Stocks trending after the close: Hasbro, Boeing, Bed Bath & Beyond
Yahoo Finance Live breaks down the action surrounding several trending stocks after the closing bell, including Hasbro's announced job cuts, Boeing's outlook to add jobs, and the looming possibility of liquidation for retailer Bed Bath & Beyond.
JARED BLIKRE: --as we head into the final closing bell of this week.
SEANA SMITH: Well, that, wraps up the trading week, and the Dow able to hang on to those gains with all three of the major averages ending in the green-- ending in the green for the day and also for the week.
Taking a look, the Dow up 27 points today. S&P up just about a quarter of a percent. The NASDAQ up about 1% with tech outperforming for the majority of the week.
Let's take a look at some of the day's top movers. Hasbro-- let's talk about that stock-- is tumbling today as the company reported prelim fourth-quarter results. We're looking at losses of just about 8%. Now the toymaker expecting fourth-quarter revenue, which includes that very important holiday season for this business, to fall 17% from the year prior.
Now, Hasbro also signaling that the tech industry is not the only sector start far from to rebalance its workforce. The 100-year-old toy company planning to cut 15% of its global workforce. Hasbro hoping cutting those positions, a thousand positions, could save it up to $300 million annually by 2025.
And, Jared, in those cuts, the president and COO is going to be leaving as well. They clearly needed to adjust their business to cut some costs. Wall Street seems to be a little bit mixed in terms of what we could expect from Hasbro over the next couple of months. Jefferies is saying it's going to be a painful period, but they're more confident that Hasbro is going to come out with higher margins, that you will be rewarded if you stick with it.
On the flip, side Truist a little bit more of a negative view. They're not too optimistic that that growth is going to continue.
JARED BLIKRE: Yeah, I think it's going to be interesting to see what happens with some of these companies in the retail space because the layoffs, they hit the tech space first, some of those fringe jobs. Then they hit the manufacturing space, the industrials, and then the retail takes a hit. So we'll have to see if that happens.
Just taking a look at the YFi Interactive here, I was looking at a retail screen-- we've got that up-- over the last five days. Lots of green right there, but you contrast it with the industrials. I was taking a look at them as well. Boeing doing really well, but I think it's kind of-- or excuse me, Boeing has done very well this year, but I think they're kind of an outlier giving their checkered history and their bounce back from the 737 Max disaster.
DAVE BRIGGS: The news, of course, about Boeing that they, unlike Hasbro, complete opposite reaction to the economy. They are adding 10,000 workers this year. So you ask yourself, what is happening overall with the workforce in this country?
Outside of tech, we haven't seen a whole lot of layoffs. That's why Hasbro raised so many eyebrows. You had 3M as well cutting 2,500. So it looked like the trend was starting to pick up, and then Boeing comes out with this massive number.
They're not alone. United will hire 2,500 pilots this year. Southwest, as much struggles as they've had, they will hire this year. We just learned that Chipotle-- burrito season, which is March to May. I did not know there was a burrito season.
SEANA SMITH: Me neither, and I'm excited about it.
DAVE BRIGGS: They are hiring 15,000 workers. So it will be interesting as we push forward towards another jobs number next week. What are we going to see? Doesn't look like a big tick down on the unemployment rate. These layoffs have been relatively small, for the most part. In particular, Boeing's hires outweigh just about all the layoffs we've seen over the last week.
SEANA SMITH: Yeah, certainly. And it will also be interesting to see whether or not some of these companies who are hiring, whether or not they'll be able to find the workers that they need or the workers that they are hoping to get, given the labor shortage.
All right, elsewhere in retail, let's talk about Bed Bath & Beyond because news coming out of the potential bankruptcy filing here. The stock closing up just about 1% today. Bloomberg reporting that the retailer has been unable to find a bankruptcy buyer and could be facing liquidation. Our own Brian Sozzi also reporting this afternoon that Bed Bath & Beyond is closing all of its Harmon brand stores.
We're looking at gains today. Dave, it almost seems like the safest way to put this, bankruptcy seems imminent. It's all just a question of time at this point and what exactly it's going to look like.
Without question. I think my biggest questions are more, what are they going to do with the assets? What are they going to do with the real estate? That is a massive amount of real estate across this country.
I thought interesting side note. If, in fact, they do file, who will benefit from their exit? Well, the note from Oppenheimer today says Target stands in line to benefit the most from the exit. So they got a little pop from that, and I think Target could also benefit, quite frankly, if Party City has to file as well. See a little bit of their business.
Jared, it looks inevitable. More a question of when, not if.
JARED BLIKRE: I think so, and something surprised me. I was just looking at the YFi Interactive at our retail heat map once again. I was just showing this. I sorted by performance because Bed Bath & Beyond too small to be seen. Guess what? It's positive on the year, one point-- up 1.6%, and that's after the nasty drubbing that it's taken over the last few days. Basically a penny stock, so not much more to comment on there.
If they have to liquidate, it's going to be a situation that we haven't seen like-- we were talking about some analogs in the global financial crisis. I think Circuit City was a name, and there are some others there. So we'll see.