Significant decline on Wall Street – E24

Significant decline on Wall Street – E24

The Bed Bath and Beyond retail chain giant fell nearly 30 percent after the bleak financial outlook.


Status updated

This is how things went for the most important US stock market indices at the close:

  • Standard & Poor’s 500 fell 1.17 percent
  • The Dow Jones index fell 1.01 percent
  • The Nasdaq Composite Index fell 1.47 percent

Wall Street ended higher yesterday, despite the stock market losing momentum after the release of minutes from the US central bank’s December interest rate meeting.

In the minutes, the Fed warned, among other things, that “undue” easing would hurt its efforts to stabilize prices. The central bank still expects interest rates to rise in the future.

Problem with the Bath and Beyond bed

The retail chain announced Thursday that the company is about to run out of money, and that financial problems could lead to bankruptcy.

The stock fell 29.8 percent shortly after the close.

The company writes in its letter that it “continues to evaluate all strategic alternatives.” This includes, among other things, debt restructuring and refinancing, raising new money, selling assets, or filing for bankruptcy protection.

The company further wrote: “These moves may not be successful.”

Bed Bath & Beyond also reported that net sales revenue was significantly lower at the end of 2022, compared to the same period a year earlier.

The company also expects to lose about $386 million in the third quarter, which ended in November.

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The Silvergate cryptobank is raging

Cryptobank Silvergate fell 42.2 percent.

The California-based group reported Thursday that its deposits shrank to $3.8 billion on December 31 from $11.9 billion at the end of September, according to the Financial Times.

Silvergate is a member of the Federal Reserve and is listed on the New York Stock Exchange. The bank has been under severe pressure in the past year after crypto-asset prices plummeted and several major players collapsed into bankruptcy, he wrote. financial times.

Silvergate was an important service provider for Sam Bankman-Fried’s FTX.

Silverjet shares fell 88 percent in 2022.

Surprisingly strong employment numbers

Curbing the sharp rise in prices in the US has been the main objective of the sharp increases in interest rates over the past year. A tight labor market, with strong wage and job growth, has also played a role. This week there will be a number of major job figures.

Employment in the private sector in the United States An increase of 235,000 new jobs In December, figures from the ADP Institute appear. It is well above the 150,000 job increase that analysts had expected, according to Bloomberg.

However, job growth has slowed somewhat since the start of the year, in line with the sharp rise in interest rates.

The figures on private sector employment come ahead of the important non-farm payrolls labor market report, which will be released on Friday. Among other things, it shows how many new jobs were created in the United States last month.

Also came the weekly figures on Thursday which showed that it is 204,000 first-time applicants for unemployment benefits In the US (unemployment claims) last week. It was less than expected.

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Wednesday’s figures showed that the number of job vacancies (JOLTS) fell only slightly to 10.46 million in November.

More Hairstyles from Amazon

Online shopping giant Amazon has announced that the number of layoffs is increasing.

The company will cut 18,000 jobs. Previously, it was known that the online shopping giant would cut 10,000 employees.

Amazon has previously admitted that the company hired too much, too quickly, during the pandemic. In total, the company has about 1.5 million employees.

Many technology companies have laid off employees recently. Salesforce announced on Wednesday at the latest that it will lay off 10 percent of its workforce. Facebook owner Meta announced last November that 11,000 employees would lose their jobs.

Amazon shares fell 2.4 percent.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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