A Gap store in New York, August 2, 2020.
Scott Mlyn | CNBC
Check out the companies that are making headlines in midday trading.
Medtronic – The medical device company stocks rose 3.5% after Medtronic beat Wall Street expectations for the first quarter of the fiscal year. The company's adjusted earnings per share of 62 cents was 43 cents above analysts' expectations, according to FactSet, and sales fell below expectations. Sales in the Diabetes segment decreased less than in other business areas. Medtronic did not provide any guidance for the future, but said the pandemic had recovered faster than expected.
Apple – The iPhone maker's stock fell 1.5% in midday trading, a fraction of Apple's robust year-to-date earnings. The decline on Tuesday came after a California federal judge said Epic Games, the maker of the popular online game Fortnite, can still get access to Apple's software development tools, but the game itself is not available on the App Store. Despite Tuesday's losses, Apple stock is up 68.8% this year.
Best Buy – Best Buy stocks fell more than 5% even after the electronics retailer posted strong results in the second quarter. The company reported earnings of $ 1.71 per share, beating a refinitive estimate of $ 1.08. Revenue and revenue in the same store also exceeded expectations, as digital revenue more than tripled in the quarter. CFO Matt Bilunas, however, the strong sales trend is unlikely to continue at the same pace.
J. M. Smucker – Grocery inventory rose 8% after the company posted higher-than-expected earnings and sales in the first quarter of fiscal. J. M. Smucker reported adjusted earnings of $ 2.37 per share on sales of $ 1.97 billion. Analysts surveyed by FactSet searched for earnings per share of $ 1.67 and revenue of $ 1.81 billion. The company saw sales growth across all retail categories in the US and internationally.
Exxon Mobile, Pfizer, Raytheon Technologies – The energy giant's shares were down 3% after S&P Dow Jones Indices announced it would remove the company from the Dow Jones Industrial Average. Pfizer and Raytheon fell 2% and 3% respectively when it was announced that they too would be removed from the benchmark. Salesforce, Amgen, and Honeywell will all join the Dow, and each stock rose more than 3% on Tuesday.
Facebook – Shares rose 2.5% after UBS raised its price target for the social media company from $ 242 to a street high of $ 330. The bank sees potential growth in Facebook's new e-commerce initiatives. The new target corresponds to a profit of 18%.
Gap – The retailer's shares rose more than 8% after Citi upgraded the stock to buy from neutral. Citi said although Gap was unable to outsource its Old Navy brand, the company still sees up to 50% upside potential over the company's Athleta brand. Gordon Haskett's Dan Bilson hit a similar tone on Monday regarding Gap's Athleta brand, saying the sports brand was an up and coming rival of Lululemon.
Chipotle – Shares in the Mexican fast food chain rose 1.3% after Bernstein raised its target price on the stock from $ 1,300 to $ 1,600 per share. The new target makes Berstein the biggest chipotle bull on Wall Street. "The number of mobile orders has also tripled. Lower delivery support will likely lead to a shift in the order channel and not to data loss," said the analyst.
L Brands – Shares rose more than 3% after MKM upgraded the retailer to buy from Neutral. The Wall Street company said it was optimistic to outperform the company's Bath & Body Works brand during the rest of the coronavirus pandemic and beyond. MKM also cited better than expected revenue and cost reduction initiatives as catalysts for the upgrade.
Starbucks – Shares in the world's largest coffee chain rose nearly 3% after Stifel upgraded the stock to buy from the hold. The analyst said Starbucks rating was "appropriate" and the company's strategic initiatives would result in "more robust" performance as mobility improves.
American Airlines shares fell more than 2% on news that the company will cut 19,000 jobs when federal aid runs out in October. Currently, Americans are banned from laying off workers until September 30 under a $ 25 billion aid package.
– with reports from CNBC's Yun Li, Jesse Pound, Tom Franck, Fred Imbert and Pippa Stevens.