{"id":66698,"date":"2026-08-18T06:08:13","date_gmt":"2026-08-18T10:08:13","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/home-depot-and-xiaomi-beat-estimates-as-investor-sentiment-shifts-bullish\/66698\/"},"modified":"2026-08-18T06:08:13","modified_gmt":"2026-08-18T10:08:13","slug":"home-depot-and-xiaomi-beat-estimates-as-investor-sentiment-shifts-bullish","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/home-depot-and-xiaomi-beat-estimates-as-investor-sentiment-shifts-bullish\/66698\/","title":{"rendered":"Home Depot and Xiaomi Beat Estimates as Investor Sentiment Shifts Bullish"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Home Depot (<a href=\"\/stock\/HD\">HD<\/a>)<\/strong> beat Q2 expectations with <strong>$47.86 billion<\/strong> in net sales and adjusted EPS of <strong>$4.92<\/strong>, while reaffirming its full-year 2026 guidance.<\/li>\n<li><strong>Xiaomi (<a href=\"\/stock\/1810\">1810<\/a>)<\/strong> reported a massive earnings beat with net income of <strong>9.46 billion yuan<\/strong>, nearly doubling analyst estimates despite a year-over-year decline in adjusted profit.<\/li>\n<li><strong>Bank of America (<a href=\"\/stock\/BAC\">BAC<\/a>)<\/strong> survey data reveals a significant shift in sentiment, with investors &quot;piling into stocks&quot; as the number of market bears hits multi-month lows.<\/li>\n<li><strong>Moody&#39;s<\/strong> affirmed <strong>Australia&#39;s AAA<\/strong> credit rating with a stable outlook, citing the nation&#39;s robust institutional framework and domestic consumption growth.<\/li>\n<li><strong>Geopolitical tensions<\/strong> remain high as Iranian officials vow retaliation for civilian losses, while Iranian conscripts in Canada face legal uncertainty regarding their residency status.<\/li>\n<\/ul>\n<h2>Home Depot Surpasses Q2 Estimates, Maintains Outlook<\/h2>\n<p>Home Depot (<a href=\"\/stock\/HD\">HD<\/a>) reported strong second-quarter results for fiscal 2026, posting net sales of <strong>$47.86 billion<\/strong> against the <strong>$47.27 billion<\/strong> estimated by analysts. The retail giant saw a <strong>1.7% increase<\/strong> in global comparable sales, with U.S. comparable sales rising <strong>1.3%<\/strong>. Adjusted earnings per share (EPS) reached <strong>$4.92<\/strong>, comfortably exceeding the IBES estimate of <strong>$4.73<\/strong>.<\/p>\n<p>The company reaffirmed its fiscal 2026 guidance, which notably includes anticipated <strong>IEEPA tariff refunds<\/strong>. These refunds are expected to help offset rising fuel, energy, and product input costs. Management highlighted that while big-ticket discretionary spending remains under pressure, broad-based demand for smaller home improvement projects continues to drive growth.<\/p>\n<h2>Xiaomi Posts Strong Revenue Beat Amid EV Expansion<\/h2>\n<p>Chinese tech leader Xiaomi (<a href=\"\/stock\/1810\">1810<\/a>) delivered a standout Q2 performance, reporting revenue of <strong>108.92 billion yuan<\/strong>, slightly above the <strong>108.33 billion yuan<\/strong> forecast. The company&#39;s net income of <strong>9.46 billion yuan<\/strong> shattered the consensus estimate of <strong>5.76 billion yuan<\/strong>. However, adjusted net income came in at <strong>6.22 billion yuan<\/strong>, a <strong>42.6% year-over-year decline<\/strong> attributed to rising component costs and heavy R&amp;D investment.<\/p>\n<p>Xiaomi\u2019s results reflect its aggressive push into the electric vehicle (EV) market and advanced AIoT ecosystems. While operating profit surged to <strong>10.87 billion yuan<\/strong>, analysts noted that high capital expenditures for its EV megafactory remain a point of focus for long-term cash reserves.<\/p>\n<h2>Investor Sentiment Turns Aggressively Bullish<\/h2>\n<p>A new Bank of America (<a href=\"\/stock\/BAC\">BAC<\/a>) Global Fund Manager Survey indicates that professional investors have largely abandoned their bearish stances. The poll shows a &quot;pile-in&quot; to equities, with cash levels falling to an &quot;uber-low&quot; of <strong>3.6%<\/strong>, the lowest since early 2026. This drop below the <strong>4.0% threshold<\/strong> has historically triggered a contrarian &quot;sell signal&quot; for stocks, suggesting the market may be reaching an overbought state.<\/p>\n<p>In the credit markets, <strong>Moody&#39;s<\/strong> has maintained <strong>Australia&#39;s AAA<\/strong> rating. The agency expects Australia to lead growth among advanced markets in 2026, supported by resilient domestic consumption and a stable fiscal trajectory.<\/p>\n<h2>Geopolitical Risks and Immigration Uncertainty<\/h2>\n<p>On the geopolitical front, Iranian Parliament Speaker <strong>Mohammad-Bagher Ghalibaf<\/strong> issued a stern warning, pledging to &quot;punish the aggressor&quot; following civilian casualties in Minab. He framed the current tensions as a &quot;historic test&quot; from which Iran expects to emerge victorious.<\/p>\n<p>Simultaneously, a legal crisis is unfolding for Iranian men in Canada. Hundreds of former conscripts who served mandatory terms in the <strong>Islamic Revolutionary Guard Corps (IRGC)<\/strong> have received &quot;procedural fairness letters&quot; from Canadian immigration authorities. These letters warn that their compulsory service may be classified as membership in a terrorist organization, potentially leading to the loss of residency rights for them and their families.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Home Depot (HD) beat Q2 expectations with $47.86 billion in net sales and adjusted EPS of $4.92, while 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