Costco, Bed Bath & Beyond Show the 2 Sides of Retail
The stock market remained choppy on Friday morning, as investors responded to the latest numbers on the employment front. With the U.S. economy adding 223,000 jobs in December and the unemployment rate dropping to 3.5%, some market participants fear that the Federal Reserve might choose to hike interest rates further than they want and potentially spark a recession. Others appreciate that the economy has been resilient in the face of tighter monetary policy, though. That debate had stock index futures moving sharply in both directions early Friday before the open of the regular trading session, although it appeared bullish investors might win out as of 9 a.m. ET.
Consumers are responsible for a huge portion of the overall economy, so what happens in the retail industry has a key impact on the broader picture for stock investors. The latest news from Costco Wholesale (NASDAQ: COST) and Bed Bath & Beyond (NASDAQ: BBBY) makes it clear that there are still pockets within retail that face very different conditions from each other, and their shareholders are seeing that more clearly than ever.
Shares of Costco Wholesale were up 3% in premarket trading on Friday morning. The warehouse retail giant reported sales figures for December that showed building momentum through the end of 2022 that shareholders hope will continue into the new year.
Source Fool.com
