Richard Sellers, Realtor DRE#01148405

Nov. 17 (Bloomberg) -- Home Depot Inc., the largest U.S. home-improvement retailer, posted third-quarter profit that fell 8.9 percent as customers spent less and made fewer purchases.

Net income dropped to $689 million, or 41 cents a share, in the three months ended Nov. 1 from $756 million, or 45 cents, a year earlier, the Atlanta-based company said today in a statement. Analysts projected profit of 36 cents, the average of 27 estimates compiled by Bloomberg.

Home Depot reduced selling, general and administrative expenses by 8.4 percent to $3.87 billion. Customer transactions at the company, led by Chairman and Chief Executive Officer Frank Blake, slowed amid sinking home values and the highest U.S. unemployment in 26 years.

Profit beat analysts' estimates on "impressive cost controls," David Strasser, an analyst at Janney Montgomery Scott LLC in New York, wrote today in a note to clients. Strasser, who recommends buying Home Depot shares, cited lower advertising costs and technology that helped individual stores control expenses.

Sales fell 8 percent to $16.4 billion as the value of the average transaction dropped 7.1 percent to $51.89 from $55.86. The number of customer transactions slipped to 314 million from 315 million, Home Depot said.

Home Depot declined 71 cents, or 2.6 percent, to $26.94 at 9:50 a.m. in New York Stock Exchange composite trading. The shares advanced 20 percent this year before today.

Store Openings

The retailer opened two stores in the third quarter, down from three in the second quarter and five in the first quarter, Paula Drake, a company spokeswoman, said today in an e-mail. The company said in February it planned to open 12 stores this year.

Home Depot predicted adjusted earnings per share for the year of $1.55, a decline of about 13 percent from the previous year, compared with an earlier prediction of a decrease of as much as 20 percent.

Capital expenditures fell 52 percent to $215 million from $451 million a year earlier.

U.S. payrolls fell by 190,000 in October and the jobless rate jumped to 10.2 percent, topping 10 percent for the first time since 1983. Concern about jobs and income pushed consumer sentiment down to a three-month low in November, according to a report from Reuters/University of Michigan last week.

Come Come one come all!

Sunday, November 22, 2009

Join us at the UCLA Covference Center for an evening of Fun and Fine Dining

Silent and Live Auction Art Sale

Featured Artist include:

Candy Butler, Joe Devinny, John Grady, Patty McDonald, Jon Olson, Darleen Ortlieb, and Kelly Pajak

Original Art, Jewelry, Gourd Art, and Much More!!!

Reception and No Host Bar @ 5:30pm, Dinner @ 7:00pm

Mtn Bruin Members $70, Non Members $80

For reservations call: 909-337-8200

Funds Raised Provide Schlorships for Students Residing in the Rim School District

The Club presently is supporting Nine Schlorship Students Attending UCLA

Market Outlook

Monday, November 16, 2009 7:15 AM

Price Trend: Positive

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Current Conditions:

FNMA 4.5 101-26 (+2)

GNMA 4.5 102-01 (+3)

10yr Yield 3.397

Today's Economic Data

Retail Sales 5:30

Empire Manufacturing 5:30

Business Inventories 7:00

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Commentary:

Bonds are up this morning after the release of some economic data that indicated less growth than was

forecast. Headline Retail Sales beat expectations, but a downward revision to the previous report put the 2

month total in line with forecasts. The ex-autos number was lower than expected and also included a

downward revision to September's reading. The Empire manufacturing Index fell below expectations, but

still did show consistent growth in that sector. A typically volatile number, this report does not usually move

markets, especially when it is released at the same time as Retail Sales.

The rest of the week is very busy with inflation data and housing data on tap.

Thursday, November 12, 2009 7:05 AM

Price Trend: Neutral

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Current Conditions:

FNMA 4.5 101-13 (-1)

GNMA 4.5 101-08 (+1)

10yr Yield 3.471

Today's Economic Data

Jobless Claims 5:30

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Commentary:

The bond market has re-opened this morning after a day off yesterday. However, there is still very little to

give the market direction. Jobless claims came in lower than expected and reached a 10 month low. This

really did nothing for bond prices, though. Later today, the Treasury will complete this week's auctions with

a 30yr bond issuance. Recent auctions have indicated that as maturity terms increase the market seems to

have more trouble digesting the supply. This makes today's event a little more of a concern.

Market Outlook

Tuesday, November 10, 2009 7:05 AM

Price Trend: Positive

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Current Conditions:

FNMA 4.5 101-09 (+5)

GNMA 4.5 101-27 (+4)

10yr Yield 3.448

Today's Economic Data

None

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Commentary:

The drought of economic data continues today. The only event that should have a serious impact on prices

today is the Treasury's 10yr note auction. Yesterday's 3yr auction was well received. The last auction of

the longer end of the curve was 2 weeks ago when the 7yr issuance saw lackluster demand and caused

Treasuries and mortgages to fall. That result is causing some apprehension about today's 10 yr and

Thursday's 30yr auctions. Other than that, stocks and some Fed speak could provide direction for bonds.