Shoppers, some wearing PPE (Personal Protective Equipment), face masks or covers as a precaution against COVID-19, line up to enter a recently reopened Nike store at Gunwharf Keys Shopping Center in Portsmouth, southern England, on June 16. 2020.
Adrian Dennis | AFP | Getty Images
Check out the companies that are making headlines in midday trading.
Nike – The apparel giant's shares rose 8.8% on Wednesday after the company reported better-than-expected results for the first quarter of its fiscal year. The company made 95 cents per share on sales of $ 10.95 billion. According to Refinitiv, analysts expected 47 cents per share, or $ 9.15 billion. Nike saw strong growth in digital sales and womenswear.
Johnson & Johnson – Johnson & Johnson shares rose 0.2% after the pharmaceutical and consumer goods maker announced it would start a phase 3 study for its coronavirus vaccine candidate. The study will include up to 60,000 US adults who will be randomly selected to receive the potential vaccine or placebo.
Tesla – The electric vehicle manufacturer's shares fell more than 10% after "Battery Day" on Tuesday. At the highly anticipated event, CEO Elon Musk announced production and manufacturing updates that included a 50% reduction in battery costs and a $ 25,000 vehicle. Both are a few years away, however, and Wall Street analysts noted that execution risk remains a concern.
Stitch Fix – Shares in the online apparel styling company fell more than 15% after falling more than expected in the fourth quarter. The company lost 44 cents a share, compared to the 16 cents loss analysts surveyed by Refinitiv. However, sales exceeded estimates and the number of active customers increased 9% year over year.
Nikola – The Nikola sale resumed Wednesday, with shares falling another 25%. The Wall Street Journal reported on it Talks between the electric truck maker and several energy partners about hydrogen filling stations were interrupted after a recently published short-seller report claiming Nikola created "an ocean of lies." Founder Trevor Milton has voluntarily resigned due to increased scrutiny.
Twitter – Twitter's shares rose more than 6% after Pivotal Research updated the social media platform to buy off the hold. The Wall Street company said the company's third-quarter earnings should act as a "positive catalyst" for the stock, citing tailwinds like the 2021 Olympics and a potential subscription deal.
KB Home – Homebuilder stock fell more than 7% despite KB Home beating Wall Street's earnings and revenue expectations for the third fiscal quarter. KeyBanc downgraded the stock from overweight to sector weight.
Peloton – Peloton shares rose 0.9% after Amazon said it did not build the "Prime Bike," which exercise equipment maker Echelon called "Amazon's first connected fitness product." The launch was widely heralded as Amazon's first entry into the smart bike market, and it caused Peloton shares to decline as much as 6% on Tuesday. Amazon has instructed Echelon to change the branding of the bike and stop selling it.
Lululemon – Lululemon shares rose 1% after the athletic retailer announced that the company would resume its share buyback program, which was suspended due to Covid-19.
Western Digital – Shares in Western Digital rose more than 6% after the chipmaker announced it would split its flash and hard drive groups into separate businesses. Craig-Hallum upgraded Western Digital for the hold purchase following the announcement.
American Express – American Express stocks fell nearly 3% after Bank of America downgraded the credit card company from neutral to underperformance. Bank of America analysts expressed concern about "billing volume" as travel expenses have been slow to recover during the coronavirus.
–CNBC's Pippa Stevens, Jesse Pound and Fred Imbert contributed to the coverage.
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