Here are the stocks making headlines in midday trading.
Walmart, Microsoft – Shares of Walmart jumped 4.5% to its session high after the supermarket chain confirmed it's teaming up with Microsoft in a bid for popular Chinese social media app TikTok. TikTok is nearing an agreement to sell its U.S., Canadian, Australian and New Zealand operations in a deal likely in the $20 billion to $30 billion range and it could announce a deal in the coming days, sources say. Microsoft shares gained nearly 2.5%.
Abbott Laboratories — Shares of Abbott Laboratories jumped nearly 8% after the company received U.S. marketing authorization for a Covid-19 antigen test that can deliver results within 15 minutes. The test will sell for $5. The company said it expects to ship tens of millions of tests next month.
Peloton — Shares of the stationary bike company popped 4.5% after Goldman Sachs — which has a buy rating on the stock — hiked its 12-month price target to $96 from $84 per share. The Wall Street firm said expectations from the stay-at-home stock's growth and profitability are "far too low," even after the stock has rallied more than 140% this year.
JPMorgan, Wells Fargo — Bank stocks rose after Fed Chair Jerome Powell said that the bank would take new approaches to inflation and unemployment that could lead to inflation running above 2% for a period of time. Bond yields for longer-dated maturities rose, reflecting higher inflation expectations, and bank stocks followed. JPMorgan gained 3.3%, while Wells Fargo climbed 3.3%.
Norwegian Cruise Line, United Airlines, American Airlines — Travel stocks surged following the FDA's emergency authorization for Abbott's rapid coronavirus test. Shares of Norwegian Cruise Line Holdings jumped 5.9%, while United and American Airlines climbed 5.8% and 3.8%, respectively.
Live Nation — The concert stock was the biggest winner in the S&P 500 at midday trading amid optimism about rapid coronavirus testing. Shares of Live Nation jumped 8.8%. The stock was still down more than 18% for the year as the pandemic has brought live entertainment to a halt in most of the United States.
DraftKings — The sports gambling stock rose 0.5% after ESPN reported that the NBA playoffs would continue. Players refused to play in Wednesday night's games after a police officer in Wisconsin shot a Black man in the back.
Box — Shares of the cloud storage company surged 4.9% following its strong quarterly results. Box reported earnings of 18 cents per share on revenue of $192.3 million. Analysts expected earnings of 12 cents per share on revenue of $189.6 million, according to Refinitiv. The company also upped its full year revenue and profit guidance.
Dollar Tree — The discount retailer saw its stock drop more than 7% after the company declined to give forward guidance with its second quarter report. The company did beat expectations on the top and bottom lines, according to analysts surveyed by Refinitiv. The stock was still up more than 50% from its late-March lows.
Coty — The beauty stock fell more than 8% after the company reported a wider than expected loss for its fiscal fourth quarter. Net revenues for the quarter were down 63% year over year.
Marvell Technology – Shares of the chip company gained 0.8% after Credit Suisse reinstated coverage with an outperform rating. The firm said that new product lines will increase revenue, and noted that the management team is "executing well."
Darden Restaurants – Shares of the restaurant company gained more than 3.7% after Stephens resumed coverage with an overweight rating, calling Darden its "new best idea." "DRI investors can find a compelling combination of remarking historical performance, above-average COVID-19 results, and a multiple that has not yet flexed," the firm said.