Wayfair co-chairman and co-founders Steve Conine (C) and Niraj Shah applaud as they ring the opening bell above the floor of the New York Stock Exchange on the day of the company’s IPO October 2, 2014.
Lucas Jackson | Reuters
Check out the companies making headlines midday Monday:
Wayfair — Wayfair shares rallied more than 40% after the online retailer said it expects to surpass its sales growth guidance, which ranges between 15% and 17% growth. Wayfair also said its gross revenue growth rate more than doubled toward the end of March.
Zoom Video — Shares of high-flying, stay-at-home stock Zoom Video tumbled more than 5% after Credit Suisse downgraded shares of the video conferencing company to underperform from neutral. The Wall Street firm said Zoom is currently trading at 40 times its consensus revenue estimates, “the richest in software.”
Carnival, Norwegian, Royal Caribbean — Beleaguered cruise stocks bounced strongly as improving health data from Europe and New York City made investors confident that travel restrictions may be lifted sooner than expected. Carnival, which climbed 25%, also revealed that Saudi Arabia’s public investment fund had built an 8.2% stake in the company. Royal Caribbean and Norwegian gained 19.2% and 15.3%, respectively.
Immunomedics — Immunomedics surged 89% after the biotech company said a study of its breast cancer drug was halted early on “compelling evidence of efficacy.” It is a Phase 3 confirmatory study designed to validate the promising safety and efficacy data of sacituzumab govitecan, antibody-drug conjugates.
Luckin Coffee — Shares of the Chinese coffee chain plunged 16.7% on Monday after Goldman Sachs said a group of lenders is putting up for sale 76.3 million of Luckin’s American depositary shares. The sale comes after Luckin Chairman Charles Zhengyao Lu defaulted on the terms of a $518 million margin loan and revelations last week that much of the company’s 2019 sales figures were made up. The stock is down 87% over the last month at was last seen trading at $4.67 a share.
Vir Biotechnology — Vir Biotechnology rose more than 18% in midday trading after it announced that it has partnered with GlaxoSmithKline to research and develop solutions for coronaviruses, including COVID-19. As part of the collaboration, GlaxoSmithKline will make a $250 million investment in Vir while the team said promising antibody candidates for the COVID-19 will be accelerated into Phase II trials within the next three to five months.
American Express — American Express shares rallied 13% to lead the Dow Jones Industrial Average higher. Monday’s gains came after a 17.1% drop last week. American Express shares are still down more than 40% from their most recent 52-week high.
Spotify – Shares of the music streaming company slid as much as 5% following a downgrade to market perform at Raymond James. The firm previously rated the company a strong buy. “More time indoors is driving less engagement and fewer downloads, and is creating potential US share shift to Amazon Music given increased smart speaker listening,” Raymond James said.
Nordstrom, Kohl’s, Macy’s — Retail stocks rebounded on Monday, alongside the broader market. Department stores and retail has been one of the hardest-hit industries from the coronavirus shutdown. Shares of Nordstrom rallied more than 21%. Kohl’s and Macy’s rose 25% and 13%, respectively.
Wells Fargo — Wells Fargo jumped 7.8% after the bank said it will cap its participation in the U.S. government’s small business coronavirus rescue program at $10 billion due to regulatory constraints which cap its assets at $1.95 trillion. The bank’s $350 billion loan program will provide low-interest loans to help small businesses cover payroll and other fixed costs over the next eight weeks.
eBay – Shares of the e-commerce company jumped 5.1% after Guggenheim upgraded the company to a buy rating and established a $36 price target. “At these levels, and in this environment, we believe the risk/reward is favorable and see both defensive traits and positive catalysts over the next 12 months,” the firm said. The new target is about 18% above where it currently trades.
General Motors — The U.S. automaker’s stock rose 7.1% after Reuters reported the company is trying to extend maturities on $6 billion in revolving loans.
—CNBC’s Yun Li, Tom Franck, Maggie Fitzgerald and Jesse Pound contributed to this report.