Check out the companies making headlines in midday trading on Friday:
Cheesecake Factory — Shares of the restaurant chain plunged more than 16% after the company announced that it would furlough 41,000 hourly workers and slash the pay of executives and salaried employees. The company said earlier this week that it would not be able to make its rent payments for next month.
Devon Energy — Shares of the oil exploration and production company slid more than 14% as crude prices continue to fall. Apache and Halliburton were among the other decliners in the sector, shedding 13% and 11%, respectively. Energy is the worst-performing S&P 500 sector this month, down 36%.
KB Home — Shares of KB Home gained 4% after the homebuilder reported strong-than-expected quarterly earnings. The company earned 63 cents per share in its fiscal first quarter, beating consensus estimates by 18 cents, according to Refinitiv. KB Home said it sees a 31% jump in orders and a 28% increase in deliveries during the quarter. However, the company pulled its 2020 guidance given the uncertainty surrounding the coronavirus pandemic.
Gap — Gap shares dropped about 8% after the clothing company withdrew its full-year forecast, adding it will use its entire $500 million credit facility to soften the downturn from the coronavirus.
Norwegian, Royal Caribbean and Carnival — The three cruise-line companies were the top three biggest decliners in the S&P 500 on Friday after it was revealed that the $2 trillion stimulus bill making its way through Congress appeared to cut the companies out of any relief. Though the bill allocates some $500 billion to distressed businesses, the bill requires companies to be "created or organized in the United States" and "have significant operations in and a majority of its employees based in the United States." Their stocks were down 22.1%, 17.7% and 18% respectively.
Raytheon — Shares of Raytheon fell 7% after the Justice Department signed off on the merger between the defense contractor and United Technologies. The deal was announced last June. United Technologies shares were also down more than 4%.
Hertz Global — Shares of Hertz fell more than 10% on Friday after reportedly talking with banks to raise cash as it scrambles to deal with the impact of the coronavirus and efforts to restrict travel. A Bloomberg report said the rental car company is considering several options, including collateralizing the company's vehicle fleet.
Lululemon Athletica — Shares of athletic apparel retailer Lululemon sunk more than 6% after it said it won't provide full-year earnings outlook due to uncertainty surrounding the COVID-19. The yoga pants maker, however, reported fourth-quarter earnings and sales that top analysts' estimates.
— CNBC's Pippa Stevens, Fred Imbert, Yun Li, Maggie Fitzgerald and Jesse Pound contributed to this report.
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