Bed Bath & Beyond led advancers with its stock up almost 7 percent. A&P shares closed up 5 cents at $26.81 -- below earlier highs.
Home Depot's stock climbed 89 cents after Merrill Lynch analyst Peter Caruso suggested that the home improvement retailer's same-store sales for the first quarter could exceed the company's guidance. Caruso sees sales strength coming from the wealth effect created by mortgage refinancings, better customer service and innovative merchandising.
Moderator Comment: What are the challenges and opportunities for A&P as it attempts to grow same store sales?
It has gotten to the point that you can pretty much bet on Bed Bath & Beyond to exceed analysts' expectations. A&P's improvement (and stock performance) is testament to Christian Haub and company's focus on closing under-performing stores and their rigorous attention to streamlining operations. Ultimately, however, A&P is going to have to drive more sales through its stores. A half a percentage point increase in comp store sales is not going to cut it for any retailer. [George Anderson - Moderator]