Sir Richard Branson stands on the floor of the New York Stock Exchange (NYSE) ahead of Virgin Galactic (SPCE) trading in New York, U.S., October 28, 2019.
Richard Branson Virgin Galactic IPO NYSE
Check out the companies making headlines in midday trading.
Apple — Shares of the iPhone maker fell 1.8% after Apple said that it does not expect to hit its quarterly revenue forecast due to lower iPhone supply globally and lower Chinese demand amid the coronavirus outbreak.
Qorvo, Broadcom, Micron, Intel, Skyworks Solutions, Lam Research — Apple’s suppliers and partners dipped following the iPhone maker’s revenue warning due to the coronavirus epidemic in China. Qorvo, a radio frequency chip supplier for Apple, fell 2.6%. Skyworks Solutions, fell 1.9% and Lam Research ticked 4.1% lower. Other chip suppliers like Broadcom, Micron and Intel, fell 2.2%, 1.3% and 1.7 %, respectively.
Franklin Resources, Legg Mason — Legg Mason spiked 24.4% after Franklin Resources announced it offered to acquire Legg for $50 per share in cash. The announced deal, which has put Legg Mason stock on track for its best day since 2008, would combine two of the largest so-called active managers in the U.S. and create a $1.5 trillion investment juggernaut. Franklin shares rose a more sober 7% in light of the deal.
Tesla — Shares of Tesla climbed 7.3% after Morgan Stanley raised its price target on Tesla to $500 and its “bull case” for the stock to $1,200. While Morgan Stanley overall remains underweight, the firm’s new optimistic scenario would see Tesla shares climb another 50% from current levels.
Kroger — Shares of Kroger jumped 5.2% after Berkshire Hathaway revealed a new stake in the grocery chain. Warren Buffett’s conglomerate disclosed it owned 18.9 million Kroger shares, worth $549 million, at the end of the fourth quarter, according to a 13-F filing released Friday evening.
Conagra — Shares of the food company tanked 6.2% after Conagra revised its 2020 outlook due to “softer than expected category performance” during the fiscal third quarter, with holiday restaurant traffic weaker than last year. Conagra now estimates flat to 0.5% sales growth, compared to the prior estimate of 1% to 1.5% growth. Conagra said it expects adjusted earnings per share of $2.00 to $2.07, compared to its previous $2.07 to $2.17 earnings per share range.
Walmart — Shares of Walmart rose 1.5% on Tuesday morning despite the retail giant missing expectations for the fourth quarter, as same store sales growth was weaker than anticipated. Raymond James said in a note to clients that the company’s e-commerce sales topped management expectations. The company’s earnings guidance for this year also came in below expectations, even with CEO Doug McMillon saying that the company doesn’t know how big of a hit it will take from the coronavirus outbreak.
Virgin Galactic — Shares of the space tourism company jumped 25% and closed up 5.7% as Virgin Galactic’s stock continued a speculative rally begun last week. Morgan Stanley analyst Adam Jonas warned investors that Virgin Galactic’s gain may be “too much too soon,” saying he thinks “the share price could use a breather.” The stock is up about 210% since the beginning of the year.
Intelsat — Shares of surged 25.8% after David Tepper’s Appaloosa Management revealed a 7.4% stake in the communications satellite maker. Intelsat is currently negotiating with the Federal Communications Commission over an upcoming Spectrum auction.
Advance Auto Parts — Shares of Advance Auto Parts soared 6.2% after the auto parts retailed posted better-than-expected earnings. The company reported adjusted quarterly earnings of $1.64 per share, beating the consensus estimate of $1.35, according to Refinitiv. Investors shrugged off the revenue and same-store sales growth numbers that came in below expectations.
Medtronic — Shares of Medtronic slipped 4% in early trading after the company missed revenue expectations for its fiscal third quarter. The company reported adjusted earnings of $1.44 per share and $7.717 billion in revenue. Analysts expected $1.38 in earnings per share and $7.811 billion in revenue, according to Refinitiv. CEO Omar Ishrak said in a press release that organic revenue growth was soft due to “transient issues.”
World Wresting Entertainment — Shares gained 2.3% after Consumer Edge upgraded the stock to an overweight rating. The firm said it sees a “more favorable” risk/reward looking forward, and that the company’s investment into its business could be more beneficial than the Street is anticipating.
— with reporting from CNBC’s Yun Li, Pippa Stevens, Jesse Pound, Michael Sheetz and Thomas Franck.