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A view outside the Disney store in Times Square on March 22, 2020 in New York City.
Noam Galai | Getty Images
Check out the companies making headlines in midday trading.
American Airlines, Delta Air Lines, United Airlines — Airline shares came under pressure after Warren Buffett said over the weekend his Berkshire Hathaway sold all of its airline stakes due to the coronavirus outbreak. Shares of Delta, United, American Airlines all dropped more than 8%, bringing their 2020 losses to more than 60% each. Southwest and JetBlue both fell 7% on Monday. Meanwhile, Barclays downgraded its ratings on American Airlines and Delta, saying “the future is uncertain on travel demand.”
Disney — Shares of the entertainment company fell 3.6% after MoffettNathanson downgraded the stock to neutral from buy. The firm said in a note that the economic hit to the company would last longer than many on Wall Street are anticipating. Disney has had to close its theme parks and delay releases of new movies due to the virus.
Tyson Foods — Shares of the food company fell 8% after it reported weaker-than-expected earnings for its fiscal second quarter. The company reported 77 cents in adjusted earnings per share on $10.89 billion in revenue. Analysts expected $1.04 in earnings per share on $10.96 billion in revenue, according to Refinitiv. The company, which has had to close some of its plants due to outbreaks of the coronavirus, saw its operating margin decline in multiple segments.
Vornado Realty Trust, Federal Realty, SL Green Realty — Even as parts of the U.S. start to reopen, shopping center operators were major laggards on Monday on concern if the loosening guidelines will draw foot traffic. Vornado Realty dropped more than 4%. Federal Realty and SL Green Realty fell 3.6% and 3.9%, respectively. Mall operator Simon Property Group also ticked more than 2% lower.
Netflix, Microsoft, Amazon — Gains in popular technology companies provided the broader market with some support. Shares of Netflix climbed 3%, while Amazon and Microsoft both rose more than 1%. Apple and Facebook also climbed 0.8% each. Amazon and Netflix were among the first companies in the S&P 500 that fully made back the losses from the coronavirus sell-off as they saw a surge in demand amid lockdowns.
Tesla — Shares of the electric vehicle maker jumped more than 5% after Morgan Stanley auto analyst Adam Jonas raised his target to $680 from $440. The new target is about 8% below where the stock currently trades. The firm has an equal-weight rating on shares of Tesla.
Honeywell — Shares of the industrial company slid more than 2% after Deutsche Bank downgraded the stock to hold from buy. “While execution was commendable in 1Q20, we have a hard time forming an exciting bull case on the stock in this new world order,” the firm said.
Cigna — Shares of the health insurance company fell 2.5% following a downgrade to market perform from outperform at Bernstein. The Wall Street firm said it sees “increased business risks” due to the coronavirus and the recessionary environment. Bernstein slashed its price target for Cigna to $223 per share.
ConocoPhillips — Shares of the energy stock rose as much as 1% on Monday, bucking the broader markets trend, after Goldman Sachs added ConocoPhillips to its “conviction buy list.” Goldman said the company was one of the “best performing” energy stocks.
— With reporting from CNBC’s Yun Li, Jesse Pound and Pippa Stevens.
