Here are the companies making headlines in midday trading.
Kohl’s Corporation – The retailer’s shares jumped more than 9% after a group of activist investors nominated nine directors for the company’s board, while also pushing for other changes. Together the group holds a 9.5% stake in Kohl’s. The proposed changes could lead to as much as $8 billion in savings, according to the group. The investors previously pushed for change at Bed Bath & Beyond.
Royal Caribbean – The cruise stock jumped more than 10% after Royal Caribbean said that future bookings are coming in at similar volumes and with higher average prices than pre-pandemic results. The company also reported a smaller-than-expected loss for the fourth quarter, based on analyst estimates compiled by Refinitiv.
Discovery – The media stock jumped more than 9% after the company said it expects to have 12 million subscribers for its new streaming service by the end of the month. Discovery’s fourth-quarter earnings and revenue beat Wall Street expectations, according to FactSet.
American Airlines, United, Delta – Airline stocks jumped in unison after Deutsche Bank upgraded the airline industry to a buy rating, saying the group is “back on track” amid an economic recovery from the pandemic-induced recession. “We are upgrading our investment stance on the sector as COVID cases, hospitalizations, and vaccination rates are all trending in the right direction,” the firm said. Shares of American Airlines jumped more than 10%, while Delta and United popped more than 6% each.
Goodyear Tire, Cooper Tire – The tire stocks soared on Monday after Goodyear announced that it would acquire its smaller rival. The deal is a mixture of cash and stock with an enterprise value of about $2.5 billion, according to the announcement. Shares of Goodyear jumped nearly 20%, while those of Cooper surged nearly 30%.
Tesla – Shares of the electric car maker dropped about 5% amid a rotation out of high-growth stocks. Tesla also fell below its 50-day moving average for first time since Nov. 16 on an intraday basis. Monday’s drop pared its 2021 gains to about 5%.
GameStop – Shares of the volatile video game retailer advanced more than 8% on Monday, though the stock still traded well below its recent highs. Keith Gill, who became the most famous of the social media traders involved in the stock during its dramatic spike, said in a Reddit post on Friday that he had bought another 50,000 shares of the company.
M&T Bank, People’s United Financial – The bank stocks rose on Monday after M&T announced that it had agreed to acquire the regional bank in an all-stock deal. The combined bank will hold about $200 billion in assets. Shares of M&T ticked up nearly 3%, while shares of People’s United jumped more than 14%.
Foot Locker – Shares of the retailer advanced more than 4% after Evercore ISI upgraded the stock to an outperform rating. “The company has been making the necessary course corrections and strategic investments to secure its long-term position within the broader sneaker ecosystem, particularly on the digital front,” the firm wrote in a note to clients. Evercore also raised its target on the stock from $40 to $75, with the new target representing 44% upside from where shares closed on Friday.
Boeing – The aerospace company’s shares were up less than 1% in midday trading even after an engine failure over the weekend forced the company to recommend the suspension of older models of its 777 wide-body airliner. “While the NTSB investigation is ongoing, we recommended suspending operations of the 69 in-service and 59 in-storage 777s powered by Pratt & Whitney 4000-112 engines until the FAA identifies the appropriate inspection protocol,” the company said.
General Electric – Shares of the industrial company gained close to 4.5% after Goldman Sachs hiked its price target on the stock. The firm said in a note to clients that it believes the risks to its free cash flow estimates are to the upside in the year ahead.
Marriott – Shares of the hotel chained rose nearly 6.4% after Evercore ISI upgraded the stock to overperform from in-line. The firm said in a note that Marriott was the “best value” play in the lodging sector.
–CNBC’s Pippa Stevens, Yun Li, Michael Bloom and Rich Mendez contributed to this story.
