Stocks making the biggest moves in the premarket: BP, Pilgrim’s Pride, Starbucks, Shopify & more

Market Insider

Take a look at some of the biggest movers in the premarket:

BP (BP) – BP plans to take a writedown of up to $17.5 billion for the current quarter, after significantly cutting its long term outlook for oil and gas prices. BP is also now forecasting a faster transition away from fossil fuels. BP will issue its next earnings report on August 4.

Pilgrim’s Pride (PPC) – Chief Executive Officer Jayson Penn is taking a paid leave of absence. Penn was indicted for participating in an alleged chicken price-fixing scheme, and the poultry producer said it would be in the best interests of both Penn and the company to allow him to focus on his legal defense. CFO Fabio Sandrias will serve as interim CEO.

AstraZeneca (AZN) – The drugmaker signed a contract to provide European governments with 400 million doses of its Covid-19 vaccine candidate. The vaccine is still in clinical trials, and if it proves safe and effective, deliveries would potentially start by the end of this year.

Starbucks (SBUX) – Atlantic Equities began coverage of the coffee chain’s stock with an “overweight” rating, saying it would emerge from the pandemic with market share gains and a more efficient cost structure.

Mondelez (MDLZ) – The food producer was upgraded to “buy” from “hold” at Berenberg, saying that the food sector overall has the cheapest relative valuations in a decade and points in particular to strong organic growth trends at Mondelez.

Shopify (SHOP) – Walmart (WMT) is partnering with the e-commerce platform provider to expand its third-party marketplace site. Separately, Piper Sandler upgraded Shopify to “overweight” from “neutral,” based on expectations that digital commerce penetration rates could double or even triple by 2030.

Hertz (HTZ) – Hertz won bankruptcy court approval to sell up to $1 billion in its stock. The car rental company is trying to take advantage of a recent rally in its shares.

Walt Disney (DIS) – Disney’s Hong Kong Disneyland theme park will reopen on June 18, with a reduced number of visitors and enhanced health measures such as social distancing.

Nokia (NOK) – Nokia is partnering with Broadcom (AVGO) to develop chips for 5G equipment. Nokia had previously struck similar deals with Intel (INTC) and Marvell (MRVL).

Intel (INTC) – Intel was upgraded to “overweight” from “neutral” at KeyBanc, which said the chipmaker is in a strong position to take advantage of the next wave of computing beyond PCs, phones, and tablets.

FormFactor (FORM) – FormFactor was upgraded to “buy” from “hold” at Stifel Nicolaus. The maker of semiconductor testing equipment will benefit from its recurring revenue model even as demand remains uncertain, according to Stifel.

AT&T (T) – AT&T is seeking a sale of its Warner gaming unit, according to people familiar with the matter who spoke to CNBC. They say Take-Two Interactive (TTWO), Activision Blizzard (ATVI), and Electronic Arts (EA) are all said to have expressed interest in the unit, and that it could fetch up to $4 billion.

Moderna (MRNA) – Israel is in advanced talks to buy Moderna’s coronavirus vaccine that is in the final stages of testing, according to Israeli news site YNET. Moderna had said last week it will start a trial involving 30,000 people next month. CEO Stephane Bancel told CNBC that the company was having discussions with multiple governments around the world but would not comment on this particular story.

SelectQuote (SLQT) – Credit Suisse began coverage of the insurance seller’s stock with an “outperform” rating, saying the company is a beneficiary of the fast-growing Medicare Advantage market among other factors. SelectQuote, which went public on May 21, picked up new coverage at a number of firms including Morgan Stanley (“equal-weight rating”), Piper Sandler (“overweight”), Cantor Fitzgerald (“overweight”), and RBC Capital (“outperform).

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