2 Consumer Stocks Absolutely Crushed the Falling Market Friday

The stock market lost ground on Friday, as a strong reading on the employment front sent bond prices reeling and had some investors second-guessing whether the Fed would be as accommodative as previously thought. Losses weren't that bad for the Dow Jones Industrial Average (^DJI 0.61%), but the S&P 500 (^GSPC 1.07%) and Nasdaq Composite (^IXIC 1.44%) were both down more than 1%.

Data source: Yahoo! Finance.

Even on a poor day on Wall Street, a couple of well-known consumer stocks fared well. Nordstrom (JWN 5.53%) jumped on some speculation related to a high-profile investor who became interested in the department store retailer's shares. Meanwhile, Clorox (CLX 1.38%) climbed sharply after releasing a favorable earnings report. Below, you'll see all the details you need to find out more about what Nordstrom and Clorox did to deserve shareholder love on Friday.

Ryan Cohen loves Nordstrom

Shares of Nordstrom finished Friday up 25%. The gains came amid news that the upscale department store operator's stock had attracted the attention of an investor known best for meme stock success.

Billionaire activist investor Ryan Cohen has taken a large stake in Nordstrom stock, according to reports from The Wall Street Journal. Other sources looking more closely at the situation speculate that Cohen wants to press for changes in Nordstrom's Board of Directors, which includes former Bed Bath & Beyond (BBBY) CEO Mark Tritton. Cohen previously made moves to seek change at the home goods retailer, although he reportedly exited his position in that stock before its most recent tumble.

For Nordstrom's part, a spokesperson for the retailer told reporters that Cohen hasn't had any direct discussions with Nordstrom executives for several years. However, the company is open to hearing any views the activist investor might have as it does with its other shareholders. Investors can expect Nordstrom to take action in its best interests.

As recently as a month ago, Nordstrom stock had traded near lows last seen at the beginning of the COVID-19 pandemic in early 2020. Now, the retailer has some upward momentum, and it'll be interesting to see if Cohen's overtures amount to anything.

Clorox cleans up

Shares of Clorox rose 10%. The maker of bleach and other household goods reported solid fiscal second-quarter financial results late Thursday.

Clorox's numbers for the period that ended Dec. 31 were pretty attractive in the current environment. Net revenue was up just 1% to $1.72 billion, reversing declines in the year-ago quarter. However, a big rise in gross margin of more than three percentage points to 36.2% helped boost adjusted earnings to $0.98 per share, up 48% year over year.

CEO Linda Rendle attributed the strong performance to several factors. Clorox was able to use its pricing power to pass through certain cost increases to consumers, and it also worked hard to save on expenses in order to bolster its bottom line. Inventory reduction efforts worked well, and Clorox introduced new eco-friendly product lines that are connecting effectively with more environmentally conscious consumers.

Best of all, Clorox boosted its guidance for fiscal 2023. The company now expects sales to be between up 1% and down 2% from fiscal 2022 levels, which is a slight narrowing toward the upper part of Clorox's previous sales range. Adjusted earnings of between $4.05 and $4.30 per share would be somewhere between $0.08 and $0.20 per share better than Clorox thought earlier and dramatically increases the chances of a year-over-year rise. With more upbeat times ahead, investors like the prospects Clorox offers heading into 2023.