2022 Ford F-150 Lightning all-electric trucks during a launch event at the Rouge Electric Vehicle Center in Dearborn, Michigan, USA, on Tuesday, April 26, 2022.
Emily Elconin | Bloomberg | Getty Images
Take a look at the companies making headlines in midday trading.
Ford Motor, General Motors — Shares of Ford and GM fell 7% and 5%, respectively, after UBS downgraded both stocks. The firm downgraded Ford to a sell rating from neutral and cut GM to neutral from a buy. The auto industry is moving toward an oversupply of vehicles after three years of unprecedented pricing power, UBS said.
Casino stocks: Hotel and casino stocks were the biggest decliners in the S&P 500, with Wynn Resorts down 11.6% and Las Vegas Sands lose 8.5%. MGM Resorts dropped 3.5%. The moves came as Chinese cities reimposed Covid lockdowns thanks to a spike in daily cases during a weeklong holiday.
Kraft Heinz – Shares of the food maker rose 2% after Goldman Sachs upgraded them to buy from neutral, noting that higher profit margins have not been fully priced into the stock. Other food and beverage stocks also rose JM Smucker i Conagra brandswhich added 2%. Campbell’s soup increased by 1.5%.
Rivian Automotive – Shares of the electric vehicle startup fell nearly 10% after the company said it will recall nearly all of its vehicles because of a possible problem with a loose fastener that could cause a driver to lose control of the direction.
Nvidia – Chip stocks fell more than 4% to a 52-week low after the Biden administration released a broad set of export controls, including a plan to cut China off certain semiconductor chips made with American equipment. The sale came even after Nvidia said the new restriction will have no material effect on its business.
five 9 — The software company’s shares fell 22% after CEO Rowan Trollope stepped down from his role and position on the board. Trollope has accepted the role of CEO of a private pre-IPO company, Five9 announced Monday.
PPG Industries – Shares fell 4% after the company warned third-quarter results would miss expectations, saying adjusted earnings per share would be 5% to 7% below the low end of previous estimates of the company from $1.75 to $2.00. PPG blamed “softer demand conditions” in Europe and China that the company expects to continue into the fourth quarter.
Merck – Shares of the pharmaceutical giant rose 2.8% after Guggenheim upgraded Merck to buy from neutral. Guggenheim said in a note that the growth of key drugs Keytruda and Gardasil is “very positive” and that there are reasons to be confident in Merck’s development.
Robin Hood — The stock trading app saw its shares fall more than 2% after Barclays reiterated Robinhood as underweight. The Wall Street firm said it is sticking with its negative rating, but expects revenue may be slightly better than expected in the third quarter.
etsy — Stocks in the online market fell 1.4% even as Goldman Sachs initiated the stock as a buy on its resilient business model and growth opportunities.
– CNBC’s Yun Li, Jesse Pound, Alex Harring, Sarah Min and Michael Bloom contributed reporting
