A trader, center, wears a Citigroup jacket while working on the floor of the New York Stock Exchange.
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Here are the companies making headlines in midday trading.
Citigroup, Wells Fargo, JPMorgan — Bank stocks fell on Thursday as Treasury yields dipped and investors digested forecasts from the Federal Reserve. Shares of Citigroup fell 13.4%, while Wells Fargo dropped 9.8%. Goldman Sachs lost just over 9%, while JPMorgan and Morgan Stanley sank more than 8%.
United, American, Delta, Southwest — Airline stocks cratered on Thursday as investors shed riskier reopening plays on concerns about a second wave. United and American Airlines dropped 16.1% and 15.5%, respectively. Delta and Alaska Air Group fell 14%. Southwest lost 116%.
Boeing — Shares of the embattled aerospace manufacturer fell more than 16% amid concerns about a second wave of the coronavirus. The pandemic’s potential long-term impact on travel demand has hurt the outlook for the company, and Boeing had to idle some of its plants during the more strict shutdown period to help slow the spread of the virus.
GrubHub — GrubHub rose more than 4% after the company announced merger plans with Just Eat Takeaway.com, a European food delivery company. The deal values GrubHub at $7.3 billion in equity, or $75.15 per share. The merger comes after earlier talks with Uber Technologies failed.
Starbucks – Shares of the coffee chain slid more than 8% after KeyBanc downgraded the stock to a sector weight rating. “Current sales trends remain challenged, and we believe [near term] upside is limited due to its elevated valuation and the prospect of a more gradual [same-store sales]/ EPS recovery than previously expected and relative to peers,” the firm said. Longer term, however, KeyBanc said the company has a best-in-class digital platform as well as innovation competencies.
Macy’s, Nordstrom, Gap — Retail stocks took a beating as investors backed away from their bets on the reopening of the economy. Shares of Macy’s plunged more than 14%, while Gap and Nordstrom slumped 8.1% and 12.2%, respectively. Target, which announced that it was raising its dividend, saw its stock dip 1.7%.
Oneok – Shares of the natural gas name tumbled more than 15% after the company announced a public offering of 26 million shares. Elsewhere in the energy space, Halliburton and Occidental Petroleum shed 15% and 16%, respectively, on the back of oil prices moving lower, while integrated giants Exxon and Chevron slid more than 8%.
Tyson Foods — Tyson Food shares dropped more than 7% as traders weighed the company’s potential legal troubles. On Wednesday, Tyson disclosed it was cooperating with the Justice Department’s investigation into chicken price-fixing, adding it is seeking leniency from the department. Tyson was served with a grand jury subpoena as part of the investigation.
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