Bed, Bath & Beyond gets meme treatment, rises almost 40%, Missed Revenue Slams Nvidia
As broad markets keeps eye on CPI, meme traders drive the news
US stocks closed mixed on Monday following volatile trade in the S & P 500 and a lull in earnings reports and company news, but the broader market's uncertainty yielded to the meme stock crowd, driving up the likes of AMC (US:AMC) and GameStop (US:GME).
The S&P 500 fell 0.1%. Big losses in Nvidia (US:NVDA) weighed on chipmakers and the broader Nasdaq, which dipped 0.1%. The Dow Jones Industrial Average ended up fractionally.
Fed watchers got a few more tea leaves to read when the New York Federal Reserve Banks reported that consumers' US inflation expectations eased according to its latest survey.
Americans' July prognostication for the inflation rate over the next three years is 3.2%, down from 3.6% the previous month. Consumers expect this year's inflation to end at 6.2%, down from 6.8%.
The central bank keeps a close eye on consumer inflation, believing wages and prices will spin out of control if they grow too fast or too much. If it grows too fast, economists describe inflation as "unanchored."
The chipmaker cautioned on Monday that it would miss its previous second-quarter earnings guidance by 17%, and it would report $6.7 billion revenue for its July-ending fiscal second quarter, less than the forecast $8.1 billion, citing weak gaming results. The new figure is above the year-ago comparables.
Attention Wal-Mart (US:WMT) shoppers; Meal kit firm Blue Apron (US:APRN) says it's begun selling its wares at the iconic Arkansas retailer, still trying to turn up the cool factor. Blue Apron shares rose 13.3%
Pfizer (US:PFE), a household name after its pioneering COVID-19 vaccine, said it's buying Global Blood Therapeutics for $5.4 billion, buying its way into the exploding market for treating sickle-cell disease.
Pfizer is paying $68.50 cash for the company, which has one of just a handful of treatments approved by the US Food and Drug Administration to treat the disease.
Pfizer shares closed up 0./6%
And the meme stock investors were banging the pots and pans again for the likes of AMC Entertainment and GameStop. The followers fell in line and drove up the stocks, absent any market-moving news, by 8% and 8.6%, respectively.
Bed Bath & Beyond took the starting role among the do-it-yourself crowd, Inc. shares (US:BBBY) ended up just shy of 40%, still of the day's highs of 45%.
Talk on Redditt's WallStreetBets, the unofficial newswire for meme traders, focused on a user's posts. His analysis showed favorable developments since investor Ryan Cohen took an equity stake in the home goods retailer.
Inflation data came from Tyson Foods on Monday when it said higher inputs and labor costs are butchering margins.
The firm that sells hot dogs, chickens and other meat products shares fell 8.5%
The largest US meat processor's shares fell 8.4%.
In more kitchen-related news, on Thursday, appliance maker Whirlpool (US:WHR) said it's buying garbage-disposal business Insinkerator for $3 billion cash. The companies expect the deal to close in the fourth quarter and add $1.25 a share to Whirlpool's earnings next fiscal year.