Diamonds and Dogs
Bed Bath & Beyond (BBBY) soars on hiring of new CEO. The home goods retailer is jumping 20% after naming Mark Tritton as their new CEO. Mark is a three-decade retail veteran who was credited for launching Target's private label development. He was also a former executive at Nordstrom. Tritton's task will not be easy, needing to cut costs, improving inventory turnover and reversing negative sales trends. Comparable-store sales have fallen for three straight fiscal years at the company.
Delta Air Lines (DAL) lower following earnings. Delta is down 3% even though the company beat expectations as sales rose 5.1% to $12.56 billion. The culprit seems to be guidance as management was less upbeat about the current quarter. Investors fear a looming economic downturn that could cut into airlines' profits. However, the stock seems to be pricing in a lot of bad news. The stock currently trades for 7 times earnings, less than 1 times sales and sports a dividend yield of over 3%. Not bad