A shopper walks past a Bed Bath & Beyond Inc. store
Andrew Harrer | Bloomberg | Getty Images
Check out the companies that are making the headlines in midday trading.
Bed Bath & Beyond – The big box retailer’s shares plunged 23% after the company slashed its sales and earnings outlook amid supply chain challenges and inflation. Bed Bath & Beyond reported a sharp drop in buyer traffic in August. The stock undid its staggering meme stock rally in 2021, down over 4% year over year. Other retail stocks like Gap, Newell Brands and Bath & Body Works also fell.
Kohl’s – Kohl’s shares fell more than 13% after Bank of America downgraded the stock to an underperform from Buy, citing ongoing supply chain issues. The company also cut its price target from $ 75 to $ 48 per share.
CarMax – The used car dealer’s shares fell 11% after reporting disappointing quarterly results. CarMax reported earnings of $ 1.72 per share, while analysts expected earnings of $ 1.90 per share, according to Refinitiv. Sales of used cars in the same store rose 6.2%, down from the forecasted 7.3%.
Virgin Galactic – Virgin Galactic’s shares rose more than 10% daily after the Federal Aviation Administration gave the space company clearance to resume launches after an investigation into a flight incident was completed on July 11th and had the change not communicated to the agency as requested.
Philip Morris International, Altria – Philip Morris and Altria shares fell approximately 5% and more than 6%, respectively, after the US International Trade Commission ordered the two companies to stop selling and importing their Iqos tobacco equipment. The agency ruled on an allegation by competitor RJ Reynolds that the Iqos product infringed its patents. The case is being postponed for administrative review.
Lordstown Motors – The electric truck maker’s shares rose about 7% after Bloomberg reported it was on the verge of a deal to sell its Ohio auto plant to Taiwanese company Foxconn Technology for an undisclosed amount. Lordstown had bought the plant from General Motors less than two years ago.
McCormick – McCormick shares were down 1.8% even after the spice maker’s quarterly earnings report beat Wall Street’s expectations. The company achieved adjusted quarterly earnings of 80 cents per share, beating estimates by 8 cents, with sales slightly above forecasts. However, McCormick also lowered his profit forecast for the full year due to inflation and logistics issues.
Paychex – Paychex, the payroll services company, rose about 5% after reporting strong quarterly profits and sales as client workers returned to the office. She also raised her business outlook for the year.
Nvidia, Electronic Arts – Nvidia and Electronic Arts stocks rose 1.2% and 3.9%, respectively, after the companies announced that Electronic Arts will put more of its video games on Nvidia’s cloud gaming service.
Advanced Micro Devices – AMD’s shares rose 3% after the semiconductor company announced it was expanding its collaboration with Google Cloud.
Starbucks – Starbucks shares fell 1.2% after Atlantic Equities downgraded coffee chain shares from Outperform to neutral. The company said wage inflation and growth concerns in China could weigh on Starbucks’ earnings.
– CNBC’s Maggie Fitzgerald, Yun Li and Tanaya Macheel contributed to the coverage
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