Here are the stocks making headlines in midday trading.
Goldman Sachs, Morgan Stanley, JPMorgan Chase — Bank stocks moved higher following news that bank regulators were proposing weaker restrictions on some investing activities, including loosening the Volcker Rule. Shares of Goldman Sachs gained 4.6%, while Morgan Stanley and JPMorgan added 3.9% and 3.5%, respectively.
KB Home, Toll Brothers, PulteGroup — Shares of KB Home plunged nearly 12% after the company's CEO said high unemployment was leading to cancellations and slowing new orders for the homebuilder. Fellow builders Toll Brothers and PulteGroup fell 2.8% and 3.7%, respectively.
Peloton – Shares of the exercise equipment maker jumped 4.5% after Raymond James resumed coverage on the stock with an outperform rating and $65 target, which implies a 13% rally ahead. The firm said the company has a "large market opportunity that is accelerating due to Covid-19," and expects continued revenue momentum ahead. Shares have more than doubled this year.
Disney — Shares of Disney slid 0.6% after the company said it is delaying the reopening of its California-based theme parks. Disney said its proposed phased opening of its two parks in Anaheim for July 17 would be postponed as state officials will not be issuing theme park reopening guidelines until after July 4. The delay came as Disney workers from Florida have petitioned the company and local government officials to reconsider the reopening of Disney World amid the rising virus cases in the state
Spotify – Shares of the music streaming service gained more than 10% following a price target raise at Goldman Sachs. The firm upped its 12-month target from $205 to $280, which implies a roughly 8% rally ahead. The firm pointed to podcast monetization as one of the factors that can push shares higher.
Accenture — The consulting company's stock jumped more than 7.7% and hit a new 52-week high after better-than-expected third-quarter results. Accenture reported $1.90 in earnings per share on $10.99 billion in revenue as new bookings increased. Wall Street analysts expected $1.85 in earnings per share and $10.87 billion in revenue, according to Refinitiv.
Ally Financial — The financial stock surged nearly 12% after Ally announced that it was canceling its proposed acquisition of CardWorks. The companies said in a press release that the decision was mutual and a result of the pandemic.
McCormick — Shares of the spice maker gained 3.6% after the company beat expectations for its second quarter. McCormick earned $1.47 in adjusted earnings per share on $1.4 billion in revenue. Analysts expected $1.16 in earnings per share and $1.37 billion in revenue, according to Refinitiv.
Darden Restaurants – Shares of Darden Restaurants popped more than 5% after the parent of Olive Garden and other restaurant chains reported better-than-expected quarterly earnings. Darden said it lost $1.24 per share for its latest quarter, smaller than the loss of $1.65 that analysts were predicting, according to Refinitiv. The company also said 91% of its dining rooms are now open with at least limited capacity.
Carnival, Norwegian Cruise Line, Royal Caribbean Cruises — Shares of cruise lines reversed course later in the day after falling on Thursday morning. Shares of Norwegian Cruise Line closed up 1.8% and shares of Carnival Corp. finished flat. Royal Caribbean rose 0.7%
MGM Resorts, Las Vegas Sands, Wynn Resorts — An uptick in coronavirus cases in the U.S. and abroad pressured casino stocks on Thursday. Shares of MGM Resorts International fell 1.4%. Las Vegas Sands rose 0.1% after trading in negative territory earlier in the session, and Wynn Resorts dropped 2.2%. Nevada is now requiring people to wear masks in public places.