Yesterday, the stock of the day was Best Buy (NYSE:BBY) which posted earnings that beat the street by $0.14 and also, management issued a special $0.51 dividend while raising its quarterly dividend by 21% and commencing upon a $1 billion share buyback. However, none of these are why BBY is the stock of the day.
In December 2012, BBY was crashing, plunging to decade old lows as everyone wrote off the business model as obsolete in an online world. Management made changes and the stock is now enjoying a major resurgence.
These days, many are writing off America for multiple reasons, but all are agreeing that the best days are behind us. America is not an electronics supply store, it is a nation with a $17 trillion economy and the best people in the world. Even after a full frontal assult to several pillars of America's greatness, we stand tall. People don't have to invest in the market because I say it's the way for them to change their lives for the better; but if they are not investing, it's because they think America irrevocably broken.
Let me say again…America is not an electronics supply store.
The markets are making time ahead of the big jobs report on Friday. On that note, ADP released its own jobs report this morning. Immediately, you notice not only how low the number is, but the trend of sequentially lower job tallies. Even with a 30,000 increased revision, the ADP number speaks to a tepid recovery in jobs that can't keep up with birth rates, let alone all the jobs lost during the Great Recession.
It should be noted this is also the lowest number since May of last year.