstar.com stock analyst Mark Sellers. Investors shouldn't panic about their Home Depot shares or the close to 800 mutual funds that also own them.
Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.