Please ensure Javascript is enabled for purposes of website accessibility

2 Stocks That Rose Above a Flat Market on Wednesday

By Eric Volkman - Updated Dec 18, 2019 at 9:21PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Developments at home and abroad are lifting the value of two noted companies on the exchange.

Say this for stock market trading in December -- it hasn't lacked for incident and drama. This week, we've been witnessing healthy doses of both among the market's top stocks, and Wednesday was more of the same, even if the markets ended up basically trading sideways in the end.

There was a full-scale shake-up in the executive ranks of a well-known retailer, and a political move on the other side of the world had big repercussions for U.S. companies in a particular industry. Let's take a look at two stocks that were affected by these happenings.

A man and a woman smiling and jumping in the air.

Image source: Getty Images.

Bed Bath & Beyond

The shaker-upper was Bed Bath & Beyond (BBBY 8.08%), which announced a set of changes in its C-suite. Investors showed their approval of this move by trading the stock up almost 5% on the day.

Five top managers are departing their positions: the company's chief merchandising, marketing, digital, legal, and administrative officers. This follows the resignation of the chief brand officer last week. Interim executives are filling these jobs, and all (including the newly combined chief marketing and brand officer) will get permanent replacements.

"This is the first in a number of important steps we're taking," the company said in the press release detailing the change. "Balancing our existing expertise with fresh perspectives from new, innovative leaders of change, will help us to better anticipate and support our customers in their life journeys and shopping needs."

That would be good, because Bed Bath & Beyond is a banner victim of the retail apocalypse. The company hasn't modified its approach enough to thrive in a world where e-commerce is growing ever more prominent. It also hasn't shown much imagination in drawing customers to its brick-and-mortar stores, a requirement for survival in this age.

At least newish CEO Mark Tritton is clearing house, and setting the stage for new managers who might bring fresh ideas to this fairly tired retailer. Bed Bath & Beyond could use a thorough spring-clean given its stagnating top line and recent lack of profitability.

I don't think we should get too excited about the stock until we see if and how these changes filter down into the company's results, though.

Wynn Resorts

Wynn Resorts (WYNN 1.29%) scored a win in the biggest casino market in the world. With the victory, its shares traded up by nearly 4% on Wednesday.

Said market is China's Macao, essentially Asia's version of Las Vegas. The People's Bank of China announced on Wednesday, subsequent to a visit there by the nation's president, Xi Jinping, that it was raising the Macao-mainland China remittance (i.e., money transfer) daily limit by over 50%, to 80,000 yuan ($10,263) from 50,000 yuan ($6,415).

Since mainland Chinese are by far the largest single group of visitors to Macao, this raise will almost certainly have an effect on their gambling and spending habits in the enclave.

Wynn, one of the six concessionaires allowed to run casinos there, badly needs a boost -- in its most recently reported quarter, the company revealed that the operating profit of its Macao properties had declined by 39% year over year.

It nearly goes without saying that this latest development is a positive one for all concessionaires (these include -- despite its name -- Las Vegas Sands and MGM Resorts International).

I wouldn't say, though, that it's exactly a game changer for Wynn. Macao is a tough, crowded market where operators really need to be at the top of their game to keep the profits flowing. Remittances benefit everyone equally, so they're not enough on their own to push Wynn ahead.

This news is certainly good for Wynn and its peers, but I wouldn't buy any of their shares on that alone.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Wynn Resorts, Limited Stock Quote
Wynn Resorts, Limited
WYNN
$65.26 (1.29%) $0.83
Bed Bath & Beyond Inc. Stock Quote
Bed Bath & Beyond Inc.
BBBY
$9.23 (8.08%) $0.69

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
344%
 
S&P 500 Returns
120%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/28/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.