Home Depot's Q2 earnings fell slightly short of Wall Street's target, but the company announced some news that has potentially huge implications.

The Dow Jones Industrial Average is outpacing the other indexes on Tuesday, potentially on its way to a new record. The Dow was trading at 45,176.19, up about 0.6% on Tuesday. Part of this bump was due to the jump in shares from Home Depot.

Home Depot’s sales improved during its fiscal second quarter as consumers remained focused on smaller projects amid cost concerns, but its performance missed Wall Street’s expectations.

Home Depot kept its annual forecasts intact despite posting muted quarterly results on Tuesday, but said some products may see small price hikes due to tariffs after previously suggesting they would generally not change.

The company's full-year forecast assumes no substantial change in the number of consumers revamping their homes.

Home Depot said tariffs will soon start hitting some price tags even as consumers continue to hold off on larger projects because of higher interest rates and economic uncertainty.

In Q1, Home Depot experienced solid demand for smaller projects and seasonal activities; however, high interest rates deterred many consumers

Home Depot (HD) reported second quarter results that missed on revenue, earnings, and same-store sales growth. Yet shares are rising in pre-market trading on hopes that consumers focusing on small home improvement projects could benefit the retailer.

Home Depot also stuck by its guidance for the current fiscal year, which forecasts same-store sales growth of 1% and a 2% decline in adjusted earnings per share. Much of the sales growth appeared to come in July. Home Depot Chief Financial Officer Richard McPhail said in an interview with CNBC that comparable sales rose 3.3% that month.

The home-improvement chain is now one of the companies most caught up in Trump's immigration crackdown. The retailer's history with day laborers is long. So far, it's choosing to keep its distance.

Home Depot customers are putting their kitchen remodels and bathroom upgrades on hold as they turn instead to smaller projects that can be funded in cash, like painting and yard improvements, said Home Depot execs.