People look out from aboard the Grand Princess cruise ship, operated by Princess Cruises, as it maintains a holding pattern about 25 miles off the coast of San Francisco, California on March 8, 2020.
Josh Edelson | AFP | Getty Images
Check out the companies making headlines in midday trading.
Norwegian Cruise Line, Royal Caribbean, Carnival — Shares of cruise lines rebounded on hopes that a U.S. stimulus package, which Congress hopes to agree to on Tuesday, will include bailouts for an industry that has been hit hard by the coronavirus crisis. Shares of Norwegian Cruise Line soared nearly 40%, Royal Caribbean surged 28% and Carnival jumped 20%.
General Motors — General Motor shares jumped more than 13% after the automaker said it will draw about $16 billion from its revolving credit facilities to maintain flexibility amid the coronavirus outbreak. “We are aggressively pursuing austerity measures to preserve cash and are taking necessary steps in this changing and uncertain environment,” CEO Mary Barra said in a statement.
MGM Resorts, Wynn Resorts, Hilton, Marriott, Expedia — Hotel and travel stocks spiked on Tuesday as optimism grew about the U.S. economic relief bill passing. Casino stocks were some of the biggest winners, with MGM Resorts soaring nearly 40% and Wynn Resorts jumping 21%. Hotel giants Hilton and Marriott rose 15% and 11%, respectively. Expedia also beat the broader market rise, gaining 12%.
American Airlines, Delta Air Lines, United Airlines — Shares of airline stocks rallied Tuesday on optimism about a coronavirus stimulus deal. The stocks have been decimated in recent weeks by the slowdown in travel from the coronavirus. Shares of American Airlines rallied 30%, Delta Air Lines rose 19% and United Airlines jumped 23%. Southwest rose more than 10% and Alaska Air Group gained 23%.
Virgin Galactic — The space tourism company’s stock jumped 26% after Morgan Stanley upgraded Virgin Galactic to overweight from equal weight. Virgin Galactic shares have fallen from its high about $40 hit last month and Morgan Stanley analyst Adam Jonas noted that “the world has changed” but that Virgin Galactic’s “story and the balance sheet remains intact.”
Chevron — Shares of the oil giant jumped more than 13% after the company announced a number of cost-cutting measures, including a 20% reduction in its capital spending plans for 2020, as well as a suspension of its share buyback program. As energy companies continue to face pressure from falling oil prices, CEO Michael Wirth told CNBC that the company’s dividend is “very secure.”
Zillow — Shares of online housing marketplace Zillow surged more than 21% following an upgrade to buy from neutral from DA Davidson. The firm said the stock nearing a 50% pullback in the past month, combined with management’s steps to de-risk in the face of the coronavirus, have created a compelling opportunity. The firm lowered Zillow’s price target to $39 per share from $60 per share.
Zoom Video — Shares dropped 11% after a record run for the company that’s seen the stock more than double since the beginning of the year. The company, which offers video conferencing services, has benefited from the coronavirus-induced work-from-home movement.
Nvidia — Shares of chip stock Nvidia rallied more than 15% after Needham upgraded the company to buy from hold. The firm said Nvidia has a superior balance sheet and robust free cash flow.
—With reporting from CNBC’s Jesse Pound, Pippa Stevens, Fred Imbert and Michael Sheetz.