Check out the companies making headlines in midday trading.
Dollar Tree — Shares of the discount retailer fell 8% after Dollar Tree withdrew its guidance for the year due to uncertainty around the fast-spreading coronavirus.
Amarin — Shares of Amarin tanked 70.5% after the pharmaceutical company received an unfavorable ruling from a Nevada court in a patent case involving its fish oil drug Vascepa, used to treat patients with high triglyceride levels. The court ruled in favor of Hikma Pharmaceuticals and Dr. Reddy’s Laboratories, which want to make generic versions. Amarin said it would pursue all available legal remedies.
Noble Energy — Shares of the oil exploration and production company rose 13.8% on the back of a move higher in crude. Oil prices jumped on Tuesday – one day after falling to 18-year lows – following a phone call between President Donald Trump and Russian President Vladimir Putin in which declining oil prices were discussed. Other advancers in the oil patch included Devon Energy, which rose 8.6% and Diamondback Energy, which popped 11.1%.
Domino’s Pizza — Shares of the pizza chain Domino’s fell 6.3% after it said it is withdrawing its 2020 financial guidance. “Due to the current uncertainty surrounding the global economy and the Company’s business operations considering COVID-19, the Company is withdrawing its fiscal 2020 guidance measures,” the company said. Domino’s has kept many U.S. locations open during the pandemic but many international stores remain closed.
Conagra Brands — Shares of the food company jumped 3.9% after Conagra said it expects to exceed its full year sales and profit guidance. The company’s announcement comes amid many other businesses lowering or eliminating their 2020 guidance due to the coronavirus. Despite the optimistic outlook, Conagra missed on the top and bottom lines of its quarterly earnings.
Dollar General — Shares of Dollar General rose 2.9% after Wells Fargo upgraded the discount retailer to overweight from equal weight. Wells Fargo called Dollar General the “best stock in the consumer arsenal” if the coronavirus leads to more economic headwinds.
RH — The furniture company cratered 14.9% after it withdrew its full year guidance and said lower traffic hurt its quarterly revenue. RH reported revenue of $665 million, lower than the $709 million expected by analysts, according to Refinitiv.
Cheesecake Factory — Shares of the chain restaurant company rose 3.5% Tuesday after the stock was upgraded to buy from hold at Gordon Haskett. The firm said in a note that the company has already announced the bad news — namely furloughs and issues paying rent — that will soon hit many restaurant companies, which has led to an “exaggerated sell-off.”
Carnival, Norwegian Cruise Line — Shares of Carnival jumped 2.9% after the company announced that it was issuing two sets of bonds and a secondary stock offering to raise $6 billion in cash. The company also announced that it was suspending its dividend. Rival Norwegian saw its shares rise 2.6%, after extending its voluntary suspension of cruises through May 10.
American Airlines — Shares of American Airlines rose nearly 3% but closed down 0.5% after Reuters reported the airline plans to apply for up to $12 billion in government assistance. That would mean no involuntary layoffs or pay cuts over the next six months.
Zoom Video — High-flying, stay-at-home stock Zoom Video sunk 3.2% after the New York Times reported that Zoom’s privacy practices are being investigated by the New York State Attorney General’s office.
— With reporting from Jesse Pound, Yun Li and Pippa Stevens.
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