Earnings from a pair of closely watched country-wide chains were greeted with excitement, as Home Depot and Target each topped 2^nd quarter expectations. Despite the challenges created by weak consumer spending and a battered housing market, Home Depot posted profits of 67 cents a share, down 7% from a year earlier but easily  above analyst estimates. Shares of the home improvement chain, which also upped its forecast, were up 83 cents, or 3.2%, to $26.94, a day after rival Lowe’s contributed to a hefty decline by falling short of the Street’s 2nd quarter predictions.

Target shares gained $2.40, or 5.8%, to $43.61, due to the discount chain’s 79 cents in earnings per share. Improving gross margins helped the retailer overcome a 6.2% decline in same-store sales.

A pair of economic reports agitated mixed reactions in New York. Home construction in July was weaker than anticipated as the government’s figures on housing starts and new building permits coming up shy of expectations.

Tags:  2nd cent earning home depot lowe quarter spent Stock