JD.com is one of the largest e-commerce and logistics companies in China.
Zhang Peng | LightRakete | Getty Images
Check out the companies that are making the headlines in midday trading.
Didi – Shares in Chinese ride-hailing giant Didi Chuxing plummeted more than 20% after China announced that new users in the country will not be able to download the app while it conducts a cybersecurity review of the company. The investigation came less than a week after the Chinese app was listed on the New York Stock Exchange.
Tencent Music – The US-traded shares of several Chinese companies suffered a hit Tuesday after the country’s regulators initiated a security clearance of Didi. Tencent Music stocks fell more than 8%, while Baidu and JD.com stocks declined over 4%. Kanzhun and Full Truck Alliance, two smaller companies that are also under regulatory scrutiny, lost 16% and 17%, respectively.
Nov – Energy stocks were down more than 6% as oil prices fell. West Texas Intermediate Crude Oil futures hit their highest level in more than six years at the start of the session before turning negative, which by and large weighed on the energy sector. Diamondback Energy was also down around 6%, while Occidental and Halliburton were down more than 6%.
Amazon – The e-commerce giant saw its stock rise more than 3% to lead Big Tech stocks higher despite the general weakness of the stock market. Andy Jassy officially took over as CEO on Monday and Jeff Bezos became Executive Chairman of the board. This crowns Bezos’ monumental run that Amazon has led since its inception in 1994.
3M – Industrial Products stock fell more than 1% after Credit Suisse downgraded it from above average to neutral on concerns about two “difficult to quantify liabilities” weighing on 3M, including legal issues. “Despite the fundamental upside from a cyclical upturn in global IP and a possible rebound in inventories, we believe 3M will find it difficult to regain its premium multiple at this point in the cycle,” said analyst John Walsh.
Pfizer – The pharmaceutical giant saw its shares fall more than 1.5% after the Israeli Ministry of Health reported that its Covid-19 vaccine was less effective at preventing infections and symptomatic diseases due to the highly contagious Delta variant distributed worldwide, including in Israel. Israel also said the Pfizer vaccine continues to be effective in preventing serious diseases.
Apple – The tech giant’s shares rose 0.6% after JPMorgan raised its target price on the stock from $ 165 to $ 170 and said “start buying stocks again.” The company said that despite underperforming in the first half of July through September to the falling iPhone launches, Apple stock historically outperformed the broader market and expects stocks to do the same in 2021.
Tesla – Tesla shares fell 3.7% despite JPMorgan raising its target price for the automaker on Tuesday morning. That change came after Tesla reported on Friday that global shipments were slightly above its model.
Frontier Communications – The telecommunications cable company is up 4% after Goldman Sachs launched reporting with a buy rating, saying it “has a way to create material value while deploying and advancing its fiber optic network.”
– CNBC’s Pippa Stevens, Yun Li, Jesse Pound and Hannah Miao contributed to the coverage
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