Higher oil prices and a better-than-expected earnings report from Bed Bath & Beyond (BBBY) sent stocks higher today. The Dow closed up 173 points. This was the biggest rally since June 1.
Yesterday, after the market closed, Bed Bath & Beyond (BBBY) reported earnings that beat estimates. For the period ending May 30, BBBY generated a profit of $.34 per share. Analysts were expecting a profit of only $.25 per share.
The better than expected results were due mainly to cost-cutting efforts and strong operating performance at both new and existing stores. Same store sales were down 1.6%, but those numbers could have been much worse considering the state of the economy.
I rate BBBY a buy. Click here for more on the Bed Bath and Beyond earnings story.