Check out the companies making headlines in midday trading.
Tesla – The electric vehicle giant slid 6.4% after Bloomberg first reported Tesla planned to cut output of its Model Y by more than 20% in its Shanghai plant this month. China-based electric vehicle maker Xpeng fell 1% in response.
VF Corporation – The company behind brands such as The North Face and Timberland dropped 11.2% after it lowered expectations for revenue and earnings in the second half of the year and announced its CEO was retiring.
Marriott – The vacation property behemoth dropped 2.2% following the announcement of a proposed $500 million private offering for convertible senior notes, which have the option to be turned into company equity, due in 2027.
United Airlines, Delta Airlines – United gained 2.6% following a Morgan Stanley upgrade to overweight from equal weight on the notion that 2023 could be a “goldilocks” year for the airline. Delta added 0.2% after being named a top pick by the firm.
Science Applications International – The information technology company gained 4.3%, hitting a 52-week high, after it reported revenue and per-share earnings above expectations. The company also positively revised full-year estimates for both.
Silvergate Capital — Shares dropped 8.5% after Morgan Stanley downgraded the crypto bank to underweight from equal weight, saying there is more revenue pressure following the FTX fallout.
Signature Bank — The stock declined 7.4% after Morgan Stanley downgraded it to equal weight from overweight. Morgan Stanley expects funding costs to jump “significantly” over the next several quarters as Signature works to retain deposits from customers. Crypto exposure also remains a “key risk” for the bank.
Activision Blizzard – Shares of the online gaming company added 0.8% on news reports that Microsoft
would defend its $69 billion acquisition deal in court. Microsoft was down 1.9%.
MGM Resorts International - The casino company rose 1.9% after Truist upgraded MGM to buy from hold, citing a strong events calendar in Las Vegas over the next two years. The company could also be benefitting from renewed optimism about China relaxing its Covid restrictions, which could boost travel to Macau and other casino hubs.
Starbucks – The coffee chain’s stock shed 1.4% following a downgrade by Deutsche Bank to a hold from a buy rating. The bank said the setup for gains is unfavorable following the recent climb in Starbucks’ stock.
Alibaba, Pinduoduo - Shares of Chinese companies listed in the U.S. rose after China loosened more Covid restrictions to accelerate the reopening of the economy. Alibaba climbed 0.5%, and Pinduoduo jumped 1.7%. Many Chinese stocks pared earlier gains, however, as the broader market sold off amid fears of aggressive monetary tightening.
Clovis Oncology – The biopharmaceutical company focused on cancer agents dropped 15.2% as investors continued responding to a disclosure filed last week showing the company expects to file Chapter 11 bankruptcy in the near future.
— CNBC’s Sarah Min, Yun Li, Jesse Pound and Samantha Subin contributed reporting