Nora Tam | South China Morning Post | Getty Images
Check out the companies making headlines in midday trading.
Amazon, Apple — Shares of Apple and Amazon rose more than 2% each to hit record highs as traders piled back into the big tech names and out of the so-called reopening trade. Apple traded above $350 per share for the first time while Amazon hovered around $2,650 per share.
Tesla — Shares of Tesla jumped nearly 8% to an all-time high and it’s also the first time for the electric car-maker to top the $1,000 threshold. The gains came after CEO Elon Musk said internally he is pushing the company to begin “volume production” of its Semi commercial truck. Its recent momentum was also fueled by its electric vehicle sales data out of China that showed a recovery from the pandemic.
AMC Entertainment — Shares of the movie theater chain jumped 10% on Wednesday after the company announced that it would reopen worldwide next month. Almost all theaters in the U.S. and UK will be open with limited capacity for some of the highly anticipated July releases, the company said on its earnings call. The theaters have been mostly shut down since mid-March.
Five Below – Shares of the retailer jumped more than 11% despite the company reporting first quarter results that missed expectations on both the top and bottom line. Five Below lost 91 cents per share during the quarter, compared with estimates of a 33-cent loss. The company did say that 90% of its stores have now reopened, and Street analysts pointed to a sales recovery as reasons to be bullish on the stock.
Starbucks – Shares of the coffee chain slipped more than 4% after the company said that revenue lost in its fiscal third quarter thanks to the pandmic came to as much as $3.2 billion. For the year the company expects same-store sales in the U.S. and China – Starbucks’ largest markets – to decline between 10% and 20%.
Etsy – Shares of Etsy gained nearly 5% after Jefferies upgraded the online crafts retailer to buy from hold. The bank said the “home nesting dynamics” and repeat purchases from face mask sales are driving higher long-term gross merchandise sales growth.
Wells Fargo — Shares of the bank fell more than 5% after its chief financial officer said the company expected another large increase in loan loss reserves. CFO John Shrewsberry’s comments at a Morgan Stanley conference were more pessimistic that previous remarks by Morgan Staley CEO James Gorman.
Hertz, Whiting Petroleum — Shares of these bankrupt companies retreated after a wild run fueled by speculation by retail investors. Car renter Hertz dropped 27%, while Whiting Petroleum and J.C. Penney 20% each. Chesapeake Energy, which is preparing for a bankruptcy filing, fell about 20% as well. Many on Wall Street are warning against buying into those bankrupt names as equity holders are last in line for payout and typically get wiped out in bankruptcy.
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