McDonald’s french fries being prepared.
Daniel Acker | Bloomberg | Getty Images
Check out the companies making headlines in midday trading.
Rivian Automotive — Rivian Automotive shares tanked 19% after the electric vehicle maker announced plans to raise $1.5 billion in convertible notes and offered preliminary third-quarter revenue guidance roughly in line with Wall Street’s expectations. Rivian said it anticipates revenue to range between $1.29 billion and $1.33 billion, versus the $1.3 billion forecast by analysts polled by LSEG, formerly known as Refinitiv.
Exxon Mobil — Shares slid more than 2.3% in midday trading following a further decline in oil prices on the back of an uncertain demand outlook and macroeconomic future.
Clorox — Shares dropped 7.7% on Thursday, one day after the product maker offered worse fiscal first-quarter guidance than analysts polled by FactSet expected. The company said a cyberattack overshadowed benefits from better pricing, cost reduction and supply chain improvements.
UWM Holdings — Shares popped 5.7% after the mortgage company was upgraded by BTIG to buy from neutral. The firm said UWM Holdings’ valuation doesn’t reflect upside from a potential stabilization in interest rates.
Orchard Therapeutics — Shares nearly doubled after Japanese pharmaceutical company Kyowa Kirin announced plans to acquire the biotechnology firm, which specializes in gene therapy, for $478 million.
Vestis — Shares dropped 4.8% after Redburn Atlantic initiated coverage of the uniform company with a buy rating and noted limited valuation downside, saying “risk reward for the stock appears asymmetric.” Vestis completed a spinoff from Aramark on Monday.
Oculis — Shares rose 3.4% after Stifel initiated coverage of the biopharma company with a buy rating and $35 target price. The investment bank cited Oculis’ pipeline of innovative technologies as a reason for the rating.
First Citizens BancShares — Shares gained 1% after Wedbush initiated the regional bank at an outperform rating, citing two recent acquisitions as catalysts for a positive outlook.
Carrier Global — Shares of the HVAC company dipped 1.3% after Bank of America downgraded Carrier to underperform from neutral. The bank cited slowing demand in Europe for heat pumps as one reason to be negative on the stock.
Johnson & Johnson — Shares of the health-care giant added 0.8% in midday trading after RBC initiated company coverage with an outperform rating. Analyst Shagun Singh noted further potential that has yet to be realized from Johnson & Johnson’s spinoff of Kenvue earlier in 2023.
Constellation Brands — Shares of the alcoholic beverage maker dipped more than 3% midday after Constellation reported sales of wine and spirits fell 14% on a year-over-year basis as well as an 8% decrease in depletions, an industry term for the number of cases sold to retailers by a distributor. Overall, however, the company topped analysts’ earnings and revenue expectations and raised its guidance for its fiscal 2024.
Lamb Weston — Lamb Weston shares jumped 10%. On Thursday, the french fry producer, which supplies McDonald’s, beat analysts’ expectations in its latest quarter on the top and bottom lines. It also raised its fiscal-year guidance. CEO Tom Werner cited solid demand and a favorable pricing environment for raising the fiscal-year guidance.
Instacart — Instacart fell 2.9% after Bernstein initiated coverage of the company at a market perform rating, noting that increased competition challenged the delivery company’s strong digital advertising business.
— CNBC’s Brian Evans, Alex Harring, Tanaya Macheel, Sarah Min, Jesse Pound, Pia Singh, Samantha Subin and Michelle Fox Theobald contributed reporting.