Sometimes we forget that the housing market affects more than just, well, housing. Indeed, home improvement businesses have been having difficulty at this time as falling home values and other conditions make it more difficult for home owners to get home equity loans for home improvement. Additionally, the economic climate has many consumers putting off large purchases. MarketWatch reports on the situation Lowe’s is in:

While consumers continued to curtail buying of orders above $500, the Mooresville, North Carolina-based company said it’s seen some improvement in some of its worst-hit housing markets including in California, Florida and areas of the desert Southwest. Lowe’s shares zigzagged in pre-market trading and last traded up 2%.

“The broad-based pressures of the macro environment are clearly evident in our sales as consumers continue to delay large purchases until they feel better about the economic outlook,” said Chief Executive Robert Niblock.

Of course, it is encouraging that Lowe’s is seeing some improvement in areas like California. It means that things are starting to pick up — at least a little bit. Lowe’s issues (and the likelihood that rival Home Depot will report its profits down tomorrow) are not stopping the stock market as whole, though. The Dow has surged ahead more than 125 in early trading on the news that retail sales have improved, and expectations that consumer spending will pick up by the end of the year.