A salesman carries a Best Buy shopping basket in San Francisco, California.
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Check out the companies making headlines in midday trading.
American Airlines, United Airlines, Carnival — Airlines and cruise stocks surged on Tuesday as stocks tied to an economic recovery continued to rise after a series of positive vaccine announcements. Shares of American and United both jumped more than 6%, while Carnival led the way for cruise stocks with an 8.5% gain.
Tesla – Shares of the electric vehicle company jumped more than 4% to hit a record high as investors continue to favor the stock. The move pushed Tesla’s market cap above $500 billion for the first time on record. Shares have gained more than 550% this year.
Best Buy – Shares of Best Buy dropped more than 5% after the retailer sounded alarms on the headwinds from higher shipping costs, inventory challenges and lower-margin holiday sales. Best Buy also declined to provide guidance for the fourth quarter due to the uncertainties from the pandemic. The company reported better-than-expected earnings amid strong online sales in the third quarter.
Dollar Tree — Shares of the discount retailer jumped more than 10% on the back of quarterly results that beat analyst expectations. Dollar Tree reported third-quarter earnings of $1.39 per share on revenue of $6.18 billion. Analysts polled by FactSet expected a profit of $1.15 per share on revenue of $6.13 billion. Same-store sales for the company increased by 5.1% on a year-over-year basis, topping a forecast of 4.7%.
Hormel Foods — Shares of the food company lost more than 3% after missing on the top and bottom lines of its quarterly results. Hormel reported earnings of 43 cents per share on revenue of $2.42 billion. Analysts expected earnings of 44 cents on revenue of $2.59 billion, according to Refinitiv.
Abercrombie & Fitch — Abercrombie shares fell 4.1% after the company announced an early exit from four of its European flagship locations. The company said the move was part of its plan of “repositioning from larger format, tourist-dependent flagship locations to smaller, omni-enabled stores that cater to local customers.”
Ambarella — The semiconductor stock jumped 12% after Ambarella beat Wall Street expectations in its third quarter report. The company reported 9 cents in adjusted earnings per share and $56.1 million in revenue. Analysts surveyed by FactSet were looking for 5 cents per share and $54.1 million in revenue. Fourth quarter guidance was also above expectations.
Medtronic — Shares of Medtronic popped 2.8% following its better-than-expected earnings. The medical technology company reported earnings of $1.02 per share, topping estimates of 80 cents per share, according to Refinitiv. Revenue came in at $7.65 billion, higher than the forecast $7.1 billion.
Urban Outfitters – Shares of Urban Outfitters fell nearly 4% despite its quarterly results that exceeded analysts’ expectations. The apparel retailer reported quarterly earnings of 78 cents per share, beating the 45 cent consensus estimate, according to Refinitiv. Its revenue also came in above forecasts.
— with reporting from Pippa Stevens, Yun Li and Jesse Pound.