Source: Stitch Fix
Check out the companies making headlines in midday trading.
Stitch Fix — Shares of Stitch Fix plummeted nearly 30% after the personal styling service issued a bleak outlook and reported quarterly revenue that missed analysts’ expectations. Stitch Fix reported sales of $451.8 million, below the forecast $452.5 million, according to Refinitiv. Its next quarter guidance is between $465 million and $475 million, while analysts estimated about $506.2 million.
Amazon — The online retail giant rose nearly 2% as the broader stock market recovered a fraction of its historic losses incurred on Monday. Amazon has outperformed the broader market in recent days as the coronavirus fears that have dogged the S&P 500 made online shopping more appealing for those worried about contracting the disease at a brick-and-mortar shop. Amazon shares are down 2.9% over the last week versus the S&P 500’s 7.1% decline. The uptick in Amazon shares also followed Cowen’s move to hike its price target to $2,700, more than 50% upside from current levels.
OneOk — Natural gas company OneOk was one of the biggest losers in the S&P 500 Tuesday morning, falling more than 14%. The company announced an additional $100 million debt offering, on top of a $1.6 billion offering it announced March 5. Natural gas futures rose Tuesday but are still down over the past three weeks.
Royal Caribbean, Norwegian Cruise Lines — Cruise line stocks fell again on Tuesday despite the slight rise for the broader market as the coronavirus outbreak continues to hurt demand for travel. Royal Caribbean plunged 11%, while Norwegian dropped 9%. Royal Caribbean withdrew its full year guidance on Tuesday morning and announced that it had increased its revolving credit by $550 million and would be cutting capital expenditures over the next two years. Norwegian announced a new $675 million credit agreement with JPMorgan on Monday. Carnival also fell more than 1%.
American Airlines — Shares of American Airlines rose 1.3% after the company said it’s slashing international and domestic flights as the coronavirus dents travel demand. American said it will shave 10% off its peak summer international flying, including a 55% slash to trans-Pacific flying. United Airlines announced similar cuts last week. Shares of United also climbed more than 1%.
Qualcomm — Shares of Qualcomm jumped nearly 4% after being initiated with a buy rating at Nomura Instinet. The firm called the semiconductor company a “world leader” in “cellular communications technology.
United Postal Service — Shares of UPS jumped 1.5% following an upgrade to to buy from hold at Stifel. The firm called UPS “interesting” due to its healthy cash generation.
Pioneer Natural Resources — Shares of the exploration and production gained more than 5% as oil prices rebounded from their sharpest slide since 1991. Occidental Petroleum was also in the green with a gain of more than 3%, one day after the stock plummeted 53%. Chevron also gained nearly 2%.
Dollar General — Shares of the discount retailer jumped 1.5%, extending its gain for the week. The stock also moved higher on Monday amid the broad market sell-off that saw the Dow post its single-largest point decline on record.
— with reporting from CNBC’s Thomas Franck, Yun Li, Jesse Pound and Pippa Stevens.