Bed Bath & Beyond Was a Monster in the Stock Market Today. Here's Why. The home-goods company had a massive day on Wall Street.
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Bed Bath & Beyond Inc. was a monster in the stock market today, rising 16.56 percent -- by far the biggest gain on the Entrepreneur Indexâ„¢.
The specialty retailer beat earnings estimates by only a penny, but gave a surprising outlook on 2019. The company said it expected earnings for this year to be about the same as 2018 while Wall Street analysts were expecting profits to fall by 20 percent. The stock has been a dog for investors over the last year, falling 33 percent, but it is now up 35 percent since Christmas.
Activity on the broader stock market was once again muted today, though the major indexes did post gains for the fifth day in a row. The Dow and S&P 500 indexes were up 0.51 percent and 0.45 percent respectively, while the Nasdaq Composite index rose 0.42 percent. The Entrepreneur Indexâ„¢ ended the day up 0.48 percent.
Bed Bath and Beyond's big day didn't help the rest of the retail sector. Shares in Macy's Inc, one of the largest department stores in the U.S. were down 17.7 percent after it reported disappointing holiday sales. That dragged down other retailers, though Walmart and Dollar Tree Inc. the two largest retailers on the Entrepreneur Indexâ„¢, were up 0.07 percent and down 0.78 percent respectively.
Gap Inc. fell 3.07 percent today. The stock has been pin-balling lately as investor sentiment on economic growth and trade talks between the U.S. and China swings from optimism to uncertainty. Gap shares are down 21 percent in the last year.
The clothing makers got a dressing down today, with L Brands taking the worst of it. The maker of Victoria's Secret lingerie had the biggest decline on the Entrepreneur Indexâ„¢, falling 4.32 percent after it too reported weak sales in the holiday season. Ralph Lauren Corp. (-2.38 percent), and Under Armour Inc. (-0.1 percent), were also down on the day.
The technology sector had another relatively quiet day. Only five of the thirteen tech stocks on the Entrepreneur Indexâ„¢ had moves of more than one percent. Twitter had the biggest gain in the sector, rising 2.6 percent after getting an upgrade from a Bank of America Merrill Lynch analyst. TripAdvisor Inc. had the biggest loss, falling 0.48 percent.
Oil and gas producer Hess Corp. is now rising on fumes. The stock, which is up over 40 percent since Christmas, was up another 3.55 percent today, despite the price of oil rising just 0.23 percent. Investors are piling into the energy sector as production cuts by Saudi Arabia have firmed up oil prices.
Other significant gains were posted by Regeneron Pharmaceuticals, (2.12 percent), Chipotle Mexican Grill, (2.23 percent) and Jefferies Financial Group, (1.94 percent).
Other notable declines included Wynn Resorts, (-2.6 percent) and Estee Lauder Companies, (-1.98 percent). Homebuilder D.R. Horton Inc. was also down 1.19 percent after posting the biggest gain on the Entrepreneur Indexâ„¢ yesterday.
The Entrepreneur Indexâ„¢ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.
