Elon Musk, chief executive officer of Tesla Inc., arrives at federal court in New York, U.S., on Thursday, April 4, 2019. The SEC says Musk violated his agreement with the agency when he tweeted on February 19 that Tesla would make about half a million cars in 2019, before tweeting a few hours later that deliveries would only reach about 400,000.
Jeenah Moon | Bloomberg | Getty Images
Check out the companies making headlines in midday trading.
Tesla — Shares of the electric car maker dropped 10% following its massive run-up after its stock split announcement. The electric car-maker skyrocketed more than 70% following the 5-for-1 stock split announcement on Aug. 11. The weakness also came after Baillie Gifford, the company’s largest outside investor, trimmed its Tesla holdings. The firm cited portfolio restrictions for the reduction. Tesla also said Tuesday it will sell up to $5 billion in new shares.
AMC Entertainment — AMC shares popped more than 9% after the movie theater chain said 70% of its locations will open by Friday with about 140 additional locations resuming operations this week. The company said it expects to make announcements about further reopenings in California, New Jersey and other areas of the country in the coming weeks.
DraftKings — Shares of DraftKings rose 2% after the sports gambling company announced that basketball great Michael Jordan will join the company’s board as an advisor. Jordan, a member of the NBA’s Hall of Fame and owner of the Charlotte Hornets, will offer DraftKings his expertise on sports company strategy, product development and diversity, DraftKings said. He will have an equity interest in the company as part of the deal.
Peloton – Shares of the exercise equipment maker jumped more than 3% after JPMorgan called the company a “top pick.” The firm raised its price target on the stock to a Street high of $105 based on ongoing demand. Shares are up more than 200% this year.
At Home Group — The retail stock plunged 26% after the company reported lower-than-expected revenue for its second quarter and declined to give forward guidance. At Home said it earned $1.41 in adjusted earnings per share on $512.5 million of revenue. Analysts surveyed by FactSet were looking for $1.31 in earnings per share and $515 million in revenue.
Macy’s — Shares of the retailer rose 2.5% after the company reported better-than-expected results on the top and bottom lines for its fiscal second quarter. Macy’s also announced that it was planning to test several smaller retail locations as it shifts from struggling malls.
Apple — Shares of Apple fell more than 4% following its big run-up sparked by its 4-for-1 stock split announcement.
Apple, the only U.S. company with a market cap over $2 trillion, soared nearly 40% since the tech giant declared the corporate action on July 30. The split took place on Monday, sending shares up more than 3%.
Guess — Shares of Guess jumped more than 12% after the retailer reported a much narrower loss than expected. The company posted a loss of one cent in the second quarter, compared to a loss of 58 cents expected, according to FacetSet. Its revenue also came in above Street expectations.
CNBC’s Fred Imbert, Pippa Stevens, Jesse Pound and Thomas Franck contributed reporting.
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