Emma Asma Cornwall
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Emma Asma Cornwall in Gainers & Losers,

Why is Home Depot slumping?

Shares of Home Depot are lower on the day despite a solid Q1 sales report and some encouraging moments on the post-earnings conference call. 

Sales at existing Home Depot stores rose 6.5% in the three months ended May 1, including a boost from big-ticket items. The number of transactions over $900 rose 9.5% compared with a year ago, primarily from sales of appliances, roofing materials, sheds and windows.

The company raised its yearly outlook and posted better-than-anticipated same-store sales figures in a quarter that was "marked by week-to-week demand spikes caused by weather variability." The home improvement retailer said first-quarter net profit were $1.8 billion, or $1.44 share, compared with $1.58 billion, or $1.21 a share, a year ago. Wall Street had pegged sales at $22.38 billion. 

So why are shares falling? May be technical picture is to blame as the wedge was broken recently. Anyway, the daily chart looks not encouraging at all...