Best Buy Co., Inc. (BBY): The Home Depot, Inc. (HD) Beats Estimates and Dow Jones Industrial Average (.DJI) Looks to Snap Losing Streak

Call me crazy, but I haven’t jumped on the Best Buy Co., Inc. (NYSE:BBY) bandwagon yet. The company’s better-than-expected earnings owe largely to cost-cutting measures, rather than impressive revenue growth. That’s not a terrible thing, but it still gives bears reason to believe Amazon is putting a lid on Best Buy Co., Inc. (NYSE:BBY)’s revenue growth. Long-term risks still threaten Best Buy Co., Inc. (NYSE:BBY)’s business model, and the company must stand up to Amazon by reversing its revenue decline and improving its online-shopping position.

Also outside of the Dow Jones Industrial Average (Dow Jones Indices:.DJI), Ford Motor Company (NYSE:F) is up 1.2%, and General Motors Company (NYSE:GM) has climbed 0.7%. The American automakers have had a rough couple of weeks as they take a break from their respective year-to-date stock gains of 25% and 20%.

The full-size pickup segment is the most profitable, and it’s extremely important to the two rival automakers. And as the summer heats, up so have sales. Investors must watch to see whether Ford Motor Company (NYSE:F) increases incentives on its older F-150 to keep up with General Motors Company (NYSE:GM)’s redesigned Silverado. This will have a direct impact on third-quarter profit.

The article Home Depot Beats Estimates and Dow Looks to Snap Losing Streak originally appeared on Fool.com and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford, General Motors, and Home Depot. The Motley Fool owns shares of Ford.

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