Pedestrians wearing protective masks wait to enter a Disney store in San Francisco, California on Wednesday, December 23, 2020.
David Paul Morris | Bloomberg | Getty Images
Check out the companies that are making headlines in midday trading.
Virgin Galactic – Virgin Galactic shares fell 14% in midday trading after the aerospace company proposed to sell up to $ 500 million worth of common stock. The faint came despite a successful test flight over the weekend with founder Sir Richard Branson. The stock, which trades under the ticker SPCE, was suspended at the beginning of the session due to volatility.
Cheesecake Factory – The restaurant chain’s shares rose nearly 3% after Raymond James upgraded its shares to outperform the market and said the market was underestimating the comeback of full-service restaurants. The Cheesecake Factory has seen a surge in particular in recent months from its footprint states, which have been reopening more slowly, said Brian Vaccaro of Raymond James.
Didi Global, Tencent Music – Chinese stocks extended their sell-offs, with Didi and Tencent each falling more than 4% due to mounting regulatory pressures. China has promised to crack down on domestic companies listed on US stock exchanges and will also tighten restrictions on cross-border data flow and security. The Wall Street Journal reported that ByteDance, the Chinese owner of TikTok, had cleaned up plans to go offshore.
Financial Firms – Financial services companies by and large are still enjoying the rebound in bond yields and the pre-earnings season period when they are expected to see blow results expected in the second quarter. Discover Financial, Morgan Stanley and T. Rowe Price rose more than 3%. Goldman Sachs and Capital One are also trading more than 2% higher.
Travel Sites – Booking sites trade lower as parts of Asia, Europe and Australia reintroduce travel restrictions to protect against the spread of the Delta variant of Covid-19. Expedia’s shares lost 1.2% and TripAdvisor’s shares lost over 3%.
Cruise Ships – Cruise company stocks are also suffering in response to concerns over the spread of the Delta variant and a resurgence of Covid-19 cases. Carnival Corp stock is down over 2% while Royal Caribbean Cruises and Norwegian Cruise Line are down more than 1%.
Disney – The shares of the media giant rose more than 2% after the release of “Black Widow”. The film grossed $ 80 million at the domestic box office, which is the highest of all films released after the pandemic. The latest Marvel movie also grossed more than $ 60 million worldwide in sales through Disney + Premier Access.
Clover Health – Clover’s stock fell 2.5% after JPMorgan downgraded it from neutral to underweight on Monday morning.
Charter – Charter shares fell 3% after Bernstein downgraded the telecommunications and media company from Outperform to Market. “We remain convicted in most of the United States for Charter’s business plans, financial strategies and structural competitive position,” the firm said.
– CNBC’s Yun Li, Pippa Stevens, Hannah Miao and Tom Franck contributed to the coverage
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