Investing.com - Lowe’s stock climbed higher midday in a what may look, at first blush, as a counterintuitive move based on its lowered guidance.
Shares of Lowe’s (NYSE:LOW) rose about 8% at 11:45 AM ET (15:45 GMT).
The home repair supply chain cut its profit and sales outlook for the year. That usually brings out the sellers in a big way. But investors focused, instead, on the company’s turnaround plan.
Lowe’s will shutter all of its Orchard Supply Hardware stores and also cut inventory in an effort to become a leaner competitor to Home Depot (NYSE:HD).
Home Depot (NYSE:HD) recently reported strong earnings and same-stores sales. Home Depot shares gained about 0.5% midday.
Elsewhere, telecom stocks were hit hard. The S&P Telecom Sector index was down about 1.6%.
CenturyLink (NYSE:CTL) was among the biggest losers, falling about 5% after an analyst downgrade. Finisar (NASDAQ:FNSR) lost about 4% and Boingo Wireless (NASDAQ:WIFI) dropped about 1.4%.
And Pure Storage (NYSE:PSTG) soared about 17% after the company reported a surprise profit and issued strong sales guidance.