Check out the companies making headlines in midday trading.
Ford Motor, General Motors — Shares of Ford and GM fell 7% and 5% respectively, after UBS downgraded both stocks. The firm lowered Ford to a sell rating from neutral and cut GM to a neutral from a buy. The auto industry is moving toward vehicle oversupply following three years of unprecedented pricing power, UBS said.
Casino stocks — Shares of hotel and casino companies were the top decliners in the S&P 500, with Wynn Resorts down 11.6% and Las Vegas Sands losing 8.5%. MGM Resorts dipped by 3.5%. The moves came as Chinese cities reimposed Covid lockdowns thanks to a spike in daily cases over a weeklong holiday.
Kraft Heinz — The food maker’s shares rose 2% after Goldman Sachs upgraded them to buy from neutral, noting that higher profit margins haven’t been fully priced into the stock. Other food and beverage stocks got a lift too, including J.M. Smucker and Conagra Brands, which added 2%. Campbell Soup rose 1.5%.
Rivian Automotive — Shares of the EV startup dropped nearly 10% after the company said it will recall nearly all of its vehicles due to a possible issue of a loose fastener that could make a driver lose steering control.
Nvidia — The chip stock fell more than 4% to hit a 52-week low after the Biden administration published a sweeping set of export controls, including a plan to cut China off from certain semiconductor chips made with U.S. equipment. The sell-off came even after Nvidia said the new restriction will not have a material effect on its business.
Five9 — Shares of the software company tumbled 22% after CEO Rowan Trollope resigned from his role and position on the board of directors. Trollope has accepted the position of CEO at a privately held pre-initial public offering company, Five9 announced Monday.
PPG Industries — Shares dropped 4% after the company warned that third-quarter results will fall short of expectations, saying adjusted earnings per share will come in 5% to 7% below the low end of the company’s previous estimates of $1.75 to $2.00. PPG blamed “softer demand conditions” in Europe and China that the company expects will continue in the fourth quarter.
Merck — Shares of the pharmaceutical giant rose 2.8% after Guggenheim upgraded Merck to buy from neutral. Guggenheim said in a note that the growth for top drugs Keytruda and Gardasil is “very positive” and that there is reason to be confident in Merck’s development pipeline.
Robinhood — The stock trading app saw its shares fall more than 2% after Barclays reiterated Robinhood as underweight. The Wall Street firm said it’s sticking with its negative rating but expects that revenue could be slightly better than expected in the third quarter.
Etsy — Shares of the online market place were down 1.4% despite Goldman Sachs initiating the stock as a buy because of its resilient business model and opportunities for growth.
— CNBC’s Yun Li, Jesse Pound, Alex Harring, Sarah Min and Michael Bloom contributed reporting