Sep 16, 2020
Stocks making the biggest moves midday: FedEx, DraftKings, Lennar, Tapestry & more
This news has been received from: CNBC
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A woman walks past FedEx Corp. Ground vehicle parked in the Midtown neighborhood of New York, U.S., on Friday, Dec. 4, 2015.John Taggart | Bloomberg | Getty Images
Here are the companies making headlines in midday trading.
FedEx – Shares of the shipping company jumped more than 6% after the company beat top and bottom line estimates in the first quarter.The shipping giant earned $4.87 per share on an adjusted basis, which was handily above the $2.69 analysts had been expecting, according to estimates from Refinitiv. Revenue came in at $19.3 billion.
KB Home – The homebuilder stock advanced more than 4% after Evercore ISI upgraded the stock to an outperform rating in a note titled "housing's golden age." "Today, as the global economy reels from COVID-19, the US housing industry stands tall," the firm said.
DraftKings — Shares of the sports gaming company jumped 8.3% with the Big Ten conference set to start its college football season in October. The company also announced a partnership with the NFL's New York Giants.
Lennar — Shares of the homebuilder rose 4% after RBC upgraded the stock to outperform from market perform. The firm said in a note that the company was well positioned to protect its margins amid rising demand for housing and had upside value from its stake in Opendoor, which is set to go public through a SPAC.
Tapestry — The apparel stock rose 8% after Deutsche Bank upgraded it to buy from hold. The firm said in a note that the parent company of Kate Spade and Coach is undervalued relative to peers and is set up for faster-than-expected revenue growth.
Overstock.com — Overstock shares rose more than 3% after analysts at Wedbush and Credit Suisse initiated the online retailer with outperform ratings. "We see multiple catalysts, both on the macro and micro level that we believe can drive continued upside to revenue and EBITDA estimates," Wedbush said. Credit Suisse noted Overstock has the opportunity to "reverse years of underperformance, and capitalize on home furnishing's strong online growth."
Goldman Sachs — Bank stocks rose broadly ahead of the Federal Reserve's statement, with Goldman Sachs rising 2% to push the Dow higher. The stocks have struggled as of late.
Las Vegas Sands, Wynn Resorts, MGM Resorts — Casino stocks struggled on Wednesday after a trio of downgrades from Roth Capital. The firm cut its target price and switch its rating to neutral from buy for all three stocks, according to FactSet. Shares of MGM Resorts dropped 3.6%, while Las Vegas Sands and Wynn Resorts saw declines of more than 2%.Related Tags
- Breaking News: Markets
- FedEx Corp
- KB Home
- Overstock.com Inc
- Draftkings Inc
News Source: CNBC
Beta Weakens to Tropical Depression, Moves Inland
The U.S. National Hurricane Center says the storm system known as Beta has been downgraded to a tropical depression but still threatens to dump heavy rain as it moves inland over Texas.
In its latest report Tuesday, the hurricane center says Beta was centered about 177 kilometers south, southwest of the city of Houston and its winds had diminished to about 55 kilometers per hour. It was moving to the northeast at about four kilometers per hour.
While tropical storm and surge warnings have been discontinued, forecasters say the system is still likely to drop 10 to 25 centimeters of rain over parts of Texas with isolated areas seeing as much as 50 centimeters. The cities of Houston and Galveston have reported flooding in streets and along coastal areas.
The hurricane center says the remnants of the storm are likely to pick up speed as it moves inland over southeastern Texas through Wednesday and then over Louisiana and Mississippi from Wednesday night through Friday.
Beta made landfall late Monday just north of Port O'Connor, Texas, becoming the ninth named storm that made landfall in the continental United States this year. That tied a record set in 1916.
Beta was named for the second letter in the Greek alphabet because the hurricane center had run out of conventional names for storms — the first time that has happened in 15 years, and only the second time since the 1950s.