Check out the companies making headlines in midday trading.
Apple— Shares of Apple rose 2.65% after a Citi analyst raised his 12-month price target on the technology giant to $400 per share from $310 per share, the highest price forecast on Wall Street. Analyst Jim Suva cited five reasons for the higher price target, including upside from Apple's wearables segment.
United, American, Delta — Shares of United Airlines gained 3.1% as the industry tries to bounce back from the coronavirus-induced slowdown. Shares of the airline have more than doubled in the last month after falling to a multi-year low in March. Other airline stocks on the move included American and Delta, which rose 2% and 2.8%, respectively. Alaska Air Group rose 1.2%.
Granite Construction, Vulcan, Summit Materials – Shares of a number of construction and material companies soared on a Bloomberg news report that the Trump administration is eyeing a nearly $1 trillion infrastructure proposal. Granite Construction, Vulcan and Summit Materials all jumped 9%. The iShares U.S. Infrastructure ETF (IFRA), which tracks railroads, utilities materials and construction companies in the space, popped 2.7%. Caterpillar also jumped more than 5%.
Eli Lilly — Shares of Eli Lilly soared 15.7% after the pharmaceutical company said Tuesday its breast cancer drug Verzenio met the key goal in a late-stage trial. Eli said in a statement that its phase-three study demonstrated positive results in 5,637 people whose early breast cancer is at a high risk of recurrence. Guggenheim upgraded Eli Lilly to buy from neutral following the news.
Carnival, Norwegian Cruise Line, Royal Caribbean Cruises — Shares of Norwegian Cruise Line Holdings jumped 4.9% as investors continue to return to the sectors most pummeled by Covid-19. Carnival Corporation rose 5%, and Royal Caribbean jumped 2.8%. For the year, however, all three have lost more than half their value.
Nordstrom, Gap, Kohl's — Retail stocks climbed higher on Tuesday after retail sales data showed the largest month-over-month increase on record in May. Shares of Nordstrom rose 12.9%, while Gap gained 8.5% and Kohl's surged 9%. TJX Companies jumped 5.6% and Macy's rose 6.3%. Dick's Sporting Goods ticked 3.8% higher. Home Depot and Lowe's also rose on Tuesday.
Nvidia — Shares of chipmaker Nvidia dipped 1.2% after the stock was downgraded by Morgan Stanley to equal-weight from overweight. The firm said in a note that it still believes in the longer-term story for the company but its current valuation leaves "very little room for error."
WW International— Shares of the Weight Watchers parent said soared 19% after the company said it had 4.9 million subscribers as of June 6, up 7% from a year earlier. Digital subscribers hit an all-time high, getting a boost as more people stayed at home due to the COVID-19 pandemic.
Lennar — Shares of the home construction company ticked about 0.7% higher after reporting better-than-expected quarterly earnings. Lennar reports earnings per share of $1.65 on revenue of $5.29 billion. Analysts polled by Refinitiv were expecting earnings per share of $1.18 on revenue of $5.25 billion.
Chesapeake Energy— The energy producer cratered 18.6% on reports its preparing to file for bankruptcy as soon as this week, according to people familiar with the matter who spoke to Reuters. The company is said to be in the final stages of negotiation $900 million loan to support operations while under Chapter 11 bankruptcy protection.
— with reporting from CNBC's Yun Li, Pippa Stevens and Jesse Pound.