Check out the companies making headlines in midday trading.
Nike — Shares of the apparel giant surged 8.8% on Wednesday after the company reported better-than-expected results for its fiscal first quarter. The company earned 95 cents per share on $10.95 billion of revenue. Analysts were expecting 47 cents per share and $9.15 billion, according to Refinitiv. Nike reported large growth in its digital sales and women's apparel business.
Johnson & Johnson — Shares of Johnson & Johnson rose 0.2% after the pharmaceutical and consumer products maker said it began a phase three trial for its coronavirus vaccine candidate. The trial will include up to 60,000 adults from across the U.S. who will be randomly selected to receive the potential vaccine or a placebo.
Tesla – Shares of the electric vehicle company slid more than 10% following Tuesday's "Battery Day." At the widely-anticipated event, CEO Elon Musk gave manufacturing and production updates that included a more than 50% reduction in the cost of batteries, as well as a $25,000 vehicle. But both are a few years out, and Wall Street analysts noted that execution risk remains a concern.
Stitch Fix – Shares of the online clothing styling company plunged more than 15% after a wider-than-expected loss during the fourth quarter. The company lost 44 cents per share, compared with the 16-cent loss analysts surveyed by Refinitiv expected. Revenue, however, topped estimates, and active clients rose 9% year over year.
Nikola – Selling in Nikola continued on Wednesday with shares falling another 25%. The Wall Street Journal reported that talks between the electric-truck maker and several energy partners on hydrogen-refueling stations stalled after a recent short-seller report, which claimed that Nikola made "an ocean of lies." Founder Trevor Milton has stepped down voluntarily due to the increased scrutiny.
Twitter – Shares of Twitter jumped more than 6% after Pivotal Research upgraded the social media platform to buy from hold. The Wall Street firm said the company's third-quarter earnings should act as a "positive catalyst" for the stock, citing tailwinds including the 2021 Olympics and a potential subscription business.
KB Home — The homebuilder stock fell more than 7% despite KB Home beating Wall Street expectations for earnings and revenue for its fiscal third quarter. KeyBanc downgraded the stock to sector weight from overweight.
Peloton — Shares of Peloton climbed 0.9% after Amazon said it didn't build the "Prime bike" that exercise equipment maker Echelon claimed to be "Amazon's first-ever connected fitness product." The launch was widely heralded as Amazon's first foray into the smart bike market and caused shares of Peloton to fall as much as 6% on Tuesday. Amazon has told Echelon to change the bike's branding and to stop selling it.
Lululemon — Shares of Lululemon gained 1% after the athletic retailer announced the company will restart its stock repurchase program, which was halted due to Covid-19.
Western Digital — Shares of Western Digital soared more than 6% after the chipmaker announced it will split its flash and hard disk drive groups into separate business units. Craig-Hallum upgraded Western Digital to buy from hold following the announcement.
American Express — Shares of American Express fell nearly 3% after Bank of America downgraded the credit card company to underperform from neutral. Bank of America analysts said they are concerned about "billing volumes" as travel spending is slow to recover during the coronavirus.
–CNBC's Pippa Stevens, Jesse Pound and Fred Imbert contributed reporting.
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