It has been a tough couple of years for retail stocks. Last year, the SPDR S&P Retail ETF fell by 33% as rising interest rates weighed on the markets. It may be tempting to think that retail stocks may be bottoming out and that the new year could be better for them.
Shares of Home Depot (NYSE: HD) were moving lower as the home improvement retail giant got swept up in the broader market sell-off. An increase in job openings in August and comments from the Federal Reserve chair helped stoke renewed fears of rising interest rates, and 10-year Treasury yields jumped to 16-year-highs to reflect those concerns. As a result, Home Depot stock was down 3.2% as of 2:31 p.m. ET, while the S&P 500 had given up 1.6% at the same time.
The Dow Jones Industrial Average is a prime stock-hunting ground for income investors. There are often at least a few of these Dow components trading at a relative discount, too, which can boost new investors' potential returns and lift their yields. Home Depot (NYSE: HD) is my favorite pick in that category of stocks on sale today.