We're trimming a Fed rate cut play after a recent rally and ahead of earnings

  • 📰 CNBC
  • ⏱ Reading Time:
  • 25 sec. here
  • 14 min. at publisher
  • 📊 Quality Score:
  • News: 55%
  • Publisher: 72%

Technology News

Breaking News: Technology,Retail Industry,Breaking News: Business

We're not calling for an earnings miss — just protecting against any disappointment in the commentary.

We're selling 150 shares of Best Buy at roughly $89.33 each. Following Monday's trade, Jim Cramer's Charitable Trust will own 950 shares of BBY, decreasing its weighting to 2.52% from 2.91%. We took a position in Best Buy in late March on the view that it would be a key beneficiary from the launch of artificial intelligence-enabled personal computers and devices.

Specific to Best Buy, we think investors rewarded the stock on the view that lower rates will lead to increased housing formation — and in turn, demand for TVs and appliances. But that won't happen right away, and this earnings season hasn't seen great results from housing-related retailers like Home Depot , Lowe's , and Williams-Sonoma . The current 4.3% annual dividend yield, already pretty attractive, only becomes even more so as Treasury yields come down.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Australia Australia Latest News, Australia Australia Headlines