Stocks making the biggest moves midday: CVS, Lucid, Southwest Airlines, Boeing, GameStop and more
Check out the companies making headlines in midday trading.
CVS — Shares of the drugstore chain jumped 3.8% to hit a 52-week high after the company said sales will accelerate in the year ahead. CVS will launch new health-care services and combine its drugstores and insurance businesses.
Hormel Foods — Shares of Hormel rose 5.7% after the food producer beat quarterly earnings estimates. The company posted a quarterly profit of 51 cents per share, one cent above the Refinitiv consensus projection. Revenue also topped Wall Street expectations.
RH – The home-furnishings retailer RH soared jumped 9.6% after it reported blowout earnings and revenue that beat forecasts. The company also lifted the low end of its revenue outlook. Guggenheim also reiterated the stock as a best idea saying the "catalyst path remains intact."
Rent the Runway — Shares of the fashion rental platform fell 3.5% in midday trading after reporting widening third-quarter losses, despite sales that shot up 66% year over year. Among investors' concerns, Rent the Runway has yet to turn a profit and its active subscriber count has not recovered to pre-pandemic levels.
GameStop — The videogame retailer saw its shares drop more than 6% after the company reported losses that widened in the fiscal third quarter. The company reported that its net loss grew to $105.4 million, or $1.39 per share, from a loss of $18.8 million, or 29 cents per share, a year earlier. The stock, once at the center of the meme stock mania, is still up more than 760% this year.
Lucid Group — Shares of the electric vehicle start-up tanked more than 12% a day after the company announced a proposed $1.75 billion convertible senior notes offering. Lucid also recently revealed that it received a subpoena from the Securities and Exchange Commission "requesting the production of certain documents related to an investigation."
American Airlines, Boeing – Shares of American Airlines gave up nearly 1% after the company said it's reducing its flying schedule next summer because it's awaiting Boeing's deliveries of its 787 Dreamliners. It also said Boeing plans to compensate the air carrier. Shares of Boeing slid 1.7%.
Southwest Airlines – Shares of Southwest retreated more than 3% after Jefferies downgraded the airline stock, citing persistent inflation weighing on profitability. Jefferies lowered its rating on Southwest to hold from buy and also cut its price target on the stock to $45 per share from $60 per share.
EVgo – Shares of EVgo rallied 7.1% after JPMorgan initiated coverage of the electric vehicle fast-charging service operator with an overweight rating. "We anticipate the company driving outsized revenue growth on rapidly increasing fleet adoption and higher utilization," JPMorgan noted.
Pfizer – Pfizer shares gained 2% after Wells Fargo initiated coverage of the stock with an overweight rating. The firm said Pfizer's Covid treatments are here to stay and could continue to drive revenue for the company for "years to come."
Sunrun, Sunnova – Shares of the solar companies slumped despite JPMorgan naming the stocks as top picks for next year. Sunrun declined 3.8% while Sunnova fell 1.7%.
Solid Power – Shares of electric vehicle battery-cell supplier Solid Power added 6.4% midday. The company debuted on the Nasdaq Thursday morning following the completion of a special purpose acquisition company deal. Solid Power's investors include Ford and BMW.
— CNBC's Yun Li, Maggie Fitzgerald and Tanaya Macheel contributed reporting.
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