A worker is seen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., February 28, 2020.
Brendan McDermid | Reuters
Check out the companies making headlines in midday trading.
Apache Corp. – Shares of the exploration and production company slid more than 18% on the back of declining oil prices. Apache was the worst performer in the S&P 500 as of midday. The energy sector was among the worst performers during Wednesday’s session as all components traded lower. Other notable decliners include Noble Energy, which slid more than 14%, as well as Occidental Petroleum, which was down more than 11%.
DXC Technology – Shares of DXC climbed 3% after the IT services company said it will sell its Medicaid services unit to private equity firm Veritas Capital for $5 billion in cash. DXC was one of the four companies in the S&P 500 that were in the green amid the massive sell-off Wednesday.
Hilton Worldwide – Shares of Hilton Worldwide dropped more than 6% after the hotel operator pulled its financial guidance for the current quarter and the full year. The move was due to the unknown impact of the coronavirus on its business.
Apple — Apple shares fell more than 3% after an analyst at Bank of America Securities cut his price target on the tech giant to $320 per share from $350. The analyst said 5G iPhones may be delayed as Apple’s supply chains remain under pressure amid the coronavirus outbreak.
Citigroup, Wells Fargo — Bank stocks fell sharply in Wednesday morning’s trading, with several major names falling more than the broader market. Citigroup was one of the worst performers, dropping nearly 6%. Wells Fargo, whose CEO testified before Congress on Tuesday, fell about 5.9%. Mid-sized banks PNC Financial and Citizen’s Financial both slid about 5%. Shares of Goldman Sachs and Morgan Stanley lost more than 4%.
Royal Caribbean, Norwegian Cruise Line — Cruise line stocks took a huge beating as the coronavirus outbreak continued to worsen and investors remained skeptical about a fiscal stimulus package or targeted measures to aid the struggling industry. Norwegian Cruise Line was down more than 14%, while Royal Caribbean and Carnival dropped 9% each.
Gilead — The Foster City, California-based biotech company represented one of just a handful of S&P 500 companies in the green on Wednesday. Gilead shares rose more than 3% in midday trading as the angst over the novel coronavirus that has marred financial markets returned. Gilead is reportedly working with the CDC on an antiviral remedy to combat the disease.
Cloudera — Shares of Cloudera popped more than 3% after beating on the top and bottom lines of its quarterly earnings. The software company reported 4 cents per share, while analysts were expecting a loss of 3 cents per share. Revenue came in at $211.7 million, higher than the forecast of $201.8 million, according to Refinitiv. Next quarter revenue outlook was roughly in line with estimates and earnings outlook was better-than-expected. Full year 2021 earnings and sales outlook topped expectations.
PepsiCo — Shares of PepsiCo dropped about 2% following its announcement that it has agreed to acquire Rockstar Energy for $3.85 billion. The soda company is doubling down on energy drinks and with an eye toward turning around its struggling Mountain Dew brand.
Korn Ferry – Shares of Korn Ferry tanked 10.5% after the consulting firm sounded the alarms on the coronavirus. The company said the outbreak has “clouded the near-term predictability of our business.” Korn Ferry reported better-than-expected earnings and revenue in its fiscal third quarter, however.
— CNBC’s Pippa Stevens, Maggie Fitzgerald, Jesse Pound, Fred Imbert and Thomas Franck contributed reporting.
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