What Josh Brown was buying and selling during the market's 2-day Trump rout
As the market sells off for a second day on the heels of President Donald Trump’s new tariff regime, Ritholtz Wealth Management’s Josh Brown is making moves on some stocks. The Dow Jones Industrial Average tumbled more than 1,000 points for a second day Friday, falling more than 4%, while the S & P 500 and the Nasdaq Composite each moved more than 5% lower. This follows Trump announcing a “reciprocal tariff” policy Wednesday, imposing a 10% baseline tariff as well as stiffer rates on countries like China and Vietnam . Amid that volatility, Brown has bought shares of mortgage company Rocket Companies , believing it’s “uniquely positioned” to benefit from a surge in mortgage refinancings if and when the Federal Reserve lowers borrowing costs later this year. Traders are suddenly pricing in at least four interest rate cuts in 2025 in response to an expected economic slowdown. “Who benefits the most if we were to see five Fed rate cuts, or even directionally, if we got three or four, and the answer is obvious, you’re going to get a refi boom,” Brown, the Ritholz CEO, said during CNBC’s ” Halftime Report ” Friday. “You’re going to get action in the existing home sales market. You’re going to see people take advantage of that, especially if they’re struggling.” Over the last month, Rocket has announced plans to acquire competitor Mr. Cooper and real estate company Redfin . In that period, Rocket’s shares have climbed more than 14%, and it’s 40% higher over the past three months. RKT 3M mountain RKT, 3-month “This is the type of company that benefits if mortgage rates come down meaningfully, and we get a refi boom, and we break that logjam of all of these homes not on the market that need to be,” he continued. Additionally, Brown has gone long on Amazon , Uber and Chevron , all of which he predicts “will be standing at the end of the trade war.” Each of the names have weakedned in recent weeks, with Amazon and Uber shedding about 13% to 14% in the past month and Chevron falling almost 4%. Chevron shares pulled back more than 6% Friday, bringing its week-to-date loss to 12%. That comes amid U.S. oil prices falling to their lowest level since 2021 , driven in part by concerns of an economic slowdown and partly due to promised increases in production by OPEC+. By contrast, Brown has sold shares in stock market operator Nasdaq , which is down more than 11% over the past month and about 7% this week alone. NDAQ 1M mountain NDAQ, 1-month “The only way that stock works is if the capital markets are unfrozen and we get deal volume back. Obviously, the events of the last couple of days, they have to change your mind about that,” Brown said. “I may revisit, but right now is a ‘greatest hits’ moment.” “You really want to be focused on things like long-term core holdings that have come down 15%, 20% where, if you’re going to be in it anyway, you might as well have more stock and lower your average price,” he continued. Get Your Ticket to Pro LIVE Join us at the New York Stock Exchange! Uncertain markets? Gain an edge with CNBC Pro LIVE , an exclusive, inaugural event at the historic New York Stock Exchange. In today’s dynamic financial landscape, access to expert insights is paramount. As a CNBC Pro subscriber, we invite you to join us for our first exclusive, in-person CNBC Pro LIVE event at the iconic NYSE on Thursday, June 12. Join interactive Pro clinics led by our Pros Carter Worth, Dan Niles and Dan Ives, with a special edition of Pro Talks with Tom Lee. You’ll also get the opportunity to network with CNBC experts, talent and other Pro subscribers during an exciting cocktail hour on the legendary trading floor. Tickets are limited!
