Market Insider

In this article

A sign marks a rendezvous location for Lyft and Uber users at San Diego State University in San Diego, California, May 13, 2020.
Mike Blake | Reuters

Check out the companies making headlines in midday trading.

Amgen — The biopharma stock jumped 6.2% after Morgan Stanley upgraded Amgen to overweight from equal weight, saying Amgen is “largely derisked” and provides defensiveness for investors.

Walgreens Boots Alliance — Shares of the drugstore chain jumped nearly 4%, giving the Dow Jones Industrial Average a boost. Walgreens’ rally came after the company announced an acquisition of healthcare firm CareCentrix. The stock is still down about 36% on the year. Walgreens is set to report its quarterly earnings on Thursday.

Uber, Lyft — Shares of the rideshare companies dropped 7% and 8%, respectively, after the Labor Department proposed a new rule that could pave the way for gig workers to be reclassified as employees rather than independent contractors. The proposal could raise costs for the companies, who rely on contract workers to drive on their own schedules.

Wynn Resorts, Las Vegas Sands — The casino stocks underperformed the broader market on Tuesday, with shares of Wynn Resorts tumbling 6% and Las Vegas Sands dropping 5.5%.

Leggett & Platt — Shares dropped 7.3% after the industrial manufacturer cut its full-year sales and earnings guidance, citing rising inflation and challenging economic conditions.

Bilibili — Shares of the Chinese video streaming company dropped about 4% after Bernstein downgraded the stock to underperform from market perform, citing balance sheet risk.

Zscaler — The cloud security stock dropped 5% after Zscaler announced the resignation of company president Amit Sinha. Sinha will remain on the company’s board.

Netflix — Shares dropped about 5% after Bank of America reiterated an underperform rating on Netflix ahead of its earnings next week, saying that the streaming company’s advertising tier continues to “come across as a bit rushed.”

ON Semiconductor, Qualcomm — Semiconductor stocks continued their decline on Tuesday after the Biden administration on Monday announced new restrictions on exports to China. ON Semiconductor was down 3.8%, Qualcomm was 3.1% lower and Marvell declined 2.4%.

Roblox — Shares of the technology company were down 1.4% after Barclays initiated research of the stock as underweight with a price target that would imply it losing about 44% of its value. The firm attributed the downside to underwhelming growth opportunity in its user base.

Meta — Shares of the Facebook parent fell more than 2% after Atlantic Equities downgraded the stock to neutral from overweight. The investment firm said that a weakening economy plus more competition in the digital advertising space could squeeze Meta’s revenue as the company is spending heavily on development.

— CNBC’s Michelle Fox, Alex Harring, Yun Li and Jesse Pound contributed to this report

Articles You May Like

Small Caps: Unexpected Outperformance Could Drive Gains in a Hurry
Activist Ananym has a list of suggestions for Henry Schein. How the firm can help improve profits
5 Moonshot Stocks to Buy for 2025 
Data centers powering artificial intelligence could use more electricity than entire cities
Want Unsurpassed Results in 2025? Follow Elon Musk’s Lead