CEO of Tesla Motors Elon Musk reacts following the company’s initial public offering at the NASDAQ market in New York June 29, 2010
Brendan McDermid | Reuters
Check out the companies making headlines in midday trading.
Tesla — Tesla shares rallied 8.2% after S&P Dow Jones Indices said it would add the electric car maker’s stock to the S&P 500 index, effective Dec. 21. This “speaks to the sustained profit trajectory that Tesla is now finally getting into this elusive club after much noise on the Street,” said Wedbush analyst Dan Ives.
Walgreens, CVS, Rite Aid — Drug store stocks tumbled on Tuesday after Amazon announced its new pharmacy venture that allows for online ordering and delivery of prescription drugs. Shares of Rite Aid sank 16.3%, while Walgreens fell 9.6% and CVS Health lost 8.6%.
Home Depot — Shares of the home improvement stock ticked 2.5% lower after the company reported higher costs and a plan to spend $1 billion to make permanent its Covid-era worker pay increases. Though the home-improvement retailer saw healthy same-store revenue growth of 24%, the elevated sales also sparked higher costs.
Charles Schwab — Shares of the e-broker rose 4.3% after Citigroup upgraded the stock to buy from neutral. The Wall Street firm said the stock could get a boost as earnings normalize. Citi also hiked its 12-month price target on Schwab to $54 per share from $44 per share.
Kohl’s — The retail stock jumped 11.6% after the company reported a surprise adjusted profit for the last quarter. Kohl’s reported adjusted earnings of 1 cent per share and $3.78 billion in revenue. Analysts surveyed by Refinitiv were expecting a loss of 43 cents per share and $3.86 billion in revenue. The company said it had positive sales growth in athleisure, lounge and sleepwear categories despite net sales falling 13% year over year.
Farfetch— Shares of Farfetch gained 3% after Morgan Stanley initiated coverage on the luxury online fashion retailer with an overweight rating. The bank said Farfetch’s “unique” marketplace model is well positioned to take share from both brick and mortar e-commerce players.
DraftKings — Shares of DraftKings jumped 9% after Loop initiated coverage on the fantasy sports betting company with a buy rating. Loop said DraftKings would emerge as the “undisputed share leader” and the “biggest beneficiary” of the online gaming industry.
Moderna — Shares of Moderna lost 4.9% on Tuesday after BMO Capital Markets downgraded the biotech company to market perform from outperform. The Wall Street firm said it now sees “limited upside” as shares have priced in the vaccine news.
Square — Shares of the payments company rose 4.9%, on pace for its best day since November 11. Square got a boost from positive commentary from Mizuho Securities analysts.
— with reporting from CNBC’s Fred Imbert, Jesse Pound and Yun Li.