Electronics Retailers: A Rebate Rush?

Amid speculation the U.S. stimulus program may boost sales, S&P says the industry's fundamentals are positive. Its top pick: Best Buy

The first of the tax rebate checks were mailed in late April. David Wyss, S&P's chief economist, believes the U.S. economy will begin to benefit from the spending of these tax rebate checks. "We still expect the tax rebate checks to be spent quickly. Americans may say that they are going to save the money or use it to pay down debt, but even those who do pay down their credit card balances are likely to build them back up rapidly, in our opinion. Analysis of the 2001 tax rebate suggests households spent about 60% of the rebate within 90 days."

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