Stock Markets Fall Sharply Thursday Morning as Weak Earnings Hit Bed Bath & Beyond, Walgreens Hard
The stock market has done well lately, but Thursday morning brought a quick reversal to its recent gains. New data showed that first-time claims for unemployment benefits remained at elevated levels, with this week's 1.31 million number extending a streak of more than 1 million claims every single week since mid-March. Just after 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 409 points to 25,658. The S&P 500 (SNPINDEX: ^GSPC) had fallen 39 points to 3,131, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) had dropped 69 points to 10,424.
Earnings season is just about to ramp up again, and a couple of companies got an early start on telling investors how they're faring. Unfortunately, both Bed Bath & Beyond (NASDAQ: BBBY) and Walgreens Boots Alliance (NASDAQ: WBA) weren't able to satisfy their shareholders. That could set a negative tone that could dampen hopes for a summer stock market rally.
Bed Bath & Beyond's shares plunged 23% Thursday morning as investors reacted to its release of fiscal first-quarter results late Wednesday night. It wasn't surprising to see the home goods retailer's numbers come in weak, but the extent of that weakness shocked many who follow the stock.
Source Fool.com
