Some notable stuff

One of the reasons I believe Target is rallying, outside of it already being beaten up leading into the release and much cheaper than its main peer Walmart, in the face of a slash to earnings guidance was the further cut to inventories. "Inventory at the end of Q2 was 17% lower than last year, reflecting a 25% reduction in discretionary categories, partially offset by inventory investments to support frequency categories."

Also, "in the face of softer than expected sales...we continue to take a cautious approach to planning our business, and have therefore adjusted our financial guidance in anticipation of continued near term challenges on the topline." 

Here is what was heard of note from the Home Depot call yesterday:

"While there was strength in project related categories like building materials, hardware, and plumbing, we continue to see pressure in certain big ticket, discretionary categories. Pro sales performance was slightly negative in the 2nd quarter and outperformed the DIY customer, while surveys suggest that Pro backlogs are lower than they were a year ago, they are still healthy and elevated relative to historical norms. Additionally, projects in these backlogs are generally smaller in scale and scope."