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News of the day for April 20, 2023

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Published April 20, 2023

Bed Bath and Beyond storefront — Getty Images

A bankruptcy report pushed Bed Bath & Beyond shares down by 25% and Tesla shares were down after its price cuts slashed into its profit margins. Here’s what investors need to know today.

1. Bed Bath & Beyond Shares Fall on Bankruptcy Report

Bed Bath & Beyond (BBBY) shares are tumbling 25% in pre-market trading on reports it is preparing to file for Chapter 11 bankruptcy within days. The retailer's bankruptcy would come after its latest fundraising strategy fell short of what it needs.

2. Tesla Shares Down on Earnings Report

Tesla (TSLA) shares are down over 7% in pre-market trading after the EV maker reported that its big price cuts slashed its profit margins. Tesla's gross margins fell to 19.3% in the first quarter from about 29% a year ago and below analyst estimates of about 21%. Tesla revenues came in at $23.3 billion, slightly below analyst estimates of $23.35 billion, with first quarter earnings per share coming in at $0.85, below analyst estimates of $0.86 per share.

3. IBM Shares Up on Revenue, Profit Gains

Shares of IBM (IBM) are up about 2% in pre-market trading after the tech giant posted a mixed quarter as its consulting arm faces some pressure. For the quarter, IBM posted revenue of $14.25 billion, up 0.4% from a year ago, but about $100 million shy of analyst estimates. Profits came in at $1.36 a share, beating expectations by about 10 cents a share.

4. Apple CEO in India to Open New Store, Promote Expansion

Apple CEO Tim Cook met with India’s prime minister Modi as the tech giant seeks to expand in India. Apple opened its second India retail store in Delhi today, two days after opening its first in Mumbai.

5. Economic Growth Slows as Lending Tightens, Fed's Beige Book Says

U.S. employment growth slowed and price increases appeared to moderate according to the Federal Reserve’s Beige Book survey of economic conditions across the country. The survey also found that banks have tightened lending standards, making accessing credit harder following the recent banking turmoil.

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Wall Street Journal. “Bed Bath & Beyond Preparing for Bankruptcy Filing Within Days.”
CNBC. “Tesla shares volatile after hours following Q1 earnings report.”
Barron’s. “IBM Posts Mixed Quarter as Consulting Arm Faces Economic Pressure. The Stock Still Rises..”
Reuters. “Apple CEO meets India PM Modi, commits to growth and investment.”
CNN. “Accessing credit has become harder, Fed's Beige Book shows.”

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