Home improvement demand is closely related to the underlying strength of the housing market. Most people undergo renovation projects just before selling a house or after buying a new place. Visits to Home Depot stores dropped 2.2% year over year in the second quarter, according to foot-traffic data from Placer.ai.

The blue-chip Dow was just shy of a record high on Tuesday as Home Depot shares gained after the retailer kept its annual forecasts intact, while the S&P 500 and the Nasdaq were subdued ahead of a Fe...