While the markets were down big on Friday, Bed Bath & Beyond (BBBY 5.94%) enjoyed a good day, gaining 5.9%. It had been up as high as 13% just after the opening bell.
It was among the relatively few stocks that did well on Friday as the Dow finished the day down 3%, while the Nasdaq Composite fell 3.9%, and the S&P 500 dropped 3.4%.
It was a terrible day on the markets as investors reacted negatively to a speech by Federal Reserve Board Chairman Jerome Powell at its Jackson Hole, Wyoming, meeting. Powell’s speech confirmed what many had expected: that the Fed would take a hawkish stance toward lowering inflation.
But concerns of a recession did not hurt Bed Bath & Beyond, at least not Friday. On Tuesday, The Wall Street Journal reported that the beleaguered home goods retailer was arranging funding to help shore up its cash flow, because it has been hurt by inflation and a drop in consumer spending. The stock surged Wednesday on the news.
Bed Bath & Beyond’s stock price jumped this morning after it released a statement saying it will hold a conference call on the morning of Aug. 31 to provide a “business and strategic update.” There might be mention of the reported financing arrangement, among other initiatives. The market embraced the news today, as the price surged at the opening bell.
It has been a rough road for Bed Bath & Beyond; the stock is down 26% year to date and 61% over the past 12 months. Next Wednesday morning’s update should provide at least some clarity on where it goes from here.
Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.