Stock Market

In this article

A shopper walks past a Bed Bath & Beyond Inc. store
Andrew Harrer | Bloomberg | Getty Images

Check out the companies making headlines in midday trading.

Bed Bath & Beyond – Shares of the big-box retailer plunged 23% after the company slashed its revenue and earnings outlook amid supply chain challenges and inflation. Bed Bath & Beyond cited a steep drop-off in shopper traffic in August. The stock has wiped out its jaw-dropping meme-stock rally in 2021, falling over 4% on the year. Other retail stocks including Gap, Newell Brands and Bath & Body Works declined as well.

Kohl’s – Kohl’s shares sunk over 13% after Bank of America double-downgraded the stock to an underperform rating from buy, citing persistent supply chain problems. The firm also slashed its price target to $48 per share from $75.

CarMax – Shares of the used vehicle retailer tanked 11% after reporting disappointing quarterly earnings. CarMax reported earnings of $1.72 per share, while analysts expected earnings of $1.90 per share, according to Refinitiv. Used car same-store sales rose 6.2%, lower than the 7.3% forecast.

Virgin Galactic – Virgin Galactic shares soared more than 10% a day after the Federal Aviation Administration cleared the space travel company to resume launches after concluding a probe of an incident during a flight July 11. The FAA determined Virgin Galactic’s flight deviated from its assigned path and had not communicated the change to the agency as required.

Philip Morris InternationalAltria – Shares of Philip Morris and Altria fell about 5% and more than 6%, respectively, after the U.S. International Trade Commission ordered the two companies to stop the sales and imports of their Iqos tobacco device. The agency made the ruling due to a claim by rival R.J. Reynolds that the Iqos product infringed on its patents. The case is moving to administrative review.

Lordstown Motors – The electric truck maker’s shares jumped about 7% after Bloomberg reported it’s close to a deal to sell its Ohio car factory for an undisclosed amount to Taiwan’s Foxconn Technology. Lordstown had bought the plant from General Motors less than two years ago.

McCormick – McCormick shares retreated 1.8% even after the spice maker’s quarterly earnings report beat Wall Street expectations. The company posted adjusted quarterly earnings of 80 cents per share, topping estimates by 8 cents, with revenue slightly above projections. However, McCormick also cut its full-year earnings forecast due to inflation and logistics issues.

Paychex – Payroll services company Paychex saw its share price increase about 5% after it reported strong quarterly earnings and revenue as clients’ employees began returning to in-office work. It also raised its business outlook for the year.

Nvidia, Electronic Arts – Shares of Nvidia and Electronic Arts rallied about 1.2% and 3.9%, respectively after the companies announced Electronic Arts would put more of its video games on Nvidia’s cloud gaming service.

Advanced Micro Devices – Shares of AMD gained 3% after the semiconductor company announced it would expand its collaboration with Google Cloud.

Starbucks – Shares of Starbucks fell 1.2% after Atlantic Equities downgraded the coffee chain stock to a neutral from outperform. The firm said wage inflation and growth concerns in China could weigh on Starbucks’ profit.

— CNBC’s Maggie Fitzgerald, Yun Li and Tanaya Macheel contributed reporting

Become a smarter investor with CNBC Pro
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. 
Sign up to start a free trial today

Articles You May Like

Chicago City Council rejects property tax hike
Gautam Adani indicted in the US for alleged bribery scheme
Weekly mortgage demand inched up, despite higher interest rates. Here’s why
North Korea ‘supplying Russia’ with long-range rocket and artillery systems
Russia fires intercontinental ballistic missile at Ukraine for first time, Kyiv says