I mean, when they file, the equity will be worthless.īRAD SMITH: A lot of retail traders out there are kind of asking about why media covers Bed Bath & Beyond the way they do. And so the fact that the stock is up since they reported earnings is nonsensical, in a word, quite frankly. Now there's a report that they're working with Sycamore Partners on a prepackaged sale of assets, probably Bye Bye Baby. I mean, it's been very widely reported in the press that they are working with AlixPartners. I mean, Bed Bath & Beyond is going to go bankrupt. And I will say, what is going on with Bed Bath & Beyond just the past few days of what's gone on with their stock price, it is a living, breathing example of the need for financial literacy education in the United States. I've been thinking a lot about Bed Bath & Beyond lately. So we're starting to think that we may see a risk-on trade because it's looking to us like there's a higher probability that we have a soft landing in 2023.īRIAN SOZZI: Anthony, well, if the consumer is going to hang tough this year and maybe surprise a few folks, what does it mean for companies trying to turn themselves around like a Bed Bath & Beyond? Can they survive?ĪNTHONY CHUKUMBA: Well, Bed Bath & Beyond's a very, very unique situation. They're now down in the low kind of $3 range. So the Fed's interest rate increases are clearly working.Īnd in addition to that, gasoline prices continue to decline. That was down 60 basis points from the prior month, 130 basis points from two months prior. Now, the housing market is tough.īut the main thing is that inflation continues to come down, right? So the latest reading was 6.5%. And I will tell you, the last few months we are getting more and more bullish on the consumer.įirst off, the employment market remains incredibly robust. We call it the "Eye on the Consumer." It's just a bunch of different macroeconomic variables that we keep track of to gauge where the consumer's head is at. What is the state of the consumer? And what does it mean for some of the retailers that you cover?ĪNTHONY CHUKUMBA: Sure. So you've done a lot of work on the consumer. So is it time to get more bullish on the consumer and, by extension, retail stocks? Let's check in with Loop Capital Managing Director and friend of the show Anthony Chukumba.Īnthony, always great to get some time with you here. BRIAN SOZZI: All right, the US economy isn't in a recession just yet, as seen in today's big bank results.
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