Why Target, Walmart, and Bed Bath & Beyond Were Sinking Today
As investors digested the $1.8 trillion coronavirus rescue bill that Congressional leaders agreed to this morning, stocks were mostly flat. However, a number of retailers were trading lower on what could have been a "buy the news, sell the rumor" event, as stocks had a record surge yesterday on hopes for a deal. Additionally, a decision by Target (NYSE: TGT) to pull its guidance and suspend share buybacks may have added to fears about the overall sector, as the big-box chain was believed to be one of the retailers better-positioned for the current environment.
As of 10:46 a.m. EDT this morning, Target was down 8.2%, while Walmart (NYSE: WMT) was off 4.6%, and Bed Bath & Beyond (NASDAQ: BBBY) had given up 5%. The S&P 500 was unusually steady after days of record volatility, trading down just 0.1%.
Image source: Getty Images.
Source Fool.com
