Bed, Bath & Beyond plunges, jobless claims and more: Thursday's 5 things to know
Traders will also be closely watching retail-related earnings including BJ’s Wholesale Club, Kohl’s, Estee Lauder and more
Northwestern Mutual Wealth Management CIO discusses the shift in consumer spending and if the recession will deepen on 'The Claman Countdown.'
Here are the key events taking place on Thursday that could impact trading.
BED, BATH & BEYOND: Shareholders of the retailer have been on a rollercoaster ride the past couple of days. Shares are 12% lower in premarket trading following an earlier 45% surge. At the root of the wild swings is investor and GameStop Chairman Ryan Cohen who filed for a proposed sale of his stake in the struggling home goods retailer.
Cohen's venture capital firm RC Ventures, the second-largest investor, said it intends to sell 9.45 million shares, including options.
His venture capital firm on Tuesday bought call options expiring in January 2023 on 1.67 million shares with a strike price ranging from $60 to $80.
BED BATH & BEYOND SLIDES AFTER RYAN COHEN FILES FOR STAKE SALE
Bed Bath and Beyond store sign. (iStock / iStock)
On Wednesday, the shares rose to $30 and closed down at $23.08. The stock had lost more than 60% of its value in June and July.
WOLFSPEED: Shares of the chipmaker are gaining 22% in premarket trading. The developer of wide bandgap semiconductors, focused on silicon carbide and gallium nitride materials topped Wall Street revenue and profit estimates. Revenue rose 57% to $228.5 million in the fiscal fourth quarter ended June 26. The analyst estimate was $207.8 million.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WOLF | WOLFSPEED | 8.87 | -1.07 | -10.76% |
The non-GAAP diluted net loss per share was 2 cents versus the estimate of 10 cents. For its first quarter of fiscal 2023, Wolfspeed targets revenue in a range of $232.5 million to $247.5 million.
TARGET CEO ON RETAILER'S INFLATION, INVENTORY PROBLEMS
EARNINGS: The parade of retail-related earnings continues Thursday, with BJ’s Wholesale Club, Kohl’s, Estee Lauder, Coach and Kate Spade parent company Tapestry reporting ahead of the opening bell. In the afternoon, watch for results from discount department store chain Ross Stores, along with semiconductor equipment maker Applied Materials.
JOBLESS CLAIMS: The Labor Department will release its tally of new claims for unemployment benefits for last week, expected to show a tight jobs market that continues to cool. Expectations are for 265,000, up slightly from the previous week and the highest in more than nine months.
Someone completing an unemployment benefits form. (iStock / iStock)
Continuing claims, which track the total number of workers collecting unemployment benefits, are expected to nudge higher for a third month to 1.438 million.
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HOME SALES: The National Association of Realtors is expected to say that sales of previously owned homes fell 4.5% to a seasonally adjusted annual rate of 4.89 million units in July.
A home sits for sale in Geneva, Illinois, June 23, 2009. (REUTERS/Jeff Haynes / Reuters Photos)
That would be the sixth straight monthly drop, and the lowest reading in more than two years. It would also mark a 24.6% decline from January when sales were humming along at a 6.49 million annual pace.