Check out the companies making headlines in midday trading.
Bed Bath & Beyond – Shares of the big-box retailer plunged 22% after the company slashed its revenue and earnings outlook amid supply chain challenges and inflation. Bed Bath & Beyond cited a steep drop-off in shopper traffic in August. The stock has wiped out its jaw-dropping meme-stock rally in 2021, falling over 4% on the year. Other retail stocks including Gap, Newell Brands and Bath & Body Works declined as well.
Kohl's – Kohl's shares sunk over 12% after Bank of America double-downgraded the stock to an underperform rating from buy, citing persistent supply chain problems. The firm also slashed its price target to $48 per share from $75.
CarMax – Shares of the used vehicle retailer tanked more than 12% after reporting disappointing quarterly earnings. CarMax reported earnings of $1.72 per share, while analysts expected earnings of $1.90 per share, according to Refinitiv. Used car same-store sales rose 6.2%, lower than the 7.3% forecast.
Virgin Galactic – Virgin Galactic shares soared more than 12% a day after the Federal Aviation Administration cleared the space travel company to resume launches after concluding a probe of an incident during a flight July 11. The FAA determined Virgin Galactic's flight deviated from its assigned path and had not communicated the change to the agency as required.
Philip Morris International, Altria – Shares of Philip Morris and Altria fell about 5% and more than 6%, respectively, after the U.S. International Trade Commission ordered the two companies to stop the sales and imports of their Iqos tobacco device. The agency made the ruling due to a claim by rival R.J. Reynolds that the Iqos product infringed on its patents. The case is moving to administrative review.
Lordstown Motors – The electric truck maker's shares jumped about 8% after Bloomberg reported it's close to a deal to sell its Ohio car factory for an undisclosed amount to Taiwan's Foxconn Technology. Lordstown had bought the plant from General Motors less than two years ago.
McCormick – McCormick shares retreated 1.8% even after the spice maker's quarterly earnings report beat Wall Street expectations. The company posted adjusted quarterly earnings of 80 cents per share, topping estimates by 8 cents, with revenue slightly above projections. However, McCormick also cut its full-year earnings forecast due to inflation and logistics issues.
Paychex – Payroll services company Paychex saw its share price increase about 5% after it reported strong quarterly earnings and revenue as clients' employees began returning to in-office work. It also raised its business outlook for the year.
Nvidia, Electronic Arts – Shares of Nvidia and Electronic Arts rallied about 1.2% and 3.9%, respectively after the companies announced Electronic Arts would put more of its video games on Nvidia's cloud gaming service.
Advanced Micro Devices – Shares of AMD gained 2.5% after the semiconductor company announced it would expand its collaboration with Google Cloud.
Starbucks – Shares of Starbucks fell 1.7% after Atlantic Equities downgraded the coffee chain stock to a neutral from outperform. The firm said wage inflation and growth concerns in China could weigh on Starbucks' profit.
— CNBC's Maggie Fitzgerald, Yun Li and Tanaya Macheel contributed reporting
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