Home Depot, retail sales, Berkshire Hathaway bank investments: Tuesday's top stories

The Yahoo Finance Live team breaks down Tuesday's top stories, including Home Depot's earnings report, April's retail sales, and Berkshire Hathaway switching bank holdings.

Video transcript

BRAD SMITH: And here are the three things that you need to start your morning. A brutal earnings report from one of the nation's biggest retailers, Home Depot, warning on sales after its biggest revenue miss in over 20 years. The home improvement retailer's fiscal first quarter net income came in at $3.87 billion, that's down from $4.23 billion last year.

The report spells bad news for the economy, with consumers backing off from big projects and spending less on things like patios and grills. Shareholders, they don't like it one bit. The last time Home Depot missed this badly, Justin Timberlake was still in NSYNC.

April's retail sales coming in at four-tenths of a percent on the month. That's below estimates for growth of eight-tenths of a percent. Now it's still a notable improvement from the drop that we saw in March. The number underscores a still resilient labor market, and adds to the debate over Fed policy. A key meeting looms in June, with investors largely expecting the central bank to hold steady on rates, though expectations for a hike haven't been completely discounted.

And Berkshire switches up its bank holdings. Fresh regulatory filings from the SEC, more commonly known as 13F's, coincidentally also the title of my golf game, showed that the Oracle of Omaha's investment house, exiting US Bank and Bank of New York Mellon.

Now on the flip side here, it has begun investing in Capital One. This is the lender known for having a large share of the US auto finance market. And the moves come amid turmoil for regional banks. We'll keep an eye on that with the SVB and Signature Bank hearings on the Hill this morning.