Check out the companies making headlines in midday trading.
Alibaba, Baidu, JD.com — Shares of the China-based companies fell midday after JPMorgan Chase downgraded the stocks to underweight. Their stocks tumbled 9%, 7% and 8%, respectively, amid a new shutdown in Shenzhen and renewed U.S. delisting fears.
Apple — The company’s stock fell 2% as one of the its biggest suppliers in China said it would pause operations in Shenzhen amid a new Covid-19 lockdown. KeyBanc also reiterated its outperform rating on shares of the technology giants and said that iPhone demand remains strong.
Occidental Petroleum, Chevron – The energy companies fell 4% and 3% midday after analysts at Morgan Stanley downgraded the stocks to equal-weight from overweight. The bank noted that while both companies have outperformed peers in recent months, they currently offer less attractive relative valuations. Oil prices also moved lower Monday.
Ford — Shares of the auto company dipped about 1% after Jefferies reiterated its hold rating and lowered its price target. The Wall Street firm slashed its price projection on Ford shares to $18 from $20, citing worries about “a stagflationary environment of higher input costs and continued supply constraints.”
Tyson Foods — The poultry company’s stock fell 2.4% after BMO Capital markets downgraded the it to market perform from outperform. BMO said it’s concerned about “underlying fundamentals” in beef.
Nike — Shares for the sports apparel giant tumbled 3.4%, furthering losses this year as geopolitical risks continue to weigh on the retailer. On Monday, UBS reiterated a buy rating for Nike, but analysts noted that its business in China is not recovering as fast as the firm expected. Last year, Chinese consumers boycotted the American company, after several companies in the West refused to source cotton from the Xinjiang province, calling out forced labor issues
Peloton — The at-home fitness stock lost more than 2% after Morgan Stanley initiated coverage of it with an equal weight rating, saying it lacks near-term visibility for Peloton. Still, it said it leans bullish as its price target of $32 implies about 50% upside.
Papa John’s — Shares rose more than 2% after Loop Capital reiterated its buy rating on the pizza chain. The firm said Papa John’s comparable store sales accelerated and could “improve even further soon.”
Robinhood — Shares fell 4% midday after Goldman Sachs reiterated its neutral buy rating, citing market concerns about the company’s “ability to grow the business and scale into pro?tability.” The company could be poised for re-rating if it can “translate its new product momentum into a return to revenue and user growth,” the analysts wrote.
— CNBC’s Tanaya Macheel, Yun Li, Hannah Miao and Sarah Min contributed reporting