Lowes Beats Q2 Profit Estimates on Resilient Home Repair Demand

Lowe's beat second-quarter profit and margin estimates due to resilient home repair demand, despite cautious consumer spending forcing the retailer to lower annual targets.

The results come on the heels of larger rival Home Depot beating quarterly expectations and maintaining full-year targets. This has raised investor expectations for the home-improvement sector.

Lowe's shares rose 4% in early trading, reversing course after falling 3% before the bell. The stock gained alongside homebuilders like D.R. Horton (DHI.N), as investors hoped for lower mortgage rates and a recovery in the housing market.